We believe that our products are game-changers for the dynamically changing construction industry.

Rajiv Poddar, Joint Managing Director, Balkrishna Industries

How do you see the government’s ‘Make in India’ programme and mission motivating industry to participate in it? How is this helping the construction equipment sector and its allied industries to improve its technological status and competitiveness in the global market?

The Indian government has been undertaking various infrastructural projects to help the development of the country and to boost the economy. These infrastructure projects form the cornerstone of our economy and will play a major role in supporting and advancing India’s goal of being a $5 trillion economy by 2025. Initiatives under the ‘Gati Shakti’ program as a crucial step towards improving infrastructure connectivity. These projects are an incredible opportunity for the construction/ infrastructure industry to grow and expand. At the same time, there is pressure on the construction industry to build technologically advanced equipment and reduce carbon emissions.

BKT operates into a segment predominantly known as the ‘large varieties – low volume segment’, which is not only capital-intensive but also labour-intensive. At BKT, we are fully geared to take advantage of the peculiarities of this segment and have developed a large base of SKUs to meet diverse needs and applications not only for India but for global market. We believe that our products are game-changers for the dynamically changing construction industry.

Foreseeing the government’s strong commitment and stable sentiments in the market, how do you evaluate your company’s growth in the coming years?

The OTR tire market is not stagnant but growing and we see no signs of it slowing down. The pipeline of construction and infrastructural projects by Govt. which are not just in metros but also in tier two and tier three cities, will propel the future growth of the Indian tire market.

Additionally, sectors like agriculture, mining, and infrastructure significantly impact the demand for tires in sync with the equipment production volume.

What are your views on making India as a global construction equipment manufacturing hub?

The Indian economy is driven by the construction/infrastructure sector. This sector is a key driver of India’s overall economic development. The government has a strong focus on it and encourages policies that will ensure the creation of world-class infrastructure within a time frame. The Indian CE industry, being the 3rd largest market in the world, has shown remarkable progress over the years and poise to become the 2nd largest CE market in the world. In fact, the recent export figures (FY22) for construction equipment have increased significantly. Additionally, the government’s ‘Make in India’ program is a positive step towards achieving this goal. India’s favorable governmental policies, growing infrastructure investment, ample human resources, and mass-scale domestic markets have attributed to OEMs moving their production base here.

From a tire manufacturer’s point of view, advancements toward the growth of construction equipment manufacturing will have a positive impact on component manufacturers. More so, I believe the demand for construction, farming, and mining equipment is expected to propel the Indian OTR tire market.

Tell us on your export market in the OTR tires sector & important initiatives to cater to the requirement of international market?

BKT is a leading player in the OTR tire industry and has a strong presence in the global market with an aim to achieve a 10% market. BKT’s exports account for 83% of our sales out of which 54% is Europe, 17% is the US and the rest of the world is 12%. The remaining 17% is domestic sales. We are continuously working towards being the preferred choice of our customers and we further aim at maintaining leadership in product quality, delivery reliability, and technical expertise.

Our company has been catering to the needs of international markets with a wide range of high-quality OTR tires for various applications. We have been expanding our global footprint through strategic partnerships and investments in manufacturing facilities. With an aim to be a ‘one-stop-shop’ all OTR tire segment, we focus on developing innovative products to meet the changing demands of the market.

Give us an understanding of your company’s performance in the last 3 years?

We are a leading manufacturer of off-highway tires, supplying a wide range of products for agricultural, industrial, mining, earthmoving, construction, material handling, ports, ATV vehicles, and others. BKT has been experiencing significant growth in recent years, with revenue increasing consistently.

Our financial statements, in the last three years, demonstrate the outcome of our long-term strategy to capitalise on our increasing scale while, at the same time, maintaining business agility. BKT’s revenue has grown multifold. We have achieved this growth through a combination of factors, including the expansion of our product portfolio, manufacturing capacity, increasing our market share, and expanding our global presence. We have also invested heavily in research and development to create innovative and sustainable tire solutions, which have helped us stay ahead of the competition.

What are your future strategies at a time when technological disruptions are rapidly defining businesses in the sector?  

We understand the importance of staying ahead in the evolving technological landscape of the sector, and we are investing heavily in research and development to bring innovative solutions to our customers. Our goal is to provide them with the best-in-class products that are not only efficient and reliable but also eco-friendly.

We are continuously marching ahead to explore incremental opportunities in the form of developing ‘Ultra Large Earthmovers & Mining Radial Tires’ markets and also taking advantage of the shift from Bias to Radial Tires, which is growing continuously. In order to take advantage of this opportunity, we have set up an All-steel OTR Radial tire plant in addition to Ultra Large tire size and have further added such capacities at our Bhuj plant.

Manufacturers are now under pressure to manufacture machines and components which are not only cost-effective but also comply with the emission norms. What are the initiative undertaken by BKT?  

BKT makes a constant effort to incorporate social and environmental concerns while developing products by removing SOHS (the substance of high concern) from the compound. All products manufactured are designed to protect the environment/social concern. In fact, we have obtained REACH SVHC (Substance of very high concern) compliance certificate for all the products manufactured.

As a responsible organisation, BKT has been constantly taking measures for the conservation and optimal utilisation of energy in all areas of operations at the plant/manufacturing and effective usage of resources. Within the Company, there are continuous efforts towards improving operational efficiencies, minimising consumption of natural resources, mitigate climate change and reducing water, energy & CO2 emissions. In fact, BKT is the first tire company to adhere to reach compliance environmental requirements of the European union.

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