Coal news and updates

BKT poised for growth despite mining woes: Report

October 31: Balkrishna Industries (BKT), a leading manufacturer of off-the road (OTR) tyres that are heavily required in the mining industry, is aiming to increase its market share, a report by IIFL said.

The company has limited room for competitive threat in the near future as no major expansion have been lined up in the off-the road (OTR) by others and also because most domestic players are concentrating on expanding capacities in the truck radial segment, the report said.

The company is also focused on a short-term, three-fold strategy of expanding its reach in the global market through the launch of new products, extension of its existing ranges and doubling its current five percent market share in the speciality segment.

The past couple of years have been tough for the OTR tyre industry given the weak
economic backdrop globally. Last fiscal, in India, the annual turnover in the OTR industry was pegged at around Rs 800 crore, with the segment growing at a cautious clip of 5%.

At present, the market is sluggish given the upheaval in the coal and iron ore mining sectors. Limited increase in coal production levels by CIL and SCCL and the iron ore bans in the country to curb illegal mining have taken a toll on mining tyres.

Consequently, most tyre players have shown a tendency to defocus from the OTR space, say industry watchers.