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.

Comments (0)

ADD COMMENT

Link Copied!

Epsilon Carbon Pvt. Ltd. has announced the appointment of Munish Kumar Rathi as its new President and Business Head for Carbon Black.

With more than 25 years of extensive global leadership experience, Rathi brings a strong background in profit and loss management, multi-site manufacturing leadership, strategic planning and business transformation. His career is marked by a demonstrated ability to drive operational excellence and foster sustainable growth across various international markets.

The company is anticipating that his leadership will play a key role as Epsilon Carbon continues to expand its global footprint and accelerate innovation within the carbon black business segment. The organisation has formally welcomed Rathi to the team, expressing confidence in his capacity to guide future strategic initiatives. This move underscores Epsilon Carbon’s commitment to strengthening its leadership team in pursuit of long-term global competitiveness.

Comments (0)

ADD COMMENT

Link Copied!

TVS Srichakra has approved capital investment of up to INR 2.2 billion to expand production capacity at its manufacturing facilities in Vellaripatti, Madurai.

The expansion will cover the company’s two-wheeler tyre and off-highway tyre plants, with investment of up to INR 1.1 billion allocated to each facility.

TVS Srichakra said the two-wheeler tyre plant currently has capacity of about 21 million to 23.5  million tyres a year and operates at utilisation levels of around 80 to 85 percent. The company plans to add about 5 percent capacity, with completion targeted in the first half of FY2028-29.

The off-highway tyre plant has existing capacity of about 75 to 85 metric tonnes a year and operates at utilisation levels of 75 to 80 percent. TVS Srichakra plans to increase capacity at the plant by about 25 percent, with the addition scheduled for the first half of FY2027-28.

The company said the investment would be financed through a combination of internal accruals and debt.

TVS Srichakra said the expansion is intended to meet growing demand for its two- and three-wheeler tyres and off-highway tyre products.

Comments (0)

ADD COMMENT

Link Copied!

JK Tyre & Industries reported record consolidated revenue of INR 163.84 billion for FY26, registering an 11 percent year-on-year increase, supported by strong domestic demand and volume growth across key tyre segments.

The company’s consolidated EBITDA rose 25 percent to INR 20.89 billion, with EBITDA margin improving to 12.8 percent.

Profit before tax increased 46 percent to INR 10.43 billion, while profit after tax climbed 52 percent to INR 8.60 billion during FY26.

For the fourth quarter, consolidated revenue rose 12 percent year-on-year to INR 42.33 billion.

Quarterly EBITDA surged 42 percent to INR 5.46 billion, with margin at 12.9 percent, while Q4 PAT nearly doubled, rising 94 percent to INR 1.99 billion.

Chairman and Managing Director Dr Raghupati Singhania described FY26 as a year of robust performance, highlighting record volumes in both truck and bus radial and passenger car radial categories.

Domestic sales volumes during Q4 grew 21 percent overall. Truck and bus radial replacement volumes increased 53 per cent, while OEM demand in the segment rose 23 percent. Passenger car radial replacement volumes were up 26 percent and OEM demand increased 10 percent.

The company said growth momentum was expected to continue into FY27, supported by new vehicle launches, infrastructure development and sustained replacement demand.

JK Tyre also highlighted strong traction in electric mobility. More than 70 per cent of electric buses operating in India currently run on its tyres, while the company supplies EV tyres to nearly eight two-wheeler OEMs and has secured orders for electric passenger vehicle models including Renault Duster EV, Hyundai Creta EV and Tata Motors’ Nexon and Punch EV variants.

Its Mexico business, operated through JK Tornel, contributed nearly 20 per cent of consolidated revenue and is expected to maintain growth across Mexican, Latin American and US markets.

Comments (0)

ADD COMMENT

Link Copied!

The U.S. Tire Manufacturers Association (USTMA) has elected David Cichocki, Managing Director, Americas, and chief sales officer, Americas Consumer, at The Goodyear Tire & Rubber Company, to its board of directors.

“I’m pleased to welcome David to our Board. His extensive experience and expertise across the tire and consumer goods industries will be invaluable as we navigate today’s complex industry,” said Anne Forristall Luke, USTMA president and chief executive. “His proven leadership will strengthen our ability to seize emerging opportunities.”

Cichocki joined Goodyear in early 2026 and is responsible for overseeing the Americas region and leading the company’s Americas Consumer sales business.

He brings more than 30 years of leadership experience across industrial and consumer goods companies to the USTMA board.

Before joining Goodyear, Cichocki served as senior vice-president of US sales at Whirlpool, where he managed a portfolio valued at more than $10bn across retail and direct-to-consumer channels.

He also spent more than 20 years at Kraft Foods and Nabisco in a range of senior leadership roles.

Comments (0)

ADD COMMENT

Link Copied!