JK Tyre & Industries said that International Finance Corporation (IFC) has sanctioned a $100 million sustainability-linked loan (SLL) to the company.
The funding includes $30 million to JK Tyre & Industries and up to $70 million for Cavendish Industries (CIL), a subsidiary of JK Tyre.
The funding will support the expansion of tyre manufacturing capacity, focusing on passenger car radial (PCR) tyres at JK Tyre's Banmore plant in Madhya Pradesh and truck and bus radial (TBR) tyres at CILs Laksar plant in Uttarakhand. The initiative aims to promote energy-efficient tyre production, strengthen local supply chains, and create jobs.
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.
JK Tyre & Industries is currently the market leader in truck bus radial segment. The company provides end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, off-the-road and two & three-wheelers.
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The company had reported 44.22% decline in consolidated net profit to Rs 135.04 crore on a 7.08% fall in sales to Rs 3,621.56 crore in Q2 FY25 as compared with Q2 FY24.
The scrip fell 2.65% to currently trade at Rs 348.40 on the BSE.
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