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According to Bangladeshi sources, the Indian tyre making giant CEAT, the flagship company of RPG Enterprises is soon going to open a tyre making factory in that country.
With an initial investment of $67 million CEAT has signed a joint venture with Bangladesh’s AK Khan and Company to set up the plant. The factory is supposed to be built in Bhaluka, Mymensingh. By setting up a manufacturing plant in Bangladesh itself the price of tyres will be lowered by 20-30% as compared to the presently imported tyres from India. According to Jyotibrata Banerjee, MD, CEAT, the company is looking forward to becoming the leading tyre maker in Bangladesh.
The company will also look to export about 30% of their tyres from Bangladesh’s plant to neighbouring Indian Border States. In its starting phase, the plant will make tyres for two-wheelers, trucks and small vehicles while later on, it will also manufacture tyres for automobiles. Currently, the CEAT motorbike tyres cost about 2,400 BDT (Bangladeshi Taka) and this will be reduced to 1,700 BDT after the tyres are manufactured inside the country.
The project was originally announced in 2013, but due to land-related issues, it is already running a couple of years late.
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