Highly placed industry sources told The Financial Express that the company is negotiating with OCL India Ltd (formerly Orissa Cement Ltd) for acquiring its Rajgangpur plant in north Orissa. Sources also pointed out that Lafarge was looking at acquiring cement capacity in northern Madhya Pradesh and is actively exploring opportunities in the region. OCL India Ltd, situated in Sundargarh district in Orissa, has an installed capacity of over one million tonne. The company is promoted by the Dalmia group and owns the "Konarak" brand of cement. A faxed query to OCL India Ltd, headquartered at New Delhi, did not elicit any response.

Lafarge is also actively looking at acquiring a cement plant in northern Madhya Pradesh. Industry sources pointed out that the Satna belt, which had a number of cement facilities with a capacity of around a million tonne to two million tonne, would be ideal for Lafarge as it would strengthen its hold in the region.

The possible targets among others would be - Satna Cement Works and Birla Vikas of Birla Corporation, Diamond Cement of Mysore Cement and Prism Cement. The Manoj Gaur-owned Jaiprakash Industries, which owns the Jaypee cement brand, is reported to be in talks with Lafarge for their cement business. Jaiprakash Industries has two plants in this region. But sources pointed out that Lafarge is negotiating with another company in the belt for their cement unit. Lafarge officials, however, did not comment on the developments. Analysts say that if the deals come through, it will further strengthen Lafarge's position in eastern India, where it already enjoys a leadership position.