SIDDHARTH COLLEGE OF COMMMERCE &

ECONOMICS.
Project report:
Export Import Procedures & Documentation.
Major Exporting Houses in India.
Industry Name: BAL Krishna Industries Limited.

(Tyres Manufacturer’s).
Submitted to: Prof. Amjad Kadri.
Submission Date: 12th Jan 2010.
 Group IX

S.Y.BMS.: (4TH SEM

Name Roll no

Komal Bandare: 03.

Prathamesh A. Pendkalkar: 31.
Paras Shinde: 37.
Kamlesh Vaishnav: 43.
Mamta .D. Waghmare: 47.
 INTRODUCTION ABOUT THE COMPANY
BALKRISHNA INDUSTRIES LIMITED
Balkrishna Industries Limited, basically it is a tyres manufacturing
company of off-highway tyres. The company BAL Krishna Industries
Limited is existence since 40 years. However the company started its
business as paper making industry. But after 20 years of its existence it
came into the manufacturing the off-highway tyres and it started the
business of manufacturing the off-highway tyres.
The company manufactures the various range of
Off highway tyres such as Agricultural, Forestry, Industrial, Material
Handling, Lawn & Garden, Construction and Earth Moving (OTR)
equipments tyres and mining equipments tyres
The company has three major production plants namely in Bhiwadi
(Rajasthan), Chopanki (Rajasthan) and in Aurangabad (Maharashtra).
 The success story of BKT, begun in 1995 when it entered into
production of cross ply off-highway tyres, With the help of
persistent & intensive market research coupled with ever
expanding production capabilities, BKT has made its mark in the
niche segments like Agricultural, Construction, Industrial,
Earthmover, ATV (All Terrain Vehicle) and Turf care applications.
It is the part of the Siyaram poddar group, is a leading producer
and exporter of OHT (off- highway) truck tyres. The company has
divested its paper and textile business into separate subsidiaries
to focus on the high- growth, high- margin tyre segment. Its
presence in the niche OHT segment, coupled with capacity
expansion would result in a substantial growth in top line. Further,
the improvement in key operational ratios like material, power and
fuel costs would boost EBIDTA margins.
 Company’s Background
BalKrishna Indutries is the flagship of the Rs 1,800 crore
Siyaram Poddar Group. It is one of the leading tyre
manufactures in India focused on the Oht tyres segment. In
FY07, its total installed capacity was 100,000 tpa ( tonnes per
annum).
It has three manufacturing facilities located at Bhiwadi and
Chopanki in Rajasthan, and Waluj in Maharashtra. The company
compan
had paper and paperboard division manufacturing coated
duplex/ triplex boards with installed capacity of 54,000 tpa tha
contributed around Rs 118 crore in FY07.
It also had a small textile processing division, which used to
undertake job work from siyaram silk (a group with company)
with a capacity of 24 million metres per annum with modest
turnover of Rs 28.5 crore in FY07.
 It also had a small textile processing division, which used to

siyaram silk (a group with

undertake job work from
company) with a capacity of 24 million metres per
annum with modest turnover of Rs 28.5 crore in FY07.
To focus on its core business of tyres, the company
divested these two units into separate subsidiaries,
Balkrishna paper Mills and BalKrishna paper Mills and
BalKrishna synthetics, with effect from March 31, 2007.
Shareholding Pattern ( 30/09/2007)
Shareholder % Holdings
Promoters 54.1%
Institutional Investors 36.5%
Other Investors 1.3%
General Public 8.1%
 MAJOR OBJECTIVES:

BKT is uniquely suited to partner with the best in tyre-trade & be an

integral part of the supply chain of OEMs, to offer tyres meeting
stringent specifications, special R&D challenges, and custom-made
development needs. BKT offers:
1.The widest range of tyres in each segment.
2. Good quality tires at very competitive prices.
3. Aggressive commitments and adherence to all our customers
with emphasis on timely deliveries.
4.Capability to develop 150-160 new sizes every year.
5. Capability to develop new sizes within 8 to 10 weeks on finalization of
specifications.
6.Quick response time.
7. Single point contact for all marketing and development
needs.
8.Continuous investment in R&D.
9.Complete transparency in all aspects of business.
Clearly defined warranty terms and conditions for quick
settlements.
10.Moving towards obtaining economies of scale.
BKT runs on .
 BKT is meeting market demands as a single source supplier of
Agricultural and Industrial Specialty Tires. The company is well known for
having one of the most extensive ranges in the above-mentioned
category of Tires and for working closely with customers to develop new

sizes and designs to quickly react to the changing market.

BKT's experienced team is backed up by state-of-the-art
manufacturing facilities wherein it is ensured that the highest
quality products are manufactured. A marketing and
customer service team dedicated to offer complete marketing
support further backs up our products.
 ABOUT EMPLOYEES AND WORKERS

The Balkrishna Industries Limited has 1500 employees and workers.

There are basically 3 shifts of 24 hours of the workers. The company
usually in contact with their employees and its workers through
various types of meetings and various types of programs.

The company generally provides proper rest-room to the workers so

that they can work efficiently and the employees and the workers are
provided reasonable salaries and wages and there are proper
promotions to who works efficiently and the company provides
various other benefits to the employees like medical benefits,
allowances, advance payments, proper leaves, accommodation
facilities etc.
 Also,…there is a compulsory long-term agreement with the
employees regarding the remuneration, increment etc and all
the clause are very well explained in the agreement and they
are properly remunerated time to time and there is no any
late payment done to any employee or any worker and the
company gives proper training regarding their work, how to
interact with their superiors and sub-ordinates and their
workers.

Most of the employees are very hardworking and beneficial to

the company and the superiors give them chance to share
their views and comments while taking any decisions so any
manager does not face any problems from the side of the
employees and the the workers. So there is no question of
any disputes with the employees and the workers.
 WIDE RANGE OF PRODUCTS:

The Agricultural range start from 12 inches bead diameter to 48 inches

and the Industrial / Construction / Earthmover range starts from 8 inches
bead diameter tyre and shall go up to 51 inches very shortly.

Agricultural tyres at BKT constitute major portion with tyres for Tractors,
Trailers, Implements & other farm equipments. Although new entrants in
Tractor Radial segment, ‘AGRIMAX’ range of BKT tractor radial tyres are
on top of customer recall in a very short period. BKT produces tractor
radial tyres in all series - the most popular, 85 series tyres to 70 series, 65
series and the more sophisticated 95 series (Row Crop) tyres for Vineyard
tractors. BKT has now ventured in Forestry Tyre Segment.

Tyres for Construction / Industrial & Earthmover applications are also an

integral part of BKT’s product offerings and this constitutes almost 40%
 BKT has substantially expanded its range of OTR by adding Heavy Earthmover
Tyres, Compactor, Grader, Underground Mines and Backhoe Tyres. BKT has also
developed Radial Industrial Tractor Tyres. BKT has launched its ALL STEEL
RADIAL OTR tyres sub branded as EARTHMAX. This gives BKT a unique
distinction of being first company from India to offer Radial OTR tyres.

QUALITY
Quality Control is zealously carried out at every stage of manufacturing –
starting from the raw material to the finished product ensures a product
of a consistently high quality.
State-of-the-art manufacturing tools run by experienced operators allow
BKT to manufacture tires of outstanding quality efficiently and cost-
effectively,…
…their products confirm to the following standards:
ETRTO
T&RA
JATMA
ITTAC
Having obtained ISO 9000:2001 certifications, recently BKT
have also been awarded ISO 14001 certificate for its environmental
management practices.
 DISTRIBUTION CHANNELS
INTERNATIONAL EXPORTS
BalKrishna Industries
Limited.

North America/ US

Western Europe.

Africa/ Russia.

Middle East Asia.

Australia
 DOMESTIC EXPORTS:

BalKrishna Industries
Limited.
Delhi/ Jodhpur/
Siliguri/Guwahati/Vadodara.

Indore/ Ralpur/ Ranchi.

Asansor/ Calcuttta/Nagpur.

Mumbai/ Hyderabad.

Hospet/ Bangalore/ Chennai.

The company’s distribution channels in foreign countries are
in
North America, US, Western Europe, Africa, Russia, Middle
East Asia, Australia.
The company’s distribution channels in local markets are in
Mumbai, Delhi, Kolkata, Chennai, Banglore, Indore, Nagpur,
Raipur, Hyderabad, Cuttack, Ranchi, Guwahati, Siliguri,
Jodhpur.
BIL has strong global positioning which enables to ship its
products to any corner of the world. Most of BILs export
volume goes to Europe, followed by the US, Australia, the
Middle East and Asia. Altogether it has 1700 SKU’s offering a
wide range of products.
They sell around 10- 12 percent of the sales volume to vehicle
OEM’s with the rest being sold to the aftermarket. In addition
to distributors, the company also has their own

representatives in UK, US & Italy.

 RESEARCH & DEVELOPMENT.
R&D is always at the forefronts of BKT and it spends about 5-6% of its
revenue on research and development. Radial OTR & Agri-Radial Tyre
Technology has been developed in-house.
BKT develops over 150 new sizes every year coupled with a low turn

around time of 8 to 10 weeks for new product development. BKT has a

dedicated team of professionals, who carryout design and development
of new products, as per specific customer needs / market feedback.
Through constant market research to keep abreast of customer needs
and technological trends, intensive R&D to discover and develop new
patterns, designs and styles & relentless expanding of production
capabilities, BKT has gained world market share at a blistering pace in a

short period.
 HUMAN RESOURCES
The company’s human resources continue to be the biggest asset of the
company. The team has remained as committed as ever and produced
results that are considered significant. Quality, quick delivery and focus
on resolving customer issues are the hallmark of the team performance.
There is a strong focus on TEAM spirit. During the year, many events are
conducted to develop the personality and outlooks of its employee.
Employee’s relations continue to be cordial.

AREA OF OPERATIONS
BKT is continuously developing its production base and has expanded its
product range significantly. With three manufacturing plants i.e. in
Bhiwadi (Rajasthan), Chopanki (Rajasthan) and Aurangabad
(Maharashtra) and one In-house Hi-tech Mould-manufacturing facility at
different locations in India, BKT is very well equipped to feed the ever-
growing demand of its worldwide customers. 4th Tyre plant a Greenfield
project is already underway.
 INVESTMENT RATIONALE:
Present in niche segment:

BIL has a presence in the niche OHT tyre segment. Globally, OHT tyres
account for 10% of the total tyres sales. The global size of the OHT tyres
market is estimated at US$ 7.5 billion. There is a very high degree of
concentration in the segment, with the top 3 players (Bridgestone,

Gooyear and Michelin) having a 50-55% market share. OHT tyres are
used for agricultural, industrial, and construction and earthmoving
purposes. The OHT segment focuses on highly customized requirements,
unlike automobile tyres.
BIL’s major strength lies in its R& D. Over the years, it has developed
over 1,700 SKU, which offer a wide range of offerings. It rolls out around
150 new products every year to cater to the requirements of varied
industries. Its SKU’s and product development act as an entry barrier in
the industry.
The company exports around 90% of its sales. The balance 10% is sold to
OEM’s (Original equipment manufacturers) in India. It has a 3% market
share in the global OHT tyre segment. Out of total sales, around 70-75%
comes from the replacement market. The balance production is mainly for
companies who outsource production to BIL.
 SALIENT FEATURES FOR YEAR 2007-2008.
Milestone
BKT has achieved a staggering growth of 42% in financial year 2007/08
the surpassing a turnover USD 250 million by sales of highway tyres.
All Steel Radial OTR Tyres from House of BKT.
BalKrishna Tyres is proud of launching its all steel radial OTR tyres.
These tyres are sub branded as “EARTHMAX” by BKT. EARTHMAX
signifies maximum performance & maximum load capacity for various
Earthmovings APPLICATION.
With Earthmax range of radial OTR tyres, BKT will have unique
distinction of first India Company to offer all steel radial OTR tyres. In
third quarter of this year BKT will be launching 25” rim dia tyres in
multiple patterns and various compound options to cater to wide
Earthmoving applications and varied operating conditions. 33” and 35”
Rim dia.
Ever Increasing Range of Agricultural Application Tyres.
Agricultural tyres range constituting more than 60% of the BKT turnover
is an integral part of its product offerings.
BKT has an exhaustive range of agricultural tyres covering wide
application in Radial and cross Ply construction. Premium range of radial
agricultural tyres branded as AGRIMAX available in 85, 70, 65 series, row
crop and floatation tyres are fast gaining popularity in the international
 EXPANSION PROGRAMS FOR… 2008 - 09:
The company is planning to increase its capacity by adding extra

equipments at its existing locations and by setting up a new green field

Tyre plant into special economic zone (SEZ). Once land is acquired, it will
take 1 1/2 ~ 2 years to setup the plant. The companys plans also include
setting up of storage facilities at different location to store finished goods
and raw materials.BIL is expanding its capacity by 29%. The capacity at
the Bhiwadi plant is bein increaded by 4,500 tpa and Chopanki plant by
13,000 tpa. The company is also putting up OTR (off- the road) tyre facility
at chopanki with initial capacity of 11,500 tpa. OTR tyres are mainly used
by earthmovers.Post capacity expansion, the capacity would be 129,000
tpa. The capex plans also includes a warehouse facility of 160,000 square
metres to store inventory.the warehousing facility is essential as the
company plans to stock a sizeable inventory whenever rubber prices
decline. The move would help the company benefit from low prices

controlling costs. The total capex is around Rs 150 crore.

 Demand supports the capacity expansion…!

BIL’s major sales (around 60- 65%) are from agricultural related
equipment tyres. Further, most of the exports are to EU (European Union)
countries. These countries, coupled with declining farmer population, is
boosting demand for tractors and other agriculture related applications.
The soaring demand, complemented with an effective pricing strategy of
selling 25- 30% cheaper than competitors is expected to help the
company garner higher market share increasing volume sales.

FUTURE PLANNING OF THE COMPANY

The company is planning regarding expansion of the business and also
planning to increase its production capacity for that purposes the
company has purchased a land for developing or establishing a new

project in Bhuj in Gujarat and planning to setup a new project

 CONCLUSION
The company Balkrishna Industries Limited is manufacturing the off-
highway tyres. The company’s holding is 80%. The company has three
major plants i.e. in Biwadi (Rajasthan), Chopanki (Rajasthan) and
Aurangabad (Maharashtra). The company is planning to setup new plant
in Bhuj (Gujarat) for which the company has purchased new land in Bhuj.

The company has four direct subsidiaries incorporated in India and two
Indirect Subsidiaries in Europe and Italy incorporated in U.K. and Italy
respectively.
The company’s financial data (current year & last year).
Assets Rupees 1217.27 crores & Rupees 1170.4 crores.
Liabilities Rupees 570.85 crores & Rupees 566.36 crores.
Sale volume Rupees 1261.31 crores (current year).
Net Profit Rupees 139.18 crores & Rupees 138.53 crores.
From the above data it is clear that the company is making reasonable
profit.
The company’s local market is not so strong
The company’s 95% production is exported to other countries and the
company existence in more than 100 countries.