New Delhi: Jaykay Enterprises Ltd on Thursday said it has issued a corporate guarantee of up to ₹40 crore in favour of Axis Bank to secure credit facilities availed by JK Phillips LLP, its 50:50 joint venture with Phillips Machine Tools India Pvt Ltd, a subsidiary of US-based Phillips Corporation.
In a regulatory filing, the company said the corporate guarantee agreement was executed on January 2, 2026, and has been extended on an arm’s-length basis. Jaykay Enterprises added that neither the promoter nor the promoter group has any interest in the transaction.
JK Phillips LLP operates in the machine tools segment and is a strategic joint venture aimed at tapping advanced manufacturing and precision engineering opportunities in India. The guarantee is intended to support the JV’s working capital and growth requirements.
The company clarified that the guarantee will be treated as a contingent liability on its books and does not have any immediate financial impact.
Corporate guarantees for joint ventures are commonly used to facilitate access to bank funding, especially for capital-intensive manufacturing businesses, analysts said, adding that such support reflects the promoter’s confidence in the JV’s business prospects.