DEG has announced a long-term loan of EUR 30 million to JK Tyre Industries Ltd (JKTIL), an Indian tyre manufacturer. The funds are designated for the sustainable expansion of tyre production at JKTIL's facility in Madhya Pradesh, India. The company is recognized for its energy-efficient production methods and has already implemented several measures to enhance sustainability. Currently, 40% of its energy needs are met through self-produced green electricity.
The loan will facilitate further transformation efforts, such as operating the new facility's boiler with biomass instead of coal. Additionally, JKTIL is developing tyres made from recycled materials, which are expected to be market-ready soon. Joachim Schumacher, a member of DEG's Management Board, stated: “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.”
Dr. Raghupati Singhania, Chairman and Managing Director of JK Tyre & Industries Ltd., expressed enthusiasm about the collaboration: “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.”
Founded in 1977 and based in New Delhi, JKTIL operates nine production sites in India and two in Mexico, employing around 10,000 people. The expansion in Madhya Pradesh is expected to create an additional 800 jobs. The company also provides healthcare and training opportunities for its employees.
DEG has increasingly focused on sustainable transformation solutions across various sectors and has expanded its advisory services to include resource efficiency checks.