Himadri Speciality Chemicals aims to grow its subsidiary, Birla Tyres, to ₹3,000 crore in revenue by FY30. The company is planning a ₹1,200 crore investment to expand into electric vehicle (EV) and SUV tyre markets, as it works to increase production from current levels.
Himadri Speciality Chemicals (HSCL) has unveiled a long-term plan to transform its subsidiary, Birla Tyres, into a significant contributor to its business, setting a revenue target of ₹3,000 crore by the financial year 2030 (FY30). Following the acquisition of the company through an insolvency process in 2023, HSCL is now focusing on scaling up operations from a revenue base of ₹187 crore recorded in FY26.
To achieve this growth, the company has planned a capital expenditure of ₹1,200 crore. This money will be used to modernize infrastructure and introduce a wider range of products. The strategy involves moving away from basic bias tyres toward higher-margin categories such as off-the-road (OTR) and off-highway (OHT) tyres. Furthermore, the company aims to enter the passenger car radial (PCR) market, specifically targeting the growing electric vehicle (EV) and SUV segments. A dedicated facility for this new line is expected to be commissioned by FY28.
Currently, the tyre manufacturing facility is operating at roughly 25% of its total capacity. The company intends to gradually increase this utilization as it rolls out approximately 400 new stock-keeping units (SKUs) across various categories, including agriculture and commercial vehicles. This expansion is part of the company’s broader diversification strategy, which already includes investments in battery materials and speciality chemicals.
While the plan indicates a focus on growth, investors should consider the challenges ahead. The tyre industry in India is highly competitive, and establishing a premium brand presence alongside established market leaders will require significant effort and consistent execution. The company’s ability to manage the ₹1,200 crore capital spending without putting undue pressure on its cash flow will also be an important monitorable. Additionally, fluctuations in raw material costs, such as rubber and crude oil derivatives, can impact profit margins across the industry.
The parent company, Himadri Speciality Chemicals, recently reported a 36% rise in net profit to ₹755 crore for FY26, providing a stable financial foundation to support this subsidiary’s expansion. The key factors for shareholders to track moving forward include the pace of capacity utilization, the successful launch of the new tyre ranges, and the company's ability to maintain margins while navigating competitive pressures in the automotive sector.