Through constant innovation and hard work, we have become one of the leading players in the global market for OTR tires.

Ashok P Chhajer, Senior General Manager, OE Sales, (Domestic Market), Balkrishna Industries (BKT).

What is the present market size of OTR tires in India? What is your outlook on the OTR tire market beyond 2023?

The Indian OTR tire market was roughly worth 10.81 million units in the year 2021 and is projected to grow at an approx. 8.5 % CAGR, with sales forecast to reach approx. 19.17 million units by the end of 2028.

Now the OTR tire market includes – Large mining trucks (LMTs), medium mining trucks (MMTs), and small mining trucks (SMTs), especially in the mining industry.

The market for LMT tires has the potential to expand rapidly owing to the increase in the demand for coal, which is one of the main energy sources in India. The requirement for coal in India is about 1.1 billion tonnes, but we are currently producing approximately 700 million tonnes. The increased demand has led to increased mining activity, thus increasing the demand for LMT tires. Hence we have displayed tires for the LMT market at the IMME.

Since India has been focusing majorly on the mining industry and aims to become one of the primary markets for mining activities in the next 5–10 years. Govt. has drawn policy too in the same direction – with the privatization of coal, the demand for OTR tires is set to rise in the coming years.

We are one of the prime players in this segment and our expertise and state-of-the-art technology, as the global players in the OTR tire segment, are equipped to contribute to the growth of the mining sector of India.

What are the emerging preferences of customers in the OTR segment?

The OTR tire segment in India has been rapidly growing owing to various factors. With new technological innovations and advancements, this sector has been evolving to meet the changing demands of the market. The buyers and consumer landscape of the OTR tire segment has been strongly inclining toward the radial tires. Due to their advanced durability and heat resistance, radial tires are becoming one of the emerging preferences of customers within the OTR tire segment.

How do you look at the importance of Research & Development in your company?

R&D is the backbone of BKT and we invest approx. 5% of our top line, as we believe that to continue growing within the tire industry, we need to continue investing in our R&D.

In fact, we are the only Indian tire company to have not 1 but 3 R&D centers – 2 centers dedicated to compound development in Bhuj and Chopanki and 1 dedicated R&D lab for only carbon black research in Bhuj. Moreover, we have a tire test house in each of our 5 plants for Indoor testing in addition to an outdoor testing track, and a mold plant.

Huge investments have been made in creating world-class labs, and sourcing the latest tech equipment. Additionally, we have qualified and experienced engineers in our state-of-the-art infrastructure, which gives us the edge. More so, we follow a stringent quality control process before any product is introduced to the market. Every tire at various stages of production has to undergo 500 quality checks and the onus is on the R&D team. We introduce on average 80- 90 new products every year. These are all based on in-depth market research and market analysis by our R&D Team.

How do you plan to increase the company’s market share in India?

Through constant innovation and hard work, we have become one of the leading players in the global market for OTR tires. We have built a large product portfolio of more than 3,200 SKUs and are constantly investing in R&D to innovate and design newer technology tires that would cater to the changing market needs. We, at BKT, are strong supporters of Aatmanirbhar Bharat, which is why all our products are manufactured in India. While we have an extensive product portfolio catering to various industries, we have heavily invested in researching, designing, developing and manufacturing tires that are specific to the needs of the Indian market. Currently, we have a product portfolio of 1,100 SKUs solely dedicated to catering to the demands of the Indian markets. In the coming year, we are excited to continue introducing state-of-the-art technology to the Indian tire industry.

Are there any new products in the pipeline this year?

We, at BKT, are constantly analyzing the market and conversing with OEMs and other customers to understand the demands and needs of the market. We recently introduced our newest tires at the bauma Conexpo 2023 under the sub-brand EARTHMAX namely the EARTHMAX Crusher Haul & EARTHMAX SR 34, dedicated to the Indian construction and mining sector. Additionally, we introduced rubber tracks which are designed for compact track loaders. BKT is the only tire company in India to produce rubber tracks for Agricultural and Industrial Machines and recently started the production of rubber tracks for harvesting machines. Furthermore, to counter the numerous challenges that machinery operating in Industrial logistical operations face we are expanding our Magfit (solid tire) range.

BKT introduced 80 to 90 tire sizes every year and our R&D team is continuously working on developing new compounds that will further enhance the durability of our tires.

While the availability of raw materials is one of the key issues faced by most tire manufacturers, what are the challenges faced by your company?

Like other industries, we are also facing challenges, such as the cost & availability of raw materials, rising fuel costs, and inbound & outbound logistics costs due to the geo-political scenario. However, we are well placed and all geared up to take on these challenges and have managed to overcome them with a strong strategy.

Hits: 2