Balkrishna Industries Ltd:
Balkrishna Industries Limited is amongst the leading tyre manufacturers of India, engaged in manufacturing and selling of Off-Highway Tyres (OHT) for several for a plenty of sectors such as agricultural, forestry, construction, earthmovers, port, mining, garden, lawn and All-Terrain Vehicles, with a pervasive presence and penetration in the international market.
The majority of its revenue is earned from exports. Having four production sites in Aurangabad, Bhiwadi, Chopanki, Dombivali and Bhuj, the company is propagating its nationwide business network with great success. The company has drawn its international acceptance with four subsidiaries in Europe and North America, namely BKT Europe SRL in Seregno, Italy, BKT Tires USA Inc. in Akron, Ohio, BKT Tires Canada Inc. in Toronto, and BKT Tires, Inc. in Brentwood, Tennessee with a penetration capacity in the market of more than 130 countries. The company was incepted in November 1961 and is headquartered at Mumbai, India.
In 1987, the company inaugurated its first plant at Aurangabad. During 2002-03, the Auto Tyre Plant of Govind Rubber Ltd at Bhiwadi in Rajasthan was acquired by the company. In 2004-05, Tractor Radial Tyres were introduced by the company. At this time, production capacity was increased by 42000 TPA and 18000 TPA at Bhiwadi and Waluj unit respectively. A Wind-Farm, with a capacity of 5 MW was installed near Jaisalmer in Rajasthan. In February 2005, the company inaugurated its wholly-owned subsidiary company BKT (Europe) Ltd in the UK for the promotion of sales and marketing of the products of tyre division in Europe, that initiated the business operations from April 2005. Production capacity in Bhiwadi unit was increased by 3000 TPA to 45000 TPA by this time.
In 2006, BKT Europe SRL, a cent per cent subsidiary of Balkrishna Industries was inaugurated in Italy and BKT Exim Ltd, another wholly-owned subsidiary was incorporated in 2007. Besides these, two new companies were included, namely Balkrishna Synthetic Ltd and Balkrishna Paper Mills Ltd, by the company in March 2007 as wholly-owned subsidiaries, for the transfer of their paper and textile processing business respectively. During 2006-07, the production capacity in Bhiwadi plant was increased from 45000 TPA to 48000 TPA and in Waluj plant from 18000 TPA to 22000 TPA.
The turnover of the company surpassed Rs.1000 crore in 2009. On January 2011, the company communicated with the stock exchange that 4.5% of Foreign Currency Convertible Bonds (Series B) amounting to USD 22 million was repaid by the company. During 2012-13, Balkrishna Industries developed a modernization scheme by introducing balancing equipment, which increased production capacity.
On January 2014 Balkrishna Industries, endorsed a plan of course of business actions according to the Companies Act, 1956 subjected under section 391-394, for merging Balkrishna Paper Mills Limited (an entirely owned subsidiary) with the firm and demerger of the Paper board business division, along with interest in Balkrishna Synthetics Ltd., on a going concern premise in to Nirvikara Paper Mills Limited. In 2015, the company finished its Greenfield tire plant venture at Bhuj, Gujarat. The Board of Directors of the company held a meeting on 18 May 2016 and affirmed the Scheme of Amalgamation of its entirely claimed subsidiary firm M/s. BKT Exim Limited under sections 391 to 394 of the Companies Act, 1956 and the Companies Act, 2013.
The Board of Directors of the Balkrishna Industries conducted another meeting, held on July 2017 endorsed the setting up of a Carbon Black undertaking at the Bhuj Plant with an underlying capacity of 60,000 million tonnes at an expected capital cost of Rs.150 crore. Issuing Bonus Shares in the proportion of one bonus equity share for each one existing equity share held on record date was suggested by the Board of Directors of Balkrishna Industries at its meeting on 11 November 2017. The merger of BKT EXIM Limited with Balkrishna Industries Ltd (under the scheme of amalgamation) had been sanctioned by The Honourable National Company Law Tribunal (NCLT) on January 2018.
How Balkrisha Industries Ltd, is categorised as a Tyres Sector, and Tyres & Tubes Industry :
The Indian Tyre and Tubes industry is ancillary o the automobile industry. Demand swings in any of the auto segments(commercial vehicles, cars, two-wheelers) have an impact on the tyre demand. The Indian tyre industry is in the modernization phase and is primarily driven by demand and supply conditions.
Balkrishna Industries Ltd is categorized under Tyres sector and Tyres and Tubes industry. Tyres sector has been cruising fast and steady for nearly nine years now. Many stocks from this sector have grown in thousand percentage points over this period. Tyre sector is directly or indirectly influence the country’s growth. Globalization has driven to the linking of the economies of all the nations, and hence major Indian companies in the tyre sector are pursuing global strategies to improve their competitiveness in world markets.
Balkrisha Industries Ltd, Competitors and Sector Peers:
Goodyear India Ltd. GOODYI
Govind Rubber Ltd. GOVRUB
Innovative Tyres & Tubes Ltd. INNTYR
JK Tyre & Industries Ltd. JKTYR
Krypton Industries Ltd. KRYIND
Tirupati Tyres Ltd. TIRTYR