The partnership between Dalmia Refractories and Himadri Specialty Chemicals, which acquired Birla Tyres from NCLT, plans to invest Rs 250 crore to operationalize the passenger car radial segment.

Currently, the company would focus on the replacement market instead of pursuing original equipment partnerships with car manufacturers.

With significant expenditures to be made, the goal is to operate in value-added specialist tyre categories while concentrating on growing the product offers globally.

The Birla Tyres plant, with a 400 tpd production capacity, is situated in Balasore, Odisha. To further broaden the company's diverse product offering, this growth will encompass a number of market categories, such as off-highway tyres, passenger cars, commercial vehicles, and three-wheelers.

The acquisition also makes both parties eligible for investment-related incentives under state government policy, and the availability of sufficient land will pave the way for future expansion.

It also marks the forward integration for the company being a major player in the carbon black industry, a key component for tyres.