SIDDHARTH COLLEGE OF COMMMERCE & SIDDHARTH COLLEGE OF COMMMERCE & ECONOMICS.ECONOMICS.Project report:Project report:

Export Import Procedures & Documentation.Export Import Procedures & Documentation.Major Exporting Houses in India.Major Exporting Houses in India.

Industry Name: BAL Krishna Industries Limited.Industry Name: BAL Krishna Industries Limited.

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

Group IXGroup IX

S.Y.BMS.: (4TH SEMS.Y.BMS.: (4TH SEMName Roll no Name Roll no

Komal Bandare: 03.Komal Bandare: 03.Prathamesh A. Pendkalkar: 31.Prathamesh A. Pendkalkar: 31.Paras Shinde: 37.Paras Shinde: 37.Kamlesh Vaishnav: 43.Kamlesh Vaishnav: 43.Mamta .D. Waghmare: 47.Mamta .D. Waghmare: 47.

INTRODUCTION ABOUT THE COMPANYINTRODUCTION ABOUT THE COMPANYBALKRISHNA INDUSTRIES LIMITEDBALKRISHNA INDUSTRIES LIMITED

Balkrishna Industries Limited, basically it is a tyres manufacturing Balkrishna Industries Limited, basically it is a tyres manufacturing company of off-highway tyres. The company BAL Krishna Industries company of off-highway tyres. The company BAL Krishna Industries Limited is existence since 40 years. However the company started its Limited is existence since 40 years. However the company started its

business as paper making industry. But after 20 years of its existence it 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 came into the manufacturing the off-highway tyres and it started the

business of manufacturing the off-highway tyres.business of manufacturing the off-highway tyres.The company manufactures the various range ofThe company manufactures the various range of

Off highway tyres such as Agricultural, Forestry, Industrial, Material Off highway tyres such as Agricultural, Forestry, Industrial, Material Handling, Lawn & Garden, Construction and Earth Moving (OTR) Handling, Lawn & Garden, Construction and Earth Moving (OTR)

equipments tyres and mining equipments tyresequipments tyres and mining equipments tyresThe company has three major production plants namely in Bhiwadi The company has three major production plants namely in Bhiwadi

(Rajasthan), Chopanki (Rajasthan) and in Aurangabad (Maharashtra).(Rajasthan), Chopanki (Rajasthan) and in Aurangabad (Maharashtra).

The success story of BKT, begun in 1995 when it entered into The success story of BKT, begun in 1995 when it entered into production of cross ply off-highway tyres, With the help of production of cross ply off-highway tyres, With the help of persistent & intensive market research coupled with ever persistent & intensive market research coupled with ever

expanding production capabilities, BKT has made its mark in the expanding production capabilities, BKT has made its mark in the niche segments like Agricultural, Construction, Industrial, niche segments like Agricultural, Construction, Industrial,

Earthmover, ATV (All Terrain Vehicle) and Turf care applications.Earthmover, ATV (All Terrain Vehicle) and Turf care applications. It is the part of the Siyaram poddar group, is a leading producer It is the part of the Siyaram poddar group, is a leading producer and exporter of OHT (off- highway) truck tyres. The company has and exporter of OHT (off- highway) truck tyres. The company has divested its paper and textile business into separate subsidiaries divested its paper and textile business into separate subsidiaries

to focus on the high- growth, high- margin tyre segment. Its to focus on the high- growth, high- margin tyre segment. Its presence in the niche OHT segment, coupled with capacity presence in the niche OHT segment, coupled with capacity

expansion would result in a substantial growth in top line. Further, expansion would result in a substantial growth in top line. Further, the improvement in key operational ratios like material, power and the improvement in key operational ratios like material, power and

fuel costs would boost EBIDTA margins.fuel costs would boost EBIDTA margins.

Company’s BackgroundCompany’s Background BalKrishna Indutries is the flagship of the Rs 1,800 crore BalKrishna Indutries is the flagship of the Rs 1,800 crore

Siyaram Poddar Group. It is one of the leading tyre Siyaram Poddar Group. It is one of the leading tyre manufactures in India focused on the Oht tyres segment. In manufactures in India focused on the Oht tyres segment. In

FY07, its total installed capacity was 100,000 tpa ( tonnes per FY07, its total installed capacity was 100,000 tpa ( tonnes per annum). annum).

It has three manufacturing facilities located at Bhiwadi and It has three manufacturing facilities located at Bhiwadi and Chopanki in Rajasthan, and Waluj in Maharashtra. The company Chopanki in Rajasthan, and Waluj in Maharashtra. The company

had paper and paperboard division manufacturing coated had paper and paperboard division manufacturing coated duplex/ triplex boards with installed capacity of 54,000 tpa that duplex/ triplex boards with installed capacity of 54,000 tpa that

contributed around Rs 118 crore in FY07. contributed around Rs 118 crore in FY07. It also had a small textile processing division, which used to It also had a small textile processing division, which used to

undertake job work from siyaram silk (a group with company) undertake job work from siyaram silk (a group with company) with a capacity of 24 million metres per annum with modest with a capacity of 24 million metres per annum with modest

turnover of Rs 28.5 crore in FY07.turnover of Rs 28.5 crore in FY07.

It also had a small textile processing division, which used to It also had a small textile processing division, which used to

undertake job work fromundertake job work from siyaram silk (a group with siyaram silk (a group with

company) with a capacity of 24 million metres per company) with a capacity of 24 million metres per annum with modest turnover of Rs 28.5 crore in FY07. annum with modest turnover of Rs 28.5 crore in FY07.

To focus on its core business of tyres, the company To focus on its core business of tyres, the company divested these two units into separate subsidiaries, divested these two units into separate subsidiaries,

Balkrishna paper Mills and BalKrishna paper Mills and Balkrishna paper Mills and BalKrishna paper Mills and BalKrishna synthetics, with effect from March 31, 2007.BalKrishna synthetics, with effect from March 31, 2007.

Shareholding Pattern ( 30/09/2007)Shareholding Pattern ( 30/09/2007)Shareholder % HoldingsShareholder % Holdings

Promoters 54.1%Promoters 54.1% Institutional Investors 36.5% Institutional Investors 36.5% Other Investors 1.3% Other Investors 1.3%General Public 8.1%General Public 8.1%

MAJOR OBJECTIVES:MAJOR OBJECTIVES:

BKT is uniquely suited to partner with the best in tyre-trade & be an 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 integral part of the supply chain of OEMs, to offer tyres meeting

stringent specifications, special R&D challenges, and custom-made stringent specifications, special R&D challenges, and custom-made

development needs. BKT offers:development needs. BKT offers: 1.The widest range of tyres in each segment.1.The widest range of tyres in each segment.

2. Good quality tires at very competitive prices.2. Good quality tires at very competitive prices.

3. Aggressive commitments and adherence to all our customers 3. Aggressive commitments and adherence to all our customers with emphasis on timely deliveries.with emphasis on timely deliveries.

4.Capability to develop 150-160 new sizes every year.4.Capability to develop 150-160 new sizes every year.

5. Capability to develop new sizes within 8 to 10 weeks on finalization of 5. Capability to develop new sizes within 8 to 10 weeks on finalization of specifications.specifications.

6.Quick response time.6.Quick response time.

7. 7. Single point contact for all marketing and development Single point contact for all marketing and development needs.needs.

8.8.Continuous investment in R&D.Continuous investment in R&D.9.9.Complete transparency in all aspects of business.Complete transparency in all aspects of business.

Clearly defined warranty terms and conditions for quick Clearly defined warranty terms and conditions for quick settlements.settlements.

10.10.Moving towards obtaining economies of scale.Moving towards obtaining economies of scale.BKT runs on .BKT runs on .

BKT is meeting market demands as a single source supplier of BKT is meeting market demands as a single source supplier of Agricultural and Industrial Specialty Tires. The company is well known for Agricultural and Industrial Specialty Tires. The company is well known for

having one of the most extensive ranges in the above-mentioned having one of the most extensive ranges in the above-mentioned category of Tires and for working closely with customers to develop new category of Tires and for working closely with customers to develop new

sizes and designs to quickly react to the changing market.sizes and designs to quickly react to the changing market. BKT's experienced team is backed up by state-of-the-art BKT's experienced team is backed up by state-of-the-art

manufacturing facilities wherein it is ensured that the highest manufacturing facilities wherein it is ensured that the highest quality products are manufactured. A marketing and quality products are manufactured. A marketing and

customer service team dedicated to offer complete marketing customer service team dedicated to offer complete marketing support further backs up our products. support further backs up our products.

ABOUT EMPLOYEES AND WORKERSABOUT 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 Also,…there is a compulsory long-term agreement with the

employees regarding the remuneration, increment etc and all employees regarding the remuneration, increment etc and all the clause are very well explained in the agreement and they the clause are very well explained in the agreement and they

are properly remunerated time to time and there is no any are properly remunerated time to time and there is no any late payment done to any employee or any worker and the late payment done to any employee or any worker and the

company gives proper training regarding their work, how to company gives proper training regarding their work, how to interact with their superiors and sub-ordinates and their interact with their superiors and sub-ordinates and their

workers. workers.

Most of the employees are very hardworking and beneficial to Most of the employees are very hardworking and beneficial to the company and the superiors give them chance to share the company and the superiors give them chance to share

their views and comments while taking any decisions so any their views and comments while taking any decisions so any manager does not face any problems from the side of the manager does not face any problems from the side of the employees and the the workers. So there is no question of employees and the the workers. So there is no question of

any disputes with the employees and the workers.any disputes with the employees and the workers.

WIDE RANGE OF PRODUCTS:WIDE RANGE OF PRODUCTS:

The Agricultural range start from 12 inches bead diameter to 48 inches The Agricultural range start from 12 inches bead diameter to 48 inches and the Industrial / Construction / Earthmover range starts from 8 inches and the Industrial / Construction / Earthmover range starts from 8 inches

bead diameter tyre and shall go up to 51 inches very shortly. bead diameter tyre and shall go up to 51 inches very shortly.

Agricultural tyres at BKT constitute major portion with tyres for Tractors, Agricultural tyres at BKT constitute major portion with tyres for Tractors, Trailers, Implements & other farm equipments. Although new entrants in Trailers, Implements & other farm equipments. Although new entrants in Tractor Radial segment, ‘AGRIMAX’ range of BKT tractor radial tyres are Tractor Radial segment, ‘AGRIMAX’ range of BKT tractor radial tyres are

on top of customer recall in a very short period. BKT produces tractor 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 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 series and the more sophisticated 95 series (Row Crop) tyres for Vineyard

tractors. BKT has now ventured in Forestry Tyre Segment. tractors. BKT has now ventured in Forestry Tyre Segment.

Tyres for Construction / Industrial & Earthmover applications are also an Tyres for Construction / Industrial & Earthmover applications are also an integral part of BKT’s product offerings and this constitutes almost 40% integral part of BKT’s product offerings and this constitutes almost 40%

of company’s turnover. of company’s turnover.

BKT has substantially expanded its range of OTR by adding Heavy Earthmover BKT has substantially expanded its range of OTR by adding Heavy Earthmover Tyres, Compactor, Grader, Underground Mines and Backhoe Tyres. BKT has also Tyres, Compactor, Grader, Underground Mines and Backhoe Tyres. BKT has also

developed Radial Industrial Tractor Tyres. BKT has launched its ALL STEEL developed Radial Industrial Tractor Tyres. BKT has launched its ALL STEEL RADIAL OTR tyres sub branded as EARTHMAX. This gives BKT a unique RADIAL OTR tyres sub branded as EARTHMAX. This gives BKT a unique distinction of being first company from India to offer Radial OTR tyres. distinction of being first company from India to offer Radial OTR tyres.

QUALITYQUALITY Quality Control is zealously carried out at every stage of manufacturing – Quality Control is zealously carried out at every stage of manufacturing – starting from the raw material to the finished product ensures a product starting from the raw material to the finished product ensures a product

of a consistently high quality. of a consistently high quality. State-of-the-art manufacturing tools run by experienced operators allow State-of-the-art manufacturing tools run by experienced operators allow

BKT to manufacture tires of outstanding quality efficiently and cost-BKT to manufacture tires of outstanding quality efficiently and cost-effectively,…effectively,…

…their products confirm to the following standards: …their products confirm to the following standards: ETRTOETRTO

T&RA T&RA JATMAJATMAITTACITTAC

Having obtained ISO 9000:2001 certifications, recently BKT Having obtained ISO 9000:2001 certifications, recently BKT have also been awarded ISO 14001 certificate for its environmental have also been awarded ISO 14001 certificate for its environmental

management practices.management practices.

DISTRIBUTION CHANNELSDISTRIBUTION CHANNELS

INTERNATIONAL EXPORTSINTERNATIONAL EXPORTS BalKrishna Industries Limited.

North America/ US

Western Europe.

Africa/ Russia.

Middle East Asia.

Australia

BalKrishna Industries Limited.

Indore/ Ralpur/ Ranchi.

Asansor/ Calcuttta/Nagpur.

Mumbai/ Hyderabad.

Hospet/ Bangalore/ Chennai.

Delhi/ Jodhpur/ Siliguri/Guwahati/Vadodara.

DOMESTIC EXPORTS:

The company’s distribution channels in foreign countries are The company’s distribution channels in foreign countries are inin

North America, US, Western Europe, Africa, Russia, Middle North America, US, Western Europe, Africa, Russia, Middle East Asia, Australia.East Asia, Australia.

The company’s distribution channels in local markets are inThe company’s distribution channels in local markets are inMumbai, Delhi, Kolkata, Chennai, Banglore, Indore, Nagpur, Mumbai, Delhi, Kolkata, Chennai, Banglore, Indore, Nagpur,

Raipur, Hyderabad, Cuttack, Ranchi, Guwahati, Siliguri, Raipur, Hyderabad, Cuttack, Ranchi, Guwahati, Siliguri, Jodhpur. Jodhpur.

BIL has strong global positioning which enables to ship its BIL has strong global positioning which enables to ship its products to any corner of the world. Most of BILs export products to any corner of the world. Most of BILs export

volume goes to Europe, followed by the US, Australia, the volume goes to Europe, followed by the US, Australia, the Middle East and Asia. Altogether it has 1700 SKU’s offering a Middle East and Asia. Altogether it has 1700 SKU’s offering a

wide range of products. wide range of products. They sell around 10- 12 percent of the sales volume to vehicle They sell around 10- 12 percent of the sales volume to vehicle OEM’s with the rest being sold to the aftermarket. In addition OEM’s with the rest being sold to the aftermarket. In addition

to distributors, the company also has their own to distributors, the company also has their own

representatives in UK, US & Italy.representatives in UK, US & Italy.

RESEARCH & DEVELOPMENT.RESEARCH & DEVELOPMENT.R&D is always at the forefronts of BKT and it spends about 5-6% of its 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 revenue on research and development. Radial OTR & Agri-Radial Tyre

Technology has been developed in-house. Technology has been developed in-house. BKT develops over 150 new sizes every year coupled with a low turn 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 hasaround time of 8 to 10 weeks for new product development. BKT has aa dedicated team of professionals, who carryout design and development dedicated team of professionals, who carryout design and development

of new products, as per specific customer needs / market feedback. of new products, as per specific customer needs / market feedback. Through constant market research to keep abreast of customer needs Through constant market research to keep abreast of customer needs and technological trends, intensive R&D to discover and develop new and technological trends, intensive R&D to discover and develop new

patterns, designs and styles & relentless expanding of production patterns, designs and styles & relentless expanding of production capabilities, BKT has gained world market share at a blistering pace in a capabilities, BKT has gained world market share at a blistering pace in a

short period.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:INVESTMENT RATIONALE:Present in niche segment:Present in niche segment:

BIL has a presence in the niche OHTBIL has a presence in the niche OHT tyre segment. Globally, OHT tyres tyre segment. Globally, OHT tyres

account for 10% of the total tyres sales. The global size of the 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 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, concentration in the segment, with the top 3 players (Bridgestone,

Gooyear and Michelin) having a 50-55% market share. OHT tyres areGooyear and Michelin) having a 50-55% market share. OHT tyres are used for agricultural, industrial, and construction and earthmoving used for agricultural, industrial, and construction and earthmoving

purposes. The OHT segment focuses on highly customized requirements, purposes. The OHT segment focuses on highly customized requirements, unlike automobile tyres.unlike automobile tyres.

BIL’s major strength lies in its R& D. Over the years, it has developed 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 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 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 industries. Its SKU’s and product development act as an entry barrier in

the industry.the industry.The company exports around 90% of its sales. The balance 10% is sold to 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 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% 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 comes from the replacement market. The balance production is mainly for companies who outsource production to BIL.companies who outsource production to BIL.

SALIENT FEATURES FOR YEAR 2007-2008SALIENT FEATURES FOR YEAR 2007-2008..MilestoneMilestone

BKT has achieved a staggering growth of 42% in financial year 2007/08 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.the surpassing a turnover USD 250 million by sales of highway tyres.

All Steel Radial OTR Tyres from House of BKT.All Steel Radial OTR Tyres from House of BKT.BalKrishna Tyres is proud of launching its all steel radial OTR tyres. BalKrishna Tyres is proud of launching its all steel radial OTR tyres. These tyres are sub branded as “EARTHMAX” by BKT. EARTHMAX These tyres are sub branded as “EARTHMAX” by BKT. EARTHMAX

signifies maximum performance & maximum load capacity for various signifies maximum performance & maximum load capacity for various Earthmovings APPLICATION.Earthmovings APPLICATION.

With Earthmax range of radial OTR tyres, BKT will have unique With Earthmax range of radial OTR tyres, BKT will have unique distinction of first India Company to offer all steel radial OTR tyres. In 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 third quarter of this year BKT will be launching 25” rim dia tyres in multiple patterns and various compound options to cater to wide multiple patterns and various compound options to cater to wide

Earthmoving applications and varied operating conditions. 33” and 35” Earthmoving applications and varied operating conditions. 33” and 35” Rim dia.Rim dia.

Ever Increasing Range of Agricultural Application Tyres.Ever Increasing Range of Agricultural Application Tyres.Agricultural tyres range constituting more than 60% of the BKT turnover Agricultural tyres range constituting more than 60% of the BKT turnover

is an integral part of its product offerings.is an integral part of its product offerings.BKT has an exhaustive range of agricultural tyres covering wide BKT has an exhaustive range of agricultural tyres covering wide

application in Radial and cross Ply construction. Premium range of radial application in Radial and cross Ply construction. Premium range of radial agricultural tyres branded as AGRIMAX available in 85, 70, 65 series, row agricultural tyres branded as AGRIMAX available in 85, 70, 65 series, row crop and floatation tyres are fast gaining popularity in the international crop and floatation tyres are fast gaining popularity in the international

market. market.

EXPANSION PROGRAMS FOR…EXPANSION PROGRAMS FOR… 2008 - 09:2008 - 09: The company is planning to increase its capacity by adding extra The company is planning to increase its capacity by adding extra

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

Tyre plant into special economic zone (SEZ). Once land is acquired, it will 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 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 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 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 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 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 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 by earthmovers.Post capacity expansion, the capacity would be 129,000

tpa. The capex plans also includes a warehouse facility of 160,000 square tpa. The capex plans also includes a warehouse facility of 160,000 square metres to store inventory.the warehousing facility is essential as the metres to store inventory.the warehousing facility is essential as the company plans to stock a sizeable inventory whenever rubber prices company plans to stock a sizeable inventory whenever rubber prices decline. The move would help the company benefit from low prices decline. The move would help the company benefit from low prices

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

Demand supports the capacityDemand supports the capacity expansion…!expansion…!

BIL’s major sales (around 60- 65%) are from agricultural related BIL’s major sales (around 60- 65%) are from agricultural related equipment tyres. Further, most of the exports are to EU (European Union) equipment tyres. Further, most of the exports are to EU (European Union) countries. These countries, coupled with declining farmer population, is countries. These countries, coupled with declining farmer population, is boosting demand for tractors and other agriculture related applications. boosting demand for tractors and other agriculture related applications. The soaring demand, complemented with an effective pricing strategy of The soaring demand, complemented with an effective pricing strategy of

selling 25- 30% cheaper than competitors is expected to help the selling 25- 30% cheaper than competitors is expected to help the company garner higher market share increasing volume sales.company garner higher market share increasing volume sales.

FUTURE PLANNING OF THE COMPANY FUTURE PLANNING OF THE COMPANY The company is planning regarding expansion of the business and also The company is planning regarding expansion of the business and also

planning to increase its production capacity for that purposes the planning to increase its production capacity for that purposes the company has purchased a land for developing or establishing a new company has purchased a land for developing or establishing a new

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

CONCLUSIONCONCLUSIONThe company Balkrishna Industries Limited is manufacturing the off-The company Balkrishna Industries Limited is manufacturing the off-

highway tyres. The company’s holding is 80%. The company has three highway tyres. The company’s holding is 80%. The company has three major plants i.e. in Biwadi (Rajasthan), Chopanki (Rajasthan) and major plants i.e. in Biwadi (Rajasthan), Chopanki (Rajasthan) and

Aurangabad (Maharashtra). The company is planning to setup new plant Aurangabad (Maharashtra). The company is planning to setup new plant in Bhuj (Gujarat) for which the company has purchased new land in Bhuj. in Bhuj (Gujarat) for which the company has purchased new land in Bhuj.

The company has four directThe company has four direct subsidiaries incorporated in India and two subsidiaries incorporated in India and two

Indirect Subsidiaries in Europe and Italy incorporated in U.K. and Italy Indirect Subsidiaries in Europe and Italy incorporated in U.K. and Italy respectively.respectively.

The company’s financial data (current year & last year).The company’s financial data (current year & last year).Assets Rupees 1217.27 crores & Rupees 1170.4 crores. Assets Rupees 1217.27 crores & Rupees 1170.4 crores.

Liabilities Rupees 570.85 crores & Rupees 566.36 crores.Liabilities Rupees 570.85 crores & Rupees 566.36 crores.Sale volume Rupees 1261.31 crores (current year).Sale volume Rupees 1261.31 crores (current year).

Net Profit Rupees 139.18 crores & Rupees 138.53 crores.Net Profit Rupees 139.18 crores & Rupees 138.53 crores.From the above data it is clear that the company is making reasonable From the above data it is clear that the company is making reasonable

profit.profit.The company’s local market is not so strongThe company’s local market is not so strong

The company’s 95% production is exported to other countries and the The company’s 95% production is exported to other countries and the company existence in more than 100 countries.company existence in more than 100 countries.