Balkrishna Industries (BKT) expects its partnership with Italian tyre manufacturer Pirelli to accelerate its expansion into the passenger car tyre segment, a business the Indian company had already identified as part of its growth plans.
Speaking at a press interaction on Thursday, Rajiv Poddar of Balkrishna Industries said the partnership would help accelerate the company’s existing plans to enter new tyre categories. BKT, which has established its position in the off-highway tyre market, sees the association with Pirelli as an opportunity to build its presence in the passenger vehicle segment.
Poddar said the two companies shared several similarities in their approach to business, particularly their long-term outlook, customer relationships and emphasis on product quality. While BKT has built its business around off-highway applications, Pirelli has established its position in the on-road tyre market.
He also referred to Pirelli’s motorsport heritage and technological capabilities, identifying these as strengths that complement BKT’s manufacturing experience. According to Poddar, both companies approach their respective businesses with a long-term commitment rather than focusing on short-term opportunities.
Marco Tronchetti Provera of Pirelli said India was becoming increasingly important to the company’s international strategy, supported by the country’s economic development and growing demand for technologically advanced tyres.
He said Pirelli saw opportunities in India’s evolving automotive market, particularly as demand developed for higher-value products. The company’s decision to work with BKT was also influenced by similarities in the two organisations’ approach to business and their willingness to invest for the long term.
Provera emphasised that establishing a manufacturing presence required sustained commitment, given the time involved in developing production facilities and building a business. Pirelli intends to participate in India’s market growth over an extended period through the partnership.
The comments followed the signing of three agreements between the companies on October 22, including a framework agreement for a proposed 50:50 joint venture to manufacture passenger car radial tyres in India.
Under a separate offtake agreement, BKT will manufacture Pirelli-branded passenger car tyres at its Bhuj facility in Gujarat. Pirelli will also provide testing and technical support for BKT-branded passenger car, SUV and two-wheeler tyres through its facilities outside India.
The proposed joint venture, subject to specified conditions, will establish a new manufacturing plant in India, with both companies sharing its production capacity equally.