Bajaj Auto will provide necessary technical support for localization of parts and components, assembling and manufacturing of vehicles to Runner Automobiles
Publicly traded company Runner Automobiles Limited is going to set up a three-wheeler manufacturing plant in Bangladesh in collaboration with Indian automobile giant Bajaj Auto Limited.
Bajaj Auto will provide necessary technical support for localization of parts and components, assembling and manufacturing of vehicles to Runner Automobiles.
This will be the first ever three-wheeler manufacturing plant of a global brand set up in Bangladesh.
According to an official disclosure posted by the companies concerned on Dhaka Stock Exchange website yesterday, the board of directors of Runner Automobiles was set to sign an agreement with the Indian company to set up the plant at a cost of Tk300 crore.
The new manufacturing plant will be established at Bhaluka in Mymensingh.
Runner Auto also said that they will invest approximately Tk3 crore, a part of which will be funded by IPO proceeds which has already been approved by the board of directors, shareholders and the Bangladesh Securities and Exchange Commission (BSEC).
By setting up the manufacturing plant to ensure quality, availability and affordability, Runner's presence in the three-wheeler market will be further strengthened, the company hoped.
Hafizur Rahman Khan, chairman of Runner Automobiles, in a statement said that this was a very crucial step towards expanding the automobile manufacturing capabilities in Bangladesh and developing local expertise, including vendors.
“Bajaj is the global market leader in three-wheelers and we are delighted to tie up with them. This initiative is in line with the government’s vision of making the light engineering sector a priority,” he also said.
Each share of Runner closed at Tk58.80 on Wednesday at the Dhaka Stock Exchange (DSE).
The company was listed on the Dhaka Stock Exchange in 2019. It belongs to the “A” category.
Their paid-up capital is Tk113 crore.