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Ambar Singh Roy

Kolkata, March 5 Tinplate Company of India Ltd (TCIL) is working on plans to set up a 200,000 tones per annum (TPA) capacity cold rolling facility to feed its second electrolytic tinning line (ETL 2) scheduled to be commissioned by May this year. The proposal to set up the cold rolling facility or TMBP (Tin Mill Black Plate) line has been approved by the Board of Directors of Tata Steel and is estimated to entail an investment of Rs 450 crore.

The backward integration project will be implemented within the next two years. Tata Steel holds 35 per cent of the equity stake in TCIL.

Speaking to Business Line, Mr Bushen Raina, Managing Director of TCIL, said the capacity of the company’s Jamshedpur unit was being augmented from 180,000 TPA to 380,000 TPA at an investment of Rs 210 crore.

ETL 2 would go on stream by May this year. However, for some time thereafter, the TMBP required by ETL 2 would be sourced from the domestic and overseas markets. In the next two years, a new TMBP line that would meet the requirements of ETL 2 would be implemented at an investment of Rs 450 crore.

A substantial portion of the funds required for the project would be financed by Tata Steel.

Mr Raina said TCIL enjoys a 40 per cent share of the domestic market for tinplate. While the domestic market for tinplate was growing at 8-10 per cent per annum thanks to the growth in retail, TCIL hopes to augment its share of the domestic market for tinplate to 45 per cent within the next two years.

Towards this end, the company has set up a ‘Solutions Centre’ with its own lacquering and printing facilities at Jamshedpur. The Solutions Centre is focused on working together with brand owners and offers packaging that best meet the expectations of consumers. The centre is all set to achieve its rated capacity of 15,000 tonnes by March 2008 and account for revenue generation of Rs 100 crore in the fiscal.

According to Mr Raina, exports to South East Asia, West Asia and Europe account for 30 per cent of TCIL’s production. This is expected to go up to 40 per cent in two years. “We want to become a global player rather than remain a domestic player. Besides, export markets are more exciting and enable us to mitigate risks associated with volatility in domestic demand.”

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