Key Announcement
Balkrishna Industries Ltd. (BKT) and Pirelli have signed a strategic agreement for tire production in India.
Agreement Details
- First Phase: Offtake agreement where BKT will produce up to 800,000 Pirelli branded premium car tires by 2030
- Production will occur in a newly constructed BKT plant equipped with advanced technology
- Tires will be produced to Pirelli's specific technological and quality standards
- Second Phase: Creation of a 50-50 joint venture subject to certain conditions
- Joint venture will construct a dedicated production plant for High Value car tires
- Plant will produce both Pirelli brand and BKT brand tires
- Production will serve India and other international markets
Market Context
- India is one of the most attractive automotive markets globally
- Car registrations estimated to increase by 5-7% annually from 2025 to 2030
- Premium car tire market expected to grow almost fivefold
- Partnership aims to capture opportunities in the growing Indian market
Strategic Rationale
- For Pirelli: Reinforces positioning in high-potential market with growing demand for High Value tires (Pirelli's focus segment)
- For BKT: Supports expansion into passenger car tire segment and creates opportunities in domestic and international markets
- Combines Pirelli's high-end technological leadership with BKT's local industrial positioning and strong presence
Management Commentary
Marco Tronchetti Provera, Executive Chairman of Pirelli: "India is taking an ever more central role in the evolution of the global automotive industry... The agreement with BKT represents for Pirelli a strategic choice which will allow us to strengthen our position in a market among those with the greatest growth potential."
Arvind Poddar, Chairman and Managing Director of BKT: "This partnership brings together complementary strengths to capture the opportunities of a growing market while creating value for both companies."
Andrea Casaluci, CEO of Pirelli: "We are confident that the collaboration between BKT, with its industrial excellence and knowledge of the market, and Pirelli, bringing innovative technologies and high-end positioning, will not only open new opportunities for both groups but will also contribute to the growing premiumization of the Indian tyre market."
Rajiv Poddar, Joint Managing Director of BKT: "When a globally established brand such as Pirelli chooses BKT, it is a recognition of the manufacturing strength, quality and expertise we have built over decades... Pirelli's technological leadership and BKT's industrial capabilities provide together a strong foundation for lasting values."
Company Background - Pirelli
- Founded in Milan in 1872
- One of world's largest tire manufacturers focused solely on Consumer market
- 18 plants in 12 countries, commercial network in over 160 countries
- Approximately 31,000 employees, €6.8 billion revenues in 2025
- Invested 5.6% of 2025 High Value revenues in R&D
- Flagship technology: Cyber™ Tyre with embedded sensors
- World's first company to produce FSC-certified tires using sustainable natural rubber and rayon
- Exclusive Global Tyre Partner of Formula One™ since 2011 (contract through 2028)
Company Background - BKT
- Established in 1987, headquartered in Mumbai
- Leading Off-Highway tire manufacturer with over 3,600 specialized products
- Serves customers in more than 160 countries
- Also manufactures rubber tracks for agricultural and industrial sectors
- Recently announced entry into Two-Wheeler, Passenger Car, and Commercial Vehicle segments for Indian market
- Vertically integrated manufacturing with in-house carbon black production and R&D centers