International Finance Corporation (IFC) has approved a $100 million Sustainability-Linked Loan (SLL) to JK Tyre & Industries and its subsidiary, Cavendish Industries Limited (CIL). The funding will be allocated to expand production capacity at two manufacturing facilities in India, focusing on Passenger Car Radial (PCR) tyres at the Banmore plant in Madhya Pradesh and Truck and Bus Radial (TBR) tyres at the Laksar plant in Uttarakhand.
According to the press release, $30 million of the loan will go to JK Tyre & Industries Limited, while up to $70 million is designated for CIL. The investment aims to increase energy-efficient production, enhance local supply chains, and contribute to job creation in the manufacturing sector.
JK Tyre Chairman and Managing Director Raghupati Singhania noted the importance of aligning financing with sustainability objectives, stating that the initiative is intended to balance environmental and social impact with business growth.
Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific, highlighted that this is the first Sustainability-Linked Loan in India’s tyre industry. He emphasized that the investment is part of IFC’s broader strategy to promote sustainable manufacturing practices and foster supply-chain integration within India.
JK Tyre, a subsidiary of the JK Organisation, operates 11 manufacturing facilities—nine in India and two in Mexico—with an annual production capacity of approximately 35 million tyres. The company has introduced various sustainability and safety initiatives, receiving recognition for its environmental, social, and governance (ESG) practices.
IFC, a member of the World Bank Group, supports private sector development in emerging markets, with a focus on fostering sustainable economic growth.