Greater Focus Upon Tyres for Balkrishna?

An Indian newspaper has reported that Balkrishna Industries may be considering off-loading its paper business in order to focus upon the manufacture of tyres. On June 6 Mumbai based DNA (Daily News & Analysis) quoted unnamed ‘sources’ that a greater emphasis upon the tyre business, which accounts for more than 80 per cent of the company’s revenue and 95 per cent of profit, has led to the necessity to make such a decision.

However B K Bansal, head-finance, Balkrishna Industries, told the paper “There is no such plan for selling of paper business. We are expanding both our paper and textile business in the current fiscal.” The publication also spoke of plans by Balkrishna Tyres, which operates as a separate business unit to the paper and textile business, to increase production capacity for tractor radials through a £16 million capex.