In today’s trading session, JK Tyre Industries’ shares dropped 2.8% to their day’s low of Rs 419.60 on the BSE following the company’s announcement that Deutsche Investitions- und Entwicklungsgesellschaft (DEG) would give the business a EUR 30 million long-term loan.
The company plans to use the money to expand its production capacity in a sustainable manner at its Madhya Pradesh, India, location.
The business has already started a number of revolutionary initiatives in recent years to take a more robust and sustainable stance. According to JK Tyre, the new loan will support this transition going forward by, for instance, permitting the expansion facility’s boiler to run on biomass instead of coal.
In recent years, DEG has increasingly focused its approach on working with its clients to develop solutions for a transition that is both economically effective and sustainable. This also entails making the most responsible use of natural resources. DEG has added services like resource efficiency inspections to its list of finance offers and professional assistance.
“We are pleased to be associated with KFW-DEG for providing funding of EUR30 mn. for our Passenger Car Radial (PCR) tyre expansion project being set up for an estimated cost of EUR 14 mn. The said investment will further strengthen JK Tyre’s market presence in the PCR segment and foster economic and social development in the Country. JK Tyre is a Green Company and is committed to reducing carbon intensity by 50% by 2030. Sustainability is at the core of its activity, be it manufacturing excellence or development of next-generation tetechnologicallydvanced products,” said Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries.
The BSE saw JK Tyre’s shares close at Rs 408.10 on Friday.
