SHANGHAI, May 11 -- The Tinplate Company of India Ltd reported a record pre-tax profit of Rs 101.5 crore (US$23 million) in the financial year to March 2010 and expects to complete an expansion in tinplate capacity to 379,000 tpy by the end of the 2010-2011 financial year.
The company's total investment in the expansion was estimated at Rs 625 crore (US$ 139 million) of which around Rs 200 crore had already been spent. It includes the construction of a cold-rolling mill to produce blackplate as well as a new 200,000 tpy tinning line. The funding was partly by way of rights issue (Rs 374 crore) completed in September-October last year and the balance through loans. Following the issue, the Tata Steel's stake in the company increased from 32% to 45%.
TCIL Managing Director Tarun Daga told a press conference that the sales and production of the company increased by 20% in the last year. Talking about the market outlook, he said that demand from the packaging industry was picking up, thanks to the Indian government's strategic thrust on the processed foods industry and rising exports. "Our company will continue its strategic thrust of maintaining 25 to 30 per cent of its business as exports to specific end-users in South-East Asia, West Asia, Europe and neighbouring countries," he said.