The Indian tyre sector is poised for significant expansion, with production expected to increase approximately fourfold by 2047. According to a joint report by the Automotive Tyre Manufacturers Association (ATMA) and PwC India, titled “Viksit Bharat 2047: Vision and roadmap for the Indian tyre industry”, the industry’s revenue is projected to grow twelve times, reaching around Rs. 1,300 thousand crore (approximately $150 billion) by 2047. The growth is expected to be driven by robust domestic demand, rising exports, premiumization of vehicles, electrification trends, and the adoption of servitisation in fleet management.
Strong economic growth, infrastructure development, and rising vehicle sales are expected to sustain OEM and replacement tyre revenue at around ten percent CAGR until FY47. Export opportunities are also expected to expand, aided by better market access and competitive cost structures. These trends highlight a significant opportunity for companies supplying critical raw materials, positioning them to benefit from the long-term upcycle in the tyre industry.
The Silent Driver of India’s Tyre Industry
PCBL Chemical Ltd, incorporated in 1960, is India’s largest producer of carbon black (CB), a key material used in tyres and other rubber products. The company also manufactures specialty carbon blacks, which are used as pigmenting, UV stabilizing, and conductive agents across plastics, coatings, printing, and packaging applications. In FY24, PCBL acquired ACL, a specialty water treatment and chemical solutions business, enhancing its portfolio in phosphonates, oil and gas chemicals, and polymers. The company currently trades at Rs. 332.15 and has a market capitalization of Rs. 12,537.42 crore.
Globally, PCBL ranks as the sixth largest carbon black producer and the fourth largest specialty black producer. The company currently has a production capacity of 790 KTPA (112 KTPA for specialty blacks) and aims to reach 1 million MTPA by FY28. Its brownfield expansion of a 90 KTPA rubber line in Tamil Nadu is currently under commissioning and is expected to be operational by Q3FY26. PCBL is managed under the Kolkata-based RP–SG group and has strategically located manufacturing units across India and internationally.
Why PCBL Stands to Benefit?
PCBL is the largest exporter of carbon black from India, with a presence in over 45 countries. In FY25, exports accounted for approximately 37 percent of total volumes, up from 35 percent in FY24, with a small proportion (5–7 percent) shipped to the US. To mitigate higher US tariffs, PCBL established a wholly-owned subsidiary, PCBL Chemical USA Inc, in July 2025, ensuring continued access to this market.
A significant portion of PCBL’s carbon black sales—around 60 percent in FY25—go to tyre manufacturers. Pricing for these sales is formula-driven, linked to raw material cost movements, allowing the company to largely pass on increases in input costs. Growth in specialty CB, which commands higher margins, has further strengthened profitability. The recently acquired ACL business experienced muted performance in recent quarters due to a slowdown in the US and Europe, and its financial improvement remains a key monitorable.
PCBL’s strategically located manufacturing facilities, including proximity to ports and major tyre hubs, optimize logistics and reduce transportation costs. Its Tamil Nadu facility is especially advantageous due to the concentration of tyre companies in southern India. ACL operates units in Maharashtra, Jeddah (Saudi Arabia), and Texas (USA), providing strong international market access. With tyre segment demand remaining robust and industrial applications of CB expected to rise, PCBL is well-positioned to benefit from the sector’s long-term growth trajectory.
Written by Manan Gangwar
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