Stockbrokers have backed Honeywell Flour Mills Plc on its decision to invest N10bn on the expansion of its operations.

The stockbrokers expressed their support for the company when they visited its Apapa office on Tuesday, a statement from the company said.

Specifically, the stockbrokers promised they would mobilise investors to invest in the company as a result of its new N10bn agro-allied industrial complex located along the Lagos-Ibadan Expressway.

The General Manager, Client Services, Compass Investments and Securities, Mr. Sam Ndata, who led the stockbrokers on the visit, said the investment in the factory was impressive.

Ndata, who said the investment was a proof that Honeywell was prepared to dominate the industry in which it operates, advised the company’s management to turn to the capital market to source capital for new investments.

For their part, he said the stockbrokers would give the company the needed support as they were aware that equity financing was the best way four businesses to source funds.

“It (the complex) will be a cluster site for the production and processing of general food and agro-allied products with emphasis on manufacturing value-added human and animal food products, leveraging backward integration for raw material procurement”, the Managing Director, Honeywell Flour Mills, Mr. Lanre Jaiyeola, said.

Jaiyeola explained that work had commenced on the development of the agro-allied industrial complex which sits on a 62.8 hectare land and situated around the Sagamu Inter-change.

He added that the funds for the project would be raised through equity and that talks had commenced with financial institutions like the Bank of Industry.

According to him, when completed, the development will help boost the company’s revenue and increase its contribution to the country’s economy – through the creation of jobs for Nigerians.

He told the stockbrokers that the company had strong potential and a bright outlook, thanks to its good leadership, strong and focused management team, professionalism.

He added that the continuous training and re-training of staff, value-adding strategies and strong emphasis on quality were factors that also positioned Honeywell for sustained growth.

Source: Punch (By Simon Ejembi)