The main purpose of the plant in Dhaka would be to neutralise the effect of high import tariff on its products into Bangladesh, industry sources said adding, the Indian private company has already begun preliminary work for starting production in its Dhaka unit.

Ujala brand, which already has a prominent market share in India, is understood to have made a mark in Bangladesh market since its launch in the country some years ago.

The setting up of a manufacturing plant in Dhaka, industry sources here believe, could result in the introduction of some other products of Jyothi Labs like coil, soap and ayurvedic cosmetic products in Bangladesh.

The company's foray into Bangladesh market is understood to be part of its plan to go in a big way in Saarc region and it is already planning a joint venture in Sri Lanka. Some other countries of the region are also in its radar, they said.

The ayurvedic soap manufactured by Jyothi Labs has succeeded in finding a large market share in states like West Bengal, Kerala and Tamil Nadu and the company plans to ride high on the growing awareness of the desirability of ayurvedic goods in certain markets, said the sources.

Jyothi Labs has manufacturing set-ups in 22 states of India and plans to come up with new products in the coming years. Two years ago, the company had bought a detergent manufacturing unit of Tata Chemicals.