Calcutta, May 8: Tinplate Company of India will start production from its cold rolling mills by the end of this financial year. The company, majority owned by Tata Steel, is setting up a plant of 200,000 tonnes capacity in Jamshedpur.
The company will invest Rs 400 crore to build the facility, aimed at providing a sustained supply of black plate the raw material to make tinplate which is used as packaging material. Tinplate has already expanded the unit where black plate is converted into a finished product. In the absence of the back-end integration by way of a cold rolling mill, it is partially importing the raw material.
We hope the expansion will give stability to our business, increase volume and protect margins, Tarun Daga, managing director of Tinplate, said.
The company nearly doubled its profit during the last financial year. Net profit increased 91.4 per cent to Rs 67 crore compared with Rs 35 crore in the previous fiscal. Net sales of the company grew 33.9 per cent during 2009-10 to Rs 436.75 crore compared with Rs 326.50 crore in 2008-09.
However, the firms net profit for the last quarter of 2009-10 dipped to Rs 7.40 crore from Rs 21.88 crore in the same period of the previous fiscal.