Balkrishna Industries Signs 3 Pacts with Pirelli to Make Tyres in India; Shares Rise 1.38%

Mumbai, October 22: Balkrishna Industries shares rose 1.38% to ₹2,067.80 on Thursday after the company announced three agreements with Italy-based Pirelli Tyre S.p.A. covering a proposed joint venture, passenger car tyre manufacturing and technical support services.

The agreements establish the framework for a broader partnership between the two companies, including plans to manufacture passenger car radial (PCR) tyres under the Pirelli and BKT brands in India.

Details of the Pirelli Partnership

Balkrishna Industries has signed a framework agreement outlining the proposed joint venture’s structure, timelines and key terms. The venture is planned as a 50:50 partnership, with both companies holding equal stakes and sharing manufacturing capacity.

The proposed joint venture will establish a new plant in India to manufacture PCR tyres. The agreement is expected to be executed in the future, with incorporation targeted by December 31, 2030, subject to the specified conditions.

Under a separate offtake agreement, Balkrishna Industries will manufacture Pirelli-branded passenger car radial tyres at its PCR plant in Bhuj, Gujarat, according to Pirelli’s specifications. Pirelli and its affiliates will purchase the tyres under agreed terms. Pricing will be based on actual raw material costs plus conversion costs, with provisions for minimum annual offtake and corresponding capacity commitments.

A third agreement covers technical support and tyre-testing services from Pirelli, including access to its testing facilities outside India.

The company also disclosed exclusivity restrictions covering competing tyre manufacturing arrangements in India during the specified period. No overall investment or contract value was disclosed.

Stock Market Snapshot

The Balkrishna Industries share price was trading 1.38% higher at ₹2,067.80 on Thursday, October 22, 2026, compared with the previous close of ₹2,039.60. The stock opened at ₹2,039.60.

The announcement outlines Balkrishna Industries’ planned entry into passenger car radial tyre manufacturing through its proposed partnership with Pirelli, alongside its existing tyre business.

About Balkrishna Industries

Balkrishna Industries Limited manufactures off-highway tyres for agricultural, industrial, construction and other specialised applications. Its BKT brand serves customers across domestic and international markets.

Conclusion

The agreements mark a step towards Balkrishna Industries’ expansion into passenger car radial tyres. The proposed joint venture, new manufacturing facility and Pirelli offtake arrangement will be key developments to track as the partnership moves towards execution.

Source:

• https://www.nseindia.com/get-quote/equity/BALKRISIND/Balkrishna-Industries-Limited
• https://nsearchives.nseindia.com/corporate/BALKRISIND_22102026104907_Outcomepdfsigned.pdf