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Dec 2030

deadline for the 50:50 venture, if its conditions are met

Balkrishna makes Pirelli tyres before the 50:50 venture

Companies No. 92 23 October 2026 · 2 min read · By

On 22 October 2026, Balkrishna Industries (BKT), an exporter of farm and mining tyres, told the exchanges it would form a 50:50 car tyre joint venture with Pirelli. In the filing, that venture is still a promise: due by 31 December 2030, and only if unlisted conditions are met or waived.

What starts now is simpler. Pirelli, with €6.78bn of 2025 revenue, sells tyres in India but makes none here. BKT will make Pirelli-branded tyres for it at BKT's car tyre plant in Bhuj, Gujarat, up to 800,000 by 2030, Pirelli says.

Pirelli pays for raw material at actual cost plus conversion costs (the cost of turning rubber into a tyre), and promises to buy a minimum each year. Neither that minimum nor any margin for BKT is given. That matters: raw material was ₹5,301 crore, or 49.7%, of BKT's ₹10,656 crore FY26 income. On Pirelli's tyres, if rubber costs more, Pirelli seems to pay more, not BKT.

Both sides are tied while they wait. Neither may form another tyre joint venture in India before the venture agreement takes effect. BKT may make no rival tyres for others, only its own; Pirelli may use no other Indian maker. If the venture is not ready, the contract ends on 31 December 2031.

So, Pirelli gets an Indian factory without building one, and BKT gets a buyer for its new car tyre line, whose own pilot is due this quarter. BKT plans ~₹23,000 crore of FY30 revenue, 2.2x 2025, with ~20%, or ~₹4,600 crore, from road tyres. The joint venture is a 2030 promise; today, BKT simply makes Pirelli's tyres.

Balkrishna and Pirelli's joint venture is due only by 2030

The dates in Balkrishna's 22 October 2026 filing and its July 2026 investor deck. Until the joint venture exists, the deal is a supply contract.

A timeline from October 2026 to December 2031: the agreements signed in October 2026, BKT's own car tyre pilot due by December 2026, the joint venture deadline of 31 December 2030 and the supply contract's end on 31 December 2031.

Balkrishna Industries, BSE filing of 22 October 2026 on the Pirelli agreements; investor presentation, July 2026 · Oct 2026 to Dec 2031

Balkrishna's Pirelli deal: a contract now, a JV later

The 2 parts of the 22 October 2026 agreements, term by term. Only the supply contract is in force; the joint venture has key terms and a deadline.

A table comparing the offtake contract signed in October 2026 with the planned 50:50 joint venture on status, plant, brands, money, restrictions and when each ends.

Balkrishna Industries, BSE filing of 22 October 2026 on the Pirelli agreements, Annexures A and B · Oct 2026

Balkrishna plans ~20% of FY30 revenue from road tyres

Balkrishna's plan for ~₹23,000 crore of FY30 revenue, % by business. Car tyres, Pirelli's included, sit in the road tyre slice.

% OF ~₹23,000 CRORE PLANNED FOR FY30

  • Off-highway tyres, ~70%
  • On-highway tyres (cars, trucks, 2-wheelers), ~20%
  • Carbon black sold to others, ~10%
A bar split into 3 parts of Balkrishna's FY30 revenue plan: off-highway tyres about 70%, on-highway tyres for cars, trucks and 2-wheelers about 20%, and carbon black sold to others about 10%.

Approximate shares, as the company's presentation gives them. A plan, not a result.

Balkrishna Industries, investor presentation, July 2026 (BSE) · FY30 plan

Sources