| Tinplate chairman Sashi Prasad in Calcutta on Saturday. A Telegraph picture
Calcutta, July 26: The Tinplate Company of India Ltd (TCIL) has decided to expand production capacity for electrolytic tinplate to 1.45 lakh tonnes per annum from the existing one lakh tonne.
The decision has been taken after the tinplate market witnessed an upswing — both in domestic as well as international markets — over the past two years helping the company to register a net profit for the second successive year.
The total investment for capacity expansion, which will be completed in two years, will be around Rs 36 crore. The investment will be made from internal accruals.
TCIL has registered a profit of Rs 2.02 crore for the fiscal ended March this year against a marginal profit of Rs 1.02 crore in the previous year.
TCIL chairman Sashi Prasad, while attending the company’s 84th annual general meeting here today, said the well focussed strategies towards marketing and cost control have started paying rich dividend already and the company is poised for a big leap forward in the near future.
“The company’s long term position on exports provides an opportunity to compete with the best in the world. Efforts towards reducing the debt servicing burden resulted in interest cost being lower by over Rs 3 crore,” he said.
As a step towards recasting the balance sheet, the company has obtained shareholders’ approval for setting off the existing share premium account against accumulated losses which stood at Rs 140 crore as on March 31 this year.
This exercise is expected to bring down accumulated losses to around Rs 65 crore. The company has also achieved a record net profit of Rs 3.02 crore in the first quarter of the current fiscal against a mere Rs 30 lakh in the corresponding period last year.