New Delhi – DEG – Deutsche Investitions- und Entwicklungsgesellschaft has granted a long-term loan of EUR 30 million (INR 266.44 crore) to JK Tyre & Industries Ltd (JKTIL), a key member of the JK Organisation. This funding will support the expansion of JKTIL’s production capacity at its facility in Madhya Pradesh, India, with a strong focus on sustainability.
Joachim Schumacher, member of DEG’s Management Board, expressed enthusiasm about the partnership, noting, “JK Organisation has been a long-term partner of DEG, and we are excited to extend our collaboration to JK Tyre. Both companies share a strong commitment to transformation and aligning with the UN’s environmental and climate goals, aiming to reduce carbon emissions significantly.”
Dr. Raghupati Singhania, Chairman and Managing Director of JK Tyre, highlighted the importance of this investment in advancing the company’s passenger car radial (PCR) tyre segment. “We are thrilled to work with KFW-DEG on this EUR 30 million funding for our PCR tyre expansion project, which forms part of a broader EUR 114 million investment plan. This initiative will bolster JK Tyre’s market presence and contribute to the economic and social development of India,” he said.
JK Tyre has long embraced sustainability as a core value, with a goal of reducing carbon intensity by 50% by 2030. The company’s commitment to green practices is evident, as it already generates 40% of its energy from self-produced green electricity and is among the top three global companies in terms of energy efficiency.
The EUR 30 million loan will further enhance these efforts, enabling the company to power its new boiler with biomass rather than coal. Additionally, JKTIL is working on developing tyres made from recycled materials, with plans to bring these eco-friendly products to market in the near future.
DEG continues to refine its approach by focusing on sustainable economic transformations, offering not only financial support but also expertise in resource efficiency. This strategic alignment supports both companies’ shared vision for a greener, more sustainable future.
