NWK now has a ‘sugar daddy’ sitting at its table, as investment giant Remgro holds 25% of Grindrod.
This network will assist partners to expand their regional footprint and is likely to result in a reshuffling of divisions to achieve specialised value chains and greater economies of scale, according to NWK managing director Danie Marais.
NWK has a broad reach in agriculture, being involved in poultry hatcheries and chicks, animal feeds, milling and oils, and is expanding its presence in Southern African footprint.
Remgro has extensive operations across the food supply chain, including Rainbow Chickens and Foodcorp (now trading as RCL Foods) and energy and sugar (TSB Sugar). Grindrod specialises in the handling and transportation of bulk commodities by road, rail and sea and has invested in infrastructure throughout sub-Saharan Africa.
Grindrod also recently purchased a 20% stake in Senwes for R444 million, which brings into the net Senwes’ retail and grain operations throughout central South Africa as well as grain trading offices in Malawi, Zambia and Mozambique.
NWK has an existing relationship supplying day-old chickens to Rainbow Chickens, and bigger things could come out of that relationship, said Marais.
Twitter: @robynjoubert
