International Finance Corp to buy 5.6 pc stake in JK Tyre for USD 30 mn

PTI | New Delhi | Updated: 22-03-2023 14:45 IST | Created: 22-03-2023 14:41 IST
International Finance Corp to buy 5.6 pc stake in JK Tyre for USD 30 mn
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JK Tyre & Industries Ltd on Wednesday said World Bank Group member IFC will invest USD 30 million (about Rs 240 crore) to pick a 5.6 per cent stake in the company to part-fund expansion of energy-efficient tyre manufacturing.

The investment by IFC in JK Tyre & Industries will part-finance the expansion of manufacturing capacities and integrate advanced, resource-efficient technologies in the production of commercial and passenger car radial tyres, which have better safety and longevity, the company said in a regulatory filing.

Subsequently, International Finance Corporation (IFC) will hold a 5.6 per cent stake in the tyre major through the issue of compulsorily convertible debentures (CCDs) on a preferential basis, it added.

''The investment aims to bolster the company's capital structure and increase production of energy-efficient radial tyres by more than 10 per cent -- from 32 million to over 35 million tyres a year by 2025,'' JK Tyre & Industries said.

This aligns with the national vision of a self-reliant India and a strong focus on industrial job creation, it added.

On the investment by IFC, JK Tyre & Industries Chairman & Managing Director Raghupati Singhania said, ''This investment will be utilised for the expansion of projects, which are not only growth-oriented but are also committed to promote sustainable development and enhancing societal value creation''.

''Innovation and technology are at the core of each of our products, which keeps us ahead of the curve to meet the needs of our customers,'' he added.

IFC India Country Head Wendy Werner, said, ''A leading green tyre manufacturer with a demonstrated focus on sustainability, our 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, Werner added. JK Tyre & Industries Ltd said it is amongst 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.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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