"DEG Joins Hands with JK Tyre to Boost Sustainable Production in Madhya Pradesh".

JK Tyre & Industries (JK Tyre) has announced a strategic partnership with Germany-based DEG—Deutsche Investitions- und Entwicklungsgesellschaft—to expand its production capabilities in Madhya Pradesh. DEG will provide a long-term loan of €30 million to support the company’s Passenger Car Radial (PCR) tyre expansion project.

The project, estimated to cost €114 million, aims to bolster JK Tyre’s market presence in the PCR segment while fostering economic and social development in India. “We are pleased to be associated with KFW-DEG for this funding. The investment will further strengthen JK Tyre’s position in the market and align with our commitment to sustainable growth,” said Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries.

As a green company, JK Tyre is dedicated to reducing its carbon intensity by 50% by 2030. The company already meets 40% of its energy needs through self-produced green electricity and ranks among the top three globally for lowest energy consumption in its sector. The new loan will help advance these sustainability efforts, including operating the expansion facility’s boiler with biomass instead of coal and developing tyres made from recycled materials, which are expected to enter the market soon.

DEG’s collaboration with JK Tyre aligns with its strategic focus on sustainable and economically successful transformation. DEG has been actively supporting the responsible use of natural resources and has expanded its range of advisory services, including resource efficiency checks.

“The JK Organisation is a longstanding customer of DEG’s, and we are now excited to collaborate with its tyre division. Our shared commitment to the UN’s environmental and climate goals, along with significant carbon emission reductions, underscores this partnership,” said Joachim Schumacher, a member of the DEG Management Board.

HBL