Financial Daily from THE HINDU group of publications
Thursday, Apr 27, 2006
Tinplate to pay 12.5 pc; plans Rs 210-cr expansion
On a turnaround
The company had wiped out all accumulated losses.
It earned a total income of Rs 415.39 crore in 2005-06.
TCIL has firmed up plans to augment the capacity of its manufacturing plant at Jamshedpur.
Kolkata , April 26
There is good news for shareholders of Tinplate Company of India Ltd (TCIL). The company will soon be on the dividend list after 10 long years.
The board of directors of the company, which met in Mumbai on April 25 to approve the company's annual accounts for the year ended March 31, 2006, has recommended a dividend of 12.5 per cent on both equity shares and non-cumulative optionally convertible preference shares.
Addressing a news conference here today, Mr Bushen Raina, Managing Director of TCIL, said the company had wiped out all accumulated losses which stood at Rs 140 crore some years ago and was on the growth path once again. TCIL earned a total income of Rs 415.39 crore in 2005-06, up from Rs 263.48 crore in 2004-05. In the last fiscal, 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.
Mr Raina said that, having effected a turnaround, the company would now embark upon a path of growth and transformation aimed at increasing market reach and leading the value chain for providing cost-effective, innovative and convenient packaging solutions for edibles. The company has set up a Solutions Centre with modern printing and lacquering facilities in Jamshedpur to provide value-added tinplate solutions to its customers.
TCIL has firmed up plans to augment the capacity of its manufacturing plant at Jamshedpur from 180,000 tonnes per annum (tpa) at present to 380,000 tpa by 2008.
The proposed expansion will entail an investment of Rs 210 crore, which would be generated through internal accruals and debt, Mr Raina said.
According to him, TCIL has a 40 per cent share of the Indian market for tinplate, which is estimated to be 350,000 tpa.
The idea in the years ahead was to augment the company's share of the Indian market for tinplate to 60 per cent.
Besides, TCIL was keen to continue 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.
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