BKT Announces Business Plan In Light of Bhuj Growth

TVS Motor Company Sales Growth

BKT has announced that with its enhancement at Bhuj, it is aiming for an annual tyre production of 600,000 metric tonnes (MT). The company also envisages the achievement of two billion dollars in turnover in three years.

Bhuj from 201 to 2023
When the first tyre rolled off the Bhuj production line in 2012, the plant was located on an area of 123 hectares. Then it was a $500 million investment. Before starting the works, the desert landscape was completely arid. There was neither water nor electricity. But after the laying of many kilometres of drinking water pipes and power lines, the site grew with 126 hectares in 2016, 131 in 2019, 137 in 2021 and 258 in 2022. By the end of 2023, the forecast is to reach a total surface area of 323 hectares, of which 283 have already been acquired.

Better production and safety
BKT claims that Bhuj today sees more efficient machinery installed, with features that make it possible to work faster and more precisely. This increases the quantity of production and the quality of the finished product. This means, for example, that the amount of product discarded is reduced, increasing the sustainability of the manufacturing process and consequently reducing production costs. Occupational risks are also reduced and worker comfort improved.

Self-produced carbon black
A further strategic choice by BKT to enhance the Bhuj site was to invest in its own carbon black plant. The plant came into operation in 2017, when the first 65,000 MT/PA of hard grade carbon black was produced, the type of carbon black used specifically in tyre tread.  The following year, production increased from 65,000 to 110,000 MT and saw the addition of production of soft grade carbon black. This carbon black is used in the casing compound to improve its strength and durability, generating less heat. In 2021, total production of the two types of carbon black reached 138,000 MT per annum, while last year it rose to 165,600 MT per annum.

The goal for 2023 is 198,600 MT. In addition to this, the R&D department plans to add a third type of carbon black, the ‘specialty carbon black’. It is a type of carbon black with unique properties compared to that used in rubber compounds, such as high resistance to colouring, a high level of purity, a low ash level and very low level of PAHs, which make it suitable for use in specific applications, such as paints, plastics and inks.

Increasing production capacity
The expansion of the plant means an increase in production capacity. The operational logistics have also improved significantly. This has allowed the introduction of new specialist workers, as well as providing greater flexibility in production and storage flows. Speaking of work, the construction of new facilities also marked an improvement in employees' safety conditions, an aspect which BKT takes very seriously. The community that operates on the Bhuj site today is very large. At the end of December 2022, the number of people working there was 4,776.

The wellbeing of the BKT family
BKT dedicates a significant investment to the wellbeing of its community every year, through the expansion of the area housing the families of employees (now almost 1,000 people live there), in the care of their health and in the education of their children.

A good use of resources
Bhuj is also a model for the good use of resources. In 2013, the internal power plant was created to have a reliable and controlled source of electricity. Today, both solar panels and the cogeneration plant make it possible to self-produce energy. In 2022, the cogeneration plant was expanded from 20 MW to 40 MW. Projects are still underway to increase the power of self-produced renewable resources.

Water is also at the heart of BKT's path towards sustainability. Since 2019, the Zero Liquid Discharge (ZLD) principle has been adopted. This means that no liquid waste is released outside the plant. All water used in the plant is treated, purified and reused. The objective of the ZLD principle is to conserve water resources, reduce the environmental impact of wastewater discharge and improve the overall efficiency and sustainability of the plant.

Carbon black production made more sustainable
The tyre manufacturer has also taken an approach to carbon black production to make the whole process more sustainable. The company has substituted bulk bag containers with mobile silos. This means that the tyre production plant receives the carbon plant with the aid of mobile silos transported pneumatically to the storage. This will make BKT save on packaging, i.e., 100,000 bulk bags in the next few years. The whole transportation system is also designed to reduce energy usage, consumption and quality. Every transfer system is controlled by weight and the energy used. The future goal is challenging – reducing energy consumption up to 70 percent. This translates in saving more than two million kilograms CO2 emissions per year, which are comparable to 5,000 apartments of 100 square metres each.

At the same time, the gas used to manufacture carbon black is now ending up in a co-generation plant, able to reuse 75,000 cubic metres of gas per year. This means saving 215,000 MT of coal per year. 

Research opens up the future
BKT's R&D division was what allowed the Bhuj site to grow. Established in 2017, this hub develops both products and processes, to ensure the company can maintain its international leadership. Led by a specialist team of researchers and analysts, it remains an important and up-to-date research centre in the tyre sector.

Coming to testing, a special test track was inaugurated in 2017. With six different tracks, this circuit includes tracks for tyre performance tests in dry and wet conditions, an asphalt track and a sloping concrete track. Thanks to a wide variety of tests, many important characteristics such as traction, handling, comfort, soil compaction and more can be measured here because of high precision devices and instruments.

A concrete vision
Rajiv Poddar, Joint Managing Director at BKT, says, "People have asked me if all this was really necessary, so much in such a short time. The goals we set ourselves when we decided to open the Bhuj site were proportional to the financial solidity of the time, but above all, to a vision which is as great as it is concrete.”

He added, “Analysing the market and anticipating it with passion and foresight is what we have done all these years. Growth has always been in step with demand, not without – let me say it – courage and creativity, but never without our objectives and investments having solid foundations. Global tyre demand is growing and we see no signs of it slowing down over the next five years. This is a demand which started to rise during the 2020 pandemic, and which today is above pre-Covid levels. Will it be difficult? Will it be a challenge? Our vision is simple, which is why it is very concrete. The journey we started out on at Bhuj in 2012 was never a return journey, but one to prepare ourselves to discover the future."

Comments (0)

ADD COMMENT

    Increasing Costs, Economic Uncertainties And CO2 Reduction Key Challenges For Fleet Operators Finds Continental Survey

    Continental fleet

    A recent survey done by German tier 1 supplier Continental of fleet operators across Germany, France, the United Kingdom and the United States of America has revealed that almost 72 percent of respondents recognise the need for substantial changes to meet current industry challenges.

    The poll results based on the responses of 850 fleet managers, which pointed out that rising costs (76 percent), economic uncertainties due to crises (46 percent) and the demand to reduce CO2 emissions (40 percent) were the key challenges faced by the operators.

    It finds that while there were some common issues globally such as a rising costs and economic pressures, certain challenges such as a transition to electric mobility adoption differed depending on the geographies. Fleet manager shortage also was amongst the issues highlighted by the respondents.

    Interestingly, fleet managers in the United States (63 percent) were found to be more open to adopt new technologies, in contrast to their European counterparts (20 percent).

    Clarisa Doval, Head of Digital Solutions at Continental Tires, said, "Survey results highlight that cost pressure is the greatest challenge for fleet operators. Low margins, rising costs, and stricter emissions standards are reducing investment capacity, while wage developments and labour shortages add further strain. Our digital tyre management solutions provide our customers with a valuable asset in this transition. With ContiConnect, fleets can operate more cost-effectively and sustainably, supporting their competitiveness."

    "Intense competition in logistics, which is being further intensified by climate change and ongoing global crises, makes adaptability and resilience a decisive factor for success. At Continental, we create innovative solutions to enhance fleet efficiency, reduce costs, and promote sustainability. Tyres are a key factor in total operating expenses, and our digital tools for tire condition monitoring deliver substantial long-term savings," she added.

    Comments (0)

    ADD COMMENT

      MarketsandMarkets Report Projects Tyre Recycling Market To Reach USD 8.92 Billion By 2029

      MarketsandMarkets Report Projects Tyre Recycling Market To Reach USD 8.92 Billion By 2029

      MarketsandMarkets has said in its latest report that the tyre recycling market is expected to grow from USD 7.44 billion in 2024 to USD 8.92 billion by 2029 at a CAGR of 3.7 percent.

      The report titled ‘Tire Recycling Market by Product (Rubber, TDF, TDA, Carbon Black), Process (Mechanical Shredding, Ambient Grinding, Pyrolysis), Type (Service, Material), End-use Industry (Automotive, Construction, Manufacturing) and Region – Global Forecast to 2029’ attributes the growth in this market to increasing environmental awareness and the implementation of stringent government regulations in different countries in reducing waste and pollution in the environment. Key players in the tyre recycling market, according to the report, are Liberty Tire Recycling (US), GENAN HOLDING A/S (Denmark), ResourceCo (Australia), GRP LTD (India), Lehigh Technologies, Inc. (US), Entech Inc (US), Emanuel Tire LLC (US), BDS Tire Recycling (US), Contec (Poland) and CRM (US).

      According to the report, the Asia Pacific region is expected to be the fastest growing market for tyre recycling during the forecast period because of rapid industrialisation, urbanisation and economic growth in the region. Apart from this, government regulations in the Asia Pacific region are also playing a big role in shaping the tyre recycling market.

      The report explains that govt incentives and regulatory benefits created by policies around sustainability and carbon reduction are significantly boosting opportunities in this sector. The report cites the Extended Producer Responsibility or EPR programme, which makes it mandatory for the producers of tyres to collect and recycle the tyres at their end-of-life. Additionally, the availability of government incentives and grants for the tyre recycling plants plays a favourable role for the sector.

      The report further highlights that construction is the fast-growing end-use industry segment in the market for recycling tyres, explaining that the demand is partly driven by the growing use of recycled tyre products in infrastructure and building projects. These tyre-derived products are used in road construction and as building foundations, insulation and roofing materials. The demand for shock-absorbent, low-maintenance and durable materials in public space and recreational facilities, as well as sports fields, also plays and important role, says the report.

      Comments (0)

      ADD COMMENT

        New Apollo Tyres Survey Reveals Drivers Across Europe Prefer All-Season Tyres

        New Apollo Tyres Survey Reveals Drivers Across Europe Prefer All-Season Tyres

        A new survey by OnePoll for Apollo Tyres has revealed that all-season tyres are preferred by a majority of drivers across Europe.

        The findings, which took into account 1,000 respondents in each market, point to a constant increase in the popularity of tyres designed to perform throughout the year, including in dry, wet and snow conditions. Spain took the lead among the European countries with 82 percent respondents voting in favour of all-season tyres, followed by France (78 percent), the Netherlands (74 percent), Poland (72 percent) and the UK (65 percent).

        For the customers of Apollo Tyres, its Vredestein brand’s Quatrac portfolio offers a lineup of tyres designed for a range of vehicles in a wide choice of sizes. The lineup includes the Quatrac, the Quatrac Pro and Pro+ for muscle cars and SUVs and the Quatrac Pro EV all-season tyre specifically designed for electric vehicles (EVs). All Quatrac tyres come with the ‘Three-Peak Mountain Snowflake’ mark and are fit for year-round use.

        Yves Pouliquen, Vice President – Commercial, Europe, Apollo Tyres, said, “All-season tyres are becoming increasingly popular among motorists who want the reassurance of being able to safely tackle fast-changing weather conditions, year-round. With over three decades of expertise in all-season products, drivers can trust the Vredestein brand.”

        Comments (0)

        ADD COMMENT

          Vaculug Reshuffles Senior Management Team

          Vaculug Reshuffles Senior Management Team

          Vaculug Limited, a leading commercial tyre retreading specialist based in Grantham, UK, has reshuffled its senior management team with the appointment of three new roles. The reshuffle is done with an aim to enhance the organisational structure and drive sustainable growth while prioritising employee development.

          As part of the reorganisation, Philip West, Vaculug's Commercial Director, will now be responsible for managing all sales and RTM activities in addition to operations, marketing and customer service. West has been in the business for more than 42 years, and his leadership and depth of expertise make him a great fit for this position.

          In his new role as Sales Director, Craig Rudkin will oversee the team responsible for sales and national accounts. Rudkin began working for Vaculug in a position located in a factory and has been with the firm for more than 33 years. Jason Humphries is now the Director of IT and Logistics. Humphries has over 20 years of experience in operations, logistics and IT and has played a key role in putting strategic plans into action since joining Vaculug in 2001.

          Comments (0)

          ADD COMMENT