JK Tyre & Industries rallied 4.23% to Rs 150.40 after the International Finance Corporation (IFC) invested around Rs 240 crore in the company for expansion of energy-efficient tyre manufacturing.
This investment by IFC in the company will part-finance the expansion of manufacturing capacities and integrate advanced, resource-efficient technologies in the production of commercial and passenger car radial tyres which have better safety and longevity.
IFC will hold 5.6% stake in the tyre major through issue of compulsorily convertible debentures (CCDs) on preferential basis.
JK Tyre said that the investment aims to bolster the firm's capital structure and increase production of energyefficient radial tyres by more than 10%, from 32 million to over 35 million tyres a year by 2025. This aligns with the national vision of a self-reliant India (Aatmanirbhar Bharat), and strong focus on industrial job creation, it added.
The investment is expected to help JK Tyre become a green company with sustainable use of energy and natural resources and robust environmental, social, and governance (ESG) practices. The investment will support the company's low-carbon strategy, further strengthen its ESG frameworks, reduce greenhouse gas emissions, and spur climatesmart initiatives through decarbonization and sustainability advisory.
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Dr Raghupati Singhania, chairman & managing director of JK Tyre & Industrie, said, This investment will be utilised for the expansion of projects, which are not only growthoriented but are also committed to promote sustainable development and enhancing societal value creation. Innovation and technology are at the core of each of our products, which keeps us ahead of the curve to meet the needs of our customers.
Wendy Werner, India Country Head at IFC said, Our partnership with JK Tyre & Industries will drive their capacity expansion and scaled manufacturing of energy-efficient tyres through resource-efficient tech, lowcarbon solutions, and circularity. By signalling a long-term view of the industry, IFC aims to catalyse further investments and market competitiveness, and in so doing, contribute to India's goals to become both self-reliant in domestic manufacturing, and a global manufacturing hub. We are unlocking the potential of India's manufacturing sector to drive job creation and sustainable growth.
JK Tyre & Industries is currently the market leader in truck bus radial segment. The company provides end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, off-the-road and two & three-wheelers.
The tyre maker's consolidated net profit rose 15.2% to Rs 65.59 crore on 17.5% increase in net sales to Rs 3,612.92 crore in Q3 FY23 over Q3 FY22.
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