Birla Tyres, once a dominant name on Indian roads, is going a transformation under new ownership. Acquired by Himadri Speciality Chemicals and Dalmia Bharat Refractories, the iconic brand is being restructured to target emerging opportunities within electric vehicles and off-the-highway tyres, supported by strategic innovation and forward integration.

Birla Tyres ruled many Indian roads for over two decades till its fall in 2023. Born as a division of Kesoram Industries in 1991, the tyre maker collaborated with global giant Pirelli shortly after its inception for advanced tyre manufacturing technology.

It started production of truck and bus tyres from its Odisha plant in 1992, and later, between 1995 and 2000, went onto produce tyres across different vehicular categories including passenger, two-wheeler, commercial, farm and heavy earth-movers. 

The Kolkata-based manufacturer produced both radial and bias tyres and had a densely spread supply chain with over 170 sales depots within India and an international network across 17 countries during the helm of its operations.

Production capacities had risen to 15 million tyres with revenue crossing INR 200 billion, annually, until the second decade of the 21st century. The company that once held a moderate share in the Indian tyre market, competing with brands like MRF, Apollo Tyres, CEAT and JK Tyre, was now facing operational efficiencies leading to dwindling market share.

Hence, a new era heralded within the operations of one of the major homegrown tyre makers. Furthermore, the axe fell at the core of the entity in 2019 when Kesoram Industries demerged its tyre division into an independent entity called Birla Tyres Limited to focus exclusively on the tyre business.

Soon after, in 2021, financial crisis led the company to file for insolvency under the Indian Bankruptcy Code due to mounting debts and operational losses. Production slowed significantly with plants running below capacity. The company had incurred debt of over INR 100 billion by 2021, and in FY23, Birla Tyres’ reported a net loss of INR 370.7 million.

Between 2022-2023, the company made revival attempts as it sought investors, explored cost-cutting measures, focused on realigning its product portfolio, emphasising two-wheeler tyres and niche markets like electric vehicles, but to no avail.

Alas, in October, 2023, control of Birla Tyres was handed over to a consortium of Kolkata-based Himadri Speciality Chemicals and Dalmia Bharat Refractories.

The rebirth

According to media reports, Himadri Speciality Chemical and Dalmia Bharat Refractories jointly acquired Birla Tyres under India’s Corporate Insolvency Resolution Process, approved by the National Company Law Tribunal. Birla Tyres faced insolvency due to mounting debt, including claims of INR 115.2 billion by financial creditors. The resolution plan proposed a payment of INR 3.16 billion to secured creditors against admitted claims of INR 109.7 billion.

The new owners aimed to revitalise Birla Tyres by leveraging its existing infrastructure, particularly at the Balasore plant in Odisha. While Himadri Speciality Chemicals planned to focus on passenger car tyres, including those for electric vehicles (EV), Dalmia Bharat Refractories proposed to oversee procurement and material supply.

The strategic partnership sought to re-establish Birla Tyres in niche markets, supported by Himadri’s expertise in carbon black production, which constitutes a significant cost component in tyre manufacturing.

Moreover, the consortium decided in November 2023 to invest INR 2.5 billion to operationalise the passenger car radial segment of the fallen giant.

Path forward

Over a year has passed since the controlling interests have been transferred, but the Indian tyre landscape eagerly awaits the resurgence of a much-loved brand. Speaking to Tyre Trends on the re-launching of Birla Tyres, Himadri Speciality Chemicals Managing Director Anurag Choudhary said, “We plan to initially continue producing Birla Tyres existing range but have outlined a strategic shift towards focusing on electric vehicle tyres in the long term. With the electric vehicle market rapidly expanding, the demand for specialised tyres designed to meet the unique requirements of EVs is expected to grow significantly. Additionally, we also aim to prioritise off-the-highway (OTR) tyres as part of our long-term vision, targeting key industrial and off-road sectors.”

Himadri Speciality Chemicals plans to start the manufacturing process from Birla Tyres’ plant in Balasore, which has with a capacity of 400 tyres per day. While the company acknowledges the growing potential of the EV market, it has not yet determined how much of this capacity will be allocated to EV tyre production. This decision will depend on finalising future plans and market strategies. 

Additionally, no capital expenditure plans have been finalised yet, but it was informed that the specialty chemicals company is considering the establishment of a dedicated supply chain to support the tyre operations.

Alluding to why a specialty chemicals company invested in acquiring a tyre company, Choudhary averred, “Our acquisition of Birla Tyres aligns with a long-standing strategy of forward integration. Historically, we have evolved by building on core processes, starting with coal tar distillation and progressing into areas such as oils, carbon black and eventually speciality black products.”

“This forward-thinking approach has also driven the development of special coal tar-derived materials for applications like anode materials in lithium-ion batteries, reflecting our commitment to innovation and research and development. The decision to acquire Birla Tyres is a natural extension of this strategy. Tyre production uses a significant proportion (almost 26 percent) of carbon black by volume, making it a logical step for the company to integrate downstream into the tyre manufacturing sector. This acquisition not only ensures a steady demand for its carbon black but also positions the company to leverage its expertise in specialty materials and innovation for future growth,” he added.

When asked about plans to introduce sustainable materials in the revival of Birla Tyres, the executive indicated that the company is steadfast in its plan to foster a circular economy and is exploring ways to enhance the reusability of existing materials including carbon black but emphasised that these efforts are still in the research and development phase.

Regarding competitiveness in the tyre market, he stated that the company is devising a comprehensive strategy. As for the challenges of entering the tyre industry, he acknowledged that being a newcomer brings a range of hurdles. However, he viewed these challenges as opportunities to innovate and carve a niche in the market.

Forward integration

Himadri Speciality Chemicals in also setting up a lithium-iron phosphate plant in Odisha to further its expansion into the automotive sector. Furthermore, it also sees growing demand for carbon black within the Indian market.

Commenting on opportunities in India's carbon black market, Choudhury highlighted, “Himadri is focusing heavily on speciality carbon black, a high-value segment with diverse applications. We have a current production capacity of 60,000 metric tonnes and plan to expand it to 130,000 metric tonnes, positioning us as the world’s fourth-largest producer in this niche. We are also focusing on speciality carbon black for EV tyres.”

When asked about the potential of recovered carbon black, he expressed doubts about its ability to replace virgin carbon black due to quality constraints. While the company supports sustainability under its ESG commitments and is a signatory to the United Nations Global Compact, recycled carbon black is expected to remain a small, complementary product in its portfolio. 

Speaking on the lithium-iron phosphate plant in Odisha, Choudhary mentioned that the first phase is designed to produce 40,000 metric tonnes, supporting 20 gigawatt-hours (GWh) of battery production. The project involves a capital expenditure of INR 113 billion and marks a significant step in Himadri’s strategy to support the EV and battery sectors. 

Moreover, he sees significant growth opportunities in the EV market, which he mentioned is at a critical inflection point, leading to exponential adoption. The company is investing in materials essential to the EV ecosystem. It has focused on developing key battery components such as cathodes and is conducting research on anodes, which together account for 65 percent of a lithium-ion cell’s cost.

Radar Tires has appointed industry veteran Paul Stahoviak as its new Territory Sales Manager for North America. In this strategic role, Stahoviak will spearhead the expansion of Radar's Midwest operations while developing the company's premium Radar Elite Dealer (RED) network. The automotive expert brings four decades of experience working with leading manufacturers and retailers to this position.

Radar Tires has achieved remarkable growth in recent years through continuous product innovation and progressive business strategies. Since entering the US market in 2006, the company has also built a reputation for corporate social responsibility, contributing millions to meaningful initiatives such as breast cancer awareness. By combining high-performance tyres with a commitment to purpose-driven business practices, Radar continues to strengthen its position in the competitive tyre industry.

Rob Montasser, Vice President of Radar Tire, North America, said, “Paul’s deep knowledge of the industry, combined with his relentless energy and positive attitude, makes him a great addition to the Radar team. His longstanding relationships and reputation for excellence will help us continue building strong partnerships and expanding our footprint across the Midwest.”

Stahoviak said, “I’m excited to join Radar Tires and help drive the growth of this great brand. I’m passionate about building lasting relationships with our partners and helping our brand succeed in the marketplace.”

As vehicle emissions regulations evolve, the lack of global uniformity is becoming a growing concern for OEMs and tyre manufacturers. With disparate standards across regions, companies are forced to navigate a complex regulatory maze, straining research and development and production resources. The shift towards electric mobility coupled with heightened focus on non-tailpipe emissions, such as tyre and brake abrasion, further amplifies the need for harmonised frameworks. Industry leaders including Audi’s Sebastian Gramstat argue that collaboration across borders and sectors is essential not just for compliance but for meaningful progress in sustainability and innovation.

Tyre regulations are rules and standards established to ensure that tyres used on vehicles meet safety, environmental and performance criteria. The impetus on new and updated regulations is also growing across regions to reduce pollution brought about by tyre abrasion, rolling noise etc.

The ECE R30, ECE R117, EU Tyre Labelling Regulation (2020/740), which is implemented within the European countries, or JIS Standards of Japan, CCC Certification of China, AIS 142 and BIS Certification of India and FMVSS, DOT Code and UTQG of the United States are different region-specific regulations aiming for a same outcome.

But the vastness of these regulations poses as a challenge for automobile OEMs and tyre makers alike as a lot of energy and resources have to be diverted within production and research and development lines to meet these standards.

Furthermore, the advancement of electric mobility and changes in vehicle dynamics are also slated to impose new regulations worldwide. Hence, the need for a uniform regulation has become a precondition.

Speaking to Tyre Trends on the need for uniform regulations, Dr Sebastian Gramstat, Senior Expert Development Brake System, Audi AG, averred, “Our company delivers products globally and having a unified standard is far more efficient than navigating a patchwork of regional requirements and regulations. Harmonisation brings clear operational and strategic advantages. That’s why we actively support and participate in standardisation and harmonisation working groups.”

“The European Union is involved through bodies such as the Joint Research Centre (JRC), but we also recognise the unique demands of other markets, particularly the US, where customer expectations can diverge significantly. These are often beyond the immediate scope of EU regulators. Our role is to help connect these dots by facilitating dialogue, sharing insights and contributing to building a global standard that benefits the entire ecosystem. We believe this collaborative approach is not only useful but essential to moving the industry forward,” he added.

The need for uniformity is exacerbated as OEMs and tyre makers continuously amp up research and development efforts to curb noise and air pollution from tyres. “Noise pollution, particulate matter or overall tyre wear remains a challenge. And the first step to tackle it is collaboration to develop a standardised method for accurately measuring tyre abrasion and wear. We are also working on such collaborations. Without reliable quantification, you can’t evaluate whether any mitigation measure is actually effective,” said Dr Gramstat.

He added, “This method needs to be robust, applicable across a wide range of real-world scenarios and globally accepted. That’s why we’re collaborating not only with industry partners and academia but also with regulatory authorities. This effort is taking place under the auspices of the United Nations and involves close coordination with national bodies, ministries and the European Commission. The goal is to ensure that the methodology we develop isn’t just technically sound but also internationally harmonised with Euro 7 regulations and integrated into UN regulations so it can be implemented consistently across Europe, North America, Asia and beyond.”

THE EURO 7

Tyres are a crucial component of overall vehicle design to the extent that many OEMs have dedicated in-house departments focused solely on tyre development, including Audi AG. While tyres aren’t developed in isolation, the process involves close collaboration with manufacturers to meet specific, often bespoke, requirements. These custom specifications ensure the tyre aligns with the car’s performance targets and regulatory demands including type approval.

When selecting a tyre, OEMs weigh multiple parameters; safety, performance and comfort are chief among them. But increasingly, attention is also given to sustainability and economy. Factors like tyre abrasion, longevity and fuel efficiency are becoming just as critical, particularly as regulatory frameworks begin to formalise such requirements.

Ultimately, the process involves balancing trade-offs. As Dr Gramstat put it, no tyre can deliver 100 percent on every metric. The goal is to find the best possible compromise – one that supports a premium product and meets both regulatory standards and consumer expectations.

Euro 7 is the upcoming EU vehicle emissions regulation set to take effect from 2025 for cars and vans and 2027 for trucks and buses. It introduces stricter limits on nitrogen oxides, carbon monoxide and particulate emissions, covering both combustion and electric vehicles.

It also regulates brake and tyre emissions and requires compliance under real driving conditions. It aims to cut air pollution, support the European Green Deal and standardise emission rules across vehicle types.

Alluding to whether the industry is ready to adopt the regulation, Dr Gramstat noted, “The industry is well-positioned for adoption. The European Tyre and Rim Technical Organisation (ETRTO) plays a central role in coordinating the efforts of tyre manufacturers across the continent, including legacy European brands and Asian manufacturers, with research and development and production facilities in Europe. Beyond Europe, we’re seeing strong international engagement. U.S. Tire Manufacturers Association (USTMA) is actively involved, and on the global standards side, ISO is working in parallel to develop the necessary technical frameworks. Stakeholders from China are also contributing significantly. This is no longer just a regional conversation but a truly global initiative. Experts from continents are collaborating to align regulatory, technical and industrial priorities, ensuring the tyre industry is prepared to meet the evolving demands of Euro 7 and beyond.”

Further outlining the impact of the regulation, he said, “Tyre manufacturers have largely operated under internal benchmarks for metrics like mileage and abrasion till date. Euro 7 represents a shift towards formal regulation, creating a harmonised framework that applies to the entire industry. This will undoubtedly influence existing design priorities. There’s a complex interplay between various tyre performance criteria such as wet grip, rolling resistance, noise and abrasion. Regulatory limits on one can impact the others, so the challenge will be to minimise trade-offs while maintaining overall performance. At this stage, it’s difficult to offer a one-size-fits-all answer. The impact will vary depending on vehicle type.”

REPLACEMENTS

Premium automobile OEMs like Audi have been using tyres from premium European tyre makers for decades. But as the status of Asian manufacturers changes, there might be room for such companies within the supply chain of premium car makers.

“At the end of the day, it’s not about the brand label but meeting the technical and performance specifications we define. Whether a supplier operates in the premium or high-volume segment, what matters is its ability to fulfil our requirements. If a manufacturer can meet those benchmarks and is willing to collaborate and co-develop with us, then they’re absolutely welcome. Competition in the supplier landscape is a positive force. It drives innovation, efficiency and ultimately better outcomes for the end consumer. We believe valuable ideas can come from any corner of the market and we’re open to partners who share our commitment to quality, performance and progress,” said Dr Gramstat.

He also acknowledged that there is a growing trend within the company to include tyres made from renewable and recycled materials. “The move towards sustainable materials is more than a marketing exercise. It’s becoming embedded in product development strategies across the industry. We’re already seeing recycled content being integrated into certain product lines, and the ambition from suppliers to scale this up is very real. What’s encouraging is that this isn’t limited to one-off pilot products. There’s genuine momentum towards making sustainability a core part of tyre manufacturing. For us, this aligns with our broader sustainability goals, and we see it as a critical area of innovation moving forward,” said Dr Gramstat.

However, the executive emphasised the importance of maintaining a balance too. According to him, sustainability is just one of several key factors in vehicle design while others include safety, comfort, performance and cost. He stressed that no single aspect, including sustainability, could come at the expense of another.

To meet these multi-dimensional goals, additional research and development efforts are required to create a product that meets safety and performance standards while also addressing environmental concerns. Economy remains a consideration as well. Internal research conducted under a European-funded project suggested that customers are, in fact, willing to pay a premium for more sustainable products but only up to a point. Price sensitivity remains a limiting factor.

Turning towards next-generation tyre concepts such as airless tyres, Dr Gramstat noted that innovative ideas like this were once viewed as distant possibilities but are now gaining traction. He cited the LEON-TI project from four years ago, in which airless tyre prototypes were first explored. Since then, similar concepts have been tested by various companies, including in pilot programmes for commercial delivery fleets in Asia.

Although these innovations show promise, particularly for reducing noise emissions and improving durability, they are still in advanced development stages.

THE FUTURE IS CHANGING

As the automotive industry moves towards electrification, the conversation around ‘zero-emission’ vehicles is evolving. Dr Gramstat acknowledged that while electric vehicles eliminate tailpipe emissions, other sources of pollution such as brake and tyre abrasion remain unaddressed in regulatory terms.

Currently, there are no standardised methods for measuring particulate emissions from these sources, but the industry is actively working on it. According to the executive, regulatory bodies and stakeholders are collaborating to develop measurement frameworks. Once these standards are in place, automakers will be able to quantify non-tailpipe emissions and provide a more accurate assessment of a vehicle’s overall environmental footprint.

The executive stressed that collaboration across the value chain is essential, especially between vehicle manufacturers and tyre companies. Such partnerships already exist within serial and advanced development efforts, including participation in the United Nations’ GRBP task force, which brings together manufacturers, tyre associations and regulators to advance tyre abrasion standards.

Weight reduction remains another key challenge. Automakers continue to look for ways to decrease vehicle mass but face constraints. Safety regulations now require more sensors and electronic control units (ECUs), which cumulatively increase vehicle weight. Although each component adds little individually, the growing number of sensors and accompanying wiring has a significant cumulative impact.

As for tyre development, the question of smart tyre was also addressed. While such technology offers valuable insights during research and development phases, Dr Gramstat expressed scepticism about its near-term viability for mass-market vehicles.

In a major step toward sustainable waste management, RPM Automotive Group has partnered with Fornnax to enhance its tyre recycling capabilities in Australia.

As part of the initiative, RPM has integrated Fornnax’s high-capacity SR-200 HD primary shredder into its operations, significantly improving recycling efficiency and material quality.

The collaboration supports RPM’s broader environmental goals and positions the company to process over 180 tonnes of used tyres weekly, with plans to scale beyond 300 tonnes. The move is expected to help RPM capture up to 5 percent of Australia’s national market share in tyre recycling.

Jignesh Kundaria, Director and CEO, Fornnax, said, "At Fornnax, we understand the urgency of addressing end-of-life tyre waste, not just in Australia but globally. The SR-200 HD Primary Shredder is designed for exceptional efficiency, enabling RPM to process vast quantities of discarded tyres while maintaining optimal operational performance. This collaboration showcases our dedication to providing our clients with the robust, high-performance solutions they need to excel in the circular economy."

RPM’s 3,500 sqmt facility not only boosts recycling output but also transforms waste tyres into rubber-based materials for road projects and industrial fuel. Leveraging its distribution network, the company aims to recycle up to 54,000 tonnes of tyres over five years.

The initiative aligns with Australia’s 2021 ban on tyre waste exports and underscores the urgent need for local recycling solutions.

Birla Tyre has launched a new brand identity featuring a redesigned logo and corporate website, marking a major step in its transformation journey under new ownership. The company, now backed by a consortium led by Dalmia Bharat Refractories (DBRL) as Resolution Applicant, and strategic partner Himadri Speciality Chemical (HSCL), aims to position itself as a premium, high-performance and future-ready brand.

The company plans to roll out a multi-platform marketing campaign and focus on re-entering key markets, expanding distribution and strengthening its product portfolio.

The refreshed identity reflects Birla Tyre’s renewed focus on speed, innovation and excellence. The new logo includes a custom wordmark symbolising forward motion and a tiger motif – called ‘Tyger’ – representing power, agility and leadership. The blue and orange colour scheme signifies trust and optimism.

Anurag Choudhary, Chairman and Managing Director & CEO, Himadri Speciality Chemical, said, “This rebranding is more than merely a visual transformation; it is a reaffirmation of our dedication to purposeful development and progress.” 

Dr Chandra Narain Maheswari, Whole Time Director & CEO, Dalmia Bharat Refractories, said, “Our new logo encapsulates the essence of Birla Tyre, which is founded on four fundamental pillars: a legacy that motivates boldness, a product line that is prepared for the future, an unwavering commitment to continuous innovation and a oneness with world around us. As this new identity signals Birla Tyre’s readiness to meet the evolving needs of the automotive industry with energy, innovation, and purpose.”