A U$30m investment has been made by the International Finance Corporation (IFC) in JK Tyre & Industries to part-finance the expansion of the tire maker’s manufacturing capacity. The investment will also be used to introduce state-of-the-art, resource-efficient technologies within JK Tyre’s commercial and passenger car radial tire production to enhance product safety and service life. Following the investment, IFC will hold a 5.6% stake in the tire company.
The IFC investment is intended to strengthen JK Tyre’s capital structure while increasing the company’s production capacity of energy-efficient radial tires from 32 million to over 35 million tires annually by 2025.
The tire maker aims to enhance the sustainable use of energy and natural resources, in addition to implementing robust ESG practices. The investment will be used to support JK Tyre’s low-carbon strategy and to strengthen its ESG frameworks further and will also aid in the reduction of greenhouse gas emissions.
“We recognize the trust reposed by IFC in our company and are enthused to embark upon this new partnership,” said Dr Raghupati Singhania, chairman and managing director of JK Tyre & Industries. “This investment will be utilized for the expansion of projects, which are not only growth-oriented but are also committed to promote sustainable development and enhancing societal value creation. Innovation and technology are at the core of each of our products, which keeps us ahead of the curve to meet the needs of our customers.”
“A leading green tire manufacturer with a demonstrated focus on sustainability, our partnership with JK Tyre & Industries will drive their capacity expansion and scaled manufacturing of energy-efficient tires through resource-efficient tech, low-carbon solutions, and circularity,” commented Wendy Werner, India Country Head at IFC.
“By signaling a long-term view of the industry, IFC aims to catalyze further investments and market competitiveness, and in so doing, contribute to India’s goals to become both self-reliant in domestic manufacturing, and a global manufacturing hub. We are unlocking the potential of India’s manufacturing sector to drive job creation and sustainable growth.”