Union Dicon Salt Plc., has continued its investment diversification plans with a target on Sub-Saharan African (SSA) consumer market worth over $140billion per annum.

The Company eyes a transformation into an integrated , West African, consumer goods business; though, with an initial focus on foods.

Chuka Mordi, co-managing director/CEOs of Union Dicon Salt, said during a presentation on ‘Beyond Salt’: Facts Behind The Restructuring’ at Nigerian Stock Exchange (NSE) on Monday that part of the success already recorded in the process was the signing of heads of agreement with PNG Gas in Delta state to supply gas to proposed starch processing plant in Umutu in Delta state.

He said that the investors envisage varying opportunities in the business diversification hoping that the operations & products will enable Union Dicon Salt become more competitive in the Sub-Saharan Africa.

Already, the Federal Government has approved Union Dicon Salt Plc’s takeover of Kogi State Staple Crops Processing Zone (SCPZ) to help grow an agric-based industrial sector within the area.

SCPZ is a vast zone where there is commercial production of food that would attract the private sector to set up food processing plant to process food into finished items and other products.

The implementation of SCPZs is estimated to add N660 billion to N1.4 trillion to the economy and estimated to create 250,000 jobs.

The Alape SCPZ is an agro-processing cluster located in a high-food production area that integrates production, processing, and end markets, while providing investors a competitive operating environment.

“UDS has the capacity to actively participate in the over USD 140bn food and consumer market in West Africa, that is forecast to rise to over USD 212bn by 2020.  This market which includes pre-processed, and processed consumer products, present a compelling entry opportunity to UDS Plc.

“How do we actualize this? Management has initiated a 48-month, USD100m strategy aimed at transforming UDS Plc. into an integrated FMCG & Agri – Business with an initial focus on food and agriculture. Our models for this plan are: Farming: Build production capacity in key food areas. Processing: Become a national manufacturer and distributor of FMCG in foods. Logistics: Build an Integrated supply chain and be a processor of agricultural products and food ingredients. Execution is being driven by a clear time table of investments (organic growth), partnerships, and acquisitions”.

In an overview of the SSA consumer market, he said the economy remains one of the fastest growing regions with population growth rate of 5-6%, driving demand for consumer and agricultural goods.

“Consumer expenditure in SSA at US$600bn in 2010 accounted for 8% of all emerging market spending; and expected to reach US$1tn by 2020. Consumer spending in Nigeria and South Africa accounts for 51% of total consumer expenditure. FMCGs constitute the bulk of consumer spending, dividing the market into non-processed, semi-processed goods, and processed goods,” Mordi added.

Also speaking, Bex Nwawudu, co-Managing Director/CEOs of Union Dicon Salt, in order to achieve the new plans for the business, the key objective is to diversify into new business lines, and the distribution of all these products regionally.

“This structure was modelled in line with what we visualise as the optimal strategy for a revitalised, more vibrant, and highly profitable UDS Plc. CBO has begun engaging potential hires to fill top line management roles. Engagement will initially involve the appointments into 4 key roles by Q3 2016, and the appointment of the entire top line management team by Q1 2017. In view of the current state of UDS’s assets and infrastructure, investment is ongoing to scale up the new operations that the business has acquired; key investments under this basis are assets that guarantee quick wins, and that will ensure immediate cash flow generation,” he said among other projections.

The Company also announced that leveraging on 2015’s success and announcing the return of the Union Dicon brand solidifies the equity base by recapitalisation of UDS: “Exercise of its options for 240,000,000 shares of Union Dicon Salt Plc. Drive for Acquisitions is key is to close and finalize the acquisitions of 2016. On Cassava / Rice we are on the final negotiations to acquire 7,900 Ha in Delta State; MOU for Land in Ebonyi State”.

The company said in its audited annual general report that it made a net loss of NGN2.6 million for the year 2015. This is a percentage reduction 96% when compared to its audited results for 2014 when the company made a net loss of NGN87 million.

While the company’s operating expenses increased to NGN78 million compared to NGN61 million recorded in 2014, its administrative expenses crashed to NGN80 million from NGN148 million in 2014. This might signal that a massive job cut was carried out in the company.

According to the company’s disclosure, Dicon Salt Limited and Union Salt Limited which were incorporated as private limited liability companies on 11 October 1984 and 30 May 1991 respectively. These Companies were merged and simultaneously converted into a public limited liability company on 7 May 1993 to become Union Dicon Salt Plc.

The company is also divesting its interest into profitable ventures. Last week, it announced that it paid USD100 million to acquire Alape Staple Crop Processing Zone, SCPZ in Kogi State from Cargill, a US-based agro-industrial company that initially invested in the project.

Union Dicon Salt PLC became listed on the official listing of the Nigerian Stock Exchange on 23 September, 1993. The principal activity of the company is the processing of crude salt. The company is also involved in the sales of packaged water in sachets and plastic bottles.

The issued share capital of the Company is held thus: 28% by Aims Limited, 19% by Defence Industries Corporation, 14% by Danjuma T.Y, 8% by Taraba Fisheries Ltd, 8% by T.Y. Holdings Ltd, 1% by Danjuma Grace Elizabeth, 4% by UDS Plc (Staff Trust Fund) and 18% by others.

Earlier, Mr. Oscar Onyema, chief executive officer of the Nigerian Stock Exchange (NSE) represented by Ms. Tinuade Awe, general counsel and head of Regulation at The Nigerian Stock Exchange (NSE) welcomed the UDS team for daring to come back to the NSE after about six years of exit.

The CEO urged the management to strictly keep faith with the regulations guiding the operations and must not treat the shareholders with levity.