 "Tata group-owned TCIL to consolidate domestic business in 2016-17")
Although exports will continue in the range of 15-20% of total sales, the company, this year is focussing on building long-term client partnerships domestically.
During 2014-15, the company's topline took a hit by 8% with total sales clocking at Rs 833.85 crore as against Rs 911.16 crore in the year-ago period.
"The overall scenario in India remains softer as the steel industry has taken a hit," the company's chairman Koushik Chatterjee told mediapersons here on the sidelines of its Annual General Meeting.
As per the company, the continuation of the government's policy actions which resulted in an inverted duty structure in the steel sector had put stress on the margins of downstream industries like tin plate.
"The volatility in the forex rates as well as tarrif and non-tarrif barriers in importing countries has added further uncertainty on the exports front," Chatterjee, who is also the group executive director of finance and corporate in Tata Steel said.
Tata Steel owns 74.96% in TCIL, which commands a 35-40% market share in this industry segment.
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Nevertheless, currency volatility under a globally stressed steel demand condition and long-term commitments towards its clients has prompted the Tata Group-owned company to focus on the domestic front.
"We need to debottleneck as well as rationalise the cost structure," he added, indicating that the 2016-17 fiscal year will mean a year of consolidation for the company.
Justifying the company's decision, its managing director, Tarun Daga, said: "There are long-term commitments in India which we cannot ignore. We will focus on the domestic market."
It majorly exports to markets in South-East Asia, Midlle-East, Africa and the EU.
In the last fiscal year, despite a fall in its revenue, the company cut down its expenses by 15.16%, which resulted in the tin plate producer making a net profit of Rs 73.38 crore as against Rs 44.60 crore during 2014-15.
However, post adjustment of balance brought forward from the previous year, its cash balance fell marginally to Rs 92.17 crore as compared to Rs 93.34 crore in the 2014-15 period.
According to the company, the central government's decision to allow 100% foreign direct investment (FDI) in the food packaging sector will boost the domestic packaging industry. Proper implementation of Food Safety and Standards Act will help promote the use of quality tin plate in the packaging industry.