JK Tyre Receives $100m Sustainability Loan from IFC
JK Tyre & Industries Ltd
The loan will substantiate India's green growth ambitions.
JK Tyre will expand the production of sustainable tyres at its Madhya Pradesh and Uttarakhand plants in India.
India's foremost tyre manufacturer, JK Tyre, has received a $100 million Sustainability-Linked Loan (SLL) from the International Finance Corporation to expand and produce sustainable tyres.
JK Tyre & Industries, the parent company, will receive $30 million, while Cavendish Industries, a subsidiary of JK Tyre, will receive $70 million.
Dr. Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries, said: “We are delighted to strengthen our relationship with IFC, securing a $100 million Sustainability-Linked Loan (SLL) to fund our growth plans.
"By aligning financing to sustainability goals, we aim to drive positive environmental and social impact while achieving our growth objectives. This reaffirms our commitment to sustainable development, while embracing a holistic approach to bolster our presence in key product segments.”
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The funding will be used to expand the production of two types of tyres: Passenger Car Radial (PCR) tyres at the Banmore plant in Madhya Pradesh, and Truck and Bus Radial (TBR) tyres at the Laksar plant in Uttarakhand.
Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific, added: “Sustainable manufacturing is key to realizing India’s green ambitions. The enduring partnership between IFC and JK Group demonstrates our shared commitment to this vision.
"Our latest investment will drive climate-smart manufacturing, enhance supply-chain integration, create quality jobs, and propel India towards self-reliance in domestic production. The SLL, a first in India’s tyre industry, aims to set a benchmark and catalyze widespread adoption across the manufacturing sector.”
The company's primary goal is to produce energy-efficient tyres and step up sustainable manufacturing practices in India. The loan will also support local supply chains, create employment opportunities for India's young population, and increase the productivity at these plants.
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Source: IFC
