Balkrishna Industries (BKT) and Pirelli Tyre have signed agreements to establish a 50:50 joint venture (JV) for manufacturing passenger car radial (PCR) tyres in India. The proposed partnership aims to strengthen BKT’s presence in the passenger car tyre market while expanding Pirelli’s manufacturing footprint in the country.
New Manufacturing Plant Planned in India
On October 22, 2026, the companies signed a framework agreement, an offtake agreement and a service agreement. A new manufacturing plant is planned under the proposed JV, subject to the fulfilment or waiver of specified conditions.
Key highlights of the partnership include:
- Equal ownership: BKT and Pirelli will each hold a 50% stake in the JV.
- Joint management: The board will comprise four directors, with two nominated by each company and a rotating chairperson.
- Target timeline: Incorporation is expected by December 31, 2030.
- Shared capacity: Manufacturing capacity will be divided equally between the partners.
BKT to Manufacture Pirelli-Branded Tyres
Before the JV becomes operational, BKT will manufacture Pirelli-branded PCR tyres at its existing facility in Bhuj, Gujarat. Production will follow Pirelli’s specifications, with supplies serving the company and its affiliates in India and international markets.
The offtake agreement includes a minimum annual purchase commitment from Pirelli, matched by BKT’s capacity commitment. The arrangement is expected to continue until the JV can meet Pirelli’s requirements or until December 31, 2031, with an option for mutual extension.
Pirelli to Provide Technical Support
Under a separate service agreement, Pirelli will provide tyre testing and technical support for BKT-branded passenger cars, SUVs and two-wheelers. These services will utilise Pirelli’s overseas testing facilities, simulation systems and proving grounds.
Strengthening India’s Tyre Manufacturing Sector
The partnership combines BKT’s Indian manufacturing capabilities with Pirelli’s technical expertise. If completed as planned, the JV could strengthen domestic tyre production and expand both companies’ opportunities in India and overseas markets.
