Key Points of JK Tyre Stake Acquisition by International Finance Corporation:
- International Finance Corporation (IFC) will invest $30 million to acquire a 5.6% stake in JK Tyre & Industries Ltd.
- The investment by IFC will fund the expansion of energy-efficient tyre manufacturing capacities at JK Tyre & Industries.
- JK Tyre & Industries aims to integrate advanced, resource-efficient technologies into the production of commercial and passenger car radial tyres, which have better safety and longevity.
- The investment is in line with the national vision of a self-reliant India and a strong focus on industrial job creation.
- IFC will hold a 5.6% stake in JK Tyre & Industries through the issue of compulsorily convertible debentures (CCDs) on a preferential basis.
- JK Tyre & Industries aims to increase production of energy-efficient radial tyres by more than 10% – from 32 million to over 35 million tyres a year by 2025.
- The investment will bolster the company’s capital structure and promote sustainable development and enhancing societal value creation.
- JK Tyre & Industries is one of the top 25 manufacturers in the world, with 12 globally benchmarked ‘sustainable’ manufacturing facilities – nine in India and three in Mexico – that collectively produce around 32 million tyres annually.
Details of JK Tyre Stake Acquisition by International Finance Corporation:
JK Tyre & Industries Ltd has announced that International Finance Corporation (IFC), a member of the World Bank Group, will invest $30 million (approx. Rs 240 crore) to acquire a 5.6% stake in the company.
The investment by IFC will help to fund the expansion of energy-efficient tyre manufacturing capacities at the company. JK Tyre & Industries plans to integrate advanced, resource-efficient technologies into the production of commercial and passenger car radial tyres, which have better safety and longevity. This move is in line with the national vision of a self-reliant India and a strong focus on industrial job creation.
Through the issue of compulsorily convertible debentures (CCDs) on a preferential basis, IFC will hold a 5.6% stake in the tyre major. JK Tyre & Industries aims to increase production of energy-efficient radial tyres by more than 10% – from 32 million to over 35 million tyres a year by 2025. This investment will bolster the company’s capital structure and promote sustainable development and enhancing societal value creation.
According to JK Tyre & Industries Chairman & Managing Director Raghupati Singhania, the investment will be utilised for the expansion of projects that are growth-oriented and committed to promoting sustainable development. He added that innovation and technology are at the core of each of their products, keeping them ahead of the curve to meet the needs of their customers.
IFC India Country Head Wendy Werner said that their partnership with JK Tyre & Industries will drive their capacity expansion and scaled manufacturing of energy-efficient tyres through resource-efficient tech, low carbon solutions, and circularity. By signalling a long-term view of the industry, IFC aims to catalyse further investments and market competitiveness, and in so doing, contribute to India’s goals to become both self-reliant in domestic manufacturing and a global manufacturing hub.
JK Tyre & Industries Ltd is one of the top 25 manufacturers in the world, with 12 globally benchmarked ‘sustainable’ manufacturing facilities – nine in India and three in Mexico – that collectively produce around 32 million tyres annually.
About JK Tyre:
JK Tyre, a leading company in India, has pioneered the development of radial tyres in the country and holds the top position in the domestic market for Truck/Bus radials. Its operations span across 9 plants in India and 3 plants in Mexico, enabling it to cater to a diverse range of segments including farm and off-road vehicles. JK Tyre’s global reach extends to over 100 countries through exports.
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