JK Tyre Secures $100 Million Sustainability-Linked Loan from IFC - Details

JK Tyre & Industries Ltd has announced a major financing initiative with the International Finance Corporation (IFC). The IFC has sanctioned a $100 million Sustainability-Linked Loan (SLL), marking a significant step towards promoting sustainable manufacturing practices in India’s industrial sector.

IFC Funds JK Tyre’s Growth Plans
The funding comprises $30 million allocated to JK Tyre & Industries Ltd and up to $70 million for its subsidiary, Cavendish Industries Limited (CIL).

The investment aims to enhance tyre manufacturing capacity, focusing on 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 is expected to strengthen local supply chains, create quality jobs, and drive economic growth in these regions.

Dr Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries Ltd, expressed enthusiasm about the partnership with IFC, highlighting its strategic importance in funding the company’s growth plans. He stated, “By aligning financing to sustainability goals, we aim to drive positive environmental and social impact while achieving our growth objectives.”

IFC’s Vision for Climate-Smart Manufacturing
Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific, emphasized the significance of sustainable manufacturing in realizing India’s green ambitions. He remarked, “Our latest investment will drive climate-smart manufacturing, enhance supply-chain integration, create quality jobs, and propel India towards self-reliance in domestic production.” This Sustainability-Linked Loan, a pioneering move in India’s tyre industry, is expected to set a benchmark for similar initiatives across the manufacturing sector.

About JK Tyre & Industries Ltd
JK Tyre & Industries Ltd, part of the JK Organisation, ranks among the top 20 tyre manufacturers globally, with a robust presence in India and Mexico. 

About IFC
The International Finance Corporation (IFC), a member of the World Bank Group, focuses on private sector development in emerging markets worldwide. In fiscal year 2024, IFC committed a record $56 billion to foster private sector solutions and mobilizing capital to alleviate poverty and promote sustainable development globally.