Balkrishna Industries Limited, a manufacturer of off-highway and specialty tires, is maintaining its annual capital expenditure of about INR 20–22 billion for the current financial year to expand tire and carbon black production capacity, even as exports remain affected by higher U.S. import tariffs.
The investment is part of a three-year programme totalling INR 35 billion, covering new truck and bus radial (TBR) and passenger car radial (PCR) tire projects. Balkrishna Industries spent INR 17.37 billion in the first half of the financial year 2025–2026, with the remainder to be deployed by the end of the financial year 2026–2027. The company said all announced projects are progressing on schedule.
“We expect our total investment for this year to be close to INR 20–22 billion, in line with our long-term capacity expansion plans,” said Rajiv Poddar, Joint Managing Director of Balkrishna Industries. “This includes both new project spending and maintenance capital expenditure, as we continue to build manufacturing strength for the next phase of growth.”
The TBR and PCR tire projects are advancing as planned, with pilot production expected to begin in the second half of the financial year 2026–2027. The company is also expanding its carbon black operations, with about 55 percent of total carbon black output consumed internally and contributing less than 10 percent to turnover. Its Bhuj plant recently received a five-star grading and the Sword of Honour Award from the British Safety Council for workplace safety and operational standards.
The Bhuj facility in Kutch, Gujarat, is already the company’s largest and most advanced site, housing off-highway tire production, carbon black manufacturing, and export logistics infrastructure. The new radial tire lines are being integrated within this complex to leverage its existing utilities, testing facilities, and port proximity.
For the quarter ended 30 September 2025, Balkrishna Industries recorded tire volumes of 70,252 metric tonnes, a decline of 4 percent compared with the same period last year. Total volumes for the first half stood at 150,916 metric tonnes, also down 4 percent year-on-year.
Exports to the United States were significantly impacted after import duties on Indian tires were raised to 50 percent during the second half of the quarter. The U.S. accounted for about 10 percent of the company’s sales volume in the previous financial year. Poddar said the company expects a recovery “within a couple of weeks” once tariffs normalise, supported by potential pent-up demand. In Europe, demand remains subdued but management noted “early signs of easing headwinds.”
Balkrishna Industries is focusing on strengthening its presence in India and Europe while expanding into Asia and Australia, particularly in the off-highway and mining tire segments. India now contributes roughly 25 to 30 percent of total revenue, up from around 12 percent a few years ago.
The company reiterated its long-term goal of achieving INR 230 billion in annual revenue by 2030. It plans to generate approximately INR 50 billion from its TBR and PCR segments by that year, equivalent to about 7 to 8 percent of the overall tire market.
Balkrishna Industries Limited, incorporated in 1961 and headquartered in Mumbai, manufactures off-highway, agricultural, and industrial tires for global markets through production facilities in Maharashtra and Gujarat.
