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Balkrishna Industries (BKT) announced that it has entered into a strategic agreement with Italian tyre manufacturer

ICICIdirect Research 23 Oct 2026 DISCLAIMER

News: In a press release, Balkrishna Industries (BKT) announced that it has entered into a strategic agreement with Italian tyre manufacturer Pirelli to manufacture up to 800,000 Pirelli-branded premium car tyres per annum by 2030 at a newly constructed BKT facility, following Pirelli’s technology and quality standards. The agreement also envisages a second phase involving a proposed 50:50 joint venture, subject to certain conditions, to build a dedicated high-value car tyre plant producing both Pirelli- and BKT-branded tyres for Indian and international markets.

View: The partnership aims to capitalise on India’s growing passenger-vehicle market and rising demand for premium tyres. For Pirelli, it provides a pathway to strengthen its manufacturing presence in India, while for BKT, it supports its expansion beyond its traditional off-highway tyre business into passenger car tyres and supports faster ramp-up of its Bhuj facility (phase-1 capacity of 6,700 Tyres Per Day for PCR segment). Even post full ramp-up to 800k tyres p.a. by 2030, 80% of the capacity would be available for BKT-branded PCR tyres. BKT further reiterated its medium-term revenue and margin targets. We await Q2FY27 results and management commentary on margin stability.

Impact: Positive

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