BKT Expands Carbon Black Production Capacity to Enhance Self-Sufficiency and Sustainability

Balkrishna Industries Ltd. (BKT) has made significant strides in its carbon black production capabilities as part of its broader expansion strategy. The carbon black plant, located at BKT’s Bhuj site in India, has experienced substantial growth since its inception in 2017, when it began operations with an initial capacity of 65,000 metric tonnes per annum (MTPA).

Since then, BKT has consistently increased its production capacity:

• 2018: Capacity expanded to 110,000 MTPA, adding soft grade carbon black production.
• 2021: Reached 138,000 MTPA.
• 2022: Achieved 165,600 MTPA.
• 2023: Targeted 198,600 MTPA.
• 2025: Current capacity stands at 170,000 MTPA, with plans to reach 200,000 MTPA by mid-2025

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The company has invested approximately Rs. 425 crores (around $51 million) in establishing a 140,000 MTPA carbon black plant. Additionally, a recent $75 million investment was made to further enhance the production capacity.

Strategic Advantages
The strategic investment in carbon black production offers several key benefits for BKT:

• Self-Sufficiency: The plant's capacity allows BKT to meet 100% of its carbon black requirements, ensuring supply chain stability.
• Cost Efficiency: Producing carbon black in-house reduces production costs and improves operational efficiency.
• Quality Control: The in-house production process enables BKT to maintain stringent quality standards for this critical raw material.
• Sustainability: The plant incorporates eco-friendly practices, including a co-generation facility that reuses 75,000 cubic metres of gas annually, reducing coal consumption by 215,000 metric tonnes.

"At BKT, we believe that self-reliance and innovation are key to long-term success. Our investment in carbon black production is a strategic move to ensure self-sufficiency. With carbon black constituting approximately 30% of a tire’s weight, our plant’s capacity to fulfill 100% of this requirement allows us to be self-sufficient in this critical raw material. Furthermore, we can maintain stringent control over supply costs and quality, while also significantly enhancing our sustainability efforts through minimizing transportation needs and associated emissions."

Rajiv Poddar Jt. Managing Director at BKT Tires

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BKT’s expansion aligns with broader industry trends of supply chain integration and sustainability, positioning the company to meet growing demand in the off-highway tyre market while enhancing its environmental credentials.

For more details on BKT’s carbon black production, visit BKT Carbon Black.

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