BKT is entering the passenger tire market
Indian company Balkrishna Industries Ltd (BKT), a major manufacturer of tires for special equipment, has announced a three-year investment plan worth $410 million, which is expected to help increase revenue by more than half, to $2.9 billion, by 2030.
Under the new plan, the company intends to enter the segments of passenger and truck tires in the Indian market. A pilot launch of truck tire production is scheduled for the fourth quarter of the Indian financial year (which began on April 1), and within three quarters, the company plans to start producing tires for passenger cars. At the initial stage, the tires will be intended for the secondary market, and in both segments, the product line will be gradually expanded.
It is expected that by 2030, passenger and truck tires will account for about 20% of BKT's total revenue, and the market share in India will be 5%.
In its traditional market, the company intends to maintain and strengthen its position, and in particular, new production lines with a capacity of 35,000 tons of OTR tires per year will be launched, which, together with the elimination of bottlenecks, should increase the total production of tires in this category to 425,000 tons per year. In addition, the plant for the production of rubber tracks will be expanded.
The additional capacity is designed to help BKT achieve its goal of increasing its share in the global OTR tire market to 8% within the next five years, and in the long term, with the help of new investments, it is planned to occupy 10% of the market. By 2030, the company plans to receive 70% of its revenue in the OTR segment.
According to the new plan, BKT also intends to increase the production of technical carbon from 200 to 360 thousand tons per year, and the investment project includes the installation of a 24 MW cogeneration power plant at the Bhuj plant. As the company notes, the investments are aimed at both improving the availability of raw materials for tire production and reducing environmental damage, and "will further strengthen our position as a reliable supplier of high-quality technical carbon for tire companies in the domestic and international markets".
In the long term, BKT expects that technical carbon will account for 10% of total revenue, and by 2030, the company will become the "preferred supplier for the tire and non-tire sectors".
In the 2025 financial year (which ended on March 31), BKT increased its consolidated revenue by 13%, to $1.24 billion. Sales in physical terms grew by 8%, to 315,000 tons of products, and EBITDA profit - by 16%, to $320 million.