Balkrishna Industries Ltd
Balkrishna Industries Ltd (BALKRISIND)

Balkrishna Industries Ltd (BALKRISIND)

₹2126.550.04%

Key Stats

₹2105.35
Day's Price Range
₹2181.55
₹1690.55
52-Week Price Range
₹2723.8
1 Month Return1.39 %
3 Month Return6.05 %
1 Year Return0.46 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 1
28.64
EPS
Rank 2
₹74.25
BVPS
Rank 2
₹310.39
Dividend Yield
Rank 1
1.01%
ROE
Rank 1
20.94%
Price To Book Ratio
Rank 2
6.85
Debt To Asset
Rank 2
0.26

Company Information

Headquartered in Mumbai India Balkrishna Industries Limited BKT is engaged in the business of manufacturing and selling of OffHighway Tyres OHT in the specialist segments such as agricultural industrial and construction earthmovers port mining forestry lawn and garden and All Terrain Vehicles ATV. The company has a worldwide distribution network ensuring extensive reach and penetration. The company derives majority of its revenue from exports.The company has five stateoftheart production sites in Aurangabad Bhiwadi Chopanki Dombivali and Bhuj. The company has four subsidiaries in Europe and North America viz. BKT Europe S.r.l. in Seregno Italy BKT Tires USA Inc. in Akron Ohio BKT Tires Canada Inc. in Toronto and BKT Tires Inc. in Brentwood Tennessee. The company sells its products in 130 countries worldwide through a network of national distributors.Balkrishna Industries Ltd was incorporated on November 20 1961. The company set up its first plant at Aurangabad in 1987. During the year 200203 the company acquired the Auto Tyre Plant of Govind Rubber Ltd at Bhiwadi in Rajasthan. During the financial year 200405 the company launched Tractor Radial Tyres. The company expanded the production capacity in Bhiwadi unit and Waluj unit to 42000 tpa and 18000 tpa respectively. They also installed 5 MW WindFarm near Jaisalmer in Rajasthan for captive usage.In February 2005 the company has set up a 100 subsidiary company in UK under the name of BKT Europe Ltd to promote sales and marketing of the products of their tyre division in Europe which commenced their business activities on April 1 2005. The company expanded the production capacity in Bhiwadi unit by 3000 tpa to 45000 tpa.In August 30 2006 the company incorporated BKT Europe srl in Italy as a wholly owned subsidiary company and in January 2007 they incorporated BKT Exim Ltd as a wholly owned subsidiary. Also they incorporated Balkrishna Paper Mills Ltd and Balkrishna Synthetic Ltd in March 2007 as wholly owned subsidiary companies to facilitate the transfer of their paper and textile processing business respectively.During the year 200607 the company increased the production capacity in Bhiwadi unit from 45000 tpa to 48000 tpa and Waluj unit from 18000 tpa to 22000 tpa. Also the company introduced the product Premium Super Chromo Board in the market.The company has three business activities under their umbrella namely tyre paper and textile processing. The tyre business is a focused business activity of the company that constitutes more than 80 of companys total business and by virtue of this becomes their core business. In order to pay more attention to their various business activities the company transferred their Paper business and Textile Processing business to their wholly owned subsidiaries Balkrishna Paper Mills Ltd and Balkrishna Synthetic Ltd respectively with effect from April 1 2007.During the year 200708 BKT Tyres Pvt Ltd became the subsidiary of the company. Also BKT Europe Ltd and BKT Europe srl ceased to be the subsidiaries of the company due to the disinvestment by the company.In 2009 the companys turnover crossed the Rs 1000 crore milestone. On 3 January 2011 Balkrishna Industries informed the stock exchanges that the company has repaid 4.5 Foreign Currency Convertible Bonds FCCB Series B of USD 22 million along with redemption premium due thereon on due date i.e.30 December 2010 which was raised by the company during the financial year 20052006.During the year 201213 Balkrishna Industries carried out a modernization scheme at its existing plants by adding balancing equipments with a view to remove debottlenecking and marginally improve production capacity. The capex cost amounted to Rs 145 crore.The Board of Directors of Balkrishna Industries at its meeting held on 30 January 2014 approved a scheme of arrangement under sections 391 to 394 of the Companies Act 1956 for amalgamation of Balkrishna Paper Mills Limited a wholly owned subsidiary with the company and demerger of the Paper board business division together with investment in Balkrishna Synthetics Ltd. on a going concern basis in to Nirvikara Paper Mills Limited. Upon completion of the Scheme Nirvikara Paper Mills Ltd. will issue and allot 1one fully paid up equity share of Rs. 10 each for every 9 nine equity shares held in the company as on the Record Date to be fixed for this purpose after receipt of all approvals. The proposed scheme of arrangement will reorganize and segregate the paper board business division together with investment in Balkrishna Synthetics Ltd. as a separate listed entity resulting in a focused independent management streamline the operations and provide access to varied sources of raising funds to achieve the growth potential of paper board business. In 2015 the company completed its Greenfield tyre plant project at Bhuj Gujarat.The Board of Directors of Balkrishna Industries at its meeting held on 18 May 2016 approved the Scheme of Amalgamation of its wholly owned subsidiary company M/s. BKT Exim Limited Transferor Company into itself under sections 391 to 394 and any other applicable provisions of the Companies Act 1956 and Companies Act 2013 to the extent notified and applicable the Scheme.The Board of Directors of Balkrishna Industries at its meeting held on 29 July 2017 approved the setting up of a Carbon Black project as a backward integration project at its Bhuj Plant with an initial annual capacity of 60000 MTs at an estimated capital outlay of Rs 150 crore.The Board of Directors of Balkrishna Industries at its meeting held on 11 November 2017 recommended the issue of Bonus Shares in the ratio of one bonus equity share for every one existing equity share held on record date.On 27th December 2017 the Company has allotted 96658595 Equity Shares of Rs 2 each as fully Paid Up Bonus Shares in the ratio of 1:1 to all registered Shareholders as on record date by Capitalisation of Reserves.The Honble National Company Law Tribunal NCLT Mumbai bench has sanctioned the Scheme of Amalgamation of BKT EXIM Limited 100 wholly owned Subsidiary Company with Balkrishna Industries Limited on 24th January 2018 and a copy of the NCLT order was received by the Company on 9th February 2018 which the Board has taken on Record. The appointment date of the scheme was 1st April 2015.As on 31 March 2018 the Company had following wholly owned subsidiary companies namely BKT Tyres Limited Thristha Synthetics Limited and following Overseas Subsidiary Companies namely BKT EUROPE S.R.L. BKT USA INC BKT TIRES CANADA INC. BKT EXIM US INC and subsidiary of BKT EXIM US INC BKT TIRES INC.The Company had started the Carbon Project during the financial year 201718 with a capacity of 60000 MTs p.a. The company revised the said capacity to 140000 MTs p.a during the financial year under consideration. The total capital outlay for full capacity of 140000 MTs is estimated at Rs 42500 Lakhs. The first phase of project of 60000 MTs is almost complete and company is in the process of giving a finishing touch to it and hoping to commence commercial production by end of June 2019. The second phase of 80000 MTs capacity is likely to be completed by financial year 202021.The Company have approved a Capex plan for setting up a Greenfield tire plant in United State of America USA with a capacity of 20000 MTs p.a through its wholly owned subsidiary company in USA. The board has approved total investment upto USD 100 million.After reviewing various aspects of the project in the backdrop of various challenging economic and business environment the Board of the Directors at their meeting held on 8th February 2021 decided to shelve the project.During the year 201819 Thristha Synthetics Limited the wholly owned subsidiary of your Company incorporated in year 2013 has voluntarily made an application with the Registrar of Companies ROC Mumbai Ministry of Corporate Affairs for striking off its name from the records of ROC.As on 31 March 2019the Company had following wholly owned subsidiary companies namely BKT Tyres Limited and following Overseas Subsidiary Companies namely BKT EUROPE S.R.L. BKT USA INC BKT TIRES CANADA INC. BKT EXIM US INC and subsidiary of BKT EXIM US INC BKT TIRES INC.The Second phase of the Carbon Black project was completed on 12th March 2020 with a capacity of 80000 tons per annum. The first Phase of 60000 tons per annum capacity was already completed in the month of June 2018. The Green Field Tire project at Waluj Plant was progressing as per schedule however due to COVID19 the work was temporarily shut from 25th March 2020. The project work resumed after the lockdown was lifted. Thereafter the project work resumed gradually after the lockdown was lifted. Considering the present uncertain situation this project is expected to be completed by 30th September 2021.The various activities such as setting up of ultra large sized all steel OTR Radial Tire Plant expansion of mixing facility and setting up of a warehouse at Bhuj plant were progressing as per schedule. However due to COVID19 the work was temporarily shut from 25th March 2020. The project work resumed after the lockdown was lifted. Expansion of mixing facility and enhancing the warehousing capacity has been completed and setting up of ultra large sized all steel OTR Radial Tire Plant is completed and undergoing final trial run.The Board of Directors of the Company at its meeting held on 8th February 2021 had approved Brown Field Tire Projectconsidering the overall increase in the demand of products the Company has commenced set up of Brownfield and Debottlenecking project along with addition of balancing and ancillary equipment at Companys plant located at Bhuj. The implementation of said project will result in increased achievable tire production capacity by 50000 MTPA and the said project is expected to be completed by H2FY23. The estimated Capex cost of the project is up to Rs 800 crore.Also Enhancement of Carbon Black capacities and setting up a Captive Power Plantconsidering the overall demand / supply outlook as well as internal demand of Carbon Black the Company has embarked to enhance the installed capacity of carbon black from an achievable capacity 115000 MTPA to 200000 MTPA including 30000 MTPA of high value of advanced carbon black material. The increase in production would obviate an increased power requirement. To meet the additional power requirement the Company proposes to set up an additional power plant of 20 MW by tapping flue gas a byproduct from the carbon black plant which will provide the required additional power at lower cost. The capex of the increased capacity of carbon black and cogen power plant will be Rs 650 crore and is expected to be completed by H1FY23.The Board has also approved an estimated capex of Rs 450 crore for modernization automation and technology upgradation of certain existing equipment and installation of automated material handling systems. Capex is being undertaken at existing facilities at Company Plants located at Rajasthan and Bhuj leading to further improvement in quality and efficiency. The said project is expected to be completed by H1FY23.The total planned Capex up to Rs 1900 Crore will be funded by Internal Accruals and Debt if required.The Board had given its approval for setting up a Green Field Tire Project of 20000 MTPA capacity in USA with an estimated capital outlay up to USD 100 million through its wholly owned US subsidiary company. After reviewing various aspects of the project in the backdrop of challenging economic and business environment the Board of the Directors at their meeting held on 8th February 2021 decided to shelve the project.As on 31 March 2021 the Company had one Domestic and Four Overseas Wholly Owned Subsidiary Companies WOS. The domestic WOS is known as BKT Tires Limited and the Overseas WOS are BKT EUROPE S.R.L. BKT USA INC BKT TIRES CANADA INC. BKT EXIM US INC. The Company also has one step down subsidiary in the name of BKT Tires Inc. based in USA which is a 100 subsidiary of BKT Exim US INC.
OrganisationBalkrishna Industries Ltd
HeadquartersAurangabad.
IndustryTyres