Balkrishna Industries to Invest Rs 6,800 crore to boost tyre and carbon black capacity by FY29

Balkrishna Industries Ltd (BKT) has announced a capital expenditure plan of Rs 1,500-1,800 crore for FY27, with an additional Rs 200 crore allocated for maintenance. This investment will support the expansion of its off-highway, on-highway, and carbon black businesses. The company spent Rs 2,800 crore on capex in FY26.

BKT’s total capex plan through FY29 stands at Rs 6,800 crore, with nearly Rs 3,000 crore already invested. The remaining Rs 3,800 crore will be deployed over the next few years, and the board has approved an extra Rs 2,000 crore for further expansion.

Key Highlights

• BKT plans Rs 1,500-1,800 crore capex in FY27 with Rs 200 crore for maintenance
• The total capex plan till FY29 is Rs 6,800 crore with Rs 3,000 crore already spent
• Carbon black capacity to reach 3,60,000 MTPA by FY27 after new expansions
• On-highway tyre business targets Rs 5,000 crore revenue and 5 percent market share by FY30
• Off-highway tyres expected to contribute 70 percent of revenue by FY30

Capacity Expansion and Infrastructure

The capital will fund capacity increases and infrastructure development in both off-highway and on-highway tyre segments. It will also support AI-enabled automation in the on-highway tyre business and sustainability initiatives. According to Joint Managing Director Rajiv Poddar, these investments aim to improve cost efficiency, operational resilience, and sustainable performance, while creating a scalable platform for future growth.

BKT’s expansion covers three main areas: its core off-highway tyre business, the growing on-highway tyre segment, and its backward-integrated carbon black business. In December 2025, BKT commissioned a new carbon black line at Bhuj, increasing capacity to 2,65,000 metric tonnes per annum (MTPA). The captive power plant at Bhuj also expanded from 40 MW to 64 MW in February 2026. The second phase of carbon black expansion, expected in Q1FY27, will raise capacity to 3,60,000 MTPA.

In FY26, the carbon black business saw marginal year-on-year revenue growth, with third-party sales accounting for 9% of total revenue. The new carbon black line has reached full utilization, serving both internal needs and external sales. BKT has secured approvals for specialty carbon black grades used in plastics, pressure pipes, power cables, and inks.

On-Highway and Off-Highway Tyre Growth

BKT is scaling up its on-highway tyre business in India. In February 2026, the company completed Phase 1 of its commercial vehicle radial tyre project, investing Rs 750 crore to add capacity for 800 tyres per day. Phase 2 will increase total truck-bus radial (TBR) capacity to about 3,800 tyres per day. The TBR business has started, but its initial contribution is expected to be modest. Management anticipates limited impact in the first quarter, with scale-up expected through FY27.

The company has relaunched select two-wheeler tyres for the domestic market, with current capacity at 1,00,000 tyres per month. This can be increased depending on demand. BKT plans to launch passenger car radial (PCR) tyres by the end of the current year, with Phase 1 providing capacity for 6,700 tyres per day. The company is focusing on India’s replacement market and will expand its dealership network as sales grow.

BKT aims for Rs 5,000 crore revenue from on-highway tyres by FY30, targeting a 5% market share in the segment and expecting on-highway tyres to contribute 20% of total revenue. The off-highway tyre business will remain central, with a goal of 8% global market share and 70% revenue contribution by FY30. Ongoing capex and debottlenecking are expected to increase off-highway tyre capacity to 425,000 MTPA.

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CarBike 360 Says

The company targets revenue of Rs 23,000 crore by FY30, more than double the Rs 10,600 crore expected in FY25. Growth will be driven by off-highway tyres, higher third-party carbon black sales, and expansion of the on-highway tyre business. BKT expects blended margins of 23-25% after full commercialization, supported by higher revenue, better product mix, and operational efficiencies.