French firm Lafarge acquires L&T concrete businessMay 15th, 2008 - 4:14 pm ICT by admin
Mumbai, May 15 (IANS) French cement major Lafarge has acquired construction and engineering major Larsen and Toubro’s ready-mix-concrete (RMC) business for Rs.14.80 billion. Announcing this here Thursday, a spokesperson of the company said L&T had been supplying RMC to all segments under the brand name L&T Concrete for the last 10 years with a market share of 25 percent.
In one decade, L&T Concrete had established 66 RMC plants across the country covering all metros and major Tier I and Tier II cities.
With this acquisition, Lafarge through its subsidiary Lafarge India has acquired a pan Indian presence.
According to a L&T spokesperson: “The exit from this line is a part of its strategy to focus on its core business and the services required in the RMC business are very different from L&T’s engineering and construction business.”
L&T had earlier exited its cement business through a demerger and sale to Grasim in 2004. The RMC unit was, however, held back and it became a separate entity - L&T Concrete.
According to the company’s spokesperson: “The sale has been effected through a transfer of the business along with all assets, liabilities and employees connected with RMC business.”