TURNAROUND excellence:

THE TINPLATE COMPANY OF INDIA LTD.

BY:-
Arka mukherjee (09/mba/20)
Anirban ganguly (09/mba/21)
Anindya das (09/mba/31)

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The packaging industry in india
 The size of the packaging industry worldwide is
approximately $450 Bn.
 Out of the total volume the United States accounts for
about 24%.
 The contribution of paper & board to the packaging
industry is 36% followed by plastics.
 The growth rate of the packaging industry worldwide is
2%-4%.
 The Indian packaging market varies between Rs.280 billion
to Rs.300 billion.

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 Consumer packaging market in India is estimated to be around
Rs.130 billion and is highly fragmented.
 Bulk-packaging market in India is primarily in the small-scale
sector.
 Over the last decade plastics and printed cartons are eating up
most of the market share replacing metal cans and glass
bottles.
 Simultaneously flexible packaging has been replacing rigid
packaging. New concepts such as “single use unit pack” have
popped up.
 We can site an example such as the packaging of toothpastes
wherein ‘laminate tube’ has almost entirely replaced the
‘aluminium collapsible’ tube that was used previously.
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 Another burning example that we can site is that of the
PET bottles and jars. They entered the Indian market quite
spectacularly and recorded a growth rate exceeding 20%
per annum.

Uses of PET bottles:

 Packaging of mineral water,
 Edible oil,
 Soft drinks etc.

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Market for metal packaging
The market for metal packaging in India has been pretty
stagnant over the past 10-15 years.

Reasons for such stagnation are:

 High cost of raw materials.
 Shift to other packaging media.

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Some developments in the packaging industry
 ‘Aseptic packaging’ technology has replaced glass, rigid
plastics & loose vending in fruit juices, milk and edible oil
segments.
 Metal cans have been replaced by blow-moulded bottles
and jars in very large markets such as those of lubricating
oil and talcum powder.

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The tinplate industry
 In India, ‘tinplate’ accounts for about 6% among all other
packaging materials against 11% in the rest of the world.
 Most of the packaging needs in India are met by tetra packs, PET,
aluminium, glass etc.

Comparison of per-capita consumption of Tinplate in India with

a few other countries:
Country Per-capita consumption (Kgs)
India 0.3
USA 13
Japan 15
China 1
Indonesia 0.8

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Estimated demand for tinplate packaging in different sectors
in India
ITEM CONSUMPTION (‘000 GROWTH RATE (%)
tons)
EDIBLE OIL/GHEE 143 5
PROCESSED FOOD 39 25
DAIRY PRODUCTS 22 5
PAINTS 17 11
PESTICIDES 13 12

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Opportunities for using tinplate in the processed food segment in India

 The processed food market in India is set to grow at a very

fast rate in the coming years.
 At present this market consists of 33 million metric tonnes
of fruits.
 Only 3% of the fruits are processed presently.
 Approximately 30% of fruits and vegetables produced in
India get wasted owing to lack of processing.
 About 14% of 81 million metric tonnes of milk and milk
products are wasted.

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Installed Capacity of tinplate world over:
 Installed capacity of tinplate world wide is approximately
around 30 million tonnes whereas the world wide demand
is only about 12 to 13 million tonnes.
 This demand for tinplates is about 4% of demand for flat
steel products.
 The top 10 tinplate producers in world over produce nearly
60% of the global capacity.
 Some of these producers are also the largest producers of
steel in the world. US Steel, British Steel, NIPPON are a few
amongst them.

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Tinplate in the Indian market
 Tinplate is an intermediary product and so is quite price
sensitive.
 Moreover the Indian market is not considered to be quality
conscious. This has lead to import of trash or poor quality
of products (in this case tinplate).

Major producers of tinplate in India:

 Steel Authority of India Limited (SAIL).
 Tinplate Company of India Limited (TCIL).

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Tinplate promotion council
 TCIL set up the Tinplate Promotion Council (TPC) in the
year 2000-2001 under the chairmanship of Mr.B.L.Raina.
 The objective of TPC was to increase per-capita
consumption of Tinplate in India.
 The key customers and end users of Tinplate are the other
members of TPC.

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Tinplate as a product
Advantages of using Tinplate as packaging material:
 Tinplate is an environment friendly packaging material.
 A very wide variety of container shapes and sizes can be made
out of tinplate. This property of tinplate acts as an advantage
of using it as a packaging material.
 Tinplate is a material having a steel base. This enables the tin
cans to withstand the rigor of transportation. Additionally it
also gives protection against leakages and breakages.
 Tinplate packaging helps to keep food products in good
condition for a longer time thereby increasing the shelf life of
such products.
 Nearly 2/3rd of the tinplate produced across the globe are used
for packaging of food items.
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Classification of tinplate
Internationally, tin mill products are classified as follows:
 General line,
 Food grade tinplate,
 Tin free steel.
Further tinplate can be classified as Single Reduced or
double Reduced, based on the reduction process which
affects the hardness of the plate.

In India, tinplate is classified based on the end use of the

product.

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Classification of tinplate in India
 Oil Can Tin: Tin used for packaging of edible oils and
cashew.
 Non oil Can: Tin used for both edible and non-edible
products like battery.
 Open Top Sanitary Cans (OTSC): This type of tinplate is
used exclusively for packaging of processed food.

The market for the above mentioned products accounts

for about 40% of sales of tin mill products in India.

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The inception of tcil
The company (TCIL) was incorporated in the year 1920 at
Golmuri, Jamshedpur. The first tinplate rolled out on 18th
December, 1922.
TCIL was a joint venture between British company Burma
Oil Company Ltd (BOCL)and Tata Iron and Steel Company
Ltd.
The steel necessary for the production of tinplate was
supplied by TISCO. 1/3rd of the equity towards the
estimated project cost was contributed by TISCO and the
remaining by BOCL.
The management of TCIL was entrusted upon Shaw
Wallace & Co.
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 For 50 yrs. TCIL almost single-handedly built up the
Indian Tinplate Industry.
To keep pace with technological developments, TCIL was
the first to set up a combination line capable of producing
both Electrolytic Tinplate (ETP) and Tin Free Steel (TFS).
This plant, the first of its kind in India, was commissioned
in the year 1978 and commenced production in January
1979.
In 1982, Tata Steel bought the shareholding of Burma Oil,
the then major shareholder and took over the management
of the company.

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Vision & mission of tcil
VISION: “Be an Industry leader in value creation, servicing
packaging needs and creating a greener future”.

MISSION: “Service customer requirements of green

packaging by offering reliable, cost-effective & value added
tin mill products”.

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Strategic goals
Create and enhance value for the stakeholders
through Growth and Competitiveness.
Reach status of ‘supplier of choice’ for tin mill
products in Asia.
Establish as an exemplar in corporate
sustainability.
Create an exciting and safe work place for the
employees.

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Process of manufacturing
 PICKLING.
 ROLLING.
 DEGREASING.
 ANNEALING.
 TEMPER ROLLING.
 CUTTING AND PREPARING.

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DECLINE AND REGUVINATION(1970s-
80s)
T B S
I O W
S C C
C L
O

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4 Problems and their answers
 MAKING THE NET WORTH OF THE COMPANY
POSITIVE.
 REVAMPING PRODUCTION.
 ARRANGIN WORKING CAPITAL.
 IMPROVING INDUSTRIAL RELATIONS IN THE
COMPANY AS TCIL WAS KNOWN FOR INDUSTRIAL
RELATIONBS PROBLEMS TILL 1980s.

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SECOND DECLINE IN 1990
 SETUP OF CRM:- the net worth of TCIL was rs0.25
billion in 1992,but the company needed rs 2.6
billion to setup CRM.
Rs 800 mil. Through rights convertible debenture
isuue and the rest from FI’s at 18-19% interest.
 PLANNING TO TAKEOVER PICL:- it was a sick
company,but had five plants across the country.

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ERA OF MR.BUSHEN RAINA
TCIL Revival(1997-2002)
Mr.Mangal resigned and Mr. Bushen Raina took over as new
MD on 24th Aug.1997.
Mr.Raina stated that-” TCIL was undergoing a cash loss of
Rs.35 million and a book loss of Rs.50 million every
month at that time. I preferred the challenge to
turnaround TCIL over prestigious international
business assignment of TISCO.”
He had joined TCIL as MD in 1997 when the company was
reportingly a loss of nearly Rs. 50 million every month and its
networth has become nearly zero.
1997-98 nearly 20 managers and 18 engineers left the
organization to join a company in Gulf.
Tcil challenges faced
Financial challenge
Tin bar supply was unavailable
Operate ETP and CRM beyond rated capacity
Trained workforce departs
Financial challenges
Saving company from BIFR
Arranging funds for VRS employee
Working Capital Finance crisis
 Financial Revival
It was saved from BIFR as TISCO(Rs.660 million)
and Financial Institutions & Term Lending
Bankers(Rs.463.5 million) converted the
unsecured loan into “Non Cumulative
Optionally Convertible Preference Shares”.
Restructure the finance to reduce interest
burden.
Year 1999-2000 1998-1999
institution IDBI LIC IIB CANAR IFCI ICICI TISC UNI
A BANK O ON
BAN
K

Amt converted to 131 15.5 14.8 24.3 90.8 160.7 660 26.4
OCPS(Rs. In
Million)
TCIL approached FI in late 99 to reduce the existing avg.
interest rate of 19.2%p.a as interest rate in the country
declined in the previous 2 yrs.FI reduced interest rate to
nearly 17% p.a.
Term Lending institutions-Union Bank & Canara Bank
supportive.
Working capital bankers-CBI, SBI and UBI have not
been supportive
Dr.J.J. Irani resigned as Chairman of TCIL effective from
30th March1999 and Mr Shashi Prasad took took over the
charge.
TISCO provide loan of Rs.400million at 15.5%p.a to
implement VRS.
CLOSURE OF HDP(Hot dip plant)
TCIL stopped operations at HDP in feb.1999 when
TISCO stopped production of Tin Bars.
Experimentation with Galvanized sheet production
failed.
TCIL requested the govt. to permit closure on 1st June
1999 as per the provisions of Industrial Dispute Act.1947.
The state govt denied the permission to close HDP on
July29,1999.
Finally govt. allowed TCIL to close down its HDP plant
on oct8th 1999.
Implementation of vrs
Nearly 2800 employee were separated with VRS
compensation scheme .
Around 275 employee appealed to the high court
against the permission and have been contesting the
legal battle since then.
Improvement of operations-Mr.Raina
nominated project team of 5 members
Plant Original New % increase
capacity(tonne capacity(tonne
s/yr) s/yr)
Picking line 277000 277000 0
6 Hi mill 120000 150000 25
Degreasing line 107000 138000 28.97
Annealing line 106000 128000 20.75
Temper mill 300000 300000 0
Coil preparation 106000 135000 27.35
line
ETP 90000 120000 33.34
Initiative under taken
TCIL initiated 3 major initiatives to enhance capacity
utilization:
 Competing TBEM Award(Tata Business Excellence
Model)
 Implementing Total Operating Performance
Initiatives
 Implementing Total Productivity Management
 Implementing Total Operating Performance Initiatives

The change over time of Coils at CRM had reduced to 2.5 min from 4 mins
earlier.

The time for reversing the movement of coil in CRM (6 times roller of the
sheet) had reduced to nearly 30sec from 45 sec earlier in 3rd to 5th reversing.

1ST PASS 2ND PASS 3RD PASS 4TH PASS 5TH PASS 6TH PASS
DESIGNE 400 600 800 900 1000 1100
D
SPEED(M/
MIN)
REVISED 600 800 925 1000 1075 1125
SPEED(M/
MIN)
Revamping the marketing operations
Restructuring of Marketing Dept.
Price Initiative
Market Choice
Product development effort
SUSTAINABILITY
Sustainability has assumed significant importance and
urgency in the developmental context of India. As a
nation, India is being seen as a nation growing at a fast
pace and is at a trajectory of high economic growth
and, therefore, it is extremely necessary to focus on the
impact of such growth on society and the
environment. The economic growth will translate
sustainable development, only when it is Inclusive.
TCIL strongly believes on the three dimension of
sustainability as depicted in the diagram and
developed its objective.
Envisioning a larger societal purpose has always been
built in the fabric of TCIL’s culture and it seen no
conflict, between the two goals of enhancement of
share holder value and creation of societal value. The
challenge lies in outlining a strategy that takes into
account these goals in mutuality and synergistic
manner.
Environmental Value added
Economic value added
Social value added
Environmental Value added

Effective use of resource

Environmental strategy and policy
Product Biography
Environmental Management
Dematerialization
Economic value added

Strategic & Financing Planning

Knowledge Management
Quality Management
Risk & Reputation Management
Corporate Governance
Social value added

Stakeholder Management
Employment Opportunities
Social Standards
Corruption free
Health & Safety Standards
TCIL Undertaken Programme
Rural Development
 Volunteering
Health Camp
Education
Community Development
 Child Immunization Programme
AIDS Awareness Programme
Self-Employment Programme
 Literary Classes
 Family Planning Camp
 Tree Plantation
Dialogue with Senior Citizens
 Blood Donation Camps
Sports and Games
Cultural Programmes
Assistance to Socially Needy Persons
2005-2007
Business result
AWARDS FOR SUCCESS
J N Tata Award 2005- Best Associate Company
TCIL wins coveted ‘Teri Corporate Award for C S R (2003-04)’- .
TCIL conferred with the prestigious JIPM – TPM Award - .
TCIL Bagged the EEPC Award for Star Performer in 2004-05 for Non-
Ferrous Metals and Products -.
TCIL Bagged the Certificate of Export Excellence Award (2003-04) - .
CII EXIM Bank Award- Commendation for Strong Commitment to Excel
CII(ER) Certificate of appreciation for commendable effort in Human
Resource development in large sector
CII(ER) Work Skills Competition- 2nd Position in Instrument Mechanic
Trade and Industrial Electronics Trade
3rd Best Processes Display at BE Convention, Goa awarded by TQMS
ICQCC & CII QC Convention Recognition to "Akarshan" QC Team