BKT’s manufacturing process and systems in India are notably efficient, offering benefits to customers due to our streamlined facilities.

Prasanta Ganguly, Head–OTR Marketing (Domestic Sales),Balkrishna Industries (BKT)

What has the focus been of BKT in this edition of IME?

As a mining exhibition, our focus revolves around the mining industry, particularly specializing in a diverse range of mining tires. We’re eager to engage in this platform to spotlight our newest product line. One standout feature is the 40.00R57 E4 BKT EARTHMAX SR468 TL tire prominently displayed outside, representing our latest addition. This event serves as a crucial opportunity for us to delve deeper into these innovations, which is why our team is fully committed to participating and sharing our advancements with you.

What is different about this tire that you have launched here?

The distinctiveness lies in the fact that these tires aren’t your typical ones. They’re specifically designed for colossal 240 and 190-ton Rigid Dump Trucks used in rigorous mining operations. The conditions they endure—long haul routes, soaring temperatures, and immense loads—create an incredibly challenging environment. Crafting these tires demands a wealth of technological innovation. Each mine presents unique circumstances; there’s no universal terrain, situation, or operation in mining. It’s a highly site-specific scenario. Our process involves exhaustive technological analysis and meticulous study of each individual mine to cater to these specific needs.

Raw material prices have increased. How do you look at it?

Raw material prices have shown consistent volatility over an extended period. At times, there’s a discernible softening or cooling trend, creating an impression of reduced prices. However, this landscape remains unpredictable, with fluctuations persisting in the current global scenario. The uncertainty looms over the trajectory of these prices and their impact on raw material accessibility. This volatile nature poses a significant challenge.

Despite these challenges, BKT has effectively secured raw materials for a substantial expansion project, having achieved a turnover of 10,000 crores last year and anticipating a growth of almost 20% this year. With increased tire production demands correlating to heightened raw material requirements, our proactive approach in procuring and maintaining adequate raw material stocks has ensured seamless production continuity. While navigating these complexities remains a challenge, BKT adeptly manages this aspect of operations.

You mentioned the features of the tires you’ve launched here. In India, the market is heavily focused on cost and price. How do you balance between keeping costs low while maintaining quality?

When discussing larger tires, buyers have traditionally sourced them through imports, which often come with a higher price tag. However, manufacturing these tires in India presents a cost advantage to buyers. BKT’s manufacturing process and systems in India are notably efficient, offering benefits to customers due to our streamlined facilities.

Next year, we have Lok Sabha elections, how do you look at market for construction equipment as well as for tire markets?

Today, the Indian economy is on a definite upward trajectory. This momentum doesn’t seem to be contingent on elections or any specific factors. Instead, it appears poised to sustain its growth. Over the next two decades, I firmly believe that our mining and infrastructure development will continue to soar. The optimism I’m witnessing among customers and miners, both today and in recent days, is a testament to this bright future. I don’t foresee elections causing any significant alterations to this trajectory of progress.

What is the market share presently?

It’s challenging to quantify precisely, but our focus at BKT revolves around all-steel radial tires. Presently, the market predominantly leans towards bias tires, encompassing about 45% of the industry. However, our emphasis lies squarely on all-steel radial tires rather than bias variants.

If we delve into the specific segments of all-steel radials—such as the 100-ton dumper, 190, and 240—our current market presence stands at approximately 5-6%. By the end of 2025, our goal is to significantly amplify this share, aiming for a robust 30% market penetration for all-steel radials in India.

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