Rajiv Poddar, co-managing director, cited the build-out of India’s infrastructure and rising vehicle demand as the key drivers behind its entry into the consumer segment. “We didn’t want to miss the Indian part of the trip,” he told ET.
BKT will produce the tires at the company’s facility in Kutch, Gujarat, with an initial capacity of 3,200 truck-bus tires per day. For two-wheelers, the company is targeting 100,000 units per month within four to five months of launch, scaling up to one million per month by 2030.
The investment in consumer tires is part of a broader ₹3,500 crore capital plan that also covers carbon black and energy infrastructure. BKT has not disclosed a standalone figure for the consumer segment.
By skipping the conventional manufacturer-to-dealer route, BKT is going to market through distributors, says Satish Sharma, director of business development and strategy. The company has identified distributors from the automotive ecosystem with existing fleet relationships and annual turnover between ₹500 crore and ₹2,500 crore. “We go through the distributors and tap into their entrepreneurial energy and their systems and processes,” he said.
For commercial vehicles, 43 distributors have been finalized and similar structures are planned for the passenger car and two-wheeler segments. The initial focus is on the aftermarket, with original equipment manufacturer (OEM) offerings planned for a later phase, Sharma said. Poddar acknowledged some margin dilution as it entered a more competitive segment with lower margins, but said the consumer sector would remain a small enough share of total sales to limit the mixed impact.
BKT currently reports margins of more than 20% in its specialty segment. For the standalone entity, the company reported a net profit of Rs 375 crore in the December quarter, down 15% year-on-year against revenues of Rs 2,730 crore, up 4%.
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