Balkrishna Industries Rises 4% on Pirelli Deal

Balkrishna Industries and Pirelli have agreed to produce up to 800,000 Pirelli-branded premium car tyres in India by 2030, with plans for a proposed 50:50 joint venture and a dedicated manufacturing plant.

Indian tyre manufacturer Balkrishna Industries Limited (BKT) has signed a strategic agreement with Italy-based Pirelli to manufacture up to 800,000 Pirelli-branded premium passenger car tyres in India by 2030. The partnership aims to capitalise on the growing Indian automotive market and expand both companies’ presence in the high-value tyre segment. Following the announcement on October 22, 2026, Balkrishna Industries shares rose more than 4% during intraday trading.

The agreement will initially operate through an offtake arrangement, under which BKT will manufacture Pirelli-branded tyres at its facility in Bhuj, Gujarat, following Pirelli’s technological and quality specifications. Pirelli and its affiliates will purchase the tyres under agreed commercial terms, allowing the Italian company to establish a local production presence while leveraging BKT’s manufacturing capabilities.

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The partnership also outlines a second phase involving a proposed 50:50 joint venture between the two companies. The venture would establish a dedicated manufacturing plant in India to produce high-value passenger car tyres under both the Pirelli and BKT brands for domestic and international markets. The joint venture is subject to specified conditions, with incorporation targeted by December 31, 2030.

For BKT, which is widely known for its off-highway tyres used in agriculture, construction and industrial applications, the agreement supports its expansion into the passenger car tyre segment. The collaboration is expected to create opportunities in India and overseas markets while broadening the company’s product portfolio.

For Pirelli, the arrangement provides a route to strengthen its position in India, where it has primarily maintained a commercial presence. The company will contribute its expertise in premium tyre technology, product development and quality standards, while BKT will provide manufacturing capabilities and local market knowledge.

The companies are targeting a market where vehicle ownership and demand for premium automotive products are expanding. Industry estimates cited in reports indicate that Indian car registrations could grow by 5-7% annually through 2030, while the premium car tyre segment is expected to expand substantially.

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The agreement highlights the growing role of international partnerships in India's automotive manufacturing industry, combining domestic production capacity with global technology and brands. It also reflects BKT’s strategy to diversify beyond specialised tyres and enter new product categories with potential for long-term growth.