Jamshedpur, Sept. 5: The Tinplate Company of India (TCIL) has undertaken a Rs 50-crore expansion programme to increase the production capacity of the unit.

The expansion programme, which kicked off last year, would be completed by end of 2004.

Last year, the company had spent Rs 10 crore under the expansion plan and in the current fiscal the TCIL management has decided to spend another Rs 18 crore under the same programme. The remaining amount would be spent next year.

“This expansion programme would help the company augment tinplate production capacity to 145,000 tons per annum,” TCIL managing director B.L. Raina said here today.

According to Raina, Nippon Steel of Japan is helping TCIL in the expansion programme of the company.

“We have appointed Nippon Steel as our consultant to implement the expansion plan,” Raina said.

Accoring to him, the expansion programme has been planned in such a way that it does not affect the current production of the company or any of the ongoing projects.

The expansion programmes includes the modernisation of various facilities at the electrolytic tinplate (ETP) line and the capacity increase of various cold rolling mill (CRM) units.

“The plan also includes the replacement of shearing and product classifier facilities at the ETP line as well as additional annealing (strengthening) capacities and other auxiliary facilities at the CRM,” the managing director said. He added that FBC boilers along with electrostatic precipitators would replace the coalfield boilers.

Raina, who played a pivotal role in improving the conditions of the ailing company, said the expansion programme would not only increase the company turnover but also improve the product quality and increase TCIL profits.

“We have not borrowed from financial institutions to undertake our expansion programme. TCIL has reached a stage where the company can flow its own funds,” he said. He added that after the completion of the expansion programme, the company would explore new domestic and international market opportunities.

For the past two fiscals, TCIL has been making net profits after incurring losses for five years from 1996-97. In the first quarter of the present financial year it earned a net profit of Rs 3.02 crore as compared to Rs 2 crore earned by the company in 2002-03.

Raina reiterated that the company’s performance has been constantly improving. “Be it exports or financial improvements or internal changes in the company, we are making positive improvements each day,” he said.

Raina said the Tata group had accorded EP-BP (brand equity-business promotion) status to TCIL recently.

“This would help us market our products. The Japan Institute of Plant Maintenance has permitted TCIL to formally start total productive maintenance from May this year. This would help us improve the company,” he said.