Despite the current slowdown on the Indian market, Lafarge has reaffirmed its commitment given the country’s huge long-term potential.
In an interview with the Economic Times (ET) of India, Martin Kriegner, CEO of Lafarge India, said that even though market growth has slowed from original projections, the company aims to be “more resilient” and is not giving up on any segments. “In the short term, we balance our portfolio. India's potential is huge in infrastructure. The market is valued at EUR300 billion. There are so many segments that we are still not exploiting and they have huge potential,” he told the ET.
Mr Kriegner said that while the market was expected to grow at about eight per cent, growth is probably more in the region of 2-3 per cent. However, given the country’s infrastructure and housing needs, Mr Kriegner anticipates the Indian business to climb higher amongst Lafarge’s global markets where it currently sits within the top 10.
Earlier this year, Lafarge signed an agreement with Baring Private Equity Asia to raise €200m in capital to accelerate its development in India.