The International Finance Corporation (IFC) has announced a $30 million investment in JK Tyres to expand energy-efficient tyre manufacturing.

IFC will acquire a 5.6% stake in the tyre giant through the preferential issuance of compulsorily convertible debentures (CCDs).

IFC has announced a $30 million investment in JK Tyres to expand energy-efficient tyre manufacturing in order to promote exports and generate jobs. The investment is intended to strengthen the company's capital structure and expand production of energy-efficient radial tyres by more than 10%, from 32 million to more than 35 million tyres per year by 2025.

IFC's investment in JK Tyre & Industries will help to finance the expansion of manufacturing capacity and the integration of sophisticated, resource-efficient technologies in the production of commercial and passenger car radial tyres with improved safety and longevity.

IFC will acquire a 5.6% stake in the tyre giant through the preferential issuance of compulsorily convertible debentures (CCDs).

Dr. Raghupati Singhania, Chairman and Managing Director of JK Tires & Industries, stated that the investment will be used to build projects that are not just focused on growth but also on supporting sustainable development and boosting societal value creation.

According to the press release, the company intends to boost its aim as a "Green Company" by using sustainable energy and natural resources and implementing strong ESG standards. Via decarbonisation and sustainability advisors, the investment will assist the company's low-carbon plan, strengthen its ESG frameworks, cut greenhouse gas emissions, and spur climate smart initiatives.

"As a leading green tyre manufacturer with a demonstrated focus on sustainability, our partnership with JK Tyre & Industries will drive capacity expansion and scaled manufacturing of energy-efficient tyres through resource-efficient tech, low carbon solutions, and circularity," said Wendy Werner, IFC's India Country Head.

IFC seeks to catalyze more investments and market competitiveness by signalling a long-term view of the industry, and so support India's ambitions of being both self-sufficient in local manufacturing and a global manufacturing powerhouse, Werner added.

JK Tires & Industries Ltd claims to be one of the world's top 25 manufacturers, with 12 globally benchmarked'sustainable' manufacturing sites — nine in India and third in Mexico. that generate approximately 32 million tyres each year.

JK Tires & Industries is a leading tyre producer in India and one of the top 25 manufacturers in the world, with a diversified product portfolio serving diverse business areas such as Truck/Bus, LCV (Light commercial vehicles), Passenger Vehicles, MUV (Multi utility vehicles), and Tractors.