Mumbai: Tata International, part of the Tata Group, has signed a joint venture with the Nitol-Niloy Group of Bangladesh to manufacture bicycles there.
Nitol-Niloy Group had earlier intended to start manufacturing the Tata Nano, but now it is involved in manufacturing components for Tata vehicles in Bangladesh.
OK Kaul, executive director, Tata International, told Bangladesh newspaper The Daily Star that a team would visit Bangladesh in May to see how the investment could be implemented.
The Tata group’s investment in the Bangladesh bike industry comes after two other JVs in the last few months. The industry is taking full advantage of Sri Lanka losing its duty-free export status for bikes and parts.
In February, the European Council decided that from August 15, 2010, bicycles imported from Sri Lanka will be subjected to the regular 14% import tax.