IFC has made an investment of USD 30 million (about Rs 240 crore) in JK Tyre & Industries which will part-finance the capacity expansion, while also integrating resource-efficient technologies in the production of commercial and passenger car radial tyres. Post investment, IFC will hold 5.6 percent stake in the tyre major.

IFC’s support will help the company increase production of energy-efficient radial tyres from 32 million to over 35 million tyres a year by 2025. It will also improve the company’s capital structure and focus on boosting skilled job creation, exports, and sustainable growth through ‘Aatmanirbhar Bharat’.

The automotive industry accounts for nearly 49 percent of India’s manufacturing GDP, with tyre manufacturers contributing to 2 percent. Moreover, improved vehicle utilisation helped by last-mile connectivity and vehicle scrappage policy, is fuelling growth in the automobile and tyre industry.