Road to Efficiency and Innovation
ROADS & HIGHWAYS

Road to Efficiency and Innovation

In today’s rapidly changing and highly competitive tire industry, cost control has never been more critical. Companies must constantly balance rising costs parameters with the need to stay competitive without compromising quality. For any business, especially in the tyre industry, mana...

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In today’s rapidly changing and highly competitive tire industry, cost control has never been more critical. Companies must constantly balance rising costs parameters with the need to stay competitive without compromising quality. For any business, especially in the tyre industry, managing costs is about more than just cutting expenses. We ensure to optimise resources while maintaining our commitment to quality and innovation. With raw material prices, particularly rubber constantly fluctuating, we've found that stringent cost control measures help us stay competitive while preserving our edges. Focus on cost management allows us to continually invest in innovation, be it through advanced R&D or sustainable initiatives. This balance helps us deliver high-performance tires at competitive prices, without sacrificing quality. It’s not just about minimising costs; it’s about managing them intelligently, which enables us to continually serve our global customer base and stay ahead of the competition. We as an organisation understand that several factors influence the cost structure in tyre manufacturing, and being mindful of these variables is a key to effective cost control. One of the most significant cost drivers for us is the price and availability of raw materials, such as natural and synthetic rubber. In recent years, the firm has addressed the challenge of availability of superior quality Carbon Black, a key material in tyre production. By developing and manufacturing our own carbon black, thus, we not only reduce dependency on external suppliers but also stabilise costs, maintaining quality stability for our products. The energy-intensive nature of tyre manufacturing adds another layer of complexity. From mixing raw materials to curing and vulcanising the tyres, every step consumes a significant amount of energy. In an effort to control energy costs, we have invested in energy-efficient machinery and practices, ensuring we maintain production efficiency while minimising unnecessary energy consumption. Adopting the latest technology is essential to staying competitive, but it comes with costs. We see technology as a necessary investment, not just for automating production lines but also for enhancing the entire manufacturing process. Our integration of automation and digital tools has improved precision, allowing us to maintain high-quality standards while keeping production expenses in check. Our approach to cost control is built on a foundation of efficiency, resourcefulness, and innovation. But cost control doesn't happen in isolation. It requires close coordination across the entire value chain—from sourcing raw materials to production, distribution, and logistics. We make sure our internal teams work in tandem to ensure smooth operations across the board. About the author Rajiv Poddar, Joint Managing Director, BKT is a young, global leader, who aims to use his role to inspire positive change in the world. He is an advocate for sustainable practices and pioneers BKT’s green, ‘glocal’ approach.

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