Date : 8th May 2010

PRESS RELEASE

The Tinplate Company of India Limited (TCIL) which held its Board Meeting at Kolkata announced the financial results for the year ended 31st March 2010.

During the year under review, the Company’s performance was as under:

-    The profit after tax increased from Rs 34.80 Crs (Fy 0809) to Rs 67.15 Crs. In view of the improved performance, the Directors have recommended a higher dividend of Rs.1.50 (15%) per equity share as against Rs.1.25 (12.5%) per equity share in the previous year.  The dividend on Non-cumulative Optionally Convertible Preference Shares is recommended at Rs.8.5 per  share.

-     The sales and production increased by more than 20% compared to Fy 0809. The company continued its strategic thrust of maintaining approx 25% of its business as exports to specific end users in South East Asia, West Asia, Europe and neighboring countries.

-          The company has achieved robustness in its performance thru sustained pursuit of excellence initiatives and as a result has been able to face up to many adverse factors in its business environment over the past decade – reduction in customs duties, reduction in export incentives, depressed conditions specific to the global tinplate industry for 2-3 years, economic meltdown in 2008.

-     The Company has continued to focus on promoting tinplate consumption in India through organization of international tinplate seminars, organization of award nites for excellence in tinplate packaging, consumer research, engaging brand owners.

-     In its quest for leading the tinplate industry, the Company is also engaged in international research activities under the aegis of the International Tin Research Institute. Its proposal is one of two options currently under worldwide consideration for an alternative passivation system for tinplate.

-     During course of the year, TCIL was accredited with ISO 22000 Food Safety certification - a very important attribute considering that more 2/3rd of tinplate consumption is food related packaging.

 With the growth in economy, the government’s strategic thrust on processed foods industry, growth in retailing, construction, it is expected that the packaging industry will grow. Those industries with greater focus on development and alignment with food safety and standards will be in a position to grow and facilitate the growth of brand owners who use packaging media.

During the course of FY 0910, the Company had floated a simultaneous but unlinked Rights Issue of Rs 374.32 Crs consisting of Equity Shares and Fully Convertible Debentures to fund the Company’s on going expansion program at Jamshedpur including repayment of term loans and bridge loans taken for the same purpose. Consequent upon the Rights Issue, the holding of Tata Steel in TCIL has increased from 32% as at March 2009 to 45% as at March 2010.

The Company’s expansion program was started in 2005-06. As a first step, the company set up a lacquering and printing facility in that year so as to offer a differentiated value proposition to its customers. Thereafter, the company initiated installation of another tinning line of 200,000 tons per annum capacity so as to reach 379,000 tons per annum tinning capacity. With the stabilisation of the new tinning line, Company is now able to offer wider tinplate (ETP) and tin free steel (TFS) products in both coil and sheet form, both for domestic and export markets.

Presently, the company is engaged in setting up a cold rolling mill to make black plate coils, which will service the enhanced tinning capacity and reduce the company’s dependence on external procurement of black plates. The expansion program consisting of the tinning line and cold rolling mill is estimated at Rs 622 Crs and is likely to be completed by the end of the current financial year.

This year marks the completion of 90 years of the Company.  The Company had passed through many difficult periods in the past and is now poised for sustained growth in future.

Date : 8th May 2010                                                         Public Relations Department