Balkrishna Industries Limited (BKT), a major off-highway tyre company, has ventured into the domestic consumer tyre industry in India with an announcement of a strategic investment of Rs 3,500 crore (USD 400 million).
According to Arvind Poddar, Chairman and Managing Director of BKT, this will be channeled to an augmentation of manufacturing capacity of BKT, enhancement of the research and development skills, and the expansion of its countrywide distribution to cater to the increasing mobility needs of its nation.
The new On-Highway product range at BKT consists of two-wheelers, with the new tyre being the ZENOVA, which is an urban-commuting tyre and the THYROS, which is an on-off-road tyre, along with tyres that cater to the medium and heavy commercial vehicles (M&HCV). Within the next year, the company will introduce its initial commercial on-road tyres.
Also Read: TVS Motor CEO Predicts 8-9% CAGR for Two-Wheeler Industry Growth
According to its Vision 2030, BKT targets a revenue of Rs 23,000 crore by FY30, of which 70 percent of the revenues will be contributed by the Off-Highway tyres, 10 percent by the sale of third-party carbon black and 20 percent by its On-Highway tyre portfolio.
"Our entry into the on-highway segment is a natural extension of BKT’s purpose – to support India's evolving mobility needs with products engineered for real-world conditions," said Arvind Poddar.
Through its disciplined India-led strategy, BKT intends to achieve a 5 percent market share by FY30, with product leadership and customer trust in the 2-wheeler, truck, bus, and light truck sectors of tyres.
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