Balkrishna Industries (502355) investor relations material

Strategic agreement

• Signed 22 Oct 2026; Pirelli-branded premium tires will be produced at the new Bhuj plant to Pirelli specifications from calendar 2027, scaling to up to 800,000 annually by calendar 2030.

• Supplies will mainly serve India, with Pirelli able to use some tires in other markets; BKT-branded tires may be sold worldwide without restriction.

• Pirelli products will be 17-inch and above; the BKT PCR range will cover India from 13-inch upward, using BKT technology and distinct positioning.

• Domestic pricing is based on actual raw-material costs plus conversion cost; no royalty is stated for the manufacturing arrangement.

Capacity and investment

• Phase I Bhuj PCR capacity is 6,700 tires per day; ~80% may remain for BKT-branded products, with the balance for Pirelli offtake.

• Pirelli volumes ramp gradually from 2027; capacity can be expanded modularly as demand develops, while most capacity is expected to serve the BKT brand.

• Offtake production is part of the existing expansion program, with no additional CapEx required; current equipment can make the relevant tire range.

• Pirelli’s minimum offtake figures are confidential; revenue and margin potential at the 800,000-unit run rate remains under evaluation.

Potential joint venture

• A second phase, subject to preset conditions, envisages a 50/50 JV and dedicated High Value car-tire plant producing Pirelli and BKT brands for India and international markets.

• JV guidelines will be developed after Phase I conditions are met; a separate plant’s timeline and investment depend on those discussions.