Lafarge fills war chest for Indian expansion

20 May 2013

Cement giant Lafarge has raised $265 million to fund its ambitious growth strategy in India.

The French firm will use cash raised from selling a 14% stake in its Indian subsidiary to Baring Private Equity Asia to build a 10-million-tonne plant in Khushkhera, Rajasthan, in the first instance.

No further specifics about its plans have been announced.

"The plan is to expand Lafarge’s production in India significantly over the next five years," Jean Eric Salata, Baring Asia’s chief executive officer, told The Wall Street Journal India on Wednesday.

The transaction is both the biggest private-equity investment in India and in the country’s cement sector so far this year, according to VC Circle reports.

A company spokesperson told GCR that Lafarge will retain "complete control" of its subsidiary by holding the remaining 86% of the shares.

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