“The Bangladesh market is not large enough for a regular tyre plant. However, we have the knowledge to successfully operate plants of smaller capacity, based on our Sri Lanka experience and we plan to leverage this in the Bangladesh venture,” said Goenka.

Ceat’s Sri Lankan model involves a small plant of 65 tonnes per day. In Bangladesh it will import 80% of raw materials. The Bangladesh plant will make cross-ply tyres for trucks, light and small commercial vehicles and two-wheelers for the local market. Ceat is also looking for export to neighbouring markets like Nepal and Myanmar.