Our products will be a game-changer for mining industry
Rajiv Poddar Joint Managing Director, Balkrishna Industries
Excon is returning after a gap
of two years. How is the
company looking at
leveraging this opportunity for
business growth?
Excon is one of the biggest
construction equipment and
technology expos in South Asia and we
have been one of the oldest partners. It
is a dynamic rostrum that promotes
sustainability, growth, and
connectivity. It also gives a platform to
showcase product development in the
construction equipment industry and
with large footfall from the
construction segment in addition to
the mining segment get the
opportunity to the new equipment tyre
and components. For us, it serves as an
incredible opportunity to meet our
buyers and connect with our
stakeholders.
Any new launches during the
event?
BKT has been constantly
developing newer products to meet the
requirement of varied m
innovations. Our deep understanding
of the off-highway tyre market hasachine/
equipment operating parameters, in
line with OEM upgrading and led
to capabilities to manufacture over
3,200 SKUs which are exported to over
160 countries worldwide.
Every year, BKT adds 80 to 90 new SKUs to meet global demand thanks to extensive R&D, product design, and new product development activities. BKT is one of the few companies with in-house tire molds production facilities, manufacturer of carbon black pigments, and key raw materials used in the manufacturing of tires,which provide us with major autonomy and ensure enhanced quality control throughout the entire supply chain.
This year at Excon, we are highly focused on the growing demands of the mining sector and have plans to launch products that will be a gamechanger for this sector.
How is the government’s focus
on NIP and Gati Shakti giving
a boost to the equipment
industry?
The construction industry in India
is expected to continue over the
forecast period, recording a CAGR of
9.5 per cent during 2022-2026. The
significant initiatives by the
government for construction, real
estate, infrastructure, projects, and
logistics, should boost the equipment
industry. The amalgamation of these
activities poises to create demand for
off-highway tyres.
Which sectors are driving
growth for your company’s
offerings in India?
The mining and construction
segment contributes to more than half
of off-highway tyre sales in India, in
addition, agriculture is another biggest
segment for off-highway tires. So the
entire tire industry is witnessing a
spurt in domestic demand and a rapid
boost in trade ties within the country.
We see demand growing from the
mining, construction, and agriculture
sectors.
How have the sales been for
the company this year, and
given the ongoing and
upcoming building and
infrastructure opportunities,
what are your sales projections
for FY23 or the quarters to
follow?
The company continued with its
growth streak even during the
pandemic and had an average growth
of 20 per cent y-o-y in the last two
years. Today, the company commands
around 5 to 6 per cent market share
globally with over 3,200 SKU and
exports to more than 160 countries
– making BKT one of the major
players in the market. To keep the
growth to consistent, major
investments are made in our core
business—tyres, and in carbon
black—a new segment we have
ventured into.
OTR tyre demand in 2021 rose above pre-COVID-19 levels, despite supply chain and logistics issues, in fact, we don’t see any demand slowing down in the next five years. In 2022, we predict a record growth year for BKT. We are continuing to increase capacity for key product segments to meet customer demand in the mining and construction segment.