International Finance Corporation (IFC) has sanctioned a $100 million Sustainability-Linked Loan (SLL) to JK Tyre, a leading Indian tyre manufacturer with a global presence. The funding includes $30 million to JK Tyre & Industries Limited and up to $70 million for Cavendish Industries Limited (CIL), a subsidiary of JK Tyre.
JK Tyre is a flagship company of JK Organisation, a global conglomerate. The funding will support the expansion of 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.
The initiative aims to promote energy-efficient tyre production, strengthen local supply chains, and create jobs. Dr. Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries said “We are delighted to strengthen our relationship with IFC, securing a $100 million Sustainability-Linked Loan (SLL) to fund our growth plans.
By aligning financing to sustainability goals, we aim to drive positive environmental and social impact while achieving our growth objectives. This reaffirms our commitment to sustainable development, while embracing a holistic approach to bolster our presence in key product segments.”
Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific, said “Sustainable manufacturing is key to realizing India’s green ambitions. The enduring partnership between IFC and JK Group demonstrates our shared commitment to this vision.
Our latest investment will drive climate-smart manufacturing, enhance supply-chain integration, create quality jobs, and propel India towards self-reliance in domestic production. The SLL, a first in India’s tyre industry, aims to set a benchmark and catalyze widespread adoption across the manufacturing sector.”