L&T sells ready-mix concrete business to Lafarge for Rs1,480 crore

15 May 2008

Engineering and construction major Larsen and Toubro (L&T) has sold its ready-mix-concrete (RMC) business to French cement major Lafarge for Rs1,480 crore ($349 million).

The sale includes the entire business along with all assets, liabilities and employees connected with the RMC business.

L&T, which fully exited the cement business now, plans to invest the sale proceeds in its core businesses, including power projects.

L&T had earlier exited its cement business through a demerger and sale to Grasim in the year 2004.

Lafarge, the world's second biggest cement maker after Holcim, said it plans to expand into emerging markets and establish its leadership in India.

The acquisition will give Lafarge 66 concrete plants, located in key markets such as Delhi, Kolkata, Mumbai and Bangalore, with a total estimated capacity of 4.1 million cubic metre in 2008, making it India's biggest ready-mix concrete company.