There are indications that Honeywell group may to invest 150 billion naira ($750 m) over the next three years to fund growth across its businesses and also list one or two subsidiaries on Nigerian Stock Exchange, NSE.
The Chairman, Honeywell Group, Oba Otudeko told the Reuters Africa Investment Summit on that Honeywell, with interests in agriculture, real estate and energy, is expanding capacity to tap into the consumer base in Nigeria’s economy.
Accordiing to him “We have a plan to invest up to 150 billion naira in the next 2-3 years and we have started.” He said 50 billion naira of that investment would be in Honeywell Flour Mills, its flour milling business which it listed six years ago.
The company has a market capitalization of 23.5 billion naira and is the country’s second-biggest maker of pasta. But it faces growing competition at home, not least from Flour Mills of Nigeria and Dangote Flour Mills (a unit of South Africa’s Tiger Brands).
Otudeko said the parent firm, set up 40 years ago, was recapitalizing the flour milling business in a bid to remain competitive. The parent has invested 20 billion naira in the past two years across its businesses.