Under the first phase of the agreement, BKT will manufacture up to 8 lakh Pirelli-branded tyres by 2030 at one of its newly constructed manufacturing plants, equipped with advanced technology. The tyres will be produced in accordance with Pirelli's specified technological and quality standards under an offtake arrangement.

The second phase, subject to certain conditions, envisages the formation of an equal joint venture between the two companies and the construction of a manufacturing facility dedicated to high-value passenger car tyres. The proposed plant will manufacture tyres under both the Pirelli and BKT brands, catering to domestic and international markets.

The partnership aims to capitalise on growth opportunities in India's automotive sector, where passenger car registrations are projected to increase by 5-7% annually between 2025 and 2030, while the premium passenger car tyre market is expected to expand nearly fivefold.

For BKT, the collaboration marks a significant step in its diversification into the passenger car tyre segment and is expected to create new growth opportunities in domestic and overseas markets. For Pirelli, which currently has only a commercial presence in India, the agreement will strengthen its position in the country's growing premium tyre market.

Marco Tronchetti Provera, executive chairman of Pirelli, said: “India is taking an ever more central role in the evolution of the global automotive industry, thanks to the market’s growth, development of mobility and progressive strengthening of the Country’s industrial and technological competencies. The agreement with BKT, a first-class industrial partner with solid roots in India and a significant international presence, represents for Pirelli a strategic choice which will allow us to strengthen our position in a market. among those with the greatest growth potential and to accompany its evolution, drawing on our competencies, innovation and positioning in the segments with the greatest value.”

Arvind Poddar, chairman and managing director of Balkrishna Industries (BKT) said: “This partnership brings together complementary strengths to capture the opportunities of a growing market while creating value for both companies.”

Balkrishna Industries (BKT) is engaged in the business of manufacturing and selling 'off-highway tyres' (OHT) in the specialist segments such as agricultural, industrial & construction, earthmovers & port, mining, forestry, lawn & garden and all-terrain vehicles (ATV).

The company reported a 50.47% jump in standalone net profit to Rs 432.10 crore for the quarter ended 30 June 2026 (Q1 FY27), compared with Rs 287.17 crore in the corresponding quarter last year. Revenue from operations increased 24.79% YoY to Rs 3,444.70 crore during the quarter, driven by healthy volume growth and steady demand across key markets.