6 - Vicat

6BUSINESS OVERVIEW6.2. Group strengths and strategy(b) External growth• Acquisitions targeting new markets with considerablepotentialThe Group’s strategy is to continue the industrialdevelopment of its businesses in general, and of itsCement business in particular, while also activelymanaging environmental aspects:- location near a significant market having attractivegrowth potential;- long-term management of geological reserves (objectiveof 100 years for cement) and securing itsoperating licenses;- net contribution by the project to the Group’s resultsin the short term.The Group’s record of growth over the past 30 yearsillustrates the success of this policy to date.In 2010, the Group acquired Bharathi Cement, witha cement works which had a capacity of 5 milliontonnes at the end of 2010 and is strategically locatedbetween Chenai and Bangalore, right in theheart of the booming market of Southern India.This acquisition was financed by the existing lines ofcredit of the Group.• Construction of greenfield sitesAs was achieved in Kazakhstan in 2007, the Groupmay also seize opportunities to enter new developingmarkets by constructing new factories on so-called“greenfield sites”. Such projects are examined veryselectively and must comply with the Group’s abovementioned external growth criteria.In this connection, the Group has completed theconstruction of a factory at the Mynaral site inKazakhstan, which began production at the end of2010, and is building a plant in the State of Karnataka,India, where start-up is scheduled for 2012.6.2.2.2. Ready-mixed concreteThe Group is developing its Ready-mixed concretebusiness to reinforce its cement manufacturing business.This development strategy is in line with thematurity of the relevant markets and their integrationin the Group’s concrete production.The Group’s objective is to create a network ofReady-mixed concrete batching plants around cementfactories and close to its consumption markets,whether by constructing new plants or acquiring existingproducers.The Group’s objective in investing in this businessis vertical integration while prioritizing the flexibilityand mobility of its industrial equipment and ensuringthe profitability of the business.The Group’s development in France, Switzerland,Turkey and the United States illustrates this strategy.In other markets such as Egypt or Senegal, theGroup’s strategy is to follow the evolution of thesemarkets so as to develop its activities once demandfor Ready-mixed concrete is sufficiently high.In 2010, the Group acquired the company L. Thiriet& Cie, with 3 cement plants and 4 quarries, in orderto consolidate its position in Southern Lorraine, closeto the Xeuilley cement plant.6.2.2.3. AggregatesThe Group’s presence in the Aggregates business isintended to provide a total response to its clients’demand for construction materials and to securethe aggregates resources necessary to developthe Ready-mixed concrete activity. Developmentin this business relies on industrial acquisitions andinvestments intended to increase the capacity ofexisting installations and to open new quarries andinstallations.Investments in this business takes into account thefollowing criteria:• proximity to the final markets and the Group’s concretebatching plants;• management of significant geological reserves (objectiveof more than 30 years);• profitability specific to this business.This development plan has been implemented successfullyin France, Switzerland, Turkey and Senegal.2010 registration document VICAT 31