By MICHAEL EBOH

Flour Mills Nigeria Plc has said that it has embarked on an expansionary programme that will improve its production capacity and strengthen its leadership position in the flour milling industry.

Speaking at its Annual General Meeting in Lagos, Mr. George Coumantaros, Chairman, Flour Mills, said the company’s plan to invest about N200 billion in different projects, is designed to allow it become a major player in all stages of the food value chain.

He assured shareholders of improved dividends and bonus in the years ahead, saying that the company’s inability to pay high dividends was as a result of the expansionary programme, which is capital intensive and requires all the funds the company can muster.

He said, “Flour Mills has invested more than N150 billion over the past 10 years across the Group. As a demonstration of confidence in the future of a prosperous Nigerian economy, the Group plans further investments in projects worth N200 billion.

“Flour Mills’ goal is to be involved at all stages of the food value chain where a profitable agro-allied platform of cultivating and processing locally produced raw materials will ensure the growth and success of our food business.

“In pursuit of our goals in the food and agro-allied businesses, we continue to explore growth opportunities through acquisitions, mergers, take-overs and other forms of business combinations in other to broaden our earnings base, create synergies and build a profitable and sustainable future.

“We will create and launch new products, deploy our resources to motivate, encourage and provide ultimate satisfaction to our company’s products leveraging on high quality, consistency, fair pricing and efficient delivery.”

At the Annual General Meeting, shareholders of the company approved the decision of the company’s Board and management to acquire a 90 per cent stake Rom Oil Mills Limited, Ibadan.

The approval was a reflection of the shareholders’ support for the long-term business model of the company.

Coumantarous said the acquisition of Rom Oil Mills will further improve group synergies, as part of the raw materials used in the production of refined edible oils and associated products will be sourced from the Group’s commercial farming business.

He said, “We have taken a strategic decision to invest in t he production of refined edible oils and associated products, in furtherance of Flour Mills’ focus on its food and agro-allied business consistent with government’s agriculture transformation agenda. Byproducts of the refined oils will serve as key inputs in the Group’s animal feed mills.”