Italian and Indian tyre makers Pirelli and Balkrishna Industries (BKT) announced October 22 an agreement for the production of up to 800,000 Pirelli-branded tyres in India by 2030. Balkrishna Industries shares were trading 3% higher at Rs 2,105.1 apiece.
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.