Balkrishna Industries Ltd. (BKT Tires), the Indian multinational group and global player in the Off-Highway tire market embarks on the next phase of growth by manufacturing in Atmanirbhar Bharat. With an achievable capacity of ~300,000 M.T.P.A spread across the four tire manufacturing plants in India, BKT which is an integrated global supply chain provider is continuously expanding its base into various sub-segments like agricultural, industrial, construction, mining, winter and solid tires under both technologies bias as well as radials, with an aim to serve the domestic market as well as to over 160 countries in the global markets.
Established in 1987, BKT has developed into a global player in the Off-Highway tire industry with a 6% market share and a revenue of 850 million US dollars corresponding to a 30% increase over the last five years. More than 80% of the revenue is generated through exports to over 160 countries through Distribution network in Europe, Americas, Austrl-Asia India and Rest of the World. Over 60% Revenues are generated through Agriculture segment. Almost 1/3rd of BKT's revenue is generated through a product category which is cyclical in nature and therefore exposed to market risk. BKT manages these risks and ensures growth by expanding its presence in different markets, deeper penetration into existing markets and by launching new products within India as well as outside India
While the world is plagued by the deadly virus, the heat is also being felt by Indian manufacturers, owing to a break in supply chain and logistics. The dependence on imports for raw materials or/ and finished goods has significantly diminished, with India turning to domestic players for the same. The buying economies are also shifting their focus, with India witnessing accelerated demand, expected to further improve in the coming years, more so with Indian products having an edge on account of various socio economic and environmental factors. It provides a great avenue for make in India brands to turn this crisis into opportunity, which is going to provide an impetus to the resolve of a self-reliant India serving the local and global markets.
Rajiv Poddar, Joint MD, BKT Tires said "Made in India, BKT has been contributing to the agriculture, industrial & mining community in India and overseas since 1987. With our sheer dedication and hard work, we have developed BKT into a self-reliant global player in the Off-Highway tire industry having a 6% global market share. On the backdrop of the deadly pandemic, we aim to tide over this situation by following the strict guidelines enlisted by the government and contribute to the vision of an Atmanirbhar Bharat, which we truly believe in. Our focus will be on improving our product portfolio, sustaining the consistent product quality and efficient service levels, enhancing the brand recognition with end customers, all this while protecting the wellbeing of our employees. We believe that we will continue to gain market share across segments in the domestic and global market in the years to come."
BKT derives its revenue mainly through exports and therefore its fate largely depends on various global factors. Of late, BKT has witnessed the spread of the deadly pandemic, subsequent lockdown, geo-political tension, protectionism measures by some countries, benign food, volatile commodity prices and rising interest rate to name a few. All these factors have posed lot of challenges before BKT to maintain its growth journey. Set up of the second phase of the of 80,000 MTs capacity carbon black plant and upscaling to large sized All steel radial OTR Tires by investing in new capacity of 5,000 MTPA will help BKT reach 100% utilization levels, expand its reach, strengthen distribution channel, increase share of business and expand product portfolio, thereby becoming a self reliant BKT working towards a self reliant India.
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