Indian tyre giant JK tyre and Industries said it will receive a long term loan of 30 million euros from Germany’s DEG.
The tyre maker said in a statement that the funds will be invested in a sustainable expansion of production capacities at its Madhya Pradesh-based passenger car radial tyre facility.
“The JK Organisation is a longstanding DEG customer. We are now looking forward to working together with its tyre company as well,” DEG Management Board member Joachim Schumacher said.
JK Tyre & Industries Chairman & Managing Director Raghupati Singhania said “the project envisages a total investment of 114 million euros. The said investment will further strengthen company’s market presence in the PCR (passenger car radial) segment. The raised capital would help to continue this transformation, for example by allowing the boiler for the expansion facility to be operated using biomass rather than coal.
Deutsche Investitions- und Entwicklungsgesellschaft (DEG) is a Development Finance Institution (DFI) and a subsidiary of KfW Group. It was founded in Cologne in September 1962 as a federally owned company by former Federal President Walter Scheel. Since its foundation, DEG has been headquartered in Cologne.
