BKT expands carbon black business, targets specialty applications and EV battery materials

BKT Industries is shifting its strategy to focus on technology-led materials, including conductive additives for electric vehicle (EV) batteries and high-performance coatings. The company aims to move beyond its traditional role as a tyre manufacturer by expanding its carbon black business into high-margin speciality applications.

Key Highlights

• BKT shifts focus to technology-led speciality carbon black applications
• Carbon black capacity to reach 350000 tonnes, with plans for 600000 tonnes
• Third-party sales now make up 60 percent of BKT's carbon black business
• BKT targets high-performance sectors, including EV batteries and coatings
• Carbon black division expected to contribute 10 percent of 2030 revenue

Carbon Black Business Expansion

BKT has identified a significant opportunity in EV battery materials. Specialised carbon black serves as a conductive additive, which enhances battery performance. This strategic move positions BKT within the electronics and energy storage supply chains, moving away from commodity-grade products to performance blacks.

The company has already completed one phase of expansion in its carbon black business, increasing capacity to 265,000 tonnes. A second phase is underway, which will raise total capacity to 350,000 tonnes. BKT’s long-term vision targets a capacity of 600,000 tonnes.

Historically, BKT produced carbon black mainly for its own tyre manufacturing. Now, third-party sales account for 60% of the carbon black business. The company aims to increase this figure to over 70% in the near future. By selling more to external customers, BKT seeks to capture higher margins from specialised categories.

Speciality Applications and Market Position

BKT is targeting high-performance sectors such as specialised plastics, coatings, paints, and high-performance cables. These applications, including those in the automotive sector, require different research and development efforts and a more specialised team compared to standard tyre OEM supply.

Satish Sharma, Senior President & Director (Business Development and Strategy), stated that the company’s objective is to increase the mix of performance and speciality blacks. This shift is expected to become more visible as the business grows.

The carbon black division is a key part of BKT’s 2030 growth vision, which aims for total revenue of Rs 23,000 crore. The carbon black segment is projected to contribute 10% of this revenue.

Competitive Landscape and Corporate Structure

BKT faces competition from established players such as PCBL Chemicals, Birla Carbon, and Himadri. These companies have invested heavily in non-tyre, specialty-black applications. Birla Carbon and PCBL have global scale, strong R&D, and long-standing relationships with automotive and chemical OEMs. Himadri has expanded its specialty black capacity, making it one of the largest single-location sites globally.

BKT has restructured its corporate architecture to give the carbon black business a distinct brand identity and leadership. By separating these divisions, BKT aims to allow the carbon black segment to grow as a technology-driven supplier for automotive and industrial products.

Market Trends and Pricing

Retail sales of electric passenger vehicles surpassed 23,500 units in April 2026. Electric commercial vehicle retail volumes reached 2,245 units, marking a 148.9 percent year-on-year increase. BKT implemented an average price increase of 2%, but this did not fully offset rising input costs.

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CarBike 360 Says

BKT’s move into specialty carbon black and EV battery materials highlights a forward-looking strategy aligned with global electrification trends. By diversifying beyond traditional segments, the company is positioning itself for sustained growth in high-value markets. This expansion not only strengthens BKT’s industrial footprint but also signals its intent to play a meaningful role in the rapidly evolving EV ecosystem.