Balkrishna Industries Ltd. (BKT), the Indian off-highway tyre manufacturer, reported a five percent year-on-year volume growth in Q3 FY25 while announcing plans for INR 11 billion to INR 12 billion capital expenditure in FY26.

The company achieved sales volumes of 76,343 metric tonnes for the quarter, with standalone revenue growing 11 percent to INR 25.71 billion.

"We are confident and hold on to our forecast of achieving minor sales volume growth in this financial year," said Rajiv Poddar, Joint Managing Director, despite challenging market conditions in Europe, the company's largest market contributing 43 percent of total sales.

Expansion and Investment Plans:

- Completed 30,000 MTPA advanced carbon material plant in September 2024

- Progressing on 35,000 MTPA OTR tyre range expansion

- First phase of OTR expansion to complete in H1 FY26

- FY25 capex at INR 9.68 billion for nine months

- Projected FY26 capex between INR 11- 12 billion

"The speciality carbon business samples are being given and tested. It will take time to ramp up," said Madhusudan Bajaj, Senior President, Commercial and CFO, regarding the new carbon black facility targeting plastics, ink and paint industries.

Strategic Growth Initiatives

The company strengthened its management team by appointing Satish Sharma as Senior President for Strategy and Business Development. The company has also set a vision to achieve 10 percent global market share in the off-highway tyre market.

"We are constantly investing in the capex and the growth of the company, whether it is in terms of promotion, in terms of product mix, in terms of setting up new capacities," Poddar explained when asked about capital allocation strategy.

Market Performance

In the Americas, where BKT has been focusing its efforts, the company is seeing positive results. "We are quite hopeful that this should stabilize and continue to grow over there," Poddar said regarding the American market outlook.

The company maintains approximately 6-7 percent market share in India's off-highway segment, with agricultural tyres reaching about 10 percent market share. "Agri would be closer to 10 percent, and the others are growing up," noted Poddar.

Raw Material Outlook

"The raw material prices are going up for 100 to 200 basis points, it should impact the margins," said Bajaj, adding that the major impact would be visible in the coming quarter due to shipping lag times.

Regional Distribution (9M FY25):

- Europe: 43%

- India: 29%

- Americas: 16%

- Rest of World: 12%

Segment-wise contribution showed replacement sales at 73 percent, OEM at 25 percent, with agriculture contributing 59 percent of total sales, followed by OTR, industrial, and construction at 38 percent.

Looking ahead, while maintaining caution about European market conditions, BKT continues its expansion strategy across markets, particularly in the Americas and emerging regions, backed by sustained investments in capacity and brand building.

Leading tyre-retreading machinery maker Marangoni has unveiled a new strategic sustainability strategy for 2025–2027 that reaffirms its social and environmental pledges.

In order to direct and oversee its ESG (Environmental, Social, Governance) initiatives during the ensuing three years, the tyre retreading expert has voluntarily created a targeted action framework. The framework is in line with the 17 Sustainable Development Goals (SDGs) of the UN's 2030 Agenda. Marangoni claims that the plan was implemented in accordance with globally accepted standards, such as AccountAbility 1000 and the Global Reporting Initiative (GRI) guidelines, and that it is meant to function as a monitoring tool to periodically assess the company's progress as well as a guide for action.

The company has identified 17 specific initiatives as part of this strategy. These were established after a materiality study that took into account input from external stakeholders as well as internal input. Each of the 17 initiatives is built around three core pillars, namely supporting the ecological transition, integrating ESG principles into corporate governance and ensuring a safe, stimulating and inclusive work environment. The result is a ‘balanced approach’ reflecting management’s priorities and stakeholder expectations, said the company.

Trelleborg Group has finalised the purchase of National Gummi AB from the Swedish industrial group National through its Trelleborg Industrial Solutions business unit.

Extruded rubber profiles and gaskets for specialised industrial, automotive and construction applications make up the company offering. Mostly in Northern Europe, sales in 2024 were little over SEK 150 million. The production facility is situated in Halmstad, Sweden. The acquisition is in line with Trelleborg's plan to establish dominant positions in desirable markets. This deal excludes National's activities outside of extruded rubber profiles and gaskets, which will continue to be a part of the National group.

Jean-Paul Mindermann, Business Area President, Trelleborg Industrial Solutions, said, “This is an exciting addition to our portfolio. National has specialist capabilities and knowhow which will allow us to broaden our value-adding offering to customers across Europe.”

BKT has expanded its AGRIMAX range of agricultural tyres with the launch of AGRIMAX SPARGO SB, a new steel-belted version. The new tyre is aimed at row crop, vineyard and orchard operations to meet the specific challenges of farming environments where steep terrain, narrow row spacing and muddy conditions require precision and reliability.

The new tyre, which builds on the AGRIMAX SPARGO row crop tyre, has VF (Very High Flexion) technology, which enables it to bear the same load at lower inflation pressure. This helps to improve handling and comfort while reducing soil compaction. Steel belts improve the tyre's resilience to punctures, lessening the possibility of downtime and damage from sharp objects. At faster speeds, it also enhances riding accuracy. The polyester casing and steel belts work together to distribute stress evenly throughout the tyre, preventing uneven wear and extending tread life. By reducing vibration, a revised sidewall enhances riding comfort even further, which is especially useful for precise spraying operations.

The tread pattern of the AGRIMAX SPARGO SB is more open and higher than that of its predecessor since it has a deeper tread and smaller lugs. With a D-class speed rating that permits travel at up to 65 kmph, this design seeks to enhance road handling. Smoother transitions between field and road are made possible by the tyre's dual-layer mud ejection mechanism, which rapidly removes debris from the tread.

Dilip Vaidya, Senior President & Director Technology, BKT, said, "In the case of the AGRIMAX SPARGO SB, we have paid special attention to the casing design by using a strong polyester structure that offers greater strength, flexibility and durability than traditional materials. This choice enables the tyre to handle heavy loads while keeping deformation under control, improving the footprint and thus traction, stability and handling."

TBC Corporation, a joint venture between Michelin and Sumitomo Corporation, has entered into an agreement to divest its Midas franchise portfolio to Mavis Tire Express Service Corp., which operates a tyre retail chain across the United States.

The deal is expected to be finalised in the first quarter of the fiscal year 2025, subject to the approval of the competent authorities. This deal is a component of TBC's ongoing reorganisation, which intends to concentrate management resources on its core operations.

According to a statement issued by Michelin, “TBC distributes tyres and provides automotive repair and maintenance services in the US, Mexico and Canada. TBC identifies wholesale, distribution and Big O Tires, tyre retail focused franchise portfolio under TBC, as core businesses, leveraging an industry-leading network and scale, whereas Midas activity mostly relies on retail automotive services. The operation will enable TBC to focus on driving accelerated growth and value in its core businesses. It is also an opportunity for Michelin and Mavis to support and reinforce their commercial agreement.”