Although the industry figures are not at par with 2009, BKT has seen remarkable growth after a gap of many years. We are expecting a year-on-year growth of 15-16 per cent.

Ashok Chhajer,
Sr. DGM – OE Sales, BKT (Balkrishna Tyres)

  As the government is putting lots of efforts in pushing the stalled projects and announcing major new projects, we can only expect exponential growth for the industry as well as BKT, observed Ashok Chhajer, Sr. DGM – OE Sales, BKT. 

Balkrishna Industries Ltd (BKT) is one of the world’s leading manufacturers of off-highway tyres. How was the year 2016 for BKT?
The year 2016 was a good from every front for BKT. From a very opening in the first quarter of calendar year 2016, the market went down little in the second quarter. Again after a quick recovery in the third quarter with a moderate performance, the sales in last quarter really picked up. So the bottom line in 2016 was good for us. Although the industry figures are not at par with 2009, BKT has seen remarkable growth after a gap of many years. We are expecting a year-on-year growth of 15-16 per cent.

Which are the segments driving your sales growth?
In India, BKT is growing in every segment of its business including agriculture, industrial, construction, port, mining and material handling. Globally, the major target industries like mining, farm equipment of large horsepower and construction industries are yet to pick up.

So, does the renewed focus on domestic market have somehow helped you to maintain the growth?
Though we have increased our focus in the domestic market, exports remain the key contributor to our revenue with around 83 to 84 per cent sales. We would like to continue with the same strategy.

What is your projection for 2017?
Based on the domestic market base we have seen during the last quarter of calendar year 2016, if this continues definitely there will be an excellent growth. As the government is putting lots of efforts in pushing the stalled projects and announcing major new projects, we can only expect exponential growth for the industry as well as BKT.  In India, construction industry remains the prime mover for off-highway tyres (OTR) industry with 50-55 per cent contribution. Now, if this construction industry alone gets double digit growth, the OTR would surely achieve excellent growth. 

What kind of growth you target for BKT?
We are looking at a growth of around 15 per cent in terms of units.

To conclude, how Bhuj facility has helped BKT in the past couple of years?
Built with an investment of 500-million-US-dollar, it is a state-of-the-art, world-class all steel radial tyre making facility. It has increased BKT’s manufacturing prowess and competence dramatically. Today, about 175 tonnes are rolling off the production lines in Bhuj every day. The plant has a capacity of 350 tonnes per day. It has the production capability for the sizes ranging from 17.5-inch to 49-inch and in early 2017 it would go up to 51-inch for specialised mining application.