BKT unveils €360m plan to enter new tire markets, add carbon black capacity

Bhuj, India – Balkrishna Industries Ltd (BKT) has unveiled a INR35 billion (€360 million) three-year investment plan aimed at more than doubling its revenue to INR230 billion by 2030.

As part of the move, the Indian group is planning to enter the premium passenger car radial (PCR) and commercial vehicle (CV) radial tire segments in India, with pilot launches set for next year.

In a 24 May full-year results announcement, BKT said it will take a modular approach towards the new tire products, initially targeting the Indian replacement market for both product categories.

The CV radial tire pilot is scheduled for the fourth quarter of fiscal year 2026 (started 1 April), followed by the PCR tire pilot in the third quarter of fiscal year 2027. Both lines will scale up gradually.

The entry marks BKT’s first step beyond its traditional off-highway segment, as it seeks to build a presence in new domestic verticals.

By 2030, BKT expects the new tire lines to account for 20% of total revenue and reach a 5% share of the Indian market.

In its core off-road tire business, BKT said it aims to sustain and consolidate its global position. As part of this, the company will expand its rubber tracks facility by the second half of fiscal year 2026.

The group is also adding 35 kilotonnes per annum (ktpa) of capacity for off-highway tires, alongside de-bottlenecking efforts, taking total capacity to 425 ktpa.

The additional capacity will support BKT’s goal of raising its global market share to 8% over the next five years, with a longer-term target of 10% through “modular, carefully phased investments.”

By 2030, the group aims to generate 70% of its overall revenue from its off-highway operations.

The Indian group is also planning to increase production capacity from 200 kilotonnes per annum (ktpa) to 360 ktpa.

Set for completion by early 2026, the project also includes the installation of a 24 MW cogeneration power plant at Bhuj, enabling a total co-gen power capacity at the site to 64 MW.

The additional capacity, BKT said, is aimed at ensuring raw material availability, improving energy circularity, and supporting its sustainability efforts.

The group said the investment would “further strengthen [its] market position as a high-quality reliable supplier of carbon black to tire companies in domestic and international markets.”

Over the long-term, BKT expects its carbon black business to generate 10% of its total consolidated revenue and become ‘a preferred supplier for tire and non-tire segment’ by 2030.

In fiscal 2025, the group reported a 16% year-on-year increase in earnings (EBITDA) to INR27 billion, on 13% higher sales of INR106 billion.

Volumes grew 8% compared to the previous year at 315 kilotonnes, with earnings margin grew by 50 bps to 25.26%.