Rajiv Poddar Joint Managing Director, Balkrishna Industries

Excon is returning after a gap of two years. How is the company looking at leveraging this opportunity for business growth?
Excon is one of the biggest construction equipment and technology expos in South Asia and we have been one of the oldest partners. It is a dynamic rostrum that promotes sustainability, growth, and connectivity. It also gives a platform to showcase product development in the construction equipment industry and with large footfall from the construction segment in addition to the mining segment get the opportunity to the new equipment tyre and components. For us, it serves as an incredible opportunity to meet our buyers and connect with our stakeholders.

Any new launches during the event?
BKT has been constantly developing newer products to meet the requirement of varied m innovations. Our deep understanding of the off-highway tyre market hasachine/ equipment operating parameters, in line with OEM upgrading and led to capabilities to manufacture over 3,200 SKUs which are exported to over 160 countries worldwide.

Every year, BKT adds 80 to 90 new SKUs to meet global demand thanks to extensive R&D, product design, and new product development activities. BKT is one of the few companies with in-house tire molds production facilities, manufacturer of carbon black pigments, and key raw materials used in the manufacturing of tires,which provide us with major autonomy and ensure enhanced quality control throughout the entire supply chain.

This year at Excon, we are highly focused on the growing demands of the mining sector and have plans to launch products that will be a gamechanger for this sector.

How is the government’s focus on NIP and Gati Shakti giving a boost to the equipment industry?
The construction industry in India is expected to continue over the forecast period, recording a CAGR of 9.5 per cent during 2022-2026. The significant initiatives by the government for construction, real estate, infrastructure, projects, and logistics, should boost the equipment industry. The amalgamation of these activities poises to create demand for off-highway tyres.

Which sectors are driving growth for your company’s offerings in India?
The mining and construction segment contributes to more than half of off-highway tyre sales in India, in addition, agriculture is another biggest segment for off-highway tires. So the entire tire industry is witnessing a spurt in domestic demand and a rapid boost in trade ties within the country. We see demand growing from the mining, construction, and agriculture sectors.

How have the sales been for the company this year, and given the ongoing and upcoming building and infrastructure opportunities, what are your sales projections for FY23 or the quarters to follow?
The company continued with its growth streak even during the pandemic and had an average growth of 20 per cent y-o-y in the last two years. Today, the company commands around 5 to 6 per cent market share globally with over 3,200 SKU and exports to more than 160 countries – making BKT one of the major players in the market. To keep the growth to consistent, major investments are made in our core business—tyres, and in carbon black—a new segment we have ventured into.

OTR tyre demand in 2021 rose above pre-COVID-19 levels, despite supply chain and logistics issues, in fact, we don’t see any demand slowing down in the next five years. In 2022, we predict a record growth year for BKT. We are continuing to increase capacity for key product segments to meet customer demand in the mining and construction segment.