Friday, June 21, 2024
spot_img

Lafarge may close India ops

Date:

Share post:

spot_img
spot_img

From Our Special Correspondent

 New Delhi: The French cement major Lafarge which was involved in controversial mining in Meghalaya for its cement plant in neighbouring Bangladesh might sell its stake and leave the country entirely despite the growing demand for cement in the region. According to reports, Lafarge is in talks with private equity and financial firms to sell a 20-25 per cent stake in its India unit for around Rs 1650 crore. The world’s largest cement maker has contacted firms like Kohlberg Kravis Roberts and Co and Temasek Holdings Pvt Ltd, sources said, with a potential deal valuing Lafarge’s Indian operations at around $1.2 billion.

Lafarge may also exit India entirely if it gets a strategic investor to buy its operations in the country, sources said.

Lafarge started its India operations after buying out Tata Steel’s cement business in 1999 and expanded by buying Indian engineering conglomerate Larsen and Toubro’s ready-mix concrete business in 2008.

Lafarge may also exit India entirely if it gets a strategic investor to buy its operations in the country, reports said. The cement company is in a drive to shed non-core assets to cut its debt. A stake sale in its Indian unit would come at a time when analysts expect demand for cement to start recovering, driven by a government push to expedite infrastructure projects, especially ahead of general elections due by 2014.

Cement sales growth has been slow this year in India as a result of sluggish homebuilding and construction in Asia’s third-largest economy and margins of cement makers have been pressured due to an increase in the cost of fuel and transport.

spot_img
spot_img

Related articles

Delhi HC stays trial court’s order for CM Kejriwal’s bail release in excise policy case

New Delhi, June 21: In a turn of events, the Delhi High Court on Friday stayed the release...

EV startups from India, EU pitch innovative tech in battery recycling

Shillong, June 21: In a bid to enhance the Electric Vehicle (EV) landscape and ecosystems in India and...

Space startups up 200X in just 2 years, India’s share in global space to rise 4X by 2030

Shillong, June 21: There has been a massive 200 times increase in the number of space startups in...

Ahead of Sonakshi’s wedding, father Shatrughan dines with Zaheer Iqbal and family

Shillong, June 21: Putting all rumours to rest actor-politician Shatrughan Sinha finally made an appearance with Zaheer Iqbal,...