DEG invests in JK Tyre & Industries Ltd.

EUR 30 million loan for Expansion of production capacities in the state of Madhya Pradesh, India.

Bengaluru, December 13, 2024: DEG – Deutsche Investitions- und Entwicklungsgesellschaft  will  provide  JK  Tyre  &  Industries  Ltd  (JKTIL),  a  member  of the JK Organisation, with a long-term loan of EUR 30 million.

The funds will be invested in the sustainable expansion of production capacities at the company’s site in the Indian state of 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.

Dr.  Raghupati Singhania,  Chairman  & Managing Director of JK Tyre & Industries Ltd. 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. JK  Tyre,  is  a  Green  Company  and  is  committed  to reducing carbon  intensity  by  50%  by 2030. Sustainability is  at the  core  of it’s  activity, be it manufacturing excellence or  development  of  next-generation  technological advanced products.”

In the past years,  the  company  has  already  initiated various  transformative measures for adopting a resilient and  more  sustainable  position.  For  example,  JKTIL  already meets 40% of its energy needs through green electricity that it produces itself and is ranked among the top 3 companies in terms of lowest in energy consumption globally.

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. As well as JKTIL is  currently developing tyres  made of recycled material, which are expected to be market-ready in near future.

In recent  years,  DEG  has  geared  its  strategy  more  and  more  towards  shaping solutions for  a  sustainable  and  economically  successful  transformation  together  with its customers. This also includes  using  natural  resources  as  responsibly  as  possible. DEG has further expanded its range of expert advice and  funding  offers  to  include services such as resource efficiency checks.