JK Tyre, a leading Indian tyre manufacturer with a global footprint, has secured a groundbreaking $100 million Sustainability-Linked Loan (SLL) from the International Finance Corporation (IFC). This landmark deal includes $30 million allocated to JK Tyre & Industries Limited and up to $70 million for Cavendish Industries Limited (CIL), a subsidiary of JK Tyre. The financing will help the company expand its tyre production capacity and enhance its commitment to sustainable manufacturing practices.
The funds will be used to boost the production of Passenger Car Radial (PCR) tyres at JK Tyre’s Banmore plant in Madhya Pradesh, as well as Truck and Bus Radial (TBR) tyres at CIL’s Laksar plant in Uttarakhand. The initiative is aimed at improving energy-efficient tyre manufacturing, strengthening local supply chains, and generating new employment opportunities.
Dr. Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries, expressed his enthusiasm about the partnership with IFC: “We are delighted to strengthen our relationship with IFC by securing this $100 million Sustainability-Linked Loan to fund our growth plans. By aligning our financing with sustainability goals, we aim to create positive environmental and social impacts while achieving our growth objectives. This further solidifies our commitment to sustainable development and broadens our presence in key product segments.”
Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific, highlighted the importance of sustainable manufacturing in India’s green transformation: “Sustainable manufacturing is central to realizing India’s green ambitions. The ongoing partnership between IFC and JK Group reflects our shared commitment to this vision. This investment will foster climate-smart manufacturing, improve supply chain integration, create high-quality jobs, and help India become more self-reliant in domestic production. The SLL, a first in India’s tyre industry, sets a new benchmark and aims to drive widespread adoption of sustainability-linked financing across the manufacturing sector.”
About IFC
The International Finance Corporation (IFC), a member of the World Bank Group, is the world’s largest development institution focused on the private sector in emerging markets. IFC operates in over 100 countries, using its capital, expertise, and influence to create market opportunities in developing regions. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions, leveraging private sector solutions to foster sustainable development.
For more details, visit www.ifc.org.
About JK Tyre & Industries Ltd.
JK Tyre & Industries Ltd., the flagship company of JK Organisation, is one of the top 20 tyre manufacturers globally, with 11 state-of-the-art manufacturing facilities, including 9 in India and 2 in Mexico. The company produces around 35 million tyres annually and pioneered radial tyre technology in India. JK Tyre is committed to sustainability, having earned the “Best in Class” rating for its environmental, social, and governance (ESG) practices, and is India’s first tyre company to join the RE100 initiative. The company also holds the prestigious ‘Sword of Honour’ for Safety across all its plants from the British Safety Council, UK.
For more information, visit www.jktyre.com.
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