Companies

Tyre-maker Balkrishna Industries’ ₹1,000-cr expansion plan ‘on track’

G Balachandar Chennai | Updated on August 17, 2020 Published on August 17, 2020

Targets replacement and OEM markets

Balkrishna Industries, the country’s leading off-highway tyre manufacturer, has said that its ₹1,000-crore capacity expansion programme is on track. It has also identified a few focus areas for growth.

The company, which sells its products under BKT brand, is establishing a fully integrated facility at a capex of about ₹500 crore to replace the existing plant to enhance productivity.

Similarly, the company is setting up an ultra large-sized all-steel OTR (off-the-road) radial tyre unit with a capacity of 5,000 tonnes per annum at its Bhuj factory in Gujarat. This is reported to be the first of its kind plant in India. Also, the company is building a warehouse and mixing plant there. The estimated capex for these is about ₹500 crore.

The above project is to take advantage of the opportunity arising out of earthmover and mining tyres segment, where there is a shift from bias to radial tyres.

“Capex programmes of the company are broadly on track. The company is trying to complete the projects as per schedule, i.e., March 31, 2021, provided there is no further Covid-19 lockdown and unforeseen circumstances,” the company management said during its communication to investors.

The company said its Q1FY21 was a good quarter despite the impact of Covid-19. Sales in May and June were at 38,096 tonnes (51,034 tonnes in the first quarter last fiscal). The monthly run rate is gaining momentum and is visible in July and August.

As on June 30, it had cash and cash equivalents of ₹1,175 crore with no long-term debt.

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Published on August 17, 2020
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