Focus On Industry
New plant, new plans BKT USA HAS A LOT GOING ON IN 2019 By
Bob Ulrich
68
MTD January 2019
COURTESY OF BKT
A
rvind Poddar, chairman and managing director of Balkrishna Industries Ltd. (BKT), was unable to attend his induction into the Tire Industry Association Hall of Fame on Oct. 29 due to a death in the family. But that didn’t keep him from making a huge announcement with global impact. “We have a concrete plant to set up a new tire plant in the U.S., generating local employment,” Poddar said in a pre-recorded speech during the 2018 Tire Industry Honors program in Las Vegas. Following the big reveal, Modern Tire Dealer sat down with Rajiv Poddar, joint managing director, and Minoo Mehta, president of BKT USA Inc. and BKT Tires Inc., to discuss not only the plant, but also the company’s plans for the U.S. market in 2019 and beyond. “We are in the process of identifying lands,” Joint Managing Director Rajiv Poddar said BKT hopes to announce a U.S. plant locasaid Rajiv Poddar about BKT’s first plant tion soon. Availability of manpower and suitable acreage are determining factors. outside of India. He said negotiating with the state government and closing on the final deal was due to occur which will increase its annual capacity from a projected 350,000 sometime this month. metric tons to 425,000 metric tons. As to where the plant will be located, Poddar gave no clues, The additional production capacity, along with the new plant in other than to say BKT is looking at “somewhere in the ballpark the U.S., will help BKT take advantage of growth opportunities in of 80 to 100 acres in midwest USA.” Availability of manpower other areas, such as South America and the CIS (Commonwealth also “will be a big deciding factor.” of Independent States), a coalition formed when the Soviet Union T.C. Goel is general manager of the new project. disbanded in 1991. BKT initially will invest $100 million in the plant, which initially Mehta says supply has not been a problem in the U.S. will be built to produce original equipment “Our ag market share is very high compared and replacement radial agricultural tires. to OTR. In the replacement ag tire market, we Additional phases of the plant’s construction are number one in some segments and a close may add OTR and specialty tires to the mix. number two in some behind Firestone. We The production of bias tires is also not out feel that we have done a good job in getting of the question. the products in the market. But we have to Once the ground breaking begins, Podnow focus on brand awareness, and help the dar said the plant will hopefully be up and end consumers find those products. We have running in two years. to help our dealers in the sellouts.” The plant will be BKT’s fifth off-highway Continuing to push BKT’s OTR tires is also tire plant, but first outside India. The others are a goal. “We have made inroads,” said Mehta, in Bhuj, Aurangabad, Bhiwadi and Chopanki, “but our goals for OTR tires are very high. We India. Some 2,400 SKUs are produced at the are going to focus on increasing our share in four plants. this segment.” Poddar said the older Bhiwadi and ChoAlso in 2019, BKT will add a 51-inch panki plants in the northern part of India OTR tire to its giant tire lineup, and enter “We have a concrete plan to set up a are scheduled to undergo a $300 million to new tire plant in the U.S., generating into the tracks segment. In the first quarter $350 million modernization. In addition, the local employment,” said Arvind Podof 2021, it will produce 57-inch tires, added three-year-old Bhuj plant will be expanded, dar in a pre-recorded message. Poddar. ■