Meghna enters heavy vehicle tyre production after Gazi falls

Meghna Innova Rubber Company Ltd, a concern of Meghna Group, is producing truck, bus, and agricultural tyres at its expanded Mirzapur facility in Tangail, which is expected to fill the gap left by the now-closed Gazi Auto Tyres.

"Our goal is to make Bangladesh self-sufficient in heavy-duty tyre manufacturing, just like we achieved with motorcycle tyres," said Md Luthful Bari, chief operating officer of Meghna Innova, in an interview with The Daily Star recently.

"With the right policy support, we can eliminate the need for imports in this sector entirely," he added.

Prior to Meghna, the heavy-duty tyre segment used to be dominated by Gazi Auto Tyres before its closure in August 2024 following a devastating fire and vandalism at its Rupganj plant after the mass uprising. Owned by ex-Awami League lawmaker Golam Dastagir Gazi, the company captured 15 to 20 percent of the market for bus and truck tyres, and 65 percent in the minibus segment before it went out of commission.

Overall, Gazi Tyres met 70 percent of the country's demand for tyres used by rickshaws, three-wheelers, and small commercial vehicles. The destruction at the Rupganj factory caused an estimated loss of Tk 1,000 crore and left around 2,650 workers unemployed.

Industry insiders estimate the heavy-vehicle tyre market at Tk 3,000 crore, with over 90 percent of demand met by imports.

With its new expansion, Meghna is likely to fill the void left by Gazi.

Operational since September last year, Meghna's Mirzapur plant features advanced technology from Germany, Italy, and China.

It currently produces bias tyres for heavy vehicles, aiming to reduce import dependence and conserve foreign currency.

According to Bari, the Mirzapur plant spans 65 bighas, with an additional 5 bighas reserved for expansion, and has already attracted Tk 1,300 crore in investment for machinery and infrastructure.

It currently employs 1,500 workers and has created 300 new jobs in recent months. By 2026, total investment is expected to reach Tk 2,100 crore, adding 500 more jobs.

In addition, Bari said Meghna Group has earmarked another Tk 1,000 crore for further expansion by fiscal year 2026-27, including plans to introduce advanced tyre technologies and boost production capacity.

The company also plans to establish a dedicated radial tyre (TBR) plant to meet the growing demand for more durable and efficient tyres for long-haul transport.

The local tyre market for buses and trucks is currently served by a handful of manufacturers, including Meghna Innova, Apex Hossain Ltd, Rupsa Tyre, Hassan Rubber, Panama Rubber, and Jamuna Tyre (which focuses on passenger car radial and TBR tyres). Despite this, imports still dominate the market due to cost and policy advantages.

Bari pointed out that the sector remains vulnerable to duty-free and VAT-free imports, especially in agricultural tyres. "Imported agricultural tyres come in without VAT or customs duties, but we pay both on raw materials and finished products. It puts us at a clear disadvantage."

To level the playing field, he urged the government to either impose a 15 percent customs duty on imported agricultural tyres or exempt VAT on locally produced ones. He also recommended a 15 percent import duty, 5 percent regulatory duty, and supplementary taxes on imported tyres and tubes to support domestic manufacturers.

Meghna's Mirzapur plant operates with support from technical consultants from Germany, China, and India.

"It features a world-class testing lab, where every tyre model undergoes rigorous road simulation and quality checks before entering the market," said Bari.

Meghna Innova produces a full range of agricultural and off-the-road tyres, including large 28-inch tractor tyres.

To keep production sustainable, the company sources rubber locally through the Bangladesh Forest Industries Development Corporation, recycles used tyres to make reclaimed rubber, and employs energy-saving practices such as rooftop solar panels and flue-gas-based steam generation.

However, the company still relies partly on LPG-fired boilers due to delays in obtaining a natural gas connection.

"If we can secure a gas connection, our energy costs will drop significantly, improving our competitiveness even further," Bari noted.

Local tyre production also offers clear economic benefits for consumers, he said, adding that domestically manufactured truck and bus tyres are Tk 1,000 to Tk 1,500 cheaper than imported ones. Motorcycle tyres cost Tk 400-Tk 500 less.

Beyond price, the initiative holds strategic importance, Bari noted.

As the country's industrial base expands, increased domestic production in key sectors like automotive components can reduce vulnerability to supply shocks and trade imbalances, he said.

He added that with proper policy support, Bangladesh has the potential to become fully self-sufficient in tyres for trucks, buses, and agricultural vehicles.

"This would not only strengthen local industry but also create thousands of jobs and save millions in foreign exchange," Bari said.