Tinplate lines up Rs 200 cr investment for capacity expansion

Kolkata, Jul 11 (UNI) Tata Group company the Tinplate Company of India Ltd (TCIL) has lined up an investment of over Rs 200 crore to augment its tinplate capacity to 380,000 tonne per annum from the present level of 180,000 tonne per annum at its existing plant at Jamshedpur by April 2008, TCIL Chairman B Muthuraman said today.

'' We also have plans to set up a cold rolling mill. The matter is under discussion and nothing has been finalised yet, '' Muthuraman said after the annual general meeting of the company.

The capex would be generated through internal accruals and debt.

He said the company is focused on increasing market reach by providing cost-effective, innovative and consumer-convenient packaging solutions for edibles.

'' We are working on the matter. Actually our focus is to catch the younger generation, '' he added. For the purpose, TCIL has set up a 'solution centre' equipped with modern printing and lacquering facilities in December, 2005.

The Chairman said TCIL was keen on continuing its strategic thrust on exports to specific end-users in niche markets in South-East Asia, West Asia and Europe. In 2005-06, about 25 per cent of TCIL's revenue was accounted for by exports.

TCIL, which stood at Rs 140 crore some years ago, had wiped out all accumulated losses in 2005-06. TCIL earned a total income of Rs 415.39 crore in 2005-06, up from Rs 263.48 crore in 2004-05. In 2005-06, the company clocked a profit before tax of Rs 39.50 crore even as the profit after tax, including deferred tax credit, was Rs 48.95 crore.

TCIL, which holds about 40 per cent share of the Indian market for tinplate targets to capture about 60 per cent market share by expanding capacity.

The Board of Directors of TCIL has declared a 12.5 per cent dividend on both non-cumulative optionally convertible preference shares and equity shares for 2005-06. The dividend had been declared after over 10 years.

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