Lafarge SA signed an agreement to raise €200m through capital increase subscribed by Baring Private Equity Asia, and representing a 14 per cent minority stake in its Indian subsidiary, Lafarge India Private Ltd.
This transaction, which is subject to the approval of local regulatory authorities, will accelerate Lafarge's growth plans in India in all its product lines: Cement, Aggregates and Concrete.
Lafarge entered the Indian market in 1999 through its cement business and currently operates four cement plants: two plants in the state of Chhattisgarh and Grinding Units in Jharkhand and West Bengal.
"The Group will continue to grow in India and provide innovative products and solutions to accompany India's urbanisation needs, particularly in the housing and infrastructure sectors," Lafarge said in a statement.
Baring Private Equity Asia is one of the largest and most established independent private equity firms in Asia and advises funds that manage more than US$5bn in committed capital. The firm runs a pan-Asian investment programme, specialising in mid-cap buyouts and providing growth capital to companies for expansion or acquisitions.