Press Release
The Tinplate Company of India Limited has
initiated capacity enhancement plan
The tinplate Company of India Limited (TCIL) has
initiated capacity enhancement plan at an estimated cost of about Rs.50Crs. to augment
tinplate production capacity to 145,000 tons per annum. This program envisages
modernization of various facilities at the Electrolytic Tinplate (ETP) line and specific
capacity increase of the various units of the Cold Rolling Mill (CRM). The plan includes
replacement of shearing and product classifier facilities at the ETP line as well as
additional Annealing capacity and other auxiliary facilities at the CRM. In addition, as a
pro-active measure towards a cleaner environment, TCIL is replacing its coal fired boilers
with FBC boilers along with electrostatic precipitators. The entire capital expenditure is
expected to be financed internally without resulting in additional borrowings and is being
planned in such a manner that there will be no disruption in normal production of its
various units.
The Financial Institutions have also agreed to
reduce the rates of Interest on Term Loans and to swap some of the high costs debts with
low cost Non Convertible Debentures. These will result in a significant decrease in the
interest costs, which were hitherto disproportionate to the scale of its operations. In
addition to reducing interest costs, the company will also be repaying the principal
amounts @ Rs 25-30 Crs per annum against its loan portfolio - this will also help to
gradually improve the debt-equity ratio. As a step towards re-casting the Balance Sheet,
the company has obtained shareholders' approval for setting-off the existing Share Premium
Account against accumulated losses (Rs 140 Cars as on 31St Mar2003). This will bring down
accumulated loose to approx.Rs65 Crs.
It may be recalled that TCIL had sustained a net
profit status for the second year running in 2002-03, starting in 2001-02, after incurring
losses for five years during 1996-97 through to 2000-01. The turnaround in its performance
is becoming robust as can be seen from the fact that the company earned a net profit of Rs
3.02 Crs during the first quarter ended 30th June 2003 compared to Rs 2 Crs earned during
the full financial year 2002-03.
Recognising the company's performance, the Tata
Group had accorded the BE-BP (Brand Equity Business Promotion) status to TCIL at the
beginning of 2003. The company's environmental management systems were certified to ISO
14001 in April 2003. In addition to the numerous continuous improvement initiatives
sustained, the Japan Institute of Plant Maintenance permitted TCIL to formally kick-off
Total Productive Maintenance (TPM) in May 2003.
The pursuit of business excellence under the Tata
Business Excellence Model (the company was awarded the Active Promotion Award under this
Model at the Group's JRD QV Award function on 29th July 2003) has transformed the company
and the company is confident of achieving breakthrough growth in years to come. |
