Business   

Lafarge to set up 10 RMC plants in India

— PHOTO; PAUL NORONHA

FROM STRENGTH TO STRENGTH: Bradley Mulroney (left), Regional President Asia and Middle East, Lafarge, with Mike Glover, Managing Director, Lafarge Aggregates and Concrete India Pvt. Ltd. at a press conference in Mumbai on Thursday.

MUMBAI: A day after acquiring L&T’s ready-mix concrete (RMC) business for Rs. 1,480 crore, world’s second largest cement maker Lafarge on Thursday said that it would set up 10 RMC plants in India each year, entailing an investment of up to $150 million.

“The Indian RMC business is growing by 25 per cent every year. In order to maintain our market share, which now stands at 25 per cent, we will put up 10 plants each year, apart from looking at suitable targets for acquisitions,” Lafarge Aggregates & Concrete India Managing Director, Mike Glover, told PTI here.

It costs around $10-15 million to put up an RMC plant. However, it does not include the cost of the land, he said.

The acquisition of Larsen and Toubro’s (L&T) ready-mix concrete business, which has 66 plants across the country would help Lafarge gain an immediate market leadership in India’s RMC market, he said. Mr. Glover also said that Lafarge would fund the acquisition through a mix of equity and debt. “The equity portion would be in excess of 50 per cent, while to service the debt component, we are in talks with a couple of banks in India,” he said. — PTI

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Rupee dips to 42.75 a dollar
Lafarge to set up 10 RMC plants in India
CPCL net nearly doubles
CSE gets offers from European exchanges
Sensex up 375 points
Venture to produce white pepper
Nandan Nilekani visits NRLDC
PNB Q4 net profit up two-fold at Rs. 544 crore
Rane to set up unit in Singur
RPG group plans to enter print media
Possible solace for Port Trust’s dredging worries
Syndicate Bank net up
Exchange Rates
Bullion Rates
Citi India programme for small investors
SEBI clears Reliance Infratel IPO
Yahoo! India launches new service
Competitiveness index: India slips
Tata Tele: DoT moves TDSAT
Showroom for bronze items

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu