JK Tyre receives $100 million sustainability-linked loan from IFC

JK Tyre & Industries on Tuesday said it has received a $ 100 million sustainability-linked loan from the International Finance Corporation (IFC).

The funding includes $30 million for JK Tyre and up to $70 million for Cavendish Industries Ltd (CIL), a subsidiary of the company, the tyre maker said in a statement.

The funding will support the company's expansion of passenger car radial (PCR) tyre capacity at the Banmore plant in Madhya Pradesh, it added.

The capital would also be utilised to expand truck and bus radial (TBR) production capacity at CIL's Laksar plant in Uttarakhand, it added.

The initiative aims to promote energy-efficient tyre production, strengthen local supply chains, and create jobs, JK Tyre said.

 

"By aligning financing to sustainability goals, we aim to drive positive environmental and social impact while achieving our growth objectives," JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said.

"This reaffirms our commitment to sustainable development while embracing a holistic approach to bolster our presence in key product segments," he added.

Riccardo Puliti, IFC's Regional Vice President for Asia and the Pacific, said "Sustainable manufacturing is key to realising 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," he added.

The SLL, a first in India's tyre industry, aims to set a benchmark and catalyse widespread adoption across the manufacturing sector, Puliti said.