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.

The IFC investment comprises an equity investment of up to INR 2,400 million (equivalent to US$ 30 million) by subscribing to equity securities issued by the Company. Considering the surge in demand and the near full capacity utilization of its existing facilities, JK Tyre has an ongoing capital expenditure plan of about US$158 million for increasing the capacity of its TBR and PCR production facilities in India by more than 10 percent, from 32 million tires per annum to 35 million tires per annum. The expansion is being implemented in a phased manner over FY21-25. In FY24, the Company is implementing capital expenditure of U$68 million as well as resource efficiency projects (the “Project). Additionally, the Company is strategically bringing down its leverage and strengthening its balance sheet. The IFC investment will support the Company in successful implementation of the Project and strengthening of its balance sheet.

The Project will be located at the Company’s existing manufacturing facilities in India; Banmore, and Laksar.