JK Tyre Secures $100M IFC Loan for Sustainable Manufacturing Expansion

23 Jan 2025 , 11:44 AM

JK Tyre & Industries Ltd said on Tuesday, 21 January that it has agreed to a $100m Sustainability-Linked Loan (SLL) by the International Finance Corporation (IFC). The funding will support JK Tyre & Industries with $30 million and its subsidiary Cavendish Industries Ltd (CIL) with $70 million.

It will use the fund to expand tyre manufacturing capacity at some of the company’s major facilities: PCR tyres of passenger car at JK Tyre’s Banmore plant in the state of Madhya Pradesh. TBR tyres for trucks and buses at Cavendish Industries’ Laksar plant in the state of Uttarakhand.

This program will generate energy efficiency tyres besides supporting local supply chain and employing people. JKTyre Chairman & Managing Director Dr. Raghupati Singhania said that the SLL allows the corporates to bridge the objectives of financial returns and sustainable outcomes as the financing provided against the revenue covers environmental and social impact with growth objectives.

Regional Vice President for Asia and the Pacific at IFC, Riccardo Puliti said the investment will result in climate-smart manufacturing, supply chain integration, quality employment, and push further India’s self-reliance in domestic production.
The first SLL in India’s tyre industry, this has set a benchmark and encouraged the adoption across the manufacturing sector.