JK Tyre targets 50% reduction in emissions and water use by 2030 with $100 mn ESG loan, says CFO
JK Tyre
& Industries is aiming to cut its greenhouse gas emissions and raw water consumption by 50% by 2030 as part of its broader financial strategy tied to environmental goals, Chief Financial Officer Sanjeev Aggarwal told ETCFO. The company has secured a $100 million
sustainability-linked loan
(SLL) from the
International Finance Corporation
(IFC), making it the first Indian tyre manufacturer to tie funding directly to
ESG
outcomes.
The two key KPIs embedded in the loan are a 50% cut in GHG emissions and a similar reduction in raw water use, both measured from 2018 levels.
Funding to Support Capex and Debt Refinancing
The funding has been split between JK Tyre ($30 million) and its subsidiary Cavendish Industries ($70 million), and will support ongoing capex at the Banmore and Laksar plants, with projects worth ₹1,025 crore in PCR (passenger car radial) tyres and ₹261 crore in TBR (truck and bus radial) tyres. The company will also refinance high-cost debt at Cavendish.
Aggarwal said the move will help JK Tyre strengthen its position in key growth segments.
Renewables and Investor Confidence in Focus
JK Tyre has also joined the RE100 initiative, committing to 100% renewable electricity—a first for an Indian tyre maker.
'Aligning finance with ESG makes us more credible with global investors, especially as India pivots towards climate-smart manufacturing,' Aggarwal added.
Outlook Strong, but External Risks Remain
On the outlook, Aggarwal said the next six months should see continued demand traction, aided by logistics reforms, scrappage policy, and EV growth. However, he flagged elevated raw material prices and global trade uncertainties as key risks heading into FY26.
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