Indian tyre major CEAT to set up plant in B’desh
Dhaka, Feb 9 (UNB) - Indian tyre major CEAT, an RPG Group company, has announced it will set up a tyre manufacturing plant in Bangladesh that will help provide employment to some 550 people in the first phase of operation.
CEAT will be investing approximately 250 crore Indian Rupees (approx. 425 crore taka) to set up a Greenfield tyre manufacturing facility in Bangladesh and plans to replicate its Sri Lanka model by setting up a small plant of 65 tonnes per day.
It aims to capture 40 percent of the total projected demand of bias tyres in the region by 2015 through the local production, said a press release on Thursday.
This will be one of the largest manufacturing investments in Bangladesh by an Indian company.
The company has already done the necessary groundwork and aims to have tyres rolling out of its Bangladesh plant by the end of 2013.
The Bangladesh market is not large enough for a regular-sized tyre plant. However, CEAT has the knowledge to successfully operate plants of smaller capacity based on its Sri Lanka experience and the company plans to leverage this in the Bangladesh venture.
While announcing their Bangladesh move in Mumbai on Wednesday, Anant Goenka, deputy managing director of CEAT, said: “Bangladesh economy has been growing at around 6-7 percent for the last five to six years. Our aim is to put up a plant that manufactures the best quality products using the best of local skills while contributing to the development of the local Bangladesh economy.”
CEAT will provide the end-to-end domain knowledge and product technology to the Bangladesh subsidiary. The plant will manufacture truck bias, LCV, last mile and 2/3 wheelers tyres for the local
Bangladesh market.
CEAT, the flagship company of RPG Enterprises, was established in 1958 and today CEAT is one of India’s leading tyre manufacturers and has a strong presence in both domestic and international markets.
The company manufactures over 10 million tyres every year and enjoys a major market share in the light truck andtruck tyre market.
CEAT will be investing approximately 250 crore Indian Rupees (approx. 425 crore taka) to set up a Greenfield tyre manufacturing facility in Bangladesh and plans to replicate its Sri Lanka model by setting up a small plant of 65 tonnes per day.
It aims to capture 40 percent of the total projected demand of bias tyres in the region by 2015 through the local production, said a press release on Thursday.
This will be one of the largest manufacturing investments in Bangladesh by an Indian company.
The company has already done the necessary groundwork and aims to have tyres rolling out of its Bangladesh plant by the end of 2013.
The Bangladesh market is not large enough for a regular-sized tyre plant. However, CEAT has the knowledge to successfully operate plants of smaller capacity based on its Sri Lanka experience and the company plans to leverage this in the Bangladesh venture.
While announcing their Bangladesh move in Mumbai on Wednesday, Anant Goenka, deputy managing director of CEAT, said: “Bangladesh economy has been growing at around 6-7 percent for the last five to six years. Our aim is to put up a plant that manufactures the best quality products using the best of local skills while contributing to the development of the local Bangladesh economy.”
CEAT will provide the end-to-end domain knowledge and product technology to the Bangladesh subsidiary. The plant will manufacture truck bias, LCV, last mile and 2/3 wheelers tyres for the local
Bangladesh market.
CEAT, the flagship company of RPG Enterprises, was established in 1958 and today CEAT is one of India’s leading tyre manufacturers and has a strong presence in both domestic and international markets.
The company manufactures over 10 million tyres every year and enjoys a major market share in the light truck andtruck tyre market.
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