BKT eyes $2bn annual sales with flagship plant expansion

Seregno, Italy – Indian off-highway tire manufacture Balkrishna Industries Ltd (BKT) is tracking growth with a new project to expand its flagship production plant in Bhuj, in the northwestern state of Gujarat.

The project will see the group's production capacity increased to 600 kilotonnes per annum (ktpa), bringing the tire maker's total sales to $2 billion (€1.87 billion) over a three-year period to 2026, BKT announced 20 Feb.

Inaugurated in 2015, the Bhuj site was initially built with an investment of $500 million and the capacity to produce 92 tonnes per day.

In its statement, BKT said it has regularly invested in the site, expanding its area from 126 hectares in 2016 to 258 in 2022.

By the end of 2023, the tire maker expects the facility to occupy a total surface area of 323 hectares, of which 283 have already been acquired.

In terms of production, over the past seven years, the site’s output capacity has increased by over 370% to 439 tonnes per day of tires, BKT added.

BKT noted that its latest investments and expansions have led to a 49% ‘business growth’ compared to the pre-pandemic period.

According to ERJ's Global Tire Report 2022, BKT reported sales of $1 billion in its 2022 fincial year, with just under 300ktpa of production capacity.

The company manufactures agricultural, earthmover and industrial tires across four production sites in India.

According to GTR 2022, BKT's Bhuj plant currently has the capacity to produce 160ktpa of tires.