Thriving tyre industry cannot attract investors
Sunday, 17 January 2010
Our Correspondent
CHITTAGONG, Jan 16: Although the market of vehicle tyre is rapidly growing in the country no major industrial enterprise is coming forward to invest money in the sector due to lack of raw materials of tyre and uninterrupted power supply.
The concerned traders said, the country is spending around Tk. 10,000 million (1000 crore) annually on import of tyres of buses, cars, trucks and other multi-wheelers and light vehicles.
Bangladesh Road Transport Authority (BRTA) officials in Chittagong said, new vehicles are joining the traffic every week, expanding the tyre market. But the market is fully import-dependent.
Over 1.5 million tyres amounting to Tk. 10,000 million are imported every year which constitute 90 per cent of the country's total demand. The rest 10 per cent comes from the local manufacturers, distributors in the port city said.
They said that 60 per cent of the imported tyres come from India while 40 per cent of them are imported from China, Indonesia, Japan and Thailand.
A director of Chittagong Chamber of Commerce and Industry associated with import of tyres said, Bangladesh has become a big market of tyres. It has expanded largely in recent years. But it could not attract the local investors due to lack of raw material for the tyre industry.
An entrepreneur observed that tyre industry needs large investment. The raw materials such as carbon, rubber, chemical and yarn are not available in the country. Besides, it needs continuous power supply. So the investors are not coming to this industry.
Hussain Tyres, a local manufacturer went into commercial production of tyre in 1996. It manufactures different kinds of tyres for light trucks, microbuses and other light vehicles. Gazi group is also manufacturing tyres for the last three years.
Sources said that Rahimafrooz took an initiative to manufacture tyres six years back but the tyre market was then smaller compared to today's market. So they did not proceed further. Meghna group is expected to invest in the tyre industry. It is now manufacturing tubes of motor cycle tyres.
CHITTAGONG, Jan 16: Although the market of vehicle tyre is rapidly growing in the country no major industrial enterprise is coming forward to invest money in the sector due to lack of raw materials of tyre and uninterrupted power supply.
The concerned traders said, the country is spending around Tk. 10,000 million (1000 crore) annually on import of tyres of buses, cars, trucks and other multi-wheelers and light vehicles.
Bangladesh Road Transport Authority (BRTA) officials in Chittagong said, new vehicles are joining the traffic every week, expanding the tyre market. But the market is fully import-dependent.
Over 1.5 million tyres amounting to Tk. 10,000 million are imported every year which constitute 90 per cent of the country's total demand. The rest 10 per cent comes from the local manufacturers, distributors in the port city said.
They said that 60 per cent of the imported tyres come from India while 40 per cent of them are imported from China, Indonesia, Japan and Thailand.
A director of Chittagong Chamber of Commerce and Industry associated with import of tyres said, Bangladesh has become a big market of tyres. It has expanded largely in recent years. But it could not attract the local investors due to lack of raw material for the tyre industry.
An entrepreneur observed that tyre industry needs large investment. The raw materials such as carbon, rubber, chemical and yarn are not available in the country. Besides, it needs continuous power supply. So the investors are not coming to this industry.
Hussain Tyres, a local manufacturer went into commercial production of tyre in 1996. It manufactures different kinds of tyres for light trucks, microbuses and other light vehicles. Gazi group is also manufacturing tyres for the last three years.
Sources said that Rahimafrooz took an initiative to manufacture tyres six years back but the tyre market was then smaller compared to today's market. So they did not proceed further. Meghna group is expected to invest in the tyre industry. It is now manufacturing tubes of motor cycle tyres.