AICO Africa, with interests in cotton ginning and FMCG products, is planning to hive off Scottco; a cotton spinning factory it had acquired earlier.
“We are in the process of rationalizing the business and concentrate on the core businesses. Cotton ginning, seed and FMCG products are the ones that we want to focus on. Scottco does not suit the business model”, Pat Devenish – CEO told fibre2fashion.
Cottco, the cotton ginning arm, is the flagship company of AICO and is the single largest ginner and marketer of cotton in sub-Saharan Africa. It has an installed ginning capacity of 265,000 tons per year and has a 45 percent market share in Zambia and plans to increase it to 50 percent.
However, overseas players, particularly, the Chinese, who have invested in the cotton value-chain are now giving tough competition to Cottco. The company sources its cotton from around 100,000 cotton farmers, who are under contract.
Providing more details, Pat Devenish said, “We have interested buyers and we are working upon the monetary aspects of it to finalize the transactions. The buyers are to be kept confidential as revealing that might affect the dealings with the buyers”.
He added by saying, “We will retain three businesses, viz. Seedco – a hybrid maize seed company, Cottco – a cotton ginning company and Olivine Industries – a FMCG Company”.
Fibre2fashion News Desk - India
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