Birla Tyres, a division of the B K Birla flagship Kesoram Industries Limited, on Thursday said it has entered into an arrangement with its collaborator Pirelli of Italy to sell 10,000 radial tyres per month.

"Birla Tyres is next to MRF in India in terms of market share and it has recently entered into an arrangement with Pirelli to sell 10,000 radial tyres per month," Kesoram chairman B K Birla told reporters in Kolkata.

Asked whether the arrangement will continue for a long term, Birla said, "We hope that Pirelli will pick up one lakh tyres per year. It would depend entirely on them."

Asked whether the company had the capacity to supply one lakh radial tyres, the chairman said, "We have recently entered into an arrangement with the Tyre Corporation of India, wherein we are purchasing 12,000 tyres per month under our brand name and selling it in the market. If required, we can purchase radial tyres as well from the TCI."

Birla said the Kesoram's tyres section had recorded a gross turnover of Rs 643.87 crore (Rs 6.44 billion) in 2002-03 as against Rs 610.86 crore (Rs 6.11 billion) during the previous year.

"In spite of the stiff competition, we have still been able to hold on to our market share and the export sales during the year amounted to Rs 125.98 crore (Rs 1.26 billion) as against Rs 107.15 crore (Rs 1.07 billion) in 2001-02," he said.

"Consistency in the quality maintained by the tyre section has been recognised in the domestic as well as international markets and our steel radial passenger and LCV tyres introduced in collaboration with Pirelli have been well received in the market," Birla said.