Balkrishna Industries Limited's Board of Directors made significant leadership and operational announcements during its meeting held on December 19, 2025. The board approved key director appointments, including the re-appointment of the Chairman and Managing Director, and provided updates on the company's capital expenditure projects, particularly the completion of a carbon black production facility.

Board Approves Key Leadership Appointments

The board, based on recommendations from the Nomination and Remuneration Committee, approved three important director appointments subject to shareholder approval:

Leadership Profiles and Expertise

Mr. Arvind Poddar

Mr. Poddar's re-appointment as Chairman and Managing Director was approved. He has been instrumental in driving the company's strategic transformation from two and three-wheeler tires to the off-highway segment. Under his leadership, the company achieved a CAGR growth of 16.00% and 20.00% in revenue and net profit respectively. He was conferred the K.M. Philip Award 2019 for his extraordinary leadership in evolving the company into one of the strongest players in the Off-Highway Tire industry worldwide.

Mr. Natarajan Gnanaskandan Tanjore

Aged 63, Mr. Tanjore brings extensive experience as a Fellow Member of the Institute of Chartered Accountants of India (FCA). He has been in professional practice since 1986, with core expertise spanning project finance, merchant banking, capital markets, mergers and acquisitions, dispute resolution, FEMA advisory, and GIFT City consulting. His diverse experience covers multiple industries including textiles, pharmaceuticals, engineering, edible oils, chemicals, renewable energy, and infrastructure.

Mr. Ashok Saraf

Mr. Saraf serves as Managing Director of Sarex Group of Companies, a leading entity in the chemicals field with business interests across India and several continents. Born in 1956, he holds a Commerce Graduate degree and diplomas in Finance Management and Business Management from Mumbai University and IMC, Mumbai respectively. He also serves on the Advisory Committee of Jamnabai Narsee School and is a Trustee of various charitable trusts.

Shareholder Approval Process

The board approved a Postal Ballot Notice dated December 19, 2025, for the appointments and re-appointment of the aforementioned directors. The e-voting process is scheduled as follows:

Carbon Black Production Milestone Achieved

The company provided a significant operational update regarding its capital expenditure projects. As part of the ₹3,500.00 crores investment approved by the board on May 23, 2025, for setting up additional production facilities at Bhuj, the company has successfully completed one line of carbon black production facility.

The ₹3,500.00 crores investment covers multiple facilities including Carbon Black, Commercial Vehicle Tires, Power Plant, Rubber Tracks, and Passenger Car Radial Tires at the Bhuj location. The balance part of the carbon black project continues to progress according to the planned schedule.

Regulatory Compliance and Meeting Details

The board meeting commenced at 3:30 p.m. and concluded at 3:58 p.m. on December 19, 2025. All decisions were made in compliance with Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has submitted the required disclosures to BSE Limited and National Stock Exchange of India Limited as per regulatory requirements.

Balkrishna Industries Ltd (BKT), a leading off-highway tire manufacturer, reported its Q2 results, showcasing resilience amidst challenging market conditions. The company faced significant headwinds due to increased US import duties but maintained its focus on long-term growth strategies.

Key Financial Highlights

US Tariff Impact and Market Challenges

The company experienced a severe impact from the increase in US import duties to 50%, affecting approximately 10% of last year's sales volume. This development led to halted shipments to US markets, significantly impacting overall sales performance.

Rajiv Poddar, Joint Managing Director, stated, "We continue to navigate through a period of significant challenges. The tariff-related headwinds intensified with the U.S. increasing import duties on India to 50%."

European Market and Global Outlook

While the European market continues to face headwinds, Balkrishna Industries remains cautiously optimistic about the easing of these challenges. The company is strengthening its market positions in India and Europe while driving incremental growth from other global markets.

Strategic Initiatives and Future Outlook

Despite short-term challenges, Balkrishna Industries is maintaining its long-term vision of achieving INR 23,000.00 crores in revenue by 2030. The company is focusing on:

1. Enhancing presence in the Indian market
2. Expanding the carbon black business
3. Investing in brand building and infrastructure
4. Developing new product lines, including TBR (Truck and Bus Radial) and PCR (Passenger Car Radial) tires

Dividend and Capital Expenditure

• The Board of Directors declared a second interim dividend of INR 4.00 per equity share.
• Capex spend for H1 was approximately INR 1,737.00 crores.
• Full-year capex is expected to be INR 2,000.00-2,200.00 crores.

Notable Achievements

1. Received the Excellence level award from Caterpillar's Global Supplier Excellence recognition program for the fourth consecutive year.
2. Inaugurated a dedicated vehicle dynamics and testing base at NATRAX in Indore.
3. BKT Bhuj plant achieved a 5-star grading and a Sword of Honor Award for 2025 by the British Safety Council.

Conclusion

Despite facing significant challenges, particularly in the US market due to increased tariffs, Balkrishna Industries remains committed to its long-term growth strategy. The company's focus on diversification, product development, and strategic investments positions it well for future growth once market conditions improve.

As Balkrishna Industries navigates through these turbulent times, its resilience and strategic initiatives demonstrate a strong foundation for achieving its 2030 revenue target of INR 23,000.00 crores. The company's ability to adapt to changing market dynamics while maintaining a focus on innovation and quality will be crucial in overcoming current headwinds and capitalizing on future opportunities in the global off-highway tire market.