”In mining and infrastructure we have concerns and issues dealing with payment. That is an impediment to the smooth flow of the business. I hope the government takes care of it,” says PK Ganguly, Head Marketing, BKT

 Balkrishna Industries (BKT) is one of the world’s leading manufacturers of off-highway tyres. At ConMac 2015, the company displayed its display its world-class radial range of OTR tyres for North East market. On the sidelines of ConMac, PK Ganguly talks to B2B Purchase and gives an overview of the Indian tyres market.

What made you participate at ConMac 2015?
North East is not a very developed place in comparison to other parts of the country. Therefore there is a huge scope for growth for our business as well as for the industry. We felt that ConMac is the best platform to come and participate and showcase our products to other customers. BKT has a wide profile of construction equipment tyres sold in India and abroad. We participated in ConMac Expo when they put up the show for the first time.

From your product ranges, what are the innovations you exhibited at ConMac 2015?
One of the latest developments like the radial range in tipper is exhibited at ConMac 2015. We have exhibited some of our construction backhoe loader tyres which we recently developed. Its excellent grip range will give customers a great value for money. Customers have developed great curiosity for these products.

The government is emphasising on ‘Make in India’. How do you look at it?
We have 3 factories and the 4th one is coming up in Bhuj, Gujarat. So even before the government made an official announcement on ‘Make in India’, we were already there.
Though you have a strong hold in overseas market, how do you look at the market conditions present in India?In India, so far our growth in the infrastructure and mining has not been in line with developed world. There is always a room for growth. BKT is looking at 10 per cent of the domestic market while our other markets constitute 90 per cent.

But amongst the domestic market, you are supplying tyres to many OEMs…
Yes, we do. JCB is our partner. L&T, CASE and other Indian OEMs are always there with us.

What are the major challenges you are facing as of now?
We have started growing. The major challenge is that the infrastructure and mining segments are not growing the way they should have. Another challenge is the planning and execution of policies by the government. If these things go well then our tyres will flow freely in the market. Therefore the market should grow and it must grow fast.

Do you think there is a cash and credit issue present in this industry?
In mining and infrastructure we have concerns and issues dealing with payment. That is an impediment to the smooth flow of the business. I hope the government takes care of it.

How do you look at the competition in the OTH segment?
Competition should be there and it is there. Many overseas companies are also setting up their business in India. However, our strength is the quality of our products. Our tyres are world-class because 90 per cent of our base is outside India. We understand the market outside India where we sell in the most competitive environment and our development process is in-line with that. So when we develop tyres in India, we keep in mind the Indian terrain and Indian roads and we are successful in our efforts. Service is another factor on which we stand out.

Another thing is that we have 2,300 SKUs, which is a great strength. We have the widest product basket. Our products have quality with the widest product market for customers, given for any application. It is well supported by services. Also, R&D is our core strength.

A lot of tyres are being imported from China. Will this hamper the economy of domestic players?If China starts dumping stocks, it will definitely hamper the local tyre industry and the economy in turn. But if it provides a level playing field, then it should not be a problem.