We are continually focused on quality and constantly enhancing our capabilities.

Rajiv Poddar

Joint Managing Director, Balkrishna Industries

What is the current demand supply scenario in the OTR tyre sector, especially in the construction and mining equipment space? What has been the impact of the current Covid pandemic on the same as well as the supply of raw material?

The OTR sector has continued to remain strong, in spite of the global circumstances, as a result of new age offerings that have become increasingly popular within dependent industries. Owing to countless growth opportunities such as rapid urbanization, heavy duty construction, large scale mining, global technological advancement, the construction & mining world remains more active than ever, and a result the OTR tyre domain has advanced significantly in recent times.

The supply of raw materials did act as a minor setback for the domain, due to logistical issues put forth by Covid-19, but the segment quickly recovered owing to its proactiveness and was relatively unaffected by the pandemic.

What is the current size of the OTR tyre market and what is it expected to grow to in the next two years? What will be the driving factors for this growth?

The OTR tyre market was valued at USD 5915.3 million in 2020. According to statistics, it is expected to continue growing at a rate of 4.5% from 2021 to 2027, to reach a market size of USD 8068.4 million. A key driving factor spearheading growth in the domain is the rising demand for construction, agriculture and mining machinery, owing to heavy industrialization. The rapid expansion, and urbanization of developing countries, speedy technological advancements, and the evolution of new age OTR offerings that can operate in difficult terrains as well as the privatization of coal in India are key aspects further spurring the demand for OTR tyres.  

What are the OEMs expecting from players like you in terms of technology and / or materials used since their machines are used in difficult terrains and extreme weather conditions?

The OEM domain requires some of the most advanced tyres, due to their use in extreme temperatures and high-pressure terrains. A major requirement for OEM manufacturers today is tyres with higher TKPH (Tonne-Kilometres Per Hour), made with advanced compounds. Some of the essential technologies driving growth in the domain include TPMS (Temperature and Pressure Monitoring System) which is an essential tool to measure the efficiency of a tire. The evolution of necessary features to capture conditions and speed, act as an accelerator, as well as measure loading and unloading conditions also are preferable technological aids to assist in the rough environmental conditions where OEM tyres operate.

What is your take on the demand shifting towards radial tires from bias ply given the additional benefits that come along with the technology?

Radial tyres offer many advantages that can improve efficiency and cost effectiveness in the construction and mining world. They signal a huge technological shift and are the tires of the future, owing to numerous features such as low downtime, especially as the big OEM machines cannot compromise their output with a risk of tyre failure.

Their superior design technology ensures less time on tyre maintenance, increased resistance against punctures and also maximises efficiency, substantially increase annual production. The demand for radial tires is set to expand at a massive scale in the coming years, as they continue to adopt more features that benefit multiple heavy-duty industries. 

What are the technologies adopted by your company in terms of automation in manufacturing, services, product designing, etc?

At BKT, we are pioneering automation as a priority, as we develop different compounds that give our tires their extraordinary edge to support heavy duty machinery. BKT has
also developed its own advanced technology SPOTech (Satellite Performance Optimization Technology), a cutting-edge monitoring system that collects data on haul truck activities by means of GPS systems, GoPro cameras and accelerometers for improving productivity, efficiency, and operating conditions within mining sites or quarries. Some of our automated processes include our fully computerized chemical weighing system and computer-aided tread laminators, for our specialized tyre building equipment. In terms of rubber compound mixing, another crucial aspect of tire manufacturing, our processes at BKT are completely automated with advanced systems.

Can you tell us about your future plans in terms of capex in enhancing manufacturing capacity, expanding dealership network, adoption of technology, etc.?

At BKT, we are continually focused on quality, and are constantly enhancing our capabilities in every arena, to offer nothing but the best. At our state-of-the-art plants in Bhuj and Rajasthan, we are currently undertaking venture capex worth Rs 450 crore, with a special focus on quality improvement, greater efficiency to oversee maximized productivity and the finest customer service.

There has also been a very rapid growth curve at BKT to ensure preparedness amidst Covid-19. With a rock-solid distributor network across all the major states of India, and a flourishing trade channel that is constantly catering to the needs of tomorrow, we are expanding more than ever and enhancing round the clock offerings further.

In terms of technological adoption, our 2021 launch, the EARTHMAX SR 468 (OTR RADIAL 57”), is the largest Radial tire ever made by BKT, and is infused with best-in-class equipment that is one of the most advanced in the world. An incredible asset for the construction and mining world even under the most gruelling underground situations and temperatures, it offers numerous superior features. In the coming years, we only aim to continue to spearhead the OTR domain as one of the global giants with superior radial tire technology and look to further increase the production of our radial OTR offerings.

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