JK Tyre & Industries Limited, a leading Indian tyre manufacturer, has entered into a groundbreaking agreement with the International Finance Corporation (IFC) for a $100 million Sustainability-Linked Loan (SLL), marking a first in India’s tyre industry. This funding package includes $30 million for JK Tyre & Industries Limited and up to $70 million for its subsidiary, Cavendish Industries Limited (CIL). The loan will help expand JK Tyre’s production capacity, focusing on Passenger Car Radial (PCR) tyres at its Banmore plant in Madhya Pradesh and Truck and Bus Radial (TBR) tyres at CIL’s Laksar plant in Uttarakhand.
The SLL aims to drive energy-efficient tyre manufacturing, bolster local supply chains, and generate employment, in alignment with sustainable development goals.
Key Highlights:
- Sustainability-Linked Loan: $100 million loan secured from IFC, marking the first such deal in India’s tyre industry.
- Growth in Capacity: The funding will enhance production capacity for PCR and TBR tyres at JK Tyre and CIL plants.
- Focus on Sustainability: The initiative emphasizes energy-efficient production and job creation.
- Leadership in Sustainability: JK Tyre’s commitment to sustainability is reflected in its state-of-the-art, globally benchmarked manufacturing facilities, and its recognition for superior environmental, social, and governance (ESG) performance.
Dr. Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries Ltd., expressed enthusiasm about the partnership, stating, “By aligning financing with sustainability goals, we aim to drive positive environmental and social impact while achieving our growth objectives.” Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific, highlighted the importance of sustainable manufacturing, stating, “Our latest investment will drive climate-smart manufacturing, enhance supply-chain integration, create quality jobs, and propel India towards self-reliance in domestic production.”
JK Tyre is among the top 20 tyre manufacturers globally, producing approximately 35 million tyres annually across its 11 manufacturing facilities, including nine in India and two in Mexico. The company pioneered radial technology in India and is known for its innovation in sustainable manufacturing.
