Lafarge acquires L & T Concrete
In line with its strategy to develop its Aggregates and Concrete
business in emerging markets, Lafarge acquired L & T Concrete for an
enterprise value of 226 million euros. Lafarge will be acquiring 66
highly efficient concrete plants across India, in key markets such as
Delhi, Kolkata, Mumbai and Bangalore, with total estimated volumes of
4.1Mm3 in 2008 and a market share of approximately 25%.
The acquisition will be accretive to Lafarge earnings per share from
2009. With this acquisition, Lafarge establishes itself as the leader in
the Indian ready-mix concrete market.
The ready-mix concrete market is still in an early stage of its
development in India, but offers strong growth and value creation
potential. The Indian construction market is developing to meet
significant demand for new housing, urbanisation and infrastructure.
The acquisition marks an important step in Lafarge’s strategy to
develop its Aggregates and Concrete business in emerging markets.
It will provide the group with an excellent platform to develop
further its Aggregates and Concrete business in the fast-growing Indian
market, along with a very experienced team.
India offers strong potential for introducing innovative products.
Lafarge boasts the world’s leading research facility in building
materials and has developed innovative, value-added concrete products
over the last ten years which contribute to improving construction
methods and working conditions on building sites.
One of Lafarge’s key strategic focuses today is innovation in
concrete, which translates into an accelerated roll-out of value-added
concrete products in both developed and emerging markets.
Lafarge will be aiming to offer the India market its most advanced
and value creative solutions for construction. Lafarge chairman and CEO,
Bruno Lafont said “Lafarge was the first in its industry to move into
Aggregates and Concrete business in a significant way, over 10 years ago
and to develop a unique expertise in creating value in the Concrete
With this acquisition, we are taking a pioneering step in the
emerging India market.”
This acquisition follows the recent start-up of operations at
Lafarge’s first Greenfield ready-mix concrete plant in Raipur, in the
state of Chhattisgarh and marks a decisive step in Lafarge’s strategy to
grow its presence in the India ready-mix market.