CEAT to launch a plant for Bangladesh

CEAT, the tyre manufacturing company that is based in Mumbai announced its plan for the launch of a new plant in Bangladesh. This plan is to target a production of 65 tonnes with a Rs 250 crore investment. The amount will be through 60% debt and 40% equity. The managing director of CEAT, Anant Goenka claims that major production capacity is upto 80% of trucks and the rest of 2-wheelers and 3-wheelers.

80% of raw material will be exported from India while Sri Lanka being the sole manufacturer currently with up to 50% market being Sri Lanka. CEAT have a strong hold in Sri Lanka for past 15 years and now Bangladesh is expected to be raised to similar levels.

CEAT to launch a plant for Bangladesh
In December 2010, the net profit of the quarter was Rs 5crore. This figure went down to Rs 2.39 crore in December 2011, which is a significant decline of 52.3%. “We will be competing mainly with imports and, therefore, have a cost advantage. There is good demand for Indian manufactured tyres out thereā€, said Goenka, Deputy Managing Director, CEAT.

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