Himadri Speciality Chemical to Invest ₹600 Crore in Birla Tyres, Expects Break-Even by FY27

Himadri Speciality Chemical plans to invest around ₹600 crore in its wholly-owned arm Birla Tyres this fiscal for modernization and automation of its Odisha plant, and expects the tyre maker to break even at the end of FY27. TradingView published the report on October 30, 2026.

Himadri's ₹600 Crore Bet on Balasore

Himadri Speciality Chemical, India's largest speciality carbon black maker, has proposed merging with Birla Tyres to create an integrated tyre value chain spanning feedstock, speciality carbon black, research and development, and manufacturing. Anurag Choudhary, Chairman, MD and CEO of Himadri Speciality Chemical, said the merger would remove current constraints. "Once all statutory authorities approve the merger scheme, Birla Tyres will become part of Himadri. Then we can do many things that we are currently constrained from doing," he said. "We expect to get the necessary statutory approvals for the merger within this financial year."

The ₹600 crore will fund modernization, upgradation and automation of the Balasore plant, which Choudhary said will produce new ranges of off-highway tyres for the agriculture and mining sectors. Himadri Speciality Chemical and Dalmia Bharat Refractories acquired BK Birla Group firm Birla Tyres under the Insolvency and Bankruptcy Code in October 2023. Commercial production at Balasore resumed in May 2025, and the plant's current capacity stands at 400 tonnes per day. "We are improving capacity utilisation every month. In the next three years, we will attain full capacity utilisation at the Balasore plant," Choudhary said.

Himadri's Scale Behind the Tyre Push

According to akta.pro company records, Himadri led a consortium with Dalmia that acquired Birla Tyres through an NCLT-sanctioned resolution plan from total admitted indebtedness of ₹1,000 crore. The acquisition at approximately ₹300 crore effective capital deployed acquired assets valued at ₹3,400 crore. The same records show FY26 consolidated revenue from operations of ₹4,660.7 crore, FY26 EBITDA of ₹1,006 crore, the highest ever and up 19% year on year, and FY26 profit after tax of ₹755 crore, up 36% year on year.

Earlier Himadri Expansion Moves

Himadri Speciality Chemical's board was to consider a scheme of arrangement to demerge Dalmia Bharat Refractories' tyre business on September 21, 2026, ScanX reported in September 2026. In October 2026, BusinessLine reported that Himadri plans a ₹1,613 crore capacity expansion across lithium iron phosphate, speciality chemicals, carbon nanotubes and carbon black. The Times of India reported the same month that Himadri plans to invest ₹5,000 crore in Andhra Pradesh, with ₹2,800 crore allocated to battery materials and advanced chemicals.

What Comes Next for Birla Tyres

Himadri expects the necessary statutory approvals for the Birla Tyres merger within this financial year. The company expects Birla Tyres to reach break-even at the end of FY27 and full capacity utilisation at the Balasore plant within three years.