JK Tyres has announced that IFC has invested $30 million into the company to expand energy-efficient tyre manufacturing to boost exports and create jobs.
The investment aims to bolster the company’s capital structure and increase the production of energy-efficient radial tyres by more than 10%, from 32 million to over 35 million tyres a year by 2025.
A press release from the company noted that this investment will part-finance the expansion of manufacturing capacities and integrate advanced, resource-efficient technologies in producing commercial and passenger car radial tyres that have better safety and longevity.
IFC will hold a 5.6% stake in the tyre major through the issue of compulsorily convertible debentures (CCDs) on a preferential basis.
Dr Raghupati Singhania, Chairman and Managing Director, JK Tyre & Industries, noted that the investment will be utilised to expand projects, which are not only growth oriented but are also committed to promoting sustainable development and enhancing societal value creation.
The press release noted that the company aims to up the ante as a “Green Company” with sustainable use of energy and natural resources and robust ESG practices. The investment will support the company’s low-carbon strategy, further strengthen its ESG frameworks, reduce greenhouse gas emissions, and spur climate smart initiatives through decarbonisation and sustainability advisors.
Wendy Werner, India Country Head, IFC, said, “A leading green tyre manufacturer with a demonstrated focus on sustainability, our partnership with JK Tyre & Industries will drive their capacity expansion and scaled manufacturing of energy-efficient tyres through resource-efficient tech, low carbon solutions, and circularity.”
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