Lafarge to invest $500 m for capacity expansion

NEW DELHI: Lafarge, the world’s largest cement company, is investing over $500 million in India to expand capacities by six million tonnes. In addition, the company is also in talks with Meghalaya and Rajasthan governments to set up two new plants with capacities of three million tonnes each.

Bruno Lafont, global CEO, Lafarge, told ET that the company expects to complete its six million tonne expansion by 2009, which will take its total capacity in India to 11.5 million tonnes. If the Meghalaya and Rajasthan plants get commissioned, Lafarge’s total capacity could increase to around 18 million tonnes in the next five to seven years.

While Lafarge had entered India by acquiring TISCO’s and Raymond’s cement plants, the company’s current focus is on greenfield expansion in the country. “Our focus is on internal growth rather than acquisitions. Right now our priority is consolidation,” said Mr Lafont.