Runner Automobiles Limited, a listed company on the country’s stock exchanges, has moved to set up a three wheeler manufacturing plant in Bangladesh in association with Indian automobile company Bajaj Auto Limited.
The board of directors of Runner Automobiles has signed an agreement with the Indian company to set up the plant, said Runner Automobiles in a press release.
Runner will invest approximately Tk 300 crore, a part of which will be funded by the IPO proceeds. The new manufacturing plant will be established at Bhaluka in Mymensingh, it said.
Under the agreement, Runner will manufacture and distribute Bajaj’s RE 4S 3-wheeler in Bangladesh. Bajaj Auto will provide necessary technical support for localisation of parts and components, assembling and manufacturing of vehicles to Runner Automobiles.
This will be the first ever three wheeler manufacturing unit set up by a global brand in Bangladesh, the press release said.
The company’s presence in the three-wheeler market will be further strengthened by setting up the manufacturing plant with ensuring quality, availability and affordable price, Runner Automobiles said in an announcement made on the Dhaka Stock Exchange web site.
Runner Automobiles Limited chairman Hafizur Rahman Khan said, ‘This is a very important and crucial step towards expanding the automobile manufacturing capabilities in Bangladesh and developing local expertise including vendors.’
‘Bajaj is the global market leader in three wheeler and we are delighted to tie up with them. This initiative of Runner Automobiles Limited is in line with the government’s vision of making light engineering sector a priority,’ he said. Share prices of Runner Automobiles closed at Tk 58.8 on Wednesday. The company made its debut on the stock exchange on May 21 last year.
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