With $67 million cost, the plant expected to commence operation by end of 2014
Flagship company of the RPG Group, tyre maker Ceat has signed a joint venture agreement with A K Khan & Company, a Bangladesh-based business house, to set up a tyre manufacturing facility in Bangladesh.
The Mumbai-based company and its partner will collectively invest $67 million (Rs 355 crore) towards the new plant which is expected to commence operation by the end of 2014. The plant is the first large scale tyre making plant in Bangladesh with a capacity of 110 metric tonnes per day in phases.
“The joint venture forms part of the long term strategy for both the partners to have a presence in the growing tyre market in Bangladesh”, stated a company release. Under the proposed joint venture, the Indian company will hold a 70% shareholding while the Bangladeshi company will hold the balance.
As per the joint venture agreement, Ceat will provide technical and business expertise and manage the JV company operations while A K Khan & Company will bring in their knowledge of Bangladesh market besides providing the strength of their goodwill and local presence.
Anant Goenka, Managing Director, Ceat, said, “This strategic partnership will enable us to establish a leadership presence in the large tyre market of Bangladesh. The manufacturing facility at its full capacity will be able to cater to majority of the tyre requirement of Bangladesh.”
The plant will manufacture bias tyres in truck, light commercial vehicle, and 2/3 wheeler segments for the local Bangladesh market.
Source: Business Standard