Shares of tyre maker CEAT surged over 4% on Thursday morning on its plans to set up a tyre manufacturing plant in Bangladesh.
It will invest about Rs 250 crore for the Bangladesh plant, the RPG group company said, adding it has already done the necessary groundwork and aims to have tyres rolling out from the plant by 2013-end.
"CEAT plans to replicate its Sri Lanka model by setting up a small plant of 65 tons per day (capacity). The company aims to capture 40% of the total projected demand of bias tyres in the region by 2015 through the local production," it said late Wednesday.
CEAT's Bangladesh subsidiary will employ over 550 people in the first phase at the plant, which will manufacture truck, light commercial vehicle and two & three wheeler tyres for the local market.
At 11:05 hrs, CEAT shares were up 4.7% at Rs 89.90 on NSE.
