The Borrowers are amongst the leading tyre manufacturers in India. JK Tyre is listed on the Bombay Stock Exchange and the National Stock Exchange and has a market capitalization of approximately US$1.2 billion as of November 29, 2024. The Promoter Group holds 50.5 percent of the total share capital of JK Tyre while the balance is held by financial institutions and public. The Promoter Group holds the Company’s share mainly through Bengal and Assam Company Limited, which is a listed non-banking financial company. Dr. Raghupati Singhania is the Chairman and Managing Director, and Mr. Anshuman Singhania is the Managing Director of the Company. Cavendish is a majority owned, unlisted subsidiary of the Company.

The total project cost is ~US$200 million which includes capital expenditure to increase their tyre manufacturing capacity and refinancing of existing debt of the Borrowers. The proposed IFC investment comprises senior, secured A loan of up to US$100 million. Of the total loan proceeds of US$100 million, up to US$30 million will be to JK Tyre to fund its capital expenditure and up to US$70 million will be to Cavendish with US$ 20 million to fund Cavendish’s capital expenditure and up to US$50 million to refinance and extend the maturity of its existing high-cost debt.

The Company’s corporate office is located at 3, Bahadur Shah Zafar Marg, New Delhi, 110002. The capital expenditure to be financed by IFC’s loan will be at JK Tyre’s manufacturing facility at Banmore in the state of Madhya Pradesh and Cavendish’s manufacturing facility at Laksar in the state of Uttarakhand.

This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012). Based on information reviewed by IFC, the proposed project will have limited adverse E&S impacts that are few, site-specific, largely reversible, and readily addressed through existing mitigation measures and good international industry practices (GIIP). 

Key E&S risks and issues include i) the company's management and monitoring systems to assess and manage E&S risks and impacts from operations and expansion of Banmore and Laksar plants covered under the project, ii) consistent management of labor and working conditions and occupational health and safety (OHS) policies and practices across the different production sites and for different types of workers (direct and contracted workers), iii) monitoring and management of air emissions, waste and wastewater and hazardous materials, iv) natural rubber related supply chain management, v) emergency preparedness and response planning and vi) the company's stakeholder engagement in respect to E&S aspects.