Balkrishna Industries and Pirelli ink agreement; annual production of 8,00,000 tyres by 2030

Mumbai-based Balkrishna Industries Limited (BKT) has entered into a partnership with Pirelli, the world's fifth-largest tyre manufacturer. Under this agreement, the company will produce 8,00,000 passenger car tyres annually by 2030. The company's plant located in Bhuj will be operational for this purpose. According to a report by Mint, this partnership is expected to provide BKT with a stronger international brand image, access to European testing infrastructure, and a stable income for the Italian tyre manufacturer through annual production.

According to Rajiv Poddar, Joint Managing Director of Balkrishna Industries, this production target has been set under a preliminary supply agreement signed last month. If certain specific conditions are met, both companies may also form a joint venture on a 50:50 basis to manufacture premium car tyres. Poddar described this alliance as a marriage between two equal parties, stating that when Pirelli observed the work done by BKT in Europe and their quality-oriented approach, they saw the possibility of a strategic alliance.

This agreement is a significant step for BKT to enter larger markets such as cars, trucks, and buses. Through the partnership, BKT will have the opportunity to use Pirelli's testing infrastructure in Europe, which includes simulation and proving-ground facilities. These facilities will help BKT develop its own passenger car tyres and establish their performance in international markets. Poddar clarified that since they do not have their own race track for BKT brand tyres, they will use Pirelli's facilities in Europe. BKT will pay Pirelli for the use of these facilities and technical support, but this does not include the adoption of Pirelli's technology by BKT. Both companies will maintain separate production specifications and technology.

BKT aims to reach a revenue of ₹23,000 crore by the financial year 2030, with tyres for road vehicles accounting for 20% of the share. The company is attempting to reduce its dependence on exports, which stood at 64% of sales in FY26, down from 82% in FY22. Poddar stated that Pirelli's decision reflects BKT's established presence in Europe, their production capacity, and their record of building a premium brand in the off-highway segment. Off-highway tyres are designed for vehicles that operate on rough roads. The company believes this alliance will help them enter a segment where their experience is limited.

BKT holds a large market share and is nearly in a leadership position in the agricultural sector in Europe, which has helped in building brand value and an image as a premium brand. This is part of a broader trend among tyre manufacturers to diversify their product portfolios, with CEAT Limited and JK Tyres also exploring various opportunities.

Rajiv Poddar of Balkrishna Industries represents the third generation of his family. His grandfather, Mahabir Prasad Poddar, started the cycle tyre business in 1954.