Tinplate Company of India gained 2.4% to Rs 228 after the company's board approved an expansion plan of Rs 1,800 crore.
Tinplate Company's board of directors approved an expansion plan, by putting up an additional capacity of 3,00,000 TPA at Jamshedpur. The estimated capital expenditure towards the project is Rs 1,800 crore and the project is expected to be completed in about three years. The time period of about three years is assuming that the company is able to obtain expeditiously all regulatory approvals from appropriate authorities concerned. Any delay in obtaining regulatory approvals or events like the COVID-19 may impact project timeliness.
The company's existing capacity is 3,79,000 TPA located at Jamshedpur with the existing capacity utilization above 90%. The company intends to finance the project through a combination of internal accrual and/or external funding, including seeking financial support from the promoter, Tata Steel.
The company said it is the market leader in the industry with a market share of approximately 40%. The company is operating at close to its rated capacity and therefore needs to expand its capacity to meet the growing needs of the market.
Tinplate Company of India is an associate of Tata Steel. The company manufactures various grades of electrolytic tinplates, tin-free steel sheets and full hard cold rolled sheets (FHCR) used for metal packaging. Tinplate Company is in the business of providing cost effective metal packaging solutions for processed edible products.
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