Home / Business and Economy / Pirelli and BKT Announce 50:50 Tyre Manufacturing JV
Pirelli and BKT Announce 50:50 Tyre Manufacturing JV
22 Oct
Summary
- BKT and Pirelli will form a 50:50 joint venture for tyre production.
- A new passenger car radial tyre plant is planned for India.
- The JV aims for incorporation by December 2030, subject to conditions.
Balkrishna Industries (BKT) and Pirelli Tyre have signed agreements to create a 50:50 joint venture (JV) for manufacturing passenger car radial (PCR) tyres in India. The incorporation of this JV is anticipated by December 2030, pending the fulfillment of certain conditions. Agreements including a framework, offtake, and service pact were formalized on October 22, 2026.
Initially, BKT will produce Pirelli-branded passenger car tyres at its Bhuj, Gujarat plant, following Pirelli's standards. This interim arrangement will supply Pirelli and its affiliates both in India and internationally. The JV will feature a four-member board, with equal director representation from each company and a rotating chairperson. Pricing will be determined by actual costs, with domestic transactions in rupees and exports in Euros.
Both companies are restricted from similar third-party ventures in India during the framework agreement's term, with exceptions for wholly-owned plants. Pirelli will provide BKT with limited rights to use specific know-how and trademarks for manufacturing. Concurrently, Pirelli will offer technical support and testing services for BKT-branded tyres globally via a separate service agreement.
