JK Tyre III (IFC-41967)

  • South Asia
Geographic location where the impacts of the investment may be experienced.
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Banmore, Madhya Pradesh and Laksar, Uttarakhand
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 17, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 28.98 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 25, 2023

Disclosed by Bank Apr 24, 2023

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to IFC, IFC has provided an equity investment of up to INR 2,400 million (approximately US$30 million) in JK Tyre & Industries Limited (“JK Tyre” or “the Company”), in the form of equity securities.

The Company is implementing a capital expenditure plan of about US$158 million between FY21-25 to increase the production capacity of truck and bus radial (TBR) tires and passenger car radial (PCR) tires by more than 10 percent, from 32 million tires per annum to 35 million tires per annum. Of this, in FY24, the Company will implement capital expenditure of U$68 million along with resource efficiency projects (the “Project) and the proposed IFC investment will support the Company in implementing the Project.

These activities include but may not be limited to are planned brownfield expansions proposed in two plants in India including resource efficiency and climate linked interventions.  Given that this is an equity investment, IFCs E&S requirements will be applied to company operations covering its Indian and Mexican Plants. JK Tyre’s brownfield expansion plan consists of: (a) debottlenecking and expansion of its existing passenger car radials (PCR) manufacturing capacity in Banmore plant, Madhya Pradesh and (b) expansion of truck & bus radials (TBR) tire manufacturing capacity at Laksar plant. The Project also includes a climate finance portion which comprise of nine (9) climate linked interventions and the key ones include: a) installation of a six mega-watt (MW) solar plant at Laksar; b) boiler retrofits to increase the proportion of biomass use (biomass briquette, saw dust, rice husk) up to 50 percent at some locations based on availability; c) complete the conversion of the tire curing process to nitrogen-based technology to reduce the need for steam; d) replacement of existing steam-based chillers with more energy efficient equipment; e) trials with concentrated solar thermal (CST) for boiler feed water heating; and f) waste water recycling through zero liquid discharge facility in the last remaining plant.  


This is a Category B project as per IFC’s Policy on Environmental and Social Sustainability. Key E&S risks associated with the project include: 1) the Company’s capacity to establish and maintain an integrated E&S management systems in compliance with PS1 requirements; 2) assurance of fair, safe and healthy labour working conditions in compliance to applicable regulations and PS2 requirements including key risks such as occupational health and safety (OHS), workers engaged by third parties and supply chain; 3) resource efficiency pollution prevention, hazardous waste and management of hazardous materials in compliance with PS 3 and WBG EHS Guidelines; 4) community health and safety risks including hazardous materials transport, life & fire safety risks and offsite emergency preparedness and response; 5) stakeholder engagement and the associated community grievance mechanisms; and 6) supply chain related labour and biodiversity risk aspects especially associated with natural rubber procurement.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actor Relationship
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

IFC has long standing relationship with JK Group since 2006 through both investment and advisory projects with JK Paper Limited, where JK Group holds significant stake. 

JK Tyre was incorporated in 1976 by late Shri Hari Shankar Singhania and is amongst the top four tire manufacturers in India and the top 25 globally. JK Tyre is one of the flagship companies of the JK Group. The Company is listed on the Bombay Stock Exchange and the National Stock Exchange and has a market capitalization of more than US$ 490 million as of September 2022. The Promoter group and family hold 56.3 percent of the total share capital of the Company and the balance is held by financial institutions and public. The promoter group holds the Company’s share mainly through Bengal and Assam Company Ltd., a listed non-banking financial company Dr. Raghupati Singhania is the Chairman and Managing Director and Anshuman Singhania is the Managing Director.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

JK Tyre & Industries Limited (“JK Tyre” or the “Company”) is a leading tire manufacturer in India and the Company was established in 1976. JK Tyre manufactures a wide range of tires catering to commercial vehicles, passenger vehicles, 2/3 wheelers as well as tractors. The Company markets its products globally in over 100 countries through 180 global distributors under various brand names. The Company has 9 tire manufacturing plants at 5 locations in India and 3 tire manufacturing plants in Mexico (under the brand name “JK Tornel”). In India, 6 plants are operated under JK Tyre & Industries Limited (JKTIL) and 3 Plants at Laksar are operated under JK Tyre’s subsidiary Cavendish Industries Limited (CIL). Overall, the Company produces around 32 million tires annually out of which the Indian plants contribute around 82% while the balance comes from Mexican plants. Besides, JK Tyre has established research & development facilities in Mysuru (Karnataka, India). In India, the Company has a network of over 6000 dealers and 650+ dedicated brand shops (Refer: https://www.jktyre.com/). In Mexico, the Company has a network of 97 dealers and 144 third party dealer/ distributors.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

JK Tyre & Industries Limited
Mr. Sanjeev Kumar Aggarwal
Chief Finance Officer
+91 011-66001122
Patriot House 3,Bahadur Shah Zafar Marg,New Delhi – 110 002


You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.


The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works