BKT: All plants in India remain operational, despite rumors

MUMBAI, India—Specialty tire maker Balkrishna Industries Ltd. (BKT) said all of its plants are "running smoothly with average 95 percent capacity," quashing rumors that the catastrophic surge in COVID-19 cases in India has significantly impacted tire production at its plants.

In a letter issued to industry stakeholders, Rajiv Poddar, managing director of BKT, said the country has not stopped production at any of its plants and it does not foresee any disruption "in the near future."

"In case there is any disruption, you would hear it first from BKT as an official communication," Poddar wrote.

BKT ranks No. 37 in global tire sales, based on 2019 figures of $686 million in sales.

He also said raw material issues, as well as container availability, "are two major factors contrasting with our production / shipment plans," but "even for the month of May," the company does not foresee disruption as a result of the pandemic.

BKT operates four plants in India, including one in Bhuj, which opened in 2013.

COVID-19 cases in India continue to increase. The World Health Organization reported May 11 that the seven-day average of new infections had reached a new high in the country, and it called a variant of the disease first discovered in India a "of concern" to the world.

According to various news reports, India reported 329,942 new coronavirus infections and 3,876 deaths on May 11, as the fatality total in the country closes in on 250,000. Experts think the real toll could be much higher.

Medical facilities in the country have buckled under the strain of the disease.

"Although seemingly under control, the current situation is not very optimistic in terms of record number of cases reported or the related medical shortages," Poddar wrote. "The situation on the ground is dire. Fortunately, our team in India and around the world, is safe and constantly striving to keep the business at the normal levels."

He also wrote that BKT continues to put "customers first, in teaming and working together for the best outcomes, in deciding and acting in a way that makes an impact, and in learning and adapting so that we can help our employees and customers adjust to this situation.

"As a resilient organization, we have extensive experience in planning for and responding to a wide variety of situations," Poddar wrote. "Our teams are closely monitoring developments in the coronavirus (COVID-19) outbreak and are taking the appropriate steps to help maintain the ongoing health and safety of our employees and customers."

He said the letter is "intended to assure you about production & business continuity at our end; and to alert you of any misleading or fake rumors being spread."