The loan will fund JK Tyre's sustainable production capacity expansion, focusing on green energy use and innovative tyre development.
12 Dec 2024 | 2723 Views | By Autocar Professional Bureau
DEG – Deutsche Investitions- und Entwicklungsgesellschaft has announced a long-term loan of EUR 30 million to JK Tyre & Industries Ltd (JKTIL), a part of the JK Organisation. The funding will support the sustainable expansion of production capacities at the company’s facility in Madhya Pradesh, India.
Joachim Schumacher, a ...
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DEG – Deutsche Investitions- und Entwicklungsgesellschaft has announced a long-term loan of EUR 30 million to JK Tyre & Industries Ltd (JKTIL), a part of the JK Organisation. The funding will support the sustainable expansion of production capacities at the company’s facility in Madhya Pradesh, India.
Joachim Schumacher, a member of the DEG Management Board, stated that JK Organisation has been a longstanding partner of DEG. He expressed optimism about collaborating with the tyre division, emphasising the shared focus on transformation and adherence to global environmental and climate goals, including significant carbon emissions reduction.
Dr. Raghupati Singhania, Chairman and Managing Director of JK Tyre & Industries, highlighted that the EUR 30 million loan would contribute to the company’s Passenger Car Radial (PCR) tyre expansion project, estimated at EUR 114 million. He noted that the investment would enhance JK Tyre’s position in the PCR segment and support economic and social development in India. He also reaffirmed JK Tyre’s commitment to sustainability, with a target to reduce carbon intensity by 50% by 2030, emphasising the integration of sustainability into manufacturing processes and product development.
JK Tyre has undertaken various initiatives in recent years to strengthen its sustainability framework. Currently, 40% of the company’s energy needs are met through self-generated green electricity, and it is recognised among the top three companies globally for low energy consumption. The loan will facilitate further transformation efforts, including the use of biomass instead of coal for boilers at the expanded facility. Additionally, the company is in the process of developing tyres made from recycled materials, which are expected to be introduced to the market in the near future.
DEG has been increasingly aligning its strategy with sustainable and economically viable transformation, offering its customers solutions that prioritise responsible resource utilisation. Its expanded services now include resource efficiency assessments, further supporting companies in adopting sustainable practices.