German financial firm Deutsche Investitions und Entwicklungsgesellschaft (DEG) is giving a long-term loan of 30 million euros to tyre manufacturer JK Tyre & Industries Ltd (JKTIL). The funds will be invested in the expansion of production capacities at the company’s site in Madhya Pradesh.
Joachim Schumacher, member of the DEG Management Board, commented, “The JK organisation is a longstanding customer of DEG’s. We are now looking forward to working together with its tyre company as well. Our portfolio companies share a clear commitment to transformation, to the UN’s environmental and climate goals, and to reducing carbon emissions substantially."
Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries, said, “We are pleased to be associated with KFW-DEG for providing funding of EUR30 mn. for our Passenger Car Radial (PCR) tyre expansion project being set up for an estimated cost of EUR114 mn. The said investment will further strengthen JK Tyre’s market presence in the PCR segment and foster economic and social development in the country.”
Singhania added that JK Tyre is a green company and is committed to reducing carbon intensity by 50% by 2030.
JK Tyre claims that the new loan will help to continue this transformation, for example by allowing the boiler for the expansion facility to be operated using biomass rather than coal. JKTIL is currently developing tyres made of recycled material, which are expected to be market-ready in the near future, it said.