News: Escort India to foray into Bangladesh
(PTI 29/03/2006) New Delhi - Escort India Limited is set to make foray into Bangladesh to manufacture tractors through a joint venture with the Nitol-Niloy group.
The project, to be set up in Kishoregunj district of Bangladesh, is expected to go into production by this year-end with 1,000 tractors, which is half of the estimated demand in the neighbouring country, Nitol-Niloy Group Chairman Mohd Abdul Matlub Ahmed said.
Escorts and the Bangladeshi group had signed a Memorandum of Understanding here during Prime Minister Khaleda Zia's visit to India a little over a week ago and the two companies are to sign a formal agreement on the joint venture in May, Ahmed said.
He said Nitol-Niloy group would be the major partner in the joint venture which is the Bangladeshi company's fourth with an Indian company. The group had earlier tied up with the Tatas in automobile sector, the Birlas for Grasim cement and Blowplast.
According to Ahmed, an attractive export market for the tractors exists in Myanmar and northeastern states and plans are afoot to export 3,000 tractors to Myanmar.
Each tractor will be priced at $ six thousand, he said.
Ahmed said his company would also go for manufacture of agriculture implements.
He said given the narrow manufacturing base of Bangladesh, the country needed such joint venture projects.
The project, to be set up in Kishoregunj district of Bangladesh, is expected to go into production by this year-end with 1,000 tractors, which is half of the estimated demand in the neighbouring country, Nitol-Niloy Group Chairman Mohd Abdul Matlub Ahmed said.
Escorts and the Bangladeshi group had signed a Memorandum of Understanding here during Prime Minister Khaleda Zia's visit to India a little over a week ago and the two companies are to sign a formal agreement on the joint venture in May, Ahmed said.
He said Nitol-Niloy group would be the major partner in the joint venture which is the Bangladeshi company's fourth with an Indian company. The group had earlier tied up with the Tatas in automobile sector, the Birlas for Grasim cement and Blowplast.
According to Ahmed, an attractive export market for the tractors exists in Myanmar and northeastern states and plans are afoot to export 3,000 tractors to Myanmar.
Each tractor will be priced at $ six thousand, he said.
Ahmed said his company would also go for manufacture of agriculture implements.
He said given the narrow manufacturing base of Bangladesh, the country needed such joint venture projects.
posted by InCar Group Press Room at 17:24
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