New Delhi, India (BBN)- CEAT, an Indian RPG Group subsidiary, has signed a deal with Chittagaong-based AK Khan & Company to set up a tyre manufacturing facility in Bangladesh.
Under the deal, CEAT will provide technical and business expertise and manage the joint venture (JV) operations, while AK Khan Company will bring in knowledge of the local market besides providing the strength of "goodwill and local presence".
The facility, which will come up at the investment of US$ 67 million, is expected to be functional by the end of December 2014, the entrepreneurs said, adding that the110-tonne per day facility will roll out tyres for trucks, LCVs and 2/3 wheelers for the local market.
The joint venture, in which CEAT will hold 70 per cent stake, is a part of the long-term strategy for both the partners to have a presence in the growing tyre market in Bangladesh, the CEAT said in a press statement.
"This strategic partnership will enable us establish a leadership presence in the large tyre market of Bangladesh," CEAT Managing Director Anant Goenka said.
BBN/SSR/AD-26Jan13-8:30 pm (BST)
