BKT aims $2 bn turnover by end 2025
Balkrishna Industries Limited (BKT), one of the world’s leading manufacturers of off-highway tyres, aims US$2 billion turnover by the end of 2025, informs Prasanta K. Ganguly, Head OTR Marketing, BKT Tires in an interaction with mojo4industry on the sidelines of IME 2023 in Kolkata. The company also targets to achieve annual tyre production of 600,000 tonnes within this period.
What are the primary factors driving the growth of off-highway tires in the Indian market and globally, considering BKT’s prominent position in the mining industry and substantial global product consumption?
The primary driver of BKT’s business in India and globally is ongoing product development and increased production. The Bhuj Plant is now one of the most modern and largest off-highway tire plants. BKT is ready to develop and manufacture all-steel radials, the latest and future-oriented tires, which will significantly contribute to our business growth in India and worldwide.
What is BKT’s current status with its expansion plan and targets of achieving a capacity of 360,000 tons by 2023, 600,000 tons in the next four years, and reaching a $2 billion target?
Over the past five years, our consistent growth has led us to achieve 1 billion in 2022. We are now aiming for 2 billion by the end of 2025 or March 2026. This growth is driven by the continuous development of new products, such as the recently launched mining tire weighing almost 4 tons with a value of Rs 25 lakhs. Additionally, in the past 7-8 months, we introduced the 57-inch loader tire, the largest in its category weighing about 6 tons. We are entering new markets like track, solid tires, and MAGLIFT tires. Our presence in industrial construction, where we are a leader, contributes to our continuous growth. BKT is poised to surpass the 2 billion mark, aligning with the vision of India as a significant player in the global economy, particularly in mining, infrastructure, and agriculture where we excel.
Looking back five years, BKT had about 92% of its consumption from overseas markets and 8% from the domestic market. Is the current strategy focused on increasing market share in the domestic market?
In 2004-2005 and even 2008, BKT’s global presence was much stronger than in India, accounting for only about 2% to 3%. However, over time, we recognized the potential of the Indian market and its steady growth since 2014-2015. By offering India-specific products with a wide range and top-notch quality, we have seen substantial and steady growth. Currently, we contribute nearly 20% or more to the total BKT business. Our focus on providing customers with the best products has been central to this growth. The primary challenge we face is competition from importers entering the Indian market. For instance, in the all-steel radial segment, we aim to displace them by offering products that match the quality standards and customer satisfaction of globally dominant brands.
Regarding this exhibition, we have noticed a substantial number of visitors at your stall since morning. Could you elaborate on your participation?
As you have observed at our stall on the first day, there was a considerable number of visitors. The primary purpose of participating in events like the Indian Mining Exhibition 2023, which we have been doing for many years, is to showcase the latest developments from BKT. This platform allows for meaningful interactions with customers, benefiting both the customers and BKT.
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