Tinplate to set up Jamshedpur unit

MUMBAI: The Tinplate Company of India (TCIL), an associate of Tata Steel, will set up a greenfield project in Jamshedpur, Jharkhand with a capacity of two lakh tonne.

Speaking to the press on the sidelines of the Globoil India conference in Mumbai, TCIL managing director Bushen Raina said, “We plan to invest Rs 220 crore in the project and the plant will be operational by April ‘08.” The company, which has a market share of 45% in the tin coated and tin-free steel sheet segment, plans to double its tin plate capacity of 1.8 lakh tonne to 3.8 lakh tonne.

TCIL’s tinning line products contribute about 90% to its turnover, a bulk of which is generated from the domestic market. The balance accrues from exports to West Asia, South-East Asia and countries neighbouring India. “Currently, we export around 30% of our production. After the new plant is operational, we will increase our exports to over 40%,” said Mr Raina.

Tinplate packaging is also gaining popularity in the domestic market. In India, tin plate is mainly used for packaging in categories, including edible oil and cashew, processed food and non-food materials like paints, aerosols and chemicals.

The total market size of tin plate packaging is estimated to be around three lakh tonne and is growing at about 5% per annum. It is estimated to increase to about 10% over the next few years. The company sources 90% of its raw material from Tata Steel, and the rest from SAIL and through imports. SAIL and TCIL are the only two companies which produce tinplate in India. Currently, SAIL produces around 60,000 tonne annually.

TCIL also has a technical agreement with Nippon Steel of Japan to develop cost-effective solutions for food processors and packers as well as end customers. Japan is estimated to be the largest consumer of tin in the world. The other major consumers are China and the US. The demand for tinplate usually outstrips supplies.