Table of ContentsEnvironmental AnalysisPestle AnalysisPolitical FactorsEconomic FactorsSocial FactorsTechnological FactorsLegal FactorsEnvironmental FactorsSWOT AnalysisStrengthsWeaknessesOpportunitiesThreatsIn the circle of life, ideas are resolved by connecting compatible minds; extend the path of progress; building communities, that is, changing destinations. Giving meaning to their philosophy “Being together and growing together” and making everything happen at Balkrishna Industries (BKT). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the Original Essay Balkrishna Industries manufactures OEM (Original Equipment Manufacturer) off-road tires used in specialized segments such as agriculture, industrial, construction, earthmoving and mining. , Harbor, lawn and garden and all-terrain vehicle (ATV) tires, etc. BKT has its manufacturing plants in Aurangabad, Chopanki, Dombivali and Bhuj. In addition to its massive structure, highly trained or motivated workforce and cutting-edge technology, BKT has implemented a highly evolved work order and management system for all its factories. With a total annual gain of over $610 million. and a composite growth rate of 35% over a decade, BKT is the only centralized company that meets all tire-related requirements and builds customer confidence with its stocking units that maintain up to 2000 units more than required . Its customer coverage spans 120 countries, which is why BKT is the world leader in the manufacture of off-road tires. Balkrishna Industries primarily caters to the replacement market in North America and Europe. Its North America office is located in Akron, Ohio, with a warehouse in Wando, South Carolina. In the United States, about 80 percent of Balkrishna Industries' business is in the agricultural market. The growth rate of the “off-road tire segment” is between 4 and 5 percent. The industry has been experiencing a positive moment in recent years. Environmental analysis Environmental analysis is a strategic tool that helps you identify all internal and external elements that can affect the organization's performance. Analysis helps align strategies with the business environment. The analysis is also known as PESTLE or PEST, depending on the number of environmental factors included. This method takes a holistic approach, meaning it looks at the project in a broader context. This allows project teams to anticipate changes and include them in their planning instead of being surprised by them.Pestle AnalysisPolitical FactorsThe tire industry in India has had to deal with volatile raw material prices, appreciation of the rupee and cheap Chinese imports. In this regard, some of the government's recent initiatives aimed at facilitating the growth of the sector include: No WTO bound rates for tires and tubes. No restrictions on import of all raw materials required for manufacturing tyres, except carbon black, which has been placed in the restricted listIncreasing support for road infrastructure developmentEconomic factorsInflation rate of India has been declining since 2010. The Indian economy, however, is doing rather well with a constantly increasing GDP. But for five years, the situation has been stable. This allows manufacturing companies like BKT to maintain their equipment, raw material and other input costsas well as a budget plan for next year. In terms of net sales growth and highest profit margins, Balkrishna Industries is far ahead of other players with the profit margin set at 10.55% (5-year average) in the industry as it operates in the sector of all-terrain tires (OTR), a niche segment. Additionally, BKT Industries mainly depends on the agricultural sectors for its sales. The agricultural sector in the United States is large and the needs are equally high. In this case, currency plays a key role. The devaluation of a country's currency has an immediate impact on businesses involved in imports. BKT Industries imports natural rubber from other countries as the main raw material for tires, which therefore increases production costs. Social factorsBKT derives 80% of its revenue from the replacement market, with OEMs accounting for 14%. The company is a leading supplier to OEMs such as Volvo, John Deere, CNH, Class, BOMAG, SAME, Ferrari, among others. In addition, many global tire manufacturers sell BKT tires under their brand, which demonstrates the superior quality of the company's products and builds confidence in BKT. The company has developed a strong global network comprising 200 distributors in 120 countries to cater to the vast replacement market. Additionally, the replacement cycle for agricultural tires is approximately two to three years, while that of mining and construction tires is approximately 9 to 12 months. Margins in the replacement market are around 3-5% higher than those of OEMs and also provide stability for growth in turbulent times. Technological factors BKT tires are entirely manufactured in India at our three main production sites. Their R&D division takes care of everything related to technical product development: from the design of a new tire to the development of new compounds to improve product performance as well as the implementation of ever more efficient production processes. They invest around 3.5% of their annual turnover in R&D. Customer satisfaction and their research processes are the key factors to raise standards and make BKT products ever more reliable, more competitive and highly technological. As part of their research and development analysis, they design, develop and produce 60 to 80 new tires each year. BKT's excellent technological progress has been recognized by the Government of India through the Department of Scientific and Industrial Research (DSIR) and the Department of Science and Technology (DST).Legal FactorsIndian tire industries request the Indian government to allow duty-free carbon black, which is one of the major raw materials for manufacturing all types of tires. On March 7, 2017, the US Department of Commerce revised the countervailing duty (CVD) on imports of off-road tires from India from 5.06% to 4.94%. However, the CVD against the segment's largest player, Balkrishna Industries, remained unchanged at 5.36 percent. Only 5 to 7 percent of the company's exports to the United States are subject to CVD, and there is not much risk of upward revision. CVD, an import tax imposed on certain goods to prevent dumping or counter export subsidies, is subject to annual review by the Ministry of Commerce for the next 5 years. Environmental factorsRespect for nature and the use of sustainable energy sources are fundamental qualities for BKT. Each of their localities operates in full compliance with the guidelines..