BKT eyes expanding OTR presence

BKT eyes expanding OTR presence

By Dave Zielasko, Tire Business staff

AKRON-BKT-Tires (USA) Inc. is looking to expand its presence in construction and OTR tyres following an especially strong year in North America in 2008.

Buoyed by that success, farm and OTR tyre marketer BKT also moved into larger quarters Aug. 15 in Akron-a 1,400-sq.-ft. office.

The wholly owned subsidiary of Mumbai, India's Balkrishna Industries Ltd. had been working out of a much smaller facility in the city, but based on last year's success the firm decided it needed a more permanent office in a more prominent location.

BKT accounted for 16 percent, or $52 million, of Balkrishna's $325 million in tyre-related sales last year, said Bill Haney, who manages BKT's sales in North America.

Overall, Balkrishna, part of India industrial conglomerate Siyaram-Poddar Group, reported sales of $550 million. It manufactures tyres at three plants in the country, including the newest one in Chopanki, which opened in 2006.

The Chopanki factory, which has capacity to produce 50,000 tons yearly of radial farm, OTR and industrial tyres, helped fuel the recent growth of BKT, especially in larger-sized tyres, Mr. Haney said. The company also owns a mold shop for construction and OTR tyres and has plans to build a fourth tyre plant in India, scheduled to come on stream in 2011.

Altogether, Balkrisha produces 140,000 tons of tyres yearly at the three factories. Ninety-five percent of the output is destined for export, with 70 percent of that going to Europe. The rest is sold in the US, the Middle East and, overall, in more than 100 countries.

The company describes itself on its Web site as “The Quality Choice: Quality and Innovative Technology Serving Farmers.”

BKT has five employees in the US, led by Rami Bitran, manager of the North American team, and Mr. Haney.

Products include complete lines of bias and radial farm tyres; implement tyres in US and European standards; flotation metric radials and US standard; industrial pneumatic forklift tyres; ATV tyres; seven skid steer sizes; construction tyres; lawn and garden styles; underground mining and forestry skidder tyres; bias OTR tyres up to 51 inches in rim diameter; and four sizes of steel radial OTR tyres.

The company's newest offerings are high-speed farm tyres capable of speeds up to 45 mph.

Agricultural tyres account for 60 percent of the company's sales in North America, with OTR and construction tyres accounting for 40 percent.

“We're doing everything we can to expand our OTR presence here,” Mr. Haney said.

BKT also is eyeing more distribution. While the distribution model is mostly filled, he said the company is “looking for arrangements that make sense, especially for construction and OTR.”

As for BKT and Balkrishna's long-term goals, Mr. Haney describes them as ambitious, while Mr. Bitran is more specific.

“We want to claim a position among the leading three (brands) Firestone, Titan and Goodyear,” he said.

From Tire Business (A Crain publication)