Atlas, Runner team up to grab a slice of Tk 500cr helmet market

State-owned Atlas Bangladesh and private manufacturer Runner Automobiles have teamed up to cater to the growing local market for motorcycle helmets, which currently relies on imported products.

On Sunday, the companies signed a memorandum of understanding to set up a manufacturing unit in Tongi in Gazipur at an initial cost of Tk 18 crore.

"Initially, we will produce six lakh helmets at this plant. The capacity will gradually be increased in line with demand," said Azibor Rahman, managing director of Atlas Bangladesh.

This collaboration will leverage Runner's technical expertise and the Atlas' resources and strong logistics, said Hafizur Rahman Khan, chairman of Runner Automobiles.

Besides, technical support will be availed from India and China to ensure that products meet international standards, according to Rahman.

He expected the "Made in Bangladesh" helmets would hit the market in September next year.

"The helmet market in Bangladesh has grown by around 20 percent annually for the past decade alongside a thriving motorcycle market," Rahman said.

He said the annual demand for helmets in the country stood at around 20 lakh and gauged the market size at around Tk 500 crore.

According to market insiders, more than 50 helmets marketed by over 20 brands are available in the domestic market, but the lion's share is imported.

There are around 45.37 lakh registered motorcycles in the country, according to the Bangladesh Road Transport Authority.

Besides, an average of 4 lakh motorcycles are sold in the local market annually.

In 2020, motorcycle helmet sales stood at around $7.25 billion worldwide. This is projected to grow to $20.09 billion by 2028, according to Fortune Business Insights.

In response to the news, Atlas' shares surged 9.94 percent to Tk 56.4 on the Dhaka Stock Exchange (DSE) yesterday.

Atlas Bangladesh Ltd began its journey in 1966 with Honda Motor Company. It was nationalised in 1972 and is currently under the Bangladesh Steel & Engineering Corporation.

The entity currently operates in partnership with the Zongshen Motorcycle Company of China.