MTD Mid-Year Q&A: Poddar Shares Vision for BKT’s Growth
BKT remains committed to its long-term growth strategy, says Arvind Poddar, the company’s chairman and managing director.
MTD: Please bring us up to speed on BKT's performance in the U.S. so far in 2025. What have some of the company's achievements and challenges been?
Poddar: This year appears to be a promising one for BKT, having begun on a positive note, with Q1 registering growth across our main business segments, driven by the agriculture, industrial and earthmoving industries - despite several geopolitical factors. This progress reflects the company’s focused commercial strategy, strong distributor relationships and efficient supply chain execution. However, from the second quarter onward, new challenges emerged due to recent changes in U.S. trade policy affecting tire imports, as well. As a company, we are aware of these current difficulties and we are working closely with our partners and dealers to adapt our shipping logistics and pricing strategies to maintain our competitive advantage.
BKT has demonstrated strong operational resilience by meeting delivery commitments on time and consistently supporting customers. The company continues to actively monitor the situation and remains focused on assisting its partners, optimizing logistics and operations in line with the changing trade environment.
Looking ahead, BKT remains committed to the U.S. market and long-term, sustainable growth through operational agility, product innovation and a customer-first approach.
MTD: What's your assessment of the state of both the ag and OTR tire markets in the U.S. at the moment, including demand? What are you hearing from your distributors and dealers?
Poddar: In 2025, the U.S. agricultural market has been significantly impacted by prolonged weather conditions that particularly affected the Midwest. Persistent rainy conditions have delayed fieldwork and limited farming activity, which in turn has affected tire demand across the region. Agricultural demand was further influenced by policy uncertainty and changing trade regulations, which continue to weigh on the sector, causing further complexity along the entire supply chain.
Regarding the OTR tire segment, demand from the construction and mining sectors shows potential for growth, especially in regions with active infrastructure development and resource projects. However, the pace of this growth remains closely influenced by broader economic conditions and public investments.
In general, dealers and distributors are adopting a cautious approach to inventory planning and purchasing. Market sentiment reflects a high degree of uncertainty and many stakeholders are awaiting greater clarity on policy direction and supply chain conditions before making significant purchasing decisions. Despite these headwinds, there are many opportunities and this drives BKT’s commitment to continuing to stay closely connected with its partners to navigate the current landscape and provide support aligned with market needs.
MTD: Is BKT still on track to achieve annual turnover of $2 billion - as well as completion of enhancements at the company's Bhuj, India, plant - by 2026?
Poddar: We confirm our commitment to achieving $2 billion in revenues and to continue investing in the off-highway tire (OHT) market. However, due to the current scenario characterized by macroeconomic uncertainties and geopolitical tensions, we have shifted the target to 2030.
As you may have read, we recently presented our new five-year strategic plan, which sets the company's goal to reach approximately $2.6 billion in total revenue by 2030. This vision will strengthen BKT’s global leadership in the OHT business, with agriculture as a core driver, while reinforcing our strong and expanding presence in other strategic areas, such as rubber tracks, mining, industrial and construction.
As part of the 2030 roadmap, we have announced that we are also entering the passenger radial tire and the truck and bus radial segments for the Indian market. This initiative responds to the strong growth of the domestic automotive market and includes dedicated investments to develop new production capacities. The pilot phase of this new project is scheduled for FY 2026–27, which will be followed by a gradual scale-up. This strategic step will allow BKT to diversify its portfolio while leveraging its technological and manufacturing excellence.
Another pillar of our growth strategy is the expansion of our capacity from 200.000 to 360.000 tons in the carbon black segment. By 2030, this business segment is expected to contribute approximately 10% of BKT’s overall revenue. Besides supporting our own tire production, the expansion project will focus on the specialty and non-tire carbon black grades, positioning BKT as a trusted partner not only in the tire industry, but also in advanced industrial segments with high-performance requirements.
MTD: Is BKT making investments in other plants and facilities? If so, can you share more details?
Poddar: In line with our long-term roadmap, BKT is continuing to invest in its industrial footprint through selected upgrades and capacity expansions across key sites, especially at Bhuj. We are enhancing our infrastructure with a modular and scalable approach that enables us to respond swiftly to market shifts and integrate new technologies with operational efficiency.
Current efforts are focused on optimizing existing facilities, boosting manufacturing performance and supporting the introduction of new product lines. This includes the integration of advanced capabilities to serve both established off-highway segments and new strategic areas.
These developments complement broader projects already underway, such as expanding carbon black production and establishing dedicated capacity for the PCR segment in India, both of which will play a key role in supporting BKT’s future growth trajectory.
MTD: Will the recently announced Trump tariffs have an impact on BKT's manufacturing capacity and/or footprint, as it pertains to products made for the U.S. market? If so, why? If not, why not?
Poddar: At this stage, we do not anticipate a significant impact on BKT’s manufacturing capacity or footprint in relation to products destined for the U.S. market. While the Americas currently account for approximately 15.6% of BKT’s global business, the company’s production planning is structured with a high degree of flexibility and geographic diversification. BKT is showing resilience and a strong capacity to adapt in an ever-changing environment.
BKT remains committed to its long-term growth strategy, which includes ongoing investments to enhance manufacturing capabilities and global supply chain resilience. As always, the company is closely monitoring market conditions and trade developments and is working to adjust operational plans as needed to ensure continued service to customers across all regions.
MTD: BKT continues to invest heavily in product technology and development. Why is this important for both the company and its customers?
Poddar: To remain highly competitive and resilient, we recognize the importance of fostering a corporate culture based on innovation. This is possible by equipping our dedicated employees and teams with advanced tools and technology they need to develop long-term solutions. Our tires are a direct result of this strong commitment, which drives the development of high-quality and reliable tires specifically designed to meet the unique needs of end-users and operators.
Additionally, among our strategic goals are responsible development and innovation, which we promote alongside sustainability and cost efficiency, in line with our position as a leading tire manufacturer. This is made possible by BKT’s strong investment in research and development, which leads to tangible results in our product innovation, product offerings, and in the design of high-value tires with unique technologies that meet market demand.
MTD: What can we expect to see from BKT in the U.S. market during the rest of the year?
Poddar: We approach the upcoming months with confidence, backed by a series of strategic initiatives aimed at driving growth and deepening our relationships with customers across the U.S. market. We’re strengthening our presence in the U.S. by building trust, delivering tier-one quality and supporting our customers with a strong combination of product performance and service excellence.
Furthermore, to strengthen our support towards customers and dealers, we have a wide range of initiatives aimed at delivering added value, such as comprehensive training programs, strong after-sales service and technical support and an expanded product offering to meet the evolving needs of specific applications.
These efforts will go in parallel with the continued growth and expansion of our associated dealer network, reflecting BKT’s commitment to the U.S. market and to being a trusted, forward-thinking partner in every aspect of our customers’ success.
Currently, we are establishing a clear and ambitious vision for BKT’s future, demonstrated by entering new product categories, thus opening a new phase of growth, while strengthening our position in high-value segments and expanding our presence across strategic global markets. With a clear roadmap, targeted investments and a modular approach to expansion, BKT is positioning itself to lead across diverse segments while remaining true to its core values of reliability, performance and long-term partnerships.