Balkrishna Industries Eyes Massive Kutch Expansion to Fuel 2030 Growth Targets

Balkrishna Industries Limited (BKT), a leading player in the global Off-Highway Tire (OHT) market, is moving to significantly scale its manufacturing footprint in India. The company has formally approached the Ministry of Environment for environmental clearance (EC) to execute a massive expansion of its existing facility in the Kachchh region of Gujarat.

A meeting regarding this is expected to take place on April 28th, according to the filings with Ministry of Environment, Forest and Climate Change.

The proposed expansion marks a critical inflection point for the Mumbai-based manufacturer, which is looking to more than double its revenue to Rs 23,000 crores by 2030. This ambitious trajectory requires a 2.2x increase from current levels, driven by a strategic shift toward the domestic Indian market and a high-stakes entry into the passenger vehicle segment.

Scaling up

According to the proposal, BKT intends to nearly double its tyre and tube production capacity at the Kutch site from 3.24 lakh tonnes per annum (LTPA) to 6 LTPA
More striking is the planned surge in secondary manufacturing: the company aims to increase its carbon black manufacturing from 1.926 LTPA to 6.6 LTPA, alongside a fourfold increase in its captive power plant capacity from 40 MW to 160 MW.

Currently, carbon black sales represent less than 10% of BKT’s total turnover, although it accounts for about 55% of the total production intended for internal use. A ramp-up in specialty carbon black revenues is expected to begin in the current financial year.

The facility will also integrate heavy downstream components, including a unit for wheel rims (1,000 units per day) and dip roll fabric for man-made fibers (75,000 tonnes per annum). In addition to it, the company plans to increase Mould/Drum/Tire Plant Accessories (from 360 Nos. /Annum to 5000 Nos /Annum)
This move toward vertical integration is designed to increase self-reliance and bolster margins on specialty materials.

Strategic Pivot Amidst U.S. Tariff Crisis

The expansion comes at a volatile time for BKT’s core export business. To de-risk its portfolio, BKT is aggressively targeting the Indian consumer tire market, specifically Passenger Car Radial (PCR) and Commercial Vehicle (CV) radial tires

The company aspires to generate Rs 5,000 crores from this new business vertical by 2030, targeting a 7% to 8% market share in a segment currently dominated by established domestic and global incumbents.

Established in 1987, Balkrishna Industries is one of India’s foremost exporters in the Off-Highway tyre segment, with a solid presence across agriculture, construction, mining, and industrial applications.  In terms of tyre manufacturing  capacities, the company has an achievable  output of 3,60,000 MTPA. For carbon black, Balkrishna Industries has an in-house achievable capacity of 2,00,000 MTPA, including 30,000 MTPA of high-value advanced carbon material.

During FY25, the company reported a net profit of Rs 1,628 crore on the back of Rs 10,413 crore in revenue. The company has manufacturing bases in Waluj (Maharashtra), Bhiwadi and Chopanki (Rajasthan), and Bhuj (Gujarat). Some of the leading customers it supplies to include CASE, John Deere, JCB, CAT, TAFE, among several others.

The Road Ahead

Despite these hurdles, BKT management remains committed to a Rs 3,500 crore growth capex over the next three years. The Kachchh expansion is the cornerstone of this investment, intended to ensure the company is "ready to jump" once global trade volatility subsides and its new consumer lines hit the replacement market.