Tata-Nitol to set up country's 1st truck plant in Kishoreganj
Saturday, 4 December 2010
Bangladesh, which only has experience in assembling automobiles, will soon turn into an automobile manufacturing country that will pave way for exporting 'Made in Bangladesh' trucks to the global market for the first time, reports UNB.
Nitol-Niloy Group of Bangladesh joined hands with Tata Motors, India' s largest automobile company, to set up the country's first automobile manufacturing plant that will give an impetus to the sector.
The two private sector business conglomerates of Bangladesh and India think the project would bring manifold benefits for the country through employment generation and boosting export earnings.
Mini and light trucks, which have large demand both in domestic and global market, will be manufactured in the joint-venture plant to be set up on 250 bighas of land at Pakundia in Kishoreganj at a cost of nearly Tk 10.0 billion (1000 crore).
The project, which has been planned to reap long-term benefit, will likely reduce the price of trucks in the domestic market, provide employment opportunity to many people and make country's export-list bigger.
"A four-member Tata team has already concluded the feasibility study. We'll also submit our report to the Executive Board of Tata Motors by the third week of this month. Things are fine and everything is positive," Nitol-Niloy Group chairman Abdul Matlub Ahmed told the news agency AKM Moinuddin over phone.
He said a deal would be signed by the end of this month or first week of January next year.
"Meeting domestic demand, the surplus manufactured trucks and automobile parts will be exported to different countries including India where Bangladesh enjoys duty-free access. We're moving towards long-term benefit," Matlub said.
Besides, he said, there will be a drivers and mechanics training institute within the factory area from which 50,000 trained drivers and mechanics will come out over the next 10 years.
"Some 98 per cent workforces would be employed from Bangladesh to run the factory," Matlub said.
The proposed joint-venture factory, with annual capacity of manufacturing 50,000 trucks, will be in full-swing production within the shortest possible time after the signing of the deal. Though annual production capacity has been targeted at 50,000 trucks, the fist-year production output would not be more than 15,000. "All kinds of parts of trucks including body and other related appliances will be manufactured. It'll be a composite factory," Matlub said. Asked about the product tag, he said: "Obviously, the truck will be tagged as 'Made in Bangladesh'. You know, the ratio of investment for Nitol Niloy Group and Tata Motors is 60:40." At present, 25,000 commercial vehicles mainly imported from India are being sold each year in Bangladesh. It is expected that the market would further grow within next few years and the future joint-venture factory will be able to address the overwhelming demand. Nitol Niloy Group and Tata Motors have already set up a joint-venture plant in Jessore to assemble medium-big and heavy-duty trucks and buses.
Nitol-Niloy Group of Bangladesh joined hands with Tata Motors, India' s largest automobile company, to set up the country's first automobile manufacturing plant that will give an impetus to the sector.
The two private sector business conglomerates of Bangladesh and India think the project would bring manifold benefits for the country through employment generation and boosting export earnings.
Mini and light trucks, which have large demand both in domestic and global market, will be manufactured in the joint-venture plant to be set up on 250 bighas of land at Pakundia in Kishoreganj at a cost of nearly Tk 10.0 billion (1000 crore).
The project, which has been planned to reap long-term benefit, will likely reduce the price of trucks in the domestic market, provide employment opportunity to many people and make country's export-list bigger.
"A four-member Tata team has already concluded the feasibility study. We'll also submit our report to the Executive Board of Tata Motors by the third week of this month. Things are fine and everything is positive," Nitol-Niloy Group chairman Abdul Matlub Ahmed told the news agency AKM Moinuddin over phone.
He said a deal would be signed by the end of this month or first week of January next year.
"Meeting domestic demand, the surplus manufactured trucks and automobile parts will be exported to different countries including India where Bangladesh enjoys duty-free access. We're moving towards long-term benefit," Matlub said.
Besides, he said, there will be a drivers and mechanics training institute within the factory area from which 50,000 trained drivers and mechanics will come out over the next 10 years.
"Some 98 per cent workforces would be employed from Bangladesh to run the factory," Matlub said.
The proposed joint-venture factory, with annual capacity of manufacturing 50,000 trucks, will be in full-swing production within the shortest possible time after the signing of the deal. Though annual production capacity has been targeted at 50,000 trucks, the fist-year production output would not be more than 15,000. "All kinds of parts of trucks including body and other related appliances will be manufactured. It'll be a composite factory," Matlub said. Asked about the product tag, he said: "Obviously, the truck will be tagged as 'Made in Bangladesh'. You know, the ratio of investment for Nitol Niloy Group and Tata Motors is 60:40." At present, 25,000 commercial vehicles mainly imported from India are being sold each year in Bangladesh. It is expected that the market would further grow within next few years and the future joint-venture factory will be able to address the overwhelming demand. Nitol Niloy Group and Tata Motors have already set up a joint-venture plant in Jessore to assemble medium-big and heavy-duty trucks and buses.