JK Tyre's Pioneering Move Towards Sustainable Manufacturing

In a landmark development for India's tyre industry, JK Tyre has been granted a $100 million sustainability-linked loan (SLL) by the International Finance Corporation (IFC). This innovative financing package includes $30 million directly to JK Tyre & Industries and up to $70 million for its subsidiary, Cavendish Industries Limited (CIL).

Boosting Capacity with a Green Focus

The funds are earmarked for expanding tyre manufacturing capabilities, with a particular emphasis on producing energy-efficient passenger car radial (PCR) tyres at JK Tyre's Banmore plant in Madhya Pradesh and truck and bus radial (TBR) tyres at CIL’s Laksar plant in Uttarakhand. This initiative not only aims to enhance production capacity but also to strengthen local supply chains and generate employment opportunities.

A Commitment to Sustainability and Growth

Dr. Raghupati Singhania, Chairman and Managing Director of JK Tyre, expressed his enthusiasm for the partnership with IFC, stating, "This $100 million SLL represents a significant step forward in our commitment to sustainable growth. By aligning our financing with our sustainability goals, we are poised to make a positive impact on the environment and society while achieving our expansion objectives."

IFC's Vision for a Sustainable Future

Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific, highlighted the broader implications of the investment, "Our support for JK Tyre is about driving climate-smart manufacturing, enhancing supply-chain integration, and creating quality jobs. This SLL, the first of its kind in India's tyre industry, is designed to set a new standard and encourage widespread adoption of sustainable practices across the manufacturing sector."