The International Finance Corporation (IFC) has sanctioned a $100 million Sustainability-Linked Loan (SLL) to JK Tyre, a leading Indian tyre manufacturer with a global footprint. This financial backing is a milestone for India’s tyre industry, as it represents the first SLL in the sector. The funds will support capacity expansion and sustainability initiatives, setting a benchmark for environmentally-conscious manufacturing in India.
The loan includes $30 million for JK Tyre & Industries Limited and up to $70 million for Cavendish Industries Limited (CIL), its subsidiary. The funding will focus on expanding manufacturing capacity for 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.
Driving Sustainability and Growth
The project aligns with India’s vision for sustainable manufacturing, aiming to integrate energy-efficient processes and strengthen local supply chains. Dr. Raghupati Singhania, Chairman and Managing Director of JK Tyre, expressed optimism about the partnership:
"We are delighted to strengthen our relationship with IFC, securing a $100 million Sustainability-Linked Loan 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, underscored the importance of this initiative:
"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."
Industry Leadership and Innovation
As a global tyre industry leader, JK Tyre’s sustainability credentials are well established. The company operates 11 manufacturing facilities — 9 in India and 2 in Mexico — producing approximately 35 million tyres annually. Its Raghupati Singhania Centre of Excellence in Mysore exemplifies innovation, equipped with cutting-edge testing and validation technology.
JK Tyre’s ESG achievements include a 'Best in Class' ESG rating, global recognition for safety practices, and being the first Indian tyre company to join the RE100 initiative for renewable energy. These accomplishments align seamlessly with the objectives of the SLL, ensuring a strong focus on sustainable growth.
A Green Manufacturing Future
The IFC’s partnership with JK Tyre highlights a growing trend toward sustainable financing in India’s manufacturing sector. By supporting environmentally responsible practices, this initiative is set to bolster India’s self-reliance and global competitiveness while contributing to the country's green transition.
What is the purpose of the $100 million loan?
The loan will fund JK Tyre’s expansion in energy-efficient tyre manufacturing, focusing on PCR and TBR tyres.
How will this impact India’s manufacturing sector?
It promotes sustainable practices, strengthens local supply chains, and creates quality jobs, supporting India’s green manufacturing goals.
What makes this loan significant?
This is the first Sustainability-Linked Loan in India’s tyre industry, setting a benchmark for future initiatives.
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