Balkrishna Industries Ltd STRIKES TYRE PRODUCTION DEAL

Shares of Balkrishna Industries Ltd rose around 3% after the Indian tyre manufacturer announced a strategic agreement with Italian tyre maker Pirelli for the production of up to 800,000 Pirelli-branded tyres in India by 2030. Under the agreement, BKT will manufacture tyres bearing the Pirelli brand in India, marking a significant step in Pirelli’s expansion plans in the country. The partnership will be implemented in phases, with the second phase involving the establishment of a 50:50 joint venture to set up a domestic manufacturing facility dedicated to high-value passenger car tyres. The companies expect India’s passenger vehicle registrations to grow at an annual rate of 5–7% through 2030. They also anticipate that the premium car tyre market could expand nearly fivefold over the same period, highlighting the growth opportunities in the country’s automotive sector. For Pirelli, the agreement provides an opportunity to strengthen its presence in one of the world’s high-growth automotive markets. The Italian company currently has a commercial presence in India, and the partnership with BKT is expected to support its entry into local manufacturing. The companies said India is becoming increasingly important to the global automotive industry, driven by rising vehicle demand, evolving mobility trends and improvements in domestic manufacturing and technological capabilities. Pirelli also highlighted BKT’s established industrial presence in India and its international footprint as key factors behind the partnership. The agreement is expected to help Pirelli expand its position in the Indian market by leveraging its expertise, innovation and premium product portfolio.