Business & Finance

Balkrishna to Produce 800,000 Pirelli Passenger Car Tyres Annually by 2030

By Ayaan Kartik

Mumbai-based Balkrishna Industries Ltd (BKT) will manufacture 800,000 passenger‑car tyres a year for Pirelli at its Bhuj plant, a supply agreement signed last month will see the volume reach that level by 2030. The deal gives BKT a steady revenue stream and access to Pirelli’s European testing infrastructure, including simulation and proving‑ground facilities, which the Indian company can use as it develops its own passenger‑car tyre line. BKT’s joint managing director Rajiv Poddar said the partnership is a “marriage of two equals” and will help the company enter the much larger cars, trucks and buses market. The agreement also includes a separate services contract under which BKT pays for use of Pirelli’s facilities and technical support, but the two firms will keep separate manufacturing specifications and technology. If certain conditions are met, the companies could form a 50:50 joint venture to produce premium car tyres for both brands, each selling its products independently. The partnership is part of BKT’s broader strategy to diversify beyond off‑highway tyres, a move that analysts say will be closely watched for its impact on margins and returns. BKT’s international sales accounted for 64% of its FY26 revenue, down from 71% in FY25 and 82% in FY22. The company remains on track to reach a market cap of ₹47,000 crore and a revenue target of ₹23,000 crore by FY30, with one‑fifth of that coming from on‑road tyres.