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JK Tyre & Industries has partnered with German development finance institution DEG to secure €30 million in funding for the expansion of its Passenger Car Radial (PCR) tyre production in Madhya Pradesh. The expansion project, estimated at a total cost of €114 million, aims to boost JK Tyre’s market presence while fostering economic and social development in India.
“We are pleased to be associated with KFW-DEG for providing funding of €30 million for our PCR tyre expansion project. This investment will not only strengthen JK Tyre’s position in the market but also support economic and social growth in the country,” said Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries.
As part of the company’s commitment to sustainability, JK Tyre has set an ambitious goal to reduce its carbon intensity by 50% by 2030. The company is already leading efforts in this direction, with 40% of its energy needs currently met through green electricity. Ranked among the top three companies globally in terms of lowest energy consumption, JK Tyre is taking several transformative steps to align with environmental goals.
The new funding from DEG will support these sustainability initiatives, allowing JK Tyre to further enhance its eco-friendly production processes. One example is the plan to operate the expansion facility’s boiler using biomass instead of coal. In addition, JK Tyre is actively developing tyres made from recycled materials, which are expected to enter the market soon.
DEG’s involvement in this project is in line with its broader strategy of supporting sustainable and economically viable transformations for its partners. “We are excited to continue working with the JK Organisation, especially in this transformative project with JK Tyre. Together, we are committed to the UN’s environmental and climate goals and to significantly reducing carbon emissions,” said Joachim Schumacher, a member of DEG’s Management Board.
With this partnership, JK Tyre is poised to continue its leadership in sustainable manufacturing while contributing to India’s broader climate and environmental objectives. The expansion project will not only boost production but also advance JK Tyre’s commitment to responsible resource use and sustainability in the tyre industry.