Balkrishna Industries Limited To Build A New Tyre Plant In The US
Maharashtra-based off road tyre manufacturer, Balkrishna Industries Ltd. (BKT) has recently disclosed their plans to build a new plant in the USA. The Chairman and Managing Director of the company, Arvind Poddar has disclosed BKT’s plans in a videotaped message that was telecasted at the Tyre Industry Association’s Awards Night held in Las Vegas recently. Also, during this occasion Mr. Poddar was inducted in the Tyre Industry Hall of Fame.
BKT’s Joint Managing Director, Rajiv Poddar, who accepted the award on the behalf of his father said, that the company’s board of directors has approved the investment for the project a month ago. Although he declined to comment on what the exact investment will be, but has said that the BKT is in the site searching mode which will be finalised before the year end. He further added that it will take up to 2 years to complete the factory and the production is supposed to commence in the late 2020 or early 2021. According to company officials, some sites in the Midwest region of the US are under consideration.
According to BKT financial reports, about 85 percent of the company’s revenue during the fiscal year 2017-2018 was generated in the markets situated outside India. It included about $93 million from North America. The report has also mentioned the sales of $692 million in the fiscal year 2017-2018, which is about 6 percent share of the global OTR tyre business. The company’s goal is to reach 10 percent by the year 2025. BKT has made significant OE inroads into North America-based equipment makers. For BKT, Europe is the largest market that accounts for more than half of the annual revenue. The company is represented in North America by BKT Inc. in Ohio.
BKT is currently the world’s 39th largest tyre manufacturer.