DEG Partners with JK Tyre to Boost Sustainable Production in Madhya Pradesh.

JK Tyre & Industries announced a partnership with Germany-based DEG—Deutsche Investitions- und Entwicklungsgesellschaft—through a €30 million long-term loan to expand its production capacities at its Madhya Pradesh facility.

“We are pleased to collaborate with KFW-DEG for funding our Passenger Car Radial (PCR) tyre expansion project, which is estimated to cost €114 million,” said Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries. He added that the investment would strengthen JK Tyre’s market position in the PCR segment and contribute to economic and social development in India.

As part of its commitment to sustainability, JK Tyre aims to reduce carbon intensity by 50% by 2030. Currently, the company meets 40% of its energy needs through self-generated green electricity and is ranked among the top three global companies in terms of energy efficiency. The new loan will further this transformation by enabling the use of biomass-powered boilers at the expansion facility and supporting the development of tyres made from recycled materials, expected to launch soon.

DEG, part of the German KfW banking group, has increased its focus on sustainable and resource-efficient solutions in recent years. The organization offers advisory services like resource efficiency checks to help its clients align with environmental and climate goals.

“The JK Organisation is a longstanding partner of DEG. We are excited to now work with its tyre division, which shares a strong commitment to transformation, the UN’s climate goals, and substantial carbon emissions reduction,” said Joachim Schumacher, a member of DEG’s Management Board.

The partnership underscores DEG’s strategy of fostering sustainable growth while enhancing JK Tyre’s capacity to meet growing demand in the PCR tyre market through environmentally responsible practices.

HBL