AMBUY Ambuja Cements Limited (PK)

PARIS—LafargeHolcim Ltd. said Monday it had agreed to sell its interest in Lafarge India to local conglomerate Nirma Ltd. for an enterprise value of $1.4 billion, marking a major step in the Franco-Swiss building-materials group plans to raise money as it adjusts to tough conditions in some of its most important markets.

"This agreement is an important step in our 3.5 billion Swiss franc ($3.56 billion) divestment program," said LafargeHolcim Chief Executive Eric Olsen. "With this deal, two-thirds of the program has been secured and the remainder of the program is well on track."

LafargeHolcim, created through the merger of France's Lafarge with Switzerland's Holcim last year, announced in November that it would sell some assets after missing third-quarter sales and earnings expectations as the stronger Swiss franc and lower prices weighed on its results. LafargeHolcim in particular has faced challenges in China, Russia and India, where demand for cement has weakened.

The company, which will continue to operate in India through its subsidiaries ACC Ltd. and Ambuja Cements Ltd., said proceeds from the deal would be used to reduce its debt. It has already completed the sale of its business in South Korea and signed an agreement to divest its minority shareholding in Saudi Arabia since announcing the divestment program.

Write to Nick Kostov at Nick.Kostov@wsj.com

(END) Dow Jones Newswires

July 11, 2016 03:15 ET (07:15 GMT)

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