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

12/15/2024 3:59:30 AM

(MENAFN- Adfactors PR)
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.

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