India’s push towards self-reliance in manufacturing has been boosted by the International Finance Corporation’s (IFC) investment of $30 million in JK Tyre & Industries. This investment aligns with India’s goal to become a global manufacturing hub and increase energy-efficient tire production by over 10%.
International Finance Corporation (IFC), a member of the World Bank Group and also the largest global development institution focused on the private sector in emerging markets has recently invested $30 million in JK Tyre & Industries Ltd. The investment will support the expansion of manufacturing capacities and the integration of advanced, resource-efficient technologies in the production of commercial and passenger radial tires. This move is aimed at increasing the production of energy-efficient radial tires by over 10%, which will not only create skilled jobs but also contribute to India’s vision of becoming self-reliant.
The automotive industry accounts for almost half of India’s manufacturing GDP, with tire manufacturers contributing 2%. JK Tyre & Industries is already among the top 25 tire manufacturers globally, producing over 32 million tires annually. With this investment, the company aims to up the ante as a green company, with sustainable use of energy and natural resources and robust ESG practices.
Wendy Werner, India Country Head at IFC said, “A leading green tyre manufacturer with a demonstrated focus on sustainability, our partnership with JK Tyre & Industries will drive their capacity expansion and scaled manufacturing of energy-efficient tyres through resource-efficient tech, low-carbon solutions, and circularity. By signalling a long-term view of the industry, IFC aims to catalyze 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.”
IFC’s investment in JK Tyre & Industries is a long-term view of the industry, aimed at catalyzing further investments and market competitiveness. This investment will contribute to India’s goals of becoming both self-reliant (Aatmanirbhar Bharat) in domestic manufacturing and a global manufacturing hub with a strong focus on industrial job creation. With this investment, JK Tyre & Industries is signalling its commitment to innovation and technology, keeping the company ahead of the curve to meet the needs of its customers while promoting sustainable development and enhancing societal value creation. This investment aligns with the national vision of a self-reliant India (Aatmanirbhar Bharat) and a strong focus on industrial job creation.
As the country pushes towards infrastructure development and higher GDP growth, the automotive industry is witnessing huge tailwinds. Improved vehicle utilization, due to last-mile connectivity and vehicle scrappage policy, is leading to a cyclical uptrend in the automobile and tire industry, and the demand is expected to grow further.
