Italy's Pirelli forms JV with Balkrishna Industries to manufacture tyres

New Delhi, Oct 22 (PTI) Italian tyre maker Pirelli and India’s Balkrishna Industries have entered into a strategic partnership to manufacture up to 8 lakh Pirelli-branded tyres annually by 2030 at its upcoming facility in Bhuj, Gujarat.

Production at the facility is expected to begin in the next financial year, said Balkrishna Industries Joint Managing Director Rajiv Poddar.

In the first phase, Mumbai-based Balkrishna Industries Ltd (BKT), a leading off-highway tyre maker, will manufacture tyres for Pirelli at its upcoming Bhuj facility in Gujarat under an off-take arrangement, he added.

The agreement also envisages a second phase involving a proposed 50:50 joint venture to manufacture premium passenger car tyres under Pirelli and BKT brands, subject

to the partners finalising their business plans.

The proposed facility would cater to the domestic and international markets, according to the companies’ announcement.

The five-year first phase will involve manufacturing tyres to Pirelli’s specifications, with the Italian company selling them under its own brand, Poddar told PTI in an interaction.

“It is purely an off-take partnership for phase one,” he said, adding that supplies would be ramped up gradually to reach up to 8 lakh tyres annually in the fourth and fifth years.

Poddar said partners have agreed on the broad terms of the proposed joint venture, but work on its location, investment requirements and detailed business plan has not yet started.

“Once we have more details on the business plan for both the brands, then we will go back to the drawing board,” he said, adding that the partners would subsequently evaluate locations for the plant.

The partnership comes at a time when India is emerging as an attractive automotive market, with car registrations projected to grow 5-7 per cent annually between 2025 and 2030. The premium car tyre segment is expected to expand nearly fivefold, according to the statement.

“India is taking an ever more central role in the evolution of the global automotive industry, thanks to the market’s growth, development of mobility and progressive strengthening of the country’s industrial and technological competencies,” Pirelli Executive Chairman Marco Tronchetti Provera said.

For Pirelli, which currently has only a commercial presence in India, the agreement marks a significant step towards strengthening its position in a market offering substantial growth potential in the high-value tyre segment.

BKT, traditionally focused on off-highway tyres, is looking to expand its presence in the passenger car tyre segment through the partnership, creating opportunities in domestic and overseas markets.

Poddar said the two companies would complement rather than compete with each other, given their respective strengths and ambitions in the passenger car radial tyre segment.

Under the proposed joint venture, the two brands would have separate distribution networks, with the manufacturing facility supplying tyres to both companies.

“Each brand will have its own distribution network,” he said.

BKT is also developing its go-to-market strategy for its own passenger car tyres, with plans to establish a distribution network across India. The company intends to combine existing distribution partners with new ones to address gaps in its reach.

“It will be a mix of some of the existing lines and some new,” Poddar said.

Founded in 1872, Pirelli is among the world’s largest tyre manufacturers, focusing on consumer tyres for cars, motorcycles and bicycles. The company operates 18 manufacturing plants across 12 countries and reported revenues of 6.8 billion euros in 2025.

Shares of Balkrishna Industries jumped 3.43 per cent to close at 2,108.55 apiece on BSE. PTI KRH KRH BAL

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