The OTR market is all set to boom with heavy machinery demand

By Staff Report October 1, 2024 2:04 pm

Heavy machinery is in demand, so the off-the-road (OTR) tyre is innovating with advanced technology. Prashanta Ganguly, Head of OTR Marketing at Balkrishna Industries Ltd., discusses OTR’s contribution to improving performance and durability, particularly in mining, construction, and agriculture.

How is the increasing demand for advanced technologies in heavy equipment influencing the evolution of OTR Tires?

Modern heavy machinery, particularly mining, construction, and agriculture, requires more durable and high-performance tyres to support greater loads, handle extreme conditions, and improve overall efficiency. This shift pushes Tire manufacturers to innovate and develop solutions to meet these advanced operational demands. To address these demands, we focus on products with improved tread patterns, better heat and cut resistance, and enhanced durability, which allows our tyres to withstand harsh environments and heavy loads. Our investment in R&D ensures that our Tires can complement the advanced machinery used today, offering superior traction, stability, and longevity. By continuously improving the resilience and performance of our OTR Tires, BKT is playing a key role in helping businesses maximise productivity while minimising downtime.

How much does the aggregates industry contribute to the OTR segment’s growth?

The aggregates industry, encompassing materials like sand, gravel, and crushed stone, plays a crucial role in driving the growth of the OTR Tires segment. This industry fuels the demand for heavy industrial equipment such as industrial tippers, dumpers, loaders, and excavators, all of which rely on high-performance OTR Tyres designed for harsh working conditions.

In India and worldwide, the growth of the aggregates industry is closely tied to major infrastructure projects, which are driving the increased demand for construction materials and, consequently, the equipment and OTR Tyres required for their extraction and transportation.

What is the objective behind BKT manufacturing its own carbon black?

The need for greater control over key aspects of the production process drove BKT’s decision to manufacture its carbon black. The primary objectives include ensuring a stable and reliable supply of this critical raw material, maintaining consistent quality, and reducing dependency on external suppliers. By producing carbon black in-house, BKT can better manage cost fluctuations and secure a stable supply chain, particularly in market volatility. This vertical integration also allows us to maintain the highest quality standards in our tyres, as we have full control over the properties and specifications of the carbon black used. Furthermore, this move opens up new revenue opportunities by selling speciality carbon black to other industries. Ultimately, manufacturing our carbon black has enhanced our operational efficiency and strengthened our position as self-reliant and innovative players in the global tyre industry.

Is the OTR market booming in India? What are the factors that are contributing to the same?

The off-the-road (OTR) Tires market in India is expected to experience robust growth in the next two years at a CAGR of 8-10%. The market size for OTR Tires is anticipated to surpass $2 billion by 2025, driven by key sectors such as infrastructure, mining, and agriculture.

India’s infrastructure development is at the forefront of this growth, supported by government initiatives like the Bharatmala Pariyojana and the National Infrastructure Pipeline (NIP), with planned investments of over ₹111 lakh crore for infrastructure development by 2025. These projects, along with Pradhan Mantri Gram Sadak Yojana (PMGSY) for rural road development, contribute significantly to the surge in demand for heavy-duty construction equipment, which relies heavily on OTR Tires.

In addition, the mining sector, growing at a steady rate of 6-7% annually, is further driving the demand for OTR Tires, particularly with the government’s increased focus on coal and iron ore production to meet domestic and export demands. As these sectors expand, the need for high-performance, durable OTR Tires will only intensify, positioning India as a booming market for OTR Tires manufacturers in the coming years.