The company targets to grow revenue from Rs 10,600 crore to Rs 23,000 crore, plans to enter the premium passenger car and commercial vehicle radial tires market, and has lined up Rs 3,500 crore for three years.
26 May 2025 | 1572 Views | By Kiran Murali
India’s leading off-highway tyre maker Balkrishna Industries Ltd has set an ambitious target of more than doubling its revenue to Rs 23,000 crore by the end of this decade. This growth estimate is being fueled by strategic initiatives such as boosting sales in its off-highway tire business and carbon black ...
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India’s leading off-highway tyre maker Balkrishna Industries Ltd has set an ambitious target of more than doubling its revenue to Rs 23,000 crore by the end of this decade. This growth estimate is being fueled by strategic initiatives such as boosting sales in its off-highway tire business and carbon black segments, as well as entering the market of premium passenger car and commercial vehicle radial tires.
“We have set a clear and shared ambition that is to reach a revenue milestone of approximately Rs 23,000 crore by 2030,” Balkrishna Industries Joint Managing Director Rajiv Poddar told investors after announcing the company’s earnings results for the financial year 2025. The company clocked a revenue of Rs 10,600 crore for the year.
The Aurangabad-based company is popular for its tires in specialty segments such as agricultural, construction, industrial, earthmover, port, all-terrain vehicle, and turf care applications in both cross-ply and radial construction. Case, New Holland, John Deere, Tafe, JCB, CAT, Kubota and Terex are some of its customers.
The revenue estimate for the financial year 2030 represents a compound annual growth rate of 17% from the previous financial year. Poddar noted that to achieve this growth, the company is bank three levers – OHT business, Carbon black and new segments. The company has lined up Rs 3,500 crore as capital expenditure to be spent over the next three years on new projects and existing businesses.
Off-Highway Tyre Segment
The company leads the global agricultural tire market and plans to strengthen that position worldwide. “At the same time, we are ready with a strong product portfolio in other sectors i.e. rubber tracks, mining, industrial and construction tires,” Poddar said.
Amid higher demand for their rubber tracks, Balkrishna Industries board has approved an expansion of its dedicated manufacturing facility for rubber tracks. The company expects the expanded facility to commence production in the second half of the financial year 2026, which will enhance its product offering and market reach in the agricultural sector.
In the mining sector, the management said it is the only Indian tire maker to develop its own all-steel radial technology, producing tires up to 57 inches. “With a full range in both bias and radial technology now in our portfolio, the global mining tire market offers us a clear runway for accelerated growth,” Poddar said.
Balkrishna Industries has already started the capacity expansion of its off-highway tire range at the Bhuj (Gujrat) plant by another 35,000 Metric Tons Per Annum (MTPA) from the current capacity of 360,000 MTPA. The company noted that it is ready to ramp its capacity of OHT to 425,000 MTPA through previously announced capital expenditures and efficiency improvements.
“This gives us the capacity to target an 8% share of the overall market share globally. Any signs of improvement in the global, macroeconomic and geopolitical environment will act as a catalyst for us to achieve the aspiration of 10% global market share,” Poddar said. It currently has a 6% share in the global OHT market.
The company expects the OHT business to contribute 70% of the targeted Rs 23,000 crore revenue by 2030.
New Segments – PV, CV
Balkrishna Industries has now officially announced that it will enter the premium passenger car and commercial vehicle radial tire markets, with an initial focus on the replacement market in India.
“The brand investments that we have made in the Indian market over the last few years have played a significant role in our success. Following the successful development of our all-steel radial platform, we believe we now have the right technological base to extend value to newer customer groups,” Poddar said.
He noted that the company will start a pilot program for commercial vehicle radial tires in the first quarter of this financial year, following which the business will be gradually expanded. A similar pilot for passenger car radial tires will be launched in the third quarter, which will then be expanded gradually.
“By 2030, these new verticals are expected to contribute to around 20% of our overall sales, leading to approximately 5% market share in India, allowing BKT to participate in non-OHT total addressable market of additional Rs 80,000 crores in India alone,” Poddar noted.
Carbon Black Business
Balkrishna Industries’s third lever for scaling its business is the carbon black business. The company is strengthening its market position as a high-quality reliable supplier of carbon black to tire companies in domestic and international markets.
In the financial year 2025, the carbon black business accounted for 8–9% of the company’s overall revenues. By the end of this decade, the company aims for around 10% revenue contribution from carbon black, with a target to become a preferred supplier for tire and non-tire segments.
“Our product is now well accepted by major OEMs in India and globally. We aim to position ourselves as a preferred and strategic supplier to the tire industry. We also see significant revenue and margin potential in non-tire segments including the advanced carbon black line of ours which went on stream last year,”
Balakrishna Industries has a carbon black manufacturing plant in Bhuj with a capacity of 200,000 MTPA. In a bid to capitalize on synergies with its tire operations and leverage raw material integration, the board has approved the company’s plans to expand the capacity to 300,000 metric tons per annum. The capacity expansion is expected to be completed by early 2026.
Balkrishna Industries believes that its available land and equipment, along with the necessary skilled employees and systems, gives the company a competitive advantage to scale the businesses. Their carbon black plant helps reduce major manufacturing costs by producing power for their tire factories and gives them control over a vital raw material. Additionally, the company believes its investments in brand building will now create more value across a broader range of products.