BKT announces new CB capacity, expansion into PCR and CVR tire production

In its latest Investor Presentation, Indian tire company Balkrishna Industries Ltd. (BKT) announced an expansion plan valued at Rs. 3,500 crore (US$411M) over 3 years to add capacity for carbon black while expanding its tire capacity into two new segments: passenger car radials and commercial vehicle radials. Previously, BKT focused on agricultural, mining, and off-road tires, as well as rubber tracks for heavy equipment. The expansions are projected to boost annual sales to Rs. 230 crore (US$2.7B) by FY 2030. Third party sales of carbon black (i.e., excluding captive demand) are expected to comprise 10% of this total, or Rs. 23 crore (US$270M).

The carbon black expansion will take capacity at the site in Bhuj, Gujarat from its current 200 KTPY to 360 KTPY by early 2026. The project will add 24 MW of cogeneration power, bringing total cogen power to 64 MW. The new carbon black capacity will be used both captively for the new tire capacity as well as being sold to third parties. The power generated by carbon black production is used to provide power for the tire plants.

On the tire side, BKT plans to add modular capacity for premium passenger car radials and commercial vehicle radials, with an initial focus on the Indian replacement market for both segments. CV radial tire production is scheduled to begin Q4FY26, while PCR tire production is scheduled to begin Q3FY27. Capacity for both types will ramp up gradually. The company did not specify capacity. The group is also adding 35 KTPY of capacity for off-highway tires, as well as adding capacity for rubber tracks. BKT did not specify which of its four tire plants in India would be expanded under these projects.