Indian arm of French cement giant Lafarge is on the prowl again. After sitting pretty for almost three years, the cement major is keenly weighing its options in an attempt to grab a part of the 40 million tonnes cement capacity that is now up for sale.

In an exclusive interview with Business Standard, Martin Kriegner, chief executive officer of Lafarge India said, "As per our global strategy, Asia is an important market and we cannot afford to miss out on India and China.

"Though we agree that Larsen & Toubro was a potential growth opportunity, we have not missed much as 40 million tonnes of capacity is (still) up for sale."

Having acquired capacity amounting to 5 million tonnes in 1999 and 2000 in eastern India, Lafarge's growth strategy broadly involves organic expansion in east and central India. It is evaluating potential buyouts in other markets too.

"We would now embark on a step-by-step acquisition. However, we evaluate every project on the economic value added criterion. If any project adds value to the existing asset base, we will give it a serious look. We are currently evaluating some projects but we are not in a position to divulge specific details now," Kriegner said.

The company has invested close to Rs 600 crore (Rs 6 billion) till date in India and its operations have already started generating profits.

Having acquired a 20 per cent market share in the east, Lafarge is evaluating the option of setting up a 1 million tonne grinding unit in West Bengal at an investment of Rs 100 crore (Rs 1 billion). Also on the drawing board is a 50-60 mega watt coal-based captive power plant for its two units in Chhattisgarh at an investment of around Rs 300 crore (Rs 3 billion).

According to Kriegner, with the parent company's backing, there is no dearth of funds for healthy or "EVA positive" projects. Also, he did not rule out the possibility of an initial public offering by the Indian arm, though he added that no definite decision had been taken on this.