MUMBAI, India — Off-highway tire maker Balkrishna Industries Ltd. (BKT) is budgeting more than $200 million to upgrade and expand capacity for tires and carbon black at plants in India.
The Mumbai-based company disclosed the plans — affecting its plants in Bhuj and Waluj— in an investors presentation for the firm's fiscal 2019 second quarter, ended Sept. 30.
The investments in India are in addition to the $100 million BKT is committing to build a tire plant in the U.S. and include upstream component supply that will impact the U.S. investment.
The projects in India are:
- $72.5 million to replace a 30-year-old farm/industrial/OTR tire plant in Waluj, Maharashtra, with an expanded factory on a 22-acre greenfield site nearby. The plant's capacity will remain at roughly 30,000 metric tons per year but at a facility with its own co-generation power plant and warehousing. The current plant is size-restricted and operating at "sub-optimal" levels, BKT said.
- $72.5 million to add 5,000 metric tons of annual production capacity at the 5-year-old Bhuj, Gujarat, factory, in particular for larger sizes, along with a rubber mixing plant and additional warehousing. The investment includes the addition of building equipment for the larger-sized tires.
BKT said the increased mixing capacity also will be used to supply the U.S. plant when it comes on stream in 2021.