IFC to invest in JK Tyre's production of energy-efficient tyres
The investment aims to bolster the company’s capital structure and increase production of energy- efficient radial tyres by more than 10% — from 32 million to over 35 million tyres a year by 2025. This aligns with the national vision of a self-reliant India (Atmanirbhar Bharat), and focus on industrial job creation. In fact, IFC’s finance support to a major company will set a trend to strengthen India’s efforts towards self-reliance in manufacturing, creating skilled jobs, export opportunities, and sustainable growth.
Improved vehicle utilisation due to last mile connectivity and vehicle scrappage policy is leading to a cyclical uptrend in the automobile and tyre industry. The automotive industry accounts for almost 49% of India’s manufacturing GDP, with tyre manufacturers contributing to 2%. Demand is expected to grow further.
Dr Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries says, “We recognize the trust reposed by IFC in our company and are enthused to embark upon this new partnership. This investment will be utilised for the expansion of projects, which are not only growth-oriented but are also committed to promote sustainable development, and enhance societal value creation. Innovation and technology are at the core of our products, which keeps us ahead of the curve to meet the needs of our customers.”
Wendy Werner, India Country Head, IFC, says, “JK Tyre & Industries is a leading green tyre manufacturer with a demonstrated focus on sustainability. Our partnership with the company will drive their capacity expansion and scaled manufacturing of energy-efficient tyres through resource-efficient tech, low- carbon solutions, and circularity.”
He adds, “By signalling a long-term view of the industry, IFC aims to catalyse further investments and market competitiveness, and in doing so, contribute to India’s goals to become both self-reliant in domestic manufacturing, and a global manufacturing hub. We are unlocking the potential of India’s manufacturing sector to drive job creation and sustainable growth.”
JK Tyre & Industries aims to up the ante as a “Green Company” with sustainable use of energy and natural resources and robust ESG practices. The investment will support the company’s low-carbon strategy, further strengthen its ESG frameworks, reduce greenhouse gas emissions, and spur climate- smart initiatives through decarbonization and sustainability advisory.
NBM&CW April 2023
