CEAT Ltd. and A K Khan & Company Ltd., one of Bangladesh’s most reputed business houses, have signed an agreement to form a joint venture for tyre manufacturing in Bangladesh. 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. Under the agreement, CEAT Ltd. will have a 70 per cent shareholding and A K Khan & Company Ltd. the balance 30 per cent in the project.
CEAT Ltd. will provide technical and business expertise and manage the JV company operations, while A K Khan will bring in its vast knowledge of the local market.
Speaking on the occasion, Mr. Anant Goenka, Managing Director, CEAT Ltd., observed: “We are pleased to partner with A K Khan & Company Ltd., one of the most reputed business conglomerates in Bangladesh. This strategic partnership will enable us to establish a leadership presence in the large tyre market of Bangladesh. The CEAT manufacturing facility at its full capacity will be able to cater to majority of the tyre requirement of Bangladesh. With this plant, our aim is to manufacture the high quality products using the best of local skills while contributing to the development of the local Bangladesh economy.”
Mr. Salahuddin Kasem Khan, Managing Director, A K Khan & Co., said: “Besides catering to the growing local market, the plant will earn valuable foreign exchange for the country by exporting approximately 20 per cent of its output to the region and rest of the world.”
The joint venture plant will manufacture bias tyres for trucks, light commercial vehicles, and two- and three-wheelers for the local Bangladesh market. The company plans an investment of $67 million for a capacity of 110 tonnes per day in phases.