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Lafarge India has achieved a production capacity of eight million tonnes per annum. It recently commissioned of two integrated cement plants of one mtpa each in Chattisgarh. The company's capacity was at 6.5 mtpa in FY'10.
Mr Bruno Lafont, Chairman and CEO, Lafarge, said the company will continue to invest in brownfield expansion (“internal development”) and innovation in India.
He said the French building material company, which laid off employees recently due to shut down of a kiln in North America, is not afraid with issues of delays and environmental clearances and will also consider greenfield expansions.
Lafarge recently enhanced capacity through new production lines in Jharkhand and West Bengal. It has four greenfield projects in Rajasthan, Karnataka, Meghalaya and Himachal Pradesh that are in different stages of completion.
The company opened its innovation centre in Mumbai. This will undertake research and development for product innovations. Lafont said, “We will be launching a new solution for mud houses with cement solution which is more sustainable and they will last five years without repair.”
In India, Lafarge competes with Holcim-owned ACC and Ambuja Cements which together have a capacity of 50 mtpa; and with UltraTech Cement that has a production capacity of 52 mtpa.
Lafarge's India venture was marked by a series of acquisitions, similar to most MNC cement companies that came to India. It started off with the acquisition of Tata Steel's cement business in 1999, followed by Raymond's cement facility in 2001. It bought over Larsen and Toubro's concrete business in 2008.
Lafarge has a major presence in the eastern and central India. “We have selected the east to start with. We will select other places also, but do not have a pan India strategy. We have more of a local strategy. We have earlier acquired limestone resources too,” said Mr Lafont.
Last week global rating agency Standard and Poor's had revised Lafarge's credit rating to negative as it views that the company may not be able to improve its credit metrics in 2012. Globally, Lafarge has raised €2.2 billion in 2011 through divestments, including its profitable Gypsum business.
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