How have the recent reforms in the mining sector, such as amendment to MMRD Act, aiding in the growth of your business?
The future for the OTR in relation to mining sector; coal mining is definitely bright.Meeting increasingCoal demand to run the power plants has the top priority. Furthermore, with the advent of privatization, it is bound to change the future outlook for the sector in the coming years, aiding tremendously in the OTR sectoral growth, due to the ever-increasing opportunities in the domain. Zinc mining has a very good future, with India being the largest supplier of zinc. Iron ore mining has been on the ascending path, post a sluggish growth period. The mining of limestone is also picking up pace, making it an excellent opportunity for the OTR segment to expand its unique offerings within the sector, to ensure boundless growth.
With the mining reforms demand for mining tires is expected to grow. Which are the tires for mining operations you have launched or are planning to launch?
BKT has the widest range of all steel radial tires, those are great asset for the mining world. With their superior technology, and best in class integration of the latest innovation, they are specially designed at our state-of-the-art Bhuj plant, to withstand severity in mining operation. One of these tires is the 57’’ EARTHMAX SR 468, a real gamechanger for the mining world. It is the largest tire ever manufactured by BKT and a priceless asset for the mining domain, built by us to offer the latest innovation across the globe to the sector. Along with these, we have also launched 33.00 R 51 and are now working on 37.00 R 57. These are the two big ticket sizes for the extra-large earth moving dumpers. We are also completing our entire range of smaller tires - the 25 / 29 inch, which are highly suitable for underground mining.
Tire technology has taken a leap with sensors and technology integrated. What are the R&D taking at your end in this regard?
BKT currently manufactures a range of over 2,700 SKUs, that each offer something unique to the OTR tire market. This is a result of our belief in exceptional quality and service, that is built on the back of our world class plants. With our R&D centre in Bhuj, BKT is always ahead of the curve, and we are constantly reinventing ourselves to offer nothing but the best. Every tire we produce undergoes 500 tests in its production cycle at our state-of-the-art R&D centre. We have our own carbon black plant and a special grade check inhouse for better control on quality on supply.To enhance upon our round the clock offerings, venture capex is also being undertaken at existing facilities at our plants in Rajasthan and Bhuj, with a special focus on quality improvement, greater efficiency. A whopping 450 crore is being spent to oversee this transition, which is expected to be completed by H1FY23.
How are you integrating Sustainability with your tires?
With the philosophy of ‘Growing Together’, BKT is passionate about its commitment towards creating a greener world. To increase our sustainable offerings, we recently partnered with a US biotechnology company Kultevat Inc, to develop processing methods that would lead to the use of dandelion-based latex in rubber compounds. This would ensure more sustainable offerings, as Kultevat specializes in green technology, and in particular the environmentally friendly extraction of high-quality dandelion rubber from Taraxacum kok-saghyz (TKS), also known as Russian dandelion. We also ensure long-lasting, top-quality products, with no wear and tear for years that help create a greener world.
Please share with us your dealers’ network and the succor you provided during the Pandemic to them?
BKT prioritised efficiency and timely delivery amidst the pandemic, producing an effective roadmap, to help create a robust trade channel that ensured the same. BKT was one of the players in the industry that ensured there was absolutely no delay in the delivery of goods, in spite of the unpredictable business environment caused by the pandemic. With our ‘Aatmanirbhar’ offerings reaching over 160 countries across the globe, our dealers’ network is ever growing and spread across six continents. Our network within the country continues to expand as well, with a strong presence across the length and breadth of India.
In this difficult time, how can the government hand hold the Off-the Road (OTR) tire sector?
The government has been supportive of the OTR tire domain and has been resilient in terms of offering its support amidst the pandemic. Making sure there was no impact on trade, the government has also backed dependent sectors like mining, construction during this time, that have directly and indirectly contributed to OTR sales for the sector.
What is your growth plan for your organization for the next three years? Are there any plans to increase production, new plant, expansion, or product launch in the offing?
We will continue to remain committed to excellence. Our plan for the next three years, is to bring the best offerings globally, for all our dependent industries. While we are already one of the leading OTR players across the world, we plan to continue along this path of monumental growth, and also expanding our offerings within the country. We are also dedicated to diversification and the production of state-of-the-art products at our plants to ensure rapid expansion. We are consistently bringing the most advanced tire technology in the world to all our customers, through extensive all steel radial tire offerings. Our upcoming brownfield tire project at Bhuj is set to aid in the same and will result in increased achievable tire production capacity by 50,000 MTPA. The project is set to be completed by H2FY23. With the capacity expansion cost being approximately 800 crores, the venture is bound to further enhance our best-in-class offerings. We also have our own carbon black plant, which we are planning to expand further by enhancing our capacity to 2,00,000 MTPA, including 30,000 MTPA of high value of advanced carbon black material. Collectively offering our best, our zest for quality continues to transform the OTR world through our commitment to exceptional customer service.
