Mumbai-listed JK Tyre & Industries Ltd on Wednesday said it is raising about $30 million (Rs 240 crore) from the World Bank Group's private-sector investment arm, International Finance Corporation (IFC).
The Raghupati Singhania-led tyre company said it will offload a 5.6% stake to IFC by issuing compulsorily convertible debentures (CCDs) on a preferential basis.
JK Tyre will use these proceeds to accelerate the production of its car radial tyres by about 10% by 2025. This grade of tyres is used for both commercial and passenger vehicles and is considered more energy efficient.
The firm will invest in expanding the manufacturing capacities and technologies employed to produce radial tyres, it said, increasing the number to 35 million by 2025 from 32 million currently.
“This investment will be utilised for the expansion of projects, which are not only growth-oriented but are also committed to promote sustainable development and enhancing societal value creation,” according to Singhania, the chairman and managing director of JK Tyre.
With this, the company aims to place itself as a ‘green company’, aiming to employ energy and natural resources sustainably, while incorporating robust ESG (environmental, social, and governance) practices, it said.
Today, IFC also announced its $76-million investment in automaker Mahindra & Mahindra’s (M&M) new unit that will make electric three-wheelers and small commercial vehicles, the World Bank’s private equity arm’s first investment in an EV manufacturer in India and the first in electric three-wheelers globally.