Pirelli, Balkrishna strike India tyre production deal

Pirelli & C.

Yesterday 07:51

Oct 22 (Reuters) - Italian and Indian tyre makers Pirelli PIRC.MI and Balkrishna Industries (BKT) BLKI.NS announced on Thursday an agreement for the production of up to 800,000 Pirelli-branded tyres in India by 2030.
A second phase of the agreement also involves the creation of a 50-50 joint venture for a production plant in the country dedicated to "high value" car tyres, the companies added.
The partnering companies say India's car registrations are estimated to increase by 5-7% annually to 2030
They see the premium car tyre market increasing almost fivefold in the period
For Pirelli the agreement represents an opportunity to expand in a high-growth potential country, where it only has a commercial presence
For Balkrishna Industries the partnership backs its expansion into the passenger car tyre market
BKT's shares rose following the announcement, up by 3.55% as of 0648 GMT 

 (Reporting by Mirko Miorelli, editing by Alvise Armellini)
 ((Mirko.miorelli@thomsonreuters.com))