Tinplate Company of India
Tinplate Company of India
Tinplate Company of India
History
The Tinplate Company of India Ltd. Was established in 1922, in Jamshedpur, India, in order to manufacture tinplate to meet the demand for 15-litre tin cans for packing kerosene.
The company was jointly held by three companies making tinplate cans: Burmah Shell, Shaw Wallace, and Tata Steel.
The Product
Tinplate is a low-carbon steel, coated with tin and used for packaging (i.e. suitable for any food or non-food product requiring packaging).
Competition
Other materials used for packaging such as;
Plastic, PET(polyethylene terephthalate), aluminum, blackplate, Tetra Pak and paper.
Customers
TCIL supplied tinplate to manufacturers in four major product segments; Edible oil cans Soft drink crowns Processed food Batteries
2. Secondary grade tinplate banned for food packaging in a number of countries, as it could cause food to become carcinogenic. Used for packaging non-food products, such as paints and lubricants
The tinplate is used to manufacture cans for edible oil (cooking oil)
12,000
198,000
Non-food sector
Food sector
17%
70%
Edible Oil
Processed Food
Soft-drink Crown
Battery
Miscellaneous
Supply Chain Participants for tinplate in edible oil cans and packaged goods
Tinplate Supplier Can Manufacturer Edible Oil / Packaged goods Manufacturer
Consumer
Personal selling was the dominant promotion method used by all companies in all segments.
Loose Market
A distinguishing feature of the edible oil market was the buying behavior of consumers. They bought in loose quantities that were not standardized by size and were not branded.
Threats
Lowering of customs tariff (duty) Household units becoming smaller Regulating standards lacking enforcement i.e. lack of monitoring mechanisms
Coca-Cola and Pepsi were the two brands that dominated soft drink industry.
Battery manufactures bought about 90% of their tinplate from foreign companies.
Cont.
Edible oil in comparison with other segments
Processed food industry used tinplate for packaging foods such as fruit pulp and juices, mushrooms, coffee etc. Nestle and Broke Bond are the well known companies, buying 22 % of their cans from TCIL.
Competition to TCIL in the edible oil was largely from the unorganized companies i.e. having 54% of the market.
TCIL
FRITZ
SUKAI
TMN
SAIL
45% 45%
AT ISSUE!
Should TCIL continue in the edible oil segment? How can TCIL compete with foreign companies?
Thanks