Pirelli-BKT agreement for tire production in India

Milan, Italy / Mumbai, India – Pirelli and Balkrishna Industries Ltd. (BKT) have signed a strategic agreement to jointly supply the Indian passenger car tire market, the companies announced 22 Oct

Highlight the potential of India’s car tire market, Pirelli, said car registrations there are increasing by 5-7% annually with the premium segment showing almost five-fold growth.

The partnership, it said, will combine Pirelli’s “high-end” technologies with BKT’s local industrial positioning and strong market presence.

Under a phase I, off-take agreement, BKT will produce up to 800,000 Pirelli branded tires by 2030.

Production will be at one of its own newly constructed plants, equipped with advanced technologies, to Pirelli’s technical and quality standards.

Under a second phase, the partners envisage the creation of a 50-50 joint venture and the construction of a production plant.

The JV facility, said Pirelli, will be “dedicated to high-value car tires, both with the Pirelli brand and the BKT brand to serve India and other international markets.”

The plans mark a significant step forward for Pirelli in India, where it has only established a commercial presence to date.

For BKT, the agreement supports the company’s expansion into the passenger car tire segment and offers new opportunities in both domestic and international markets.

“India is taking an ever more central role in the evolution of the global automotive industry,” said Marco Tronchetti Provera, executive chairman of Pirelli.

The agreement with BKT “will allow us to strengthen our position in a market among those with the greatest growth potential,” the Italian group’s leader added.

For Arvind Poddar, chairman and MD of BKT, the partnership “brings together complementary strengths to capture the opportunities of a growing market while creating value for both companies.”