Tinplate Co. to Invest 2,000 Cr. for Expansion in Jamshedpur
Kolkata-headquartered Tinplate Company of India Ltd. (TCIL), a Tata Steel subsidiary, will be investing Rs. 2,000 crore towards the expansion of its operations in Jamshedpur.
The groundbreaking ceremony for TCIL’s expansion project was held on 3rd April 2023 and was performed by Jharkhand’s Chief Minister.
TCIL Envisions Capacity Addition of 3,00,000 TPA by 2026 in First Phase of Expansion
Tinplate Co.’s investment in Jamshedpur marks the first phase of its planned expansion and will add 3,00,000 Tonnes Per Annum (TPA) to its existing manufacturing capacity of 4,15,000 TPA by 2026. Therefore, in the next 3 years, the company’s aggregated production capacity will be 7,15,000 TPA.
While being interviewed by Moneycontrol, Mr. R.N Murthy, Managing Director of TCIL said, “We have reached our full capacity after our debottlenecking. So it’s the right time to increase capacities”.
The capacity addition seeks to enhance the degree of automation in the company’s manufacturing process by minimising human-machine interfaces.
Speaking at the groundbreaking ceremony, Mr. RN Murthy said, “This expansion is a significant milestone in the company’s growth and commitment to the state. We are committed to partnering with the Jharkhand government and local communities to promote economic and social development of the region.”
Expansion Strategic for TCIL’s Packaging Steel Segment
Maintaining Tinplate Market Share
Tinplate Company has stated in its FY-22 annual report that this expansion is strategic to maintain the company’s market share. The report explained that by 2024, Tinplate demand in India is expected to grow by 4-6% to between 7,70,000 TPA to 8,00,000 TPA. Therefore, TCIL’s CAPEX is vital for the company.
Tinplate Co. enjoys a market share of 47% in India when it comes to the packaging steel segment. Moreover, during the 2021-22 fiscal, 24% of TCIL’s produce was exported to countries in Europe, the Middle East, and South East Asia.
Higher Domestic Demand After Curbing Low-Quality Tinplate Imports
As per Government of India’s Steel and Steel Product Quality Control Order (SSPQCO) dated 17th July 2020, the Government has sought to prevent the use of low-quality Tinplate for food packaging, which could lead to various health hazards.
An article in the Hindu Businessline dated 20th July 2021 written by Mr. Ashok Kumar Ghosh, Chairman, Indian Tinplate Manufacturers Association, stated that India imported 35-40% of its domestic Tinplate requirement. Out of this, about 80% of imports were of low quality, which used to get dumped into India after being rejected by developed nations.
Curbing these imports has encouraged Indian Tinplate manufacturers to ramp up their capacity in order to supply high-quality Tinplate for domestic consumption. Therefore TCIL’s capacity addition assumes strategic importance for the company.
About Tinplate Company of India Ltd.: Tinplate Company of India Ltd. was incorporated in 1920 and is India’s first Tinplate manufacturer. It began manufacturing Hot Dipped Tinplate in 1922, and the production of Electrolytic Tinplate in 1979. TCIL has a pan-India footprint, with 7 marketing and sales offices and 12 stocking points. The company’s sole manufacturing facility in Jamshedpur is equipped with Cold Rolling Mills (CRMs), Printing & Lacquering Lines, and Electrolytic Tinning Lines (ETLs).