JK Tyre & Industries announced that German Entity DEG would grant the company a 30-million euro long-term loan.
The tire manufacturer said in a statement that the funds would be utilized to expand manufacturing capacities at its passenger car radial tyre facility in Madhya Pradesh in a sustainable manner.
"DEG has had a long-standing client in the JK Organization. We now look forward to collaborating with its tire company as well," Joachim Schumacher, a member of the DEG Management Board, stated.
The project is anticipated to require a total expenditure of 114 million euros, according to Raghupati Singhania, chairman and managing director of JK Tyre & Industries.
He claims that the investment described above will giv the company a competative edge and strengthen its position in the passenger car radial (PCR) sector.
According to the tire manufacturer, it has taken action to implement revolutionary changes for a more robust and sustainable position.
The funds raised would support the ongoing transition by, for instance, permitting the expansion facility's boiler to run on biomass instead of coal, according to the statement.
On the BSE, JK Tyre's stock ended 0.18 percent higher at Rs 408.10 per share.
