By IANS
Dhaka : Bangladeshi beverage producer Pran is to set up a food and soft drink processing plant in Tripura with an eye on the vast market potential in India’s northeastern region.
Pran, one of Bangladesh’s leading brand names, Wednesday announced plans to build a factory, it first foreign manufacturing bid, taking advantage of India’s recent decision to lift its ban on Bangladeshi investment.
The plant will initially produce jelly and drinks and is expected to come into operation by 2009 with an annual turnover of about one billion taka ($16 million), said Paramuddin Hossain, senior manager (export) of Pran-RFL Group.
It will supply products to the markets of Assam, Nagaland, Tripura, Meghalaya, Manipur, Mizoram and Arunachal Pradesh.
Pran is already a known brand name in this region as its products are available in northeastern India.
Last year, India lifted its ban on direct investment from Bangladesh and said it would welcome investments from its neighbour.
The move was seen as a precondition for Dhaka to consider the large-scale investment plans of Indian companies such as Tata in Bangladesh, The Daily Star said Thursday.
Tata had offered to invest $3 billion in 2004, utilising the abundant natural gas reserves of Bangladesh. But the proposals were termed “politically sensitive” and dumped by the former Khaleda Zia government. The present caretaker government has not taken a decision on the proposal.
The company chose to set up its factory in Tripura due to its proximity to Bangladesh.
“We will be able to transport raw materials for our products from Bangladesh to Tripura very easily,”
India will allocate a 10-acre industrial plot for the purpose.
The Indian government has also assured the company of banking, electricity and other infrastructure facilities. Initially, Pran will employ nearly 200 people, both Bangladeshi and Indian nationals.
Pran exports its agro-processed foods and drinks to nearly 70 countries, including the US, Britain, Sweden, Cyprus, Australia, Malaysia, Italy, Germany, South Korea, and some Middle East and African countries.