Meghna ventures into bus, truck tyres with Tk1,300cr investment
The company’s manufacturing facility spans approximately 65 bighas in Tangail’s Mirzapur, with an additional 5 bighas allocated for expanding production of tyres for large vehicles
Meghna Innova Rubber Company Ltd, a subsidiary of the Meghna Group, has commenced manufacturing tyres for buses and trucks with a Tk1,300 crore investment. This latest expansion positions Meghna, the country's largest bicycle exporter, to reduce reliance on imported bus and truck tyres, thereby saving valuable foreign currency.
"Since last month (October), we have started producing 15-inch to 20-inch bias tyres for trucks and buses. Our goal is to meet most of the demand for these tyres in Bangladesh within the next six months," Lutful Bari, chief operating officer of the Meghna Group, told TBS.
He added that 80% of the Tk1,300 crore investment has gone into machinery, creating employment for 300 people. By next year, total investment in bias tyres will rise to Tk2,100 crore, adding another 100 jobs.
The company's manufacturing facility spans approximately 65 bighas in Tangail's Mirzapur, with an additional 5 bighas allocated for expanding production of tyres for large vehicles.
Keep updated, follow The Business Standard's Google news channel
Plans are underway to set up a new factory for radial tyres, scheduled for completion by 2026.
"In 2026, we will invest another Tk1,000 crore in the production of radial tyres for trucks and buses," Bari said, noting the focus on adopting British standards and modern technology to ensure quality.
The locally produced tyres are expected to be more affordable than imported alternatives.
Meghna Innova Rubber Co Ltd has already established itself as a producer of tyres for bicycles, motorcycles, three-wheelers and rickshaws under the MTF brand. However, almost all bus and truck tyres in the market are currently imported, according to Lutful Bari.
Other notable players in this sector include Pran-RFL Group, Apex Husain Group, Rupsha Tyres and Chemicals Ltd and Alam Tyre.
Gazi Group, a former competitor in the production of bus and truck tyres, halted operations after a series of arson attacks on its factory in August and September.
Industry insiders estimate that Bangladesh's automotive tyre market is currently valued at around Tk5,000 crore, driven by the growing sales of commercial and passenger vehicles.
Challenges in agricultural tyre manufacturing
In addition to bias tyres, Meghna Group has ventured into agricultural tyre production, producing 28-inch tyres for tractors.
However, marketing these products has been hindered by value-added tax (VAT) policies that favour imports over domestically produced tyres.
"There is no VAT on tyres used in agricultural machinery imported into Bangladesh. However, we have to pay VAT on our finished product," Bari explained.
"We demand from the government that VAT be imposed on imported tyres or, alternatively, that VAT be exempted on locally produced agricultural tyres."
Agriculture tyres, essential for tractors, currently receive VAT refunds when imported under specific HS codes.
To protect domestic industries, the Meghna Group has proposed imposing a 15% import duty and a 5% regulatory duty on imported tyres and tubes, along with an additional tax.
As the Meghna Group continues its expansion in tyre manufacturing, the company is pushing for policy reforms to ensure a level playing field for local producers.
With planned investments in radial tyre production and calls for government intervention to support domestic industries, the group aims to strengthen its position in Bangladesh's tyre market.
