Indian Companies to Invest in Auto Sector in Bangladesh

[eastwatch]

Indians eager to invest in auto sector | Business | bdnews24.com

Indians eager to invest in auto sector
Sun, May 8th, 2011 9:53 pm

Dhaka, May 8 (bdnews24.com) — Indian corporate houses have shown interest in investing in the automobile sector in Bangladesh.

They have recommended creating a special economic zone (SEZ) in Chhatak, Sylhet for the purpose.

A Confederation of Indian Industries (CII) delegation met commerce minister Faruk Khan at his office on Sunday. Team leader Shyamal Gupta, special adviser to Tata International, told reporters after the meeting that goods produced in Bangladesh could be exported and that Indian investors were interested in investing in automobile and engineering sectors.

Bangladesh Chamber of Commerce and Industries (BCCI) president Abdul Matlub Ahmed said Tk 15 billion would be invested in the special economic zone for Indians. "TVS, Tata and many other companies have shown interest in making investment."

"We want to build this zone in Chhatak, where 50 companies will be able to run their production over a 100-acre land," he added.

Shyamal Gupta said joint textile production between Bangladesh and the Indian state of Mizoram was being planned. This process would allow Bangladeshi goods to enter Indian markets without taxes.

Matlub explained, "For example, if a dress is cut here it will be sewn in Mizoram and sold in Indian markets."

Indian government has 480 Bangladeshi products in their negative list, including readymade garments.

bdnews24.com/rb/sh/nir/2145h

 

[TopCat]

I wonder, why they picked Chhatak which is far away from Dhaka and Chittagong and at the border with Meghalaya? If they want to produce something for Indian market then they could invest just right across the border. Is the security situation in Meghalaya or Assam too bad?

 

[TopCat]

Matlub explained, "For example, if a dress is cut here it will be sewn in Mizoram and sold in Indian markets."

Why ? Dont they have cutting master in Mizoram? This guy talk so weired and out of reality...

 

[nForce]

Tata plans to invest in BD's booming automobile sector​

Five years after its three billion dollar investment proposal was turned down by Bangladesh, top Indian conglomerate Tata Group has set its eyes on the country again --- this time on Dhaka's fast booming automobile sector.

Tata's business partner in Bangladesh and head of Nitol-Niloy Group Abdul Matlub Ahmad made the announcement on Sunday, saying the Indian Group is expected to invest Tk15 billion in manufacturing of trucks and cars.

Ahmad, also the head of Indo-Bangla Chamber of Commerce and Industry, said the plant would be set up in northeastern district of Sunamganj, which is close to Bangladesh's border with seven Indian states.

"The selection of the spot is almost finalised. The investment is expected to be made within the next four months," he said, without elaborating.

The $70 billion dollar Tata Group had unveiled a $3 billion investment in Bangladesh's steel, fertilizer and power sectors in 2005 during the Bangladesh Nationalist Party (BNP)-led four-party government.

But it cancelled the proposal after the then government rejected its demand for cheap gas and an uninterrupted supply of the energy for at least two decades.

Matlub said the steel-automobile-salt-IT group has in the recent months expressed interest to invest here, especially in the country's fast growing automobile sector. Tata trucks already dominate the country's lucrative truck market.

The Mumbai-based group could not be contacted for comment on Matlub's announcement.

Matlub, whose group is a sole auto dealer of Tata in Bangladesh, made the disclosure in Dhaka following a talks between a delegation of Indian industrialists and commerce minister M Faruk Khan.

Khan said increasing number of Indian companies now want to invest Bangladesh, being attracted by the country's impressive growth and a congenial foreign investment rules and environment.

He said scaled-up Indian investment in Bangladesh would pare down three billion dollars trade imbalance between the two countries, now skewed in favour of New Delhi.

The minister told a team of Confederation of Indian Industries (CII) that by investing in Bangladesh they could avail duty-free access to 27-nation European Union, the world's largest economic bloc, and some rich western nations.

Bangladesh and some 40 other least developed countries enjoy zero tariff trade access benefit in the EU.

"If they invest in Bangladesh, they will gain access to EU like any other Bangladeshi companies. They can also market their products in Bangladesh or export their products back to their own country," he said.

He, however, said Bangladesh does not need Indian investment in garment and textile sector which is being controlled by local entrepreneurs.

"We don't encourage Indian entrepreneurs to invest in garments sector right now. They can invest in the Information Technology (IT), power and energy and automobile sectors," Khan said.

He said the much expected border bazaars between the two countries will start operation next month.

"Initially, the border haats (bazaars) will open at two sites along the Bangladesh-Meghalaya border. The people of the two countries can use their respective currencies for trading in the haats," he said.

He added the two countries have a plan to launch 10 more such bazaars in the near future to boost border trade between the countries.

CII delegation leader Syamal Gupta said India with its 1.20 billion population --- the world's second most populous nation --- could be a big market for Bangladeshi apparel items.

"Bangladeshi garments are competitive and the shipment cost from Bangladesh to India is very cheap. So I see a bright prospect for Bangladeshi clothing items in India. The size of our clothing market is $38 billion," he said.

"We invite Bangladesh Garments Manufacturers and Exporters Association (BGMEA) to participate in a clothing exhibition in India to promote their garments. The exhibition will be held next month," he said.

Tata plans to invest in BD's booming automobile sector

 

[Zabaniyah]

This is a great initiative from the private sector. Although, I doubt if the country's leaders would welcome this. The article given by nForce proves the point.

Ever wonder why our imports are so high? Even simple products like soaps and Coca-cola cans (seriously?). This is negatively impacting our currency.

Bottom line is, they are afraid to lose control, and avoid ultimately being knocked out.

 

[Gonjo]

Good if they will really be able sale in indian cheap rates. Cause, for any first hand car avg 20 lakh BDT is necessary, 2nd hand good conditioned has reached minimum 8-10 lakhs. So, indian cheap cars will access to a segment of customer if they are able to start the price from atleast 2 lakh.

 

[integra]

Ever wonder why our imports are so high? Even simple products like soaps and Coca-cola cans (seriously?). This is negatively impacting our currency.
.

The sad irony is that most of the BD's living abroad and the ones who knew her in past still believes this sh*t. The import of household stuffs like this have rock bottomed in the last 10 years. Can't even remember when I did I crush a can of imported coke
when its been manufactured here.

The only imports that are made in huge chunks are cars and electronics because of lack in technical expertise regarding this fields.

 

[mautkimaut]

The sad irony is that most of the BD's living abroad and the ones who knew her in past still believes this sh*t. The import of household stuffs like this have rock bottomed in the last 10 years. Can't even remember when I did I crush a can of imported coke
when its been manufactured here.

The only imports that are made in huge chunks are cars and electronics because of lack in technical expertise regarding this fields.

so wouldnt these Indian investments be welcomed?
For Car manufacturing there are lots of anciliary units required too which would give business to Local BD enterpreneurs.
This could be a good move to develop auto industry in BD and a great partnership between India and BD

What say you guys?

 

[integra]

What say you guys?

If they don't follow any dirty politics and unfair
advantage over national resources such as gas
then why not? Mithubishis are getting assembled
here and the lower ends are totally untapped.

The CKD vehicle import duties will probably be scrapped
a bit from the next year so it'll be more viable
to buy locally manufactured cars rather then importing
them.

Does anyone have any news regarding Tagaz
motors from korea, weren't they going for
production next year? Or was it a hoax....
as theres no recent news.

 

[Mo12]

No anti-Indian comment so far, very pleasing.

Will see where Tata success will be greater, in Pakistan or Bangladesh?

 

[Zabaniyah]

The sad irony is that most of the BD's living abroad and the ones who knew her in past still believes this sh*t. The import of household stuffs like this have rock bottomed in the last 10 years. Can't even remember when I did I crush a can of imported coke
when its been manufactured here.

The only imports that are made in huge chunks are cars and electronics because of lack in technical expertise regarding this fields.

The bold part shows you are misinformed.

Still seeing Coke cans of foreign origin. Along with other little products. Just because you don't buy them doesn't mean they aren't there.

Our trade balance is not good at the moment.

Check the data yourself:
http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113349.pdf

But exports have increased and likely to in the near future.
Exports rise 40pc in 10 months

But we have to ban or at least severely tax these little things of foreign origin. Its the imports of these little everyday things that can easily be researched, developed marketed and produced locally that really hurt.

This matter has already been much discussed among the Bangladesh business community and business media.

I find it dumb to pay Tk. 2,000,000 for a damn Corolla. Even beyond retarded to buy a Land Cruiser for Tk. 35,000,000.

Why did they increase duties on cars recently? Why are they reluctant to invite more FDI?

Its all about making money.

POISHA BANANO JONE OSTHEER!

 

[integra]

I find it dumb to pay Tk. 2,000,000 for a damn Corolla. Even beyond retarded to buy a Land Cruiser for Tk. 35,000,000.

Why did they increase duties on cars recently? Why are they reluctant to invite more FDI?

Its all about making money.

POISHA BANANO JONE OSTHEER!

I'll never understand this corolla craze among BD people even if they have to pay as high as 15-18 lacs for a damned corolla. Forget 'bout cruisers they have crossed 1 crore. The increase in tax is to reduce import of cars but thats not stoping anyone as it seems.

 

[LaBong]

if only Tata investing in BD could knock some sense into Mamta didi :/

 

[LaBong]

hey that rhymed!!

 

[Mo12]

Tata should try to target whole of South Asia, Bangladesh, SL, and Pakistan.

And if done with success maybe try to enter Iran and Afghan market.