JK Tyre and IFC Collaborate for India’s First Sustainability-Linked Loan in the Tyre Sector

In a groundbreaking move for the Indian tyre industry, JK Tyre has secured a $100 million Sustainability-Linked Loan (SLL) from the International Finance Corporation (IFC). This marks the first such initiative in the sector, aimed at promoting sustainable manufacturing practices while bolstering local production and supply chains.

Funding Details and Objectives

The $100 million loan comprises $30 million for JK Tyre & Industries Limited and $70 million for its subsidiary, Cavendish Industries Limited (CIL). The funds will be allocated to:

• Expanding Production: Enhancing manufacturing capacity at the Banmore plant in Madhya Pradesh for Passenger Car Radial (PCR) tyres and the Laksar plant in Uttarakhand for Truck and Bus Radial (TBR) tyres.
• Sustainability Goals: Supporting energy-efficient tyre production.
• Job Creation: Strengthening the local workforce and supply chains.

Commitment to Sustainability

Dr. Raghupati Singhania, Chairman and Managing Director of JK Tyre, highlighted the company’s dedication to sustainable growth, stating, “This initiative aligns financing with our sustainability goals, reaffirming our commitment to environmental and social impact while driving business growth.”

IFC’s Perspective

Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific, underscored the importance of sustainable manufacturing in India’s green transition. He remarked, “This partnership demonstrates a shared vision to catalyse climate-smart manufacturing and enhance India’s self-reliance in production.”

About JK Tyre

With a global presence, JK Tyre is one of the top 20 tyre manufacturers worldwide, operating 11 state-of-the-art facilities across India and Mexico. Producing over 35 million tyres annually, the company has pioneered radial tyre technology in India since 1977. Recognised for its environmental, social, and governance (ESG) practices, JK Tyre boasts accolades such as:

• ESG Excellence: ‘Best in Class’ rating.
• Safety Standards: ‘Sword of Honour’ by the British Safety Council.
• Sustainability Recognition: Listed among India’s top 30 most sustainable companies.

IFC’s Role

As a member of the World Bank Group, IFC is dedicated to fostering private sector development in emerging markets. In fiscal year 2024, it committed $56 billion to various projects, demonstrating its influence in driving sustainable growth globally.

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