JUNE 20249JK TYRE TO INVEST IN EXPANDING THEIR PRODUCTION CAPACITYDELHIVERY ANNOUNCES PARTNERSHIP WITH SUGAR COSMETICS AS ITS LOGISTICS PARTNERJK Tyre and Industries has announced a sig-nificant investment of Rs 1,400 crore to ex-pand its production capac-ity for Truck and Bus Radials (TBR), Passenger Car Radials (PCR), and All Steel Light Truck Ra-dial (ASLTR) tyres. This investment, planned over the next 18-20 months, aims to meet the growing demand from automak-ers.The funding for this project will be sourced through Rs 730 crore in debt and the remaining amount through equity and internal accruals. Earlier in FY24, JK Tyre raised Rs 500 crore through a Qualified Institutional Placement (QIP) to support the upcoming capital expenditure.Chairman and Managing Director Raghupati Singha-nia stated that this investment will notably increase the company's PCR capacity by 16percent, with minor in-creases in TBR capacity. Currently, JK Tyre's total produc-tion capacity stands at nearly 34 million units per annum, including 15 million PCR units and 4 million TBR units, with the remainder consisting of Truck Bus Bias (TBB) tyres, as well as tyres for two/three wheelers.The company plans to allocate around Rs 1,000 crore towards expanding PCR capacity, while approximately 380-390 crore will be dedicated to enhancing the out-put of Off The Road (OTR) and TBR tyres. Additionally, JK Tyre intends to introduce tailored tires for the Sports Utility Vehicle (SUV) aftermarket segment. Delhivery, a promi-nent logistics company, announced a partnership with SUGAR Cosmetics to lead its pan-India B2B logistics operations. This collaboration ex-tends their existing relationship, as Delhivery has been managing SUGAR Cosmetics' direct-to-consumer (D2C) express parcel shipping.In an exchange filing, Delhivery highlighted that its extensive network, technology-driven solutions, and express Part Truck Load (PTL) services will facilitate faster B2B consignment delivery. This efficiency will en-able SUGAR Cosmetics to better serve its retail partners across India.Amartya Guha, Vice President of Supply Chain at SUGAR Cosmetics, commented on the partnership, emphasizing the brand's rapid growth and the need for a logistics partner that understands the demands of the dig-ital native generation. Varun Bakshi, Head of Delhivery's Express Part Truckload business, noted that brands with an omnichannel strategy, like SUGAR Cosmetics, sig-nificantly benefit from their express PTL service for rapid stock replenishment.SUGAR Cosmetics, founded in 2015 by Vineeta Singh and Kaushik Mukherjee, has quickly scaled to become India's third-largest color cosmetics brand. This partner-ship with Delhivery is expected to support its continued growth and enhance its supply chain efficiency. TOPSTORIESJUNE 20249
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