+
Balkrishna Enters Consumer Tyre Market, Eyes Rs 230 bn By FY30
ECONOMY & POLICY

Balkrishna Enters Consumer Tyre Market, Eyes Rs 230 bn By FY30

Balkrishna Industries is shifting from its niche off?highway tyre business into the consumer tyre market and expects group revenues to reach Rs 230 bn by FY30. The company has allocated Rs 35 bn for new product lines, capacity expansion and brand building, and the investment includes a national advertising campaign. The move marks its first sustained attempt to develop a domestic consumer franchise after decades of export-led growth in agricultural, mining and construction tyres.

BKT will target two?wheelers, passenger cars and medium and heavy commercial vehicles, entering segments characterised by high volumes and intense price competition. Management said the strategy is designed to diversify risk amid shifting global trade patterns and uneven demand in some overseas markets. Product engineering and distribution execution were identified as core strengths to be leveraged in the consumer push.

Chairman and managing director Arvind Poddar explained that the company studied the domestic market before entering and would apply the same playbook of differentiated product development and a distributor-led route to market. The company aims for a five per cent share in domestic on?highway segments by 2028–29, indicating an ambition to gain traction within a few years. Joint managing director Rajiv Poddar outlined that the Rs 35 bn capex is being deployed over three years, with most of the investment scheduled for the next 15 to 18 months.

The manufacturing backbone comprises a capacity of around 360,000 tonnes (t), with expansion under way at the Bhuj facility to support both off?highway and on?highway portfolios and a planned launch of commercial vehicle radial tyres in FY27. Under Vision 2030 the company expects roughly 20 per cent of revenue from on?highway products, about 70 per cent from off?highway items and the balance from carbon black, while separating BKT Tyres and BKT Carbon to distinguish consumer ambitions from industrial legacy. Management said the current investment cycle should complete planned expansions and begin delivering returns before another major capex phase is contemplated.

Balkrishna Industries is shifting from its niche off?highway tyre business into the consumer tyre market and expects group revenues to reach Rs 230 bn by FY30. The company has allocated Rs 35 bn for new product lines, capacity expansion and brand building, and the investment includes a national advertising campaign. The move marks its first sustained attempt to develop a domestic consumer franchise after decades of export-led growth in agricultural, mining and construction tyres. BKT will target two?wheelers, passenger cars and medium and heavy commercial vehicles, entering segments characterised by high volumes and intense price competition. Management said the strategy is designed to diversify risk amid shifting global trade patterns and uneven demand in some overseas markets. Product engineering and distribution execution were identified as core strengths to be leveraged in the consumer push. Chairman and managing director Arvind Poddar explained that the company studied the domestic market before entering and would apply the same playbook of differentiated product development and a distributor-led route to market. The company aims for a five per cent share in domestic on?highway segments by 2028–29, indicating an ambition to gain traction within a few years. Joint managing director Rajiv Poddar outlined that the Rs 35 bn capex is being deployed over three years, with most of the investment scheduled for the next 15 to 18 months. The manufacturing backbone comprises a capacity of around 360,000 tonnes (t), with expansion under way at the Bhuj facility to support both off?highway and on?highway portfolios and a planned launch of commercial vehicle radial tyres in FY27. Under Vision 2030 the company expects roughly 20 per cent of revenue from on?highway products, about 70 per cent from off?highway items and the balance from carbon black, while separating BKT Tyres and BKT Carbon to distinguish consumer ambitions from industrial legacy. Management said the current investment cycle should complete planned expansions and begin delivering returns before another major capex phase is contemplated.

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code