Tyre maker Ceat today said it would invest up to Rs 250 crore to set up its first manufacturing plant in Bangladesh within the next 30 months.
"Our board has approved to set a plant in Bangladesh. The proposed facility will incur an investment of about Rs 240 crore-Rs 250 crore," Ceat Managing Director Paras Chowdhary said.
This will be the company's first plant in Bangladesh, where it is already exporting tyres from India, he added.
"The production capacity will be 65 metric tonne per day. This will be the first such big tyre plant in Bangladesh. The country has only a few small tyre plants," Chowdhary said.
The company will initially roll out only cross-ply tyres for various segments like trucks and light commercial segments, he added.
"The products will be mainly for the Bangladesh market," he said without ruling out export possibilities from the country.
Chowdhary said the company was currently scouting for land to set up the manufacturing facility.
"We are hopeful of starting construction work in the next 3-6 months. The plant will be operational within little over two years," he added.
Asked about the source of funding the project, Chowdhary said it would be through a mix of internal accruals and debt.
"In the board meeting held today, we discussed several overseas projects and finally decided to set up a plant in Bangladesh," he said.