Tolaram Group, the Singapore based business conglomerate behind several household brands in Nigeria, like Indomie, Minimie, Power Oil, Power Pasta and Hypo Bleach, has signed a partnership agreement with Arla Foods of Denmark, one of the world’s largest Dairy Company, and the owner of Dano brand of dairy products – another brand known for its quality in Nigeria.
The Joint Venture Company, “TG Arla Dairy Products” has been setup as a 50:50 partnership and will initially focus on powdered milk and liquid milk, which is accelerating in demand around the big cities. The company believes that the market is also ready for more value added products as the middle class is growing rapidly.
The new joint venture has started production from September and will handle packaging, and promotion of Arla products in Nigeria. The state of the art manufacturing facility has been set up at an estimated cost of N 4 billion at Lekki in Lagos. When working at full capacity, the factory will help provide employment to more than 1000 persons.
The sales and distribution of the various products from this facility will be carried out by Multipro Consumer Products Limited, another Tolaram Group company specializing in distribution of some of the biggest Nigerian consumer brands like Indomie, Hypo, Power Oil, Power Pasta & Minimie noodles and snacks.
Whilst announcing Tolaram Group’s agreement to enter the partnership, the Managing Director of Tolaram Group, Africa- Mr. Haresh Aswanisaid, ”Tolaram’s partnership with Arla is aimed at providing further impetus to our efforts in providing affordable and wholesome nutrition for Nigerians generally and children specifically. This also fits Tolaram Group’s plans to bring in more Foreign Direct Investments and long-term businesses into Nigeria.”
Steen Hadsbjerg, head of Arla’s business region in Sub Saharan Africa said, “With the improved living standards, families are increasingly demanding safe and affordable nutrition. West Africa faces a milk deficit, which gives Arla an opportunity to provide milk powder and other dairy products that meet the consumers’ needs. We are here to build a long-term business, and that requires strong local partners. We are therefore pleased to join with Tolaram, a leading FMCG company in Nigeria”.
As their stated aim, the JV will continuously monitor impact on local milk production through a comprehensive CSR monitoring program and will look at opportunities for promoting the development of local milk production & supply through provision of technology and know how support in cooperation with the Federal Government of Nigeria.
As part of its strategy to enhance its portfolio in its other African geographies, Tolaram Group and Arla aim to jointly investigate dairy opportunities in west and southern Africa. This presents a win-win for both the parties who have a shared vision for growth in Africa.
The Tolaram Arla venture will rely on the deep understanding of Nigerian consumer goods market, extensive distribution network of Tolaram Group and the research & development technology, global production and sourcing capabilities of Arla Foods.