Loan for sustainable production by Indian tyre manufacturer

DEG is providing Indian tyre manufacturer JK Tyre Industries Ltd (JKTIL) with a long-term loan of EUR 30 million. The funds will be invested in the sustainable expansion of tyre production at the company’s site in the Indian state of Madhya Pradesh. JKTIL excels by its particularly energy-saving tyre production and has already initiated various transformative measures for becoming even more sustainable. For example, the company by now meets 40% of its energy needs through green electricity that it produces itself.

Financing for expanding production in Madhya Pradesh

The new loan will help to continue this transformation, for example by allowing the boiler in the new production facility to be operated using biomass rather than coal. As well as this, JKTIL is currently developing tyres made of recycled material, which are expected to be market-ready soon. On the occasion of the contract signing, Joachim Schumacher, member of DEG's Management Board, commented: “The JK Group is a long-standing customer of DEG. That is why we are now looking forward to working together with its tyre division as well. Our companies share a clear commitment to transformation, to the UN’s environmental and climate goals, and to reducing carbon emissions substantially.”

DEG supports the company’s transformation process

Dr. Raghupati Singhania, Chairman and Managing Director of JK Tyre & Industries Ltd., added: “We are looking forward to working together with DEG. The total costs of the project will amount to an estimated EUR 114 million. This investment will further strengthen our market presence in the PCR segment, while promoting economic and social development in India. At JK Tyre, we see ourselves as a green company. We have committed to reducing our CO2 emissions by 50% by 2030. Sustainability is at the heart of everything we do, whether it's manufacturing high-end products or developing next-generation technology products.”

The New Delhi-based company was founded in 1977 and currently produces vehicle tyres at nine locations in India and two in Mexico. JKTIL employs around 10,000 people and a further 800 jobs will be created by expanding production in Madhya Pradesh. Furthermore, the company offers healthcare and training opportunities for employees.

In recent years, DEG has geared its strategy more and more towards shaping solutions for a sustainable transformation together with its customers from different sectors. It has further expanded its range of expert advice and funding offers to include services such as resource efficiency checks.