CEAT Plans Rs 250-cr Tyre Plant in Bangladesh

Indian leading tyre makers CEAT Ltd. will invest Rs 250 crore to set up its first greenfield tyre manufacturing plant in Bangladesh within the next 30 months.

This is one of the largest manufacturing investments in Bangladesh by an Indian firm, and the first by an Indian tyre maker. Ceat plans to employ 550 people in the first phase of manufacturing, and aims to start production by end-2013.

Bangladesh, with a population of around 160 million, imports more than 95 percent of its tyre requirement, thus providing an interesting investment opportunity for the manufacture of bias ply tyres.

CEAT 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.

The plant will manufacture truck bias, LCV, last mile and two-three wheelers tyres for the local Bangladesh market.