Proparco, a French development finance institution, has provided a €15 million (Rs 134 crore) line of credit to GRP Ltd, a tyre recycling company in India.
This funding will help GRP’s expansion and accelerate its environmental, social, and governance strategy, according to a release, thus helping its objective of decarbonising the tyre industry.
Founded by Rajendra Gandhi in 1974, GRP operates seven manufacturing facilities across five locations. It functions across five business verticals – reclaim rubber, engineering plastics, repurposed polyolefins, polymer composites, and custom die forms.
While it began as a tyre recycler, it now uses end-of-life tyres, plastic, and textile waste to produce materials for use in the automotive, industrial, transportation, electrical, and furniture industries.
It works closely with Michelin, Pirelli, Continental, and Indian tyre majors such as Apollo, CEAT, and MRF.
The company said it will use the proceeds to increase production capacity of its existing product lines.
“This association equips us to scale innovative solutions, thereby supporting India’s net-zero targets and creating a meaningful impact," said Harsh Gandhi, CEO of GRP.
Alvarez & Marsal Corporate Finance India was the transaction advisor to GRP.
Proparco is a subsidiary of Agence Française de Développement Group. With an international network of 23 local offices, Proparco partners companies to build sustainable solutions for tackling environmental and social challenges in Africa, the Middle East, Asia and Latin America.
