Balkrishna Industries (BKT) announced the commissioning of the first phase of its previously approved capital expenditure program. This initial phase involved an investment of Rs. 750 Crore, funded by Internal Accruals, resulting in an annual capacity addition of 800 Tyres per day, fungible between Commercial Vehicle Radial and Off-Highway Tyres. Additionally, the company upgraded its Bhuj facility’s Power Plant capacity from 40 MW to 64 MW.
Capital Expenditure Update and Phase One Commissioning
Balkrishna Industries Limited has confirmed the successful commissioning of the first phase of its capital expenditure plan, originally announced on August 9, 2024, and revised on May 23, 2025. This specific phase relates to expansion activities at the Bhuj facility, marking a step towards the company’s Year 2030 growth strategy.
Details of Commissioned Assets
The particulars concerning this initial phase are detailed below:
- Capacity Addition: An annual capacity addition of 800 Tyres per day has been achieved. This capacity is flexible and can be allocated between Commercial Vehicle Radial Tyres and Off-Highway Tyres (Mining Truck Tyres).
- Investment: The capital deployed for this stage amounted to Rs. 750 Crore.
- Financing: The investment was financed entirely through Internal Accruals.
- Rationale: This commissioning is an integral part of the company’s strategic growth plan targeted for 2030.
Power Plant Capacity Expansion
Furthermore, BKT disclosed the completion of capacity expansion for the Power Plant at its Bhuj facility, which is part of the larger May 23, 2025 CAPEX announcement. The installed capacity of the Power Plant has successfully increased from 40 megawatts (MWH) to 64 megawatts (MWH). Due to the integrated infrastructure shared between the Power Plant and Carbon Black production lines, the exact capital expenditure attributable solely to the power upgrade cannot be segregated at this juncture.
Future Disclosures
The company affirmed that full disclosures related to the entire capital expenditure concerning the expansion of the Power Plant and Carbon Black facilities will be provided upon the completion of those respective segments.
Source: BSE
