Leading Indian tyre manufacturer Balkrishna Industries Ltd. (BKT) mentioned that its domestic market share would double in the next few years. The company expects over 12 percent of growth in the domestic market share.
Balkrishna Industries Ltd. (BKT) is a strong competitor against other tyre manufacturers like Goodyear, ATG, MRF, Apollo etc. According to a BKT official, the company has 6 to 7 percent domestic market share. The company is currently witnessing increasing demand for their farm tyres in the agricultural sector.
It was mentioned by the company that only 20 percent of their sales come from domestic market of which, 40 percent is from the agricultural or farm sector. BKT expects it to grow over 50 percent in just two years.
"The farm sector has been getting lots of government attention in the past few years and one of the results is the rising mechanisation. Accordingly, we are also getting lot of demand. This should help us drive sales.
"We see our domestic market share more than doubling to 12-15 per cent from 6-7 per cent now. Currently, farming contributes 40 percent of domestic sales which should also be going up to well over 50 per cent," BKT Joint Managing Director Rajiv A Poddar told PTI.
Also See:BKT Tyres Expect Growth In Its Agricultural Segment
He added that BKT gets almost 80 percent of revenue from exports and the rest from their domestic market sales. The company claims that around 60 percent of their total revenue comes from the agricultural sector. The rest comes from mining and construction equipment which is 35 percent and finally the other 5 percent left comes from golf cart segments.
Poddar ruled out getting into passenger or commercial vehicles space, since BKT believes that there is a huge market available for the off-highway tyres.
About Balkrishna Industries Ltd.(BKT Tyres):
While the group foundation dates back to the 1950s, Balkrishna Industries Limited (BKT) started its Off-Highway tyre business in 1987. For over 30 years, BKT has successfully focused on specialist segments such as agricultural, construction and industrial as well as earthmoving, port and mining, ATV, and gardening applications.
