Germany-based DEG (Deutsche Investitions und Entwicklungsgesellschaft) has partnered with JK Tyre & Industries (JKTIL) will provide a long-term loan of euro 30 million to expand production capacities at the company’s site in Madhya Pradesh.

JK Tyre is committed to reducing carbon intensity by 50 percent, and already meets 40 percent of its energy needs through green electricity and ranks among the top three companies in terms of lowest in energy consumption globally. The new loan will help to continue this transformation, by allowing the expansion facility’s boiler to be operated using biomass. JKTIL is also currently developing tyres made of recycled material, which are expected to be market-ready soon.

In recent years, DEG has geared its strategy increasingly towards a sustainable and economically successful transformation, which includes using natural resources as responsibly as possible. DEG has further expanded its range of expert advice and funding offers to include services such as resource efficiency checks.

“We are pleased to be associated with KFW-DEG for providing funding of Euro 30 million for our Passenger Car Radial (PCR) tyre expansion project being set up for an estimated cost of Euro 114 million. The said investment will further strengthen JK. Tyre’s market presence in the PCR segment and foster economic and social development in the Country,” Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries, said.