IndexEnvironmental AnalysisPestle AnalysisPolitical FactorsEconomic FactorsSocial FactorsTechnological FactorsLegal FactorsEnvironmental FactorsSWOT AnalysisForces of WeaknessOpportunitiesThreatsIn 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 of “stand together and grow together” and make it all happen at Balkrishna Industries (BKT). Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Balkrishna Industries manufactures Original Equipment Manufacturer (OEM) off-road tires used in specialist segments such as agriculture, industry, construction, earthmoving, mining, harbour, lawn and garden tyres, and all-terrain vehicles (ATVs) etc. BKT has its manufacturing facilities in Aurangabad, Chopanki, Dombivali and Bhuj. In addition to its impressive facility, highly trained and motivated workforce and cutting-edge technology, BKT has implemented a highly evolved work order and management system for all its factories. With a combined annual revenue of more than $610 million and a composite growth rate of 35% over a decade, BKT is the only centralized company that meets all tire needs and strengthens customer confidence with its own tire manufacturing units. storage that maintain up to 2000 additional units to those required. Its customer coverage spans 120 countries, which is why BKT is the world leader in the production of off-road tires. Balkrishna Industries primarily targets the replacement market in North America and Europe. Its North American office is located in Akron, Ohio, with a warehouse in Wando, South Carolina. Approximately 80 percent of Balkrishna Industries' business in the United States is in the agricultural market. The growth rate in the “off-road tire segment” is between 4-5%. The industry has been witnessing positive momentum for the past couple of years. Environmental Analysis Environmental analysis is a strategic tool that helps identify all internal and external elements that can influence the organization's performance. Analytics helps align strategies with the company's environment. The analysis is also known as PESTLE or PEST, depending on how many environmental factors are included. This method takes a big-picture or bird's-eye perspective 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. In this regard, some of the government's recent initiatives to facilitate the growth of the sector include: No WTO-bound tariffs for tires and tubes No restrictions on import of all raw materials required for tire manufacturing, except of carbon black, which has been shortlistedGrowing momentum in road infrastructure developmentEconomic FactorsThe inflation rate in India has been decreasing since 2010. The Indian economy, however, is doing quite well with its GDP steadily increasing. But in the last five years the situation has remained stable. This allows manufacturing companies like BKT to maintain their equipment, raw material costs and other production costs along with a budget plan for next year. In terms of net sales growth and higher profit margins, Balkrishna Industries is way ahead compared to other players with the profit margin defined as 10.55% (5-year average) in the industry as it operates in the tire industryoff-road vehicles (OTR), a niche segment. Furthermore, BKT Industries mainly depends on the agricultural sectors for its sales. The agricultural sector in the United States is large and the requirements are also high. In this case, currency plays a key role. The devaluation of a country's currency has an immediate impact on companies involved in imports. BKT Industries imports natural rubber from other countries as the primary raw material for tires and, therefore, this increases production costs. Social factors BKT derives 80% of its revenue from the aftermarket, OEMs account for 14%. The company is a leading supplier to OEMs such as Volvo, John Deere, CNH, Class, BOMAG, SAME, Ferrari, among others. Additionally, many global tire manufacturers sell BKT tires under their own brand, demonstrating the superior quality of the company's products and reinforcing trust in BKT. The company has developed a strong global network of 200 distributors in 120 countries to cater to the large aftermarket. Furthermore, the replacement cycle for agricultural tires is approximately two to three years, while that for the mining and construction industries is approximately 9 to 12 months. Margins in the aftermarket are around 3-5% higher than OEMs, lending stability to growth in turbulent times. Technological Factors BKT tires are entirely manufactured in India at our three major manufacturing sites. Their R&D division deals with everything related to the technical development of the product: from the design of a new tire to the development of new compounds to improve product performance as well as the implementation of increasingly efficient production processes. They invest approximately 3.5% of their annual turnover in research and development. Customer satisfaction and its research processes are the key factors for raising standards and making BKT products increasingly reliable, more competitive and highly technological. As part of their research and development analysis, they design, develop and produce 60-80 new tires every 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 Factors Indian tire industries are requesting the Indian government to allow duty-free carbon black which is one of the primary raw materials for manufacturing any type of tyre. The US Department of Commerce on March 7, 2017 revised the countervailing duty (CVD) for import of off-road tires from India to 4.94% from 5.06%. However, CVD versus the segment's largest player, Balkrishna Industries, remained unchanged at 5.36%. Only 5-7% of the company's exports to the US are subject to CVD and there is no risk of an upward revision. CVD, an import tax imposed on certain goods to prevent dumping or counteract export subsidies, is subject to annual review by the Commerce Department for the next 5 years. Environmental factors Both respect for nature and the use of sustainable energy sources are fundamental qualities for BKT. Each of their venues works in full coherence with natural guidelines. In accordance with their commitment to control the effects resulting from current generation forms. Furthermore, all BKT tires are manufactured in compliance with the European REACH Directive which manages and controls the use of synthetic compounds. Their decision to practice environmental safety was felt by the Indian government. All in all, they have received the National Energy Conservation Award, given to recognize constant efforts to protect the environment.SWOT AnalysisThis is also a tool..