Tinplate - Blasting through volumes, cyclically

Hey everyone,
I feel like this Tata Steel subsidiary needs to be studied, separately.
(Fetched info from Screener.in, researched a bit about tinplate market)


Tinplate Company of India Limited (TCIL) is a producer of tin-coated and tin-free steel sheets in India. It is a subsidiary of Tata Steel Limited. [2]


The tinplate manufactured by the co is used for packaging of edible oil, paints & chemicals, processed foods, battery etc. It has categorised its products into:
Electrolytic Tinplate (ETP), Double Reduced Tinplate, Soft Double Reduced Electrolytic Tinplate.
Tin Free Steel (TFS)/Electrolytic Chromium Coated Steel (ECCS) - Single and Double Reduced Tin Free Steel
Value-added/downstream products - Lacquered/Coated ETP, Printed ETP, PAXEL cans etc. [3]

Geographical Split
Exports: 14% in FY21 vs 24% in FY18
Domestic: 86% in FY21 vs 76% in FY18[4][5]

Market Share
The company is the largest producer of tinplate in India. It has 39% of the domestic tinplate market share and 52% of the prime tinplate market share. [6]

Manufacturing Capacity
The Co is the largest manufacturer of tinplate in India with a capacity to produce 0.38 MTPA at its plant in Jamshedpur, Jharkhand. TCIL had doubled its tinplate manufacturing capacity to 0.38 MTPA in 2008-09 and had also implemented a 0.2 MTPA cold rolling mill project in December 2011. [7]
Currently, the tinplate capacity is being expanded by 300,000 tonnes at a capital expenditure of Rs 2,254 crore. After the completion of a three-year project starting this FY23, TCIL’s capacity in Jamshedpur will go up to 0.68 MTPA from the present level of 0.38 MTPA.
Tata Steel has set a target of 1 million tonnes tinplate capacity by 2030. [8]

Strong Parentage
The Co is supported by the strong parentage of Tata Steel Ltd (TSL) along with presence of top executives of TSL on the board of TCIL. Moreover, the company has access to the research base, technology and global best practices of Tata Steel Europe Limited (erstwhile Corus), a leading tinplate producer in Europe. [9]
Also, the promoter holding is at the max allowed, 75%

Product Innovation
The company developed India’s first branded 15 kg edible oil can, PAXEL, which has made way for opportunities to directly engage with edible oils brands as Service and Solution Partners (SSPs). As pioneers of PAXEL, the firm offers several benefits, including on-time deliveries, maintaining product stocks for peak demand periods and servicing at competitive prices. [10]

Downstream Products
The Co has launched several new stock keeping units under its downstream products division through extensive trials of printed and lacquered products at its Solution Centre. It has also been able to onboard new customers. [11]

The Co is working with regulatory bodies to develop packaging standards and increase demand of prime tinplate in the country. The Co is advocating the implementation of Steel & Steel Products’ Quality Control Order which will significantly reduce imports of cheaper quality tinplate. [12]

Growth triggers

  • Demand for tinplate and tin-free steel from the domestic industry itself is about 700,000 tonnes annually. Only two domestic companies manufacture the material(TCIL and JSW Steel).
  • Recent Bureau of India Standards(BIS) order mandates use of certified tinplate and tin-free steel for cans, easy-open ends and peel-off ends for packaging. [14]. TCIL has been an advocate of high-quality tinplate and this may also help them grab market share from unorganized sector.
  • India imports 35-40% of its requirement of tinplate, much of it of low quality finds its way into food packaging. Nearly 70% of tinplates used in India are for packing foods and 80% of imports by India are non-prime and low quality. Again, TCIL manufactures only high-grade tinplate.[15]
  • China announced tax rebate cancellation on tinplate.[16] This may lead to stronger positioning of this Indian company.
  • According to reports, 57% of the market’s growth will originate from APAC(Asia Pacific) region during the forecast period. China and India are the key markets for tinplate in APAC. [17] TCIL is already well-positioned in the domestic markets.


  1. The biggest risk here is cyclicality due to raw material prices(Steel mostly). The material costs as a % of expenses keep fluctuating, making the OPM range from 5% to 20%.
  2. The government of India had sought to prevent the use of low-grade tinplate in food cans through the Steel and Steel Product Quality Control Order (SSPQCO) dated 17 July 2020. The implementation has, however, been deferred twice.[18] This may slow down the expected growth.

Market outlook


Good articles/summaries I found:

Views may be biased/personal. Also, this is my first topic, feel free to add to or correct my points. I know this lacks much of promoter info and concalls
Disc- Invested ~6% allocation, looking to add more(~370 avg.)


The title is so because I noticed in P&L that every new cycle starts with a higher net profit, this time a much higher one.
2012-2014: 28cr
2015-2016 is lumpy
2017-2018: 41cr
2019-Present 2022: 92cr


Do you happen to know where the tin itself is being sourced? Local mines or imported? That would add colour to pricing strengths as compared to imports of tin for plating.

Hi, I guess I forgot to mention the main part about what tinplate is.
It’s a steel sheet, coated with tin with the help of electrolysis. Tin accounts for >1% in this composition, where steel is dipped in tin. So steel is the main raw material
Check this article, it says “In case of electrolytically coated tinplates, the tinplates are produced in coil form. The tin coating mass varies from 0.5 gsm to 34 gsm, representing less than 1 % of the steel weight”(gsm=Grams per sq. metre)

Since this is a Tata Steel subsidiary, I found out that Tata Steel does indeed import a lot of coal(~70% of the 8.3+4= 12.3 Mn Tonnes supply). 70% of steel produced uses coal. So yes, the colour for pricing strength here is red for the company, it is a risk. I’ll add it.

Source: Tata Steel supply chain website

However, if steel is the raw material and steel prices are cooling off(like now), I believe it would be beneficial to the company as the margins may get better. Correct me if I’m wrong.
To prove this, I noticed that when steel futures prices hit lows, material cost as a % of expenses decreases, like in 2016-2017. With the increase in those prices, material cost % also increased significantly.

  1. Very interesting that their manufacturing costs has come down from 35% to 4% and employee cost has come down from a peak of 15% to 3% . Any details on how they have done this.

  2. Any thoughts on the market size and how the market size has changed over the years



  1. In 2013-17, the co. focussed on consolidating production, enhancing capacity utilisation and improving the health of existing mills(here). I think the operating leverage kicked in. The same MAY happen after the 300,000 tonnes Capex goes live this FY and contributes to the production.
  2. Global Tinplate Packaging Market is estimated to be US$ 201.06 billion by 2030 with a CAGR of 4.1% during the forecast period.
    Tinplate Packaging to Witness Heightened Demand, on Back of Suitable Replacements, Market to Register CAGR of 4.2%
    These may help for the future but I couldn’t find past data, everything is behind a paywall :slight_smile: Hoping somebody else can help.

Notes from FY22 AR:

// TCIL pioneered Tinplate manufacturing in India since the 1920s and completed 100 years on January 20, 2020. Manufacturing facility at Jamshedpur with an installed capacity of 3,79,000 MTPA per annum. In FY 2020-21 the total apparent domestic consumption of tinplate in India was around 630 KT. ~47% of this demand was serviced by TCIL, while domestic competition serviced ~31% and ~22% was met through imports. Company sells ~ 80% of volumes in the domestic market and the rest is exported. The Company exported 92KT (~24%) of its production. Exports were 33% higher as compared to the previous year (69 KT) achieving the highest ever exports in a year. The tinplate demand is expected to increase by 4-6% and reach around 770KT-800KT by 2024 due to its green credentials. However, Tinplate continues to face challenges from other packaging mediums in terms of design, consumer convenience & cost.

// Sole supplier of Tin free steel in India à Could serve the rise in demand for crowns as beer demand picks up.

// Operating at close to 100% capacity → Plan to increase our capacity by additional 3,00,000 MTPA at our existing location in the next few years → To meet the growing market requirements both in terms of volume and enhanced product range. → Est. capital expenditure of ~ ₹ 2,254 crore, plan to use internal accruals and debt

// During FY 2021-22, demand for Tinplate in domestic market increased by 4% whereas imports reduced by 33% compared to previous financial year owing to Steel & Steel Products’ Quality Control Order (SSPQCO).

// Recent imposition of a 15% tax on exports from May 22, 2022, by the Government of India, will significantly impact price conditions in India given the fact that India is now a net exporter of tinplate. In addition, imports are expected to increase in H2 FY 2022-23 as more Bureau of Indian Standards (BIS) certifications are awarded to overseas suppliers.

// Over the long-term, however, we continue to be bullish on future demand in our primary market. → per capital consumption of Tinplate in India at 0.55 kg/ capita is substantially lower when compared with the other countries like China (4.75 kg/ capita), Thailand (7.25 kg/ capita) and Malaysia (9 kg/ capita).

// The Company sustained its efforts to move closer to Edible Oil brand owners by way of supplying the superior quality branded 15kg/lit oil can – PAXEL, through its Service &Solution Partners (‘SSPs’) and further improved its footprint in competitively intense Western markets with the supply of PAXEL manufactured in Nagpur. PAXEL sales reached highest ever levels of ~ 117 lakh cans (76 lakh cans in FY2020-21 vs 89 lakh cans in FY 2019-20) despite lower demand for bulk packs (15 kg/lit) in certain months due to lower Out-of-Home (OOH) consumption which includes hotels, restaurants, caterers, canteens, bakeries, roadside dhabas and fast-food joints.

// Reduction in cheaper non-prime tinplate imports by 33% (138 KT in FY 2021-22 vs 205 KT in FY 2020-21) opened prospects for your Company to consolidate its market share and improve margins, through significant growth in tinplate sales to Paints, Aerosol and Processed food end use.

Product Details:


I have a basic question. Is Tinplate a structural play or cyclical (because of its dependence on steel cycle)? Also, given its low PE and the following potential tailwinds (listed below), is this a rerating candidate?
• Its plans to increase capacity by additional 3,00,000 MTPA
• Management’s bullish outlook on future demand (per capital consumption of Tinplate in India at 0.55 kg/ capita is substantially lower when compared with other developed countries)
• Tapping into additional markets like growth in tinplate sales to Paints, Aerosol and Processed food end use
Reduction in cheaper non-prime tinplate imports by 33% (138 KT in FY 2021-22 vs 205 KT in FY 2020-21) opened prospects for your Company to consolidate its market share and improve margins


A very good basic Q.
I also have no answer for it.
But my logic is - It superficially looks like a steel / cyclical company but may be a consumption theme.
The icing on the cake is Tata group.
So maybe we have to wait for the markets ( FII / DII) to realise that its a consumption story.
Only then it will run up. Till then it will hover around single digit PE.
In recent quarters, FIIs are marginally increasing their stake.

So the returns will depend on - when and whether the market “CONSIDERS” this as a consumption story?

Till then just wait.

personal views
dr. vikas


Good question.
According to me, the trend is structural, shift to tinplate packaging. It’s not a huge growth one as the industry is expected to grow at a 4-6% CAGR, but it’s an imminent trend. Look at the recent threat to ₹10 beverage packs due to plastic straw ban.

However, the market still perceives it as a cyclical, commodity play, and rightly so, as:

  1. The company seems to be strongly linked with Tata Steel, it’s parent. Tata Steel we know is purely cyclical.
  2. It’s dependence on raw materials is concerning. It’s basically steel wrapped in tin. The company is maintaining ~12% OPM due to their efficient process and probably their signature product PAXEL.

I invested in the company anticipating RM prices cooling off, the company being treated as separate from the parent and capex kicking in. Will closely track the sales volumes and OPM for the next 2 quarters.
Disc- Invested ~8% allocation now, will not be adding(~360 avg.)


Thanks for the response. Even if industry grows at a modest 4-6% CAGR, since Tinplate is the leader in its category, I would assume there’s a good chance that it can grow its market share at a much faster rate. Assuming (this is a BIG assumption) that it will eventually be perceived as a structural consumption play, and given its parentage and its current position in the market, this can turn out to be a big winner in the long term IF its TAM is high and it can scale quickly to cater to it. So for me, it all boils down to these 2 key questions:

  1. What can its TAM be, say in 5-7 years from now?
  2. Historically, have its fortunes been inter-twined with Tata Steel? If yes, to what extent? And is there scope for that to change in the future so that it can be considered a fairly independent venture?

NOTE - Not invested but contemplating it


One thing which i dont understand is , PE compression from median 20 to 8 , particularly with Company announced huge capacity expansion (2250 CR ) . I was expecting the PE to expand with seemingly good future ( premium tinplate used in packaging industry, capacity expansion , rising operating profit and margin ) . Can you please me understand what am i missing here .

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Hi salil, simply copy & pasting my reply to same Q some 18 days before.

A very good basic Q.
I also have no answer for it.
But my logic is - It superficially looks like a steel / cyclical company but may be a consumption theme.
The icing on the cake is Tata group.
So maybe we have to wait for the markets ( FII / DII) to realise that its a consumption story ( not a cyclical one).
Only then it will run up. Till then it will hover around single digit PE.
In recent quarters, FIIs are marginally increasing their stake.

So the returns will depend on - when and whether the market “CONSIDERS” this as a consumption story?
Till then just wait.
Or simply the market know something ( bad) which we retailers dont know.

So I am playing it with caution with only 1% stake in my portfolio and will add ONLY IF it moves up.

personal views
dr. vikas


Thank you Vikas for the reply .
I spent some time looking in to their numbers , and it looks really good to me .
You are right either Market knows something which we don’t know or may be FIIS,DIIs consider this as a cyclical pay for now (short term thinking) .
I tend to believe as you said in your replay “it is a consumption theme” . So taking a position on this Tomorrow
From my past experiences my biggest winners were the companies which got in to the portfolio when market ignored it (Laurus , Gael etc bought in 2018 ) , on the other side I have my losers as well where market was never willing to give a higher multiple (Glenmark) .
I think i will find out which way this goes :slight_smile:


What is causing the sudden jump in top line in FY22? Does any one know? This has caused ROE to sharply increase to 40%+. Otherwise ROE has been hovering around 15%. What will be a sustainable ROE here? that will help understand the P/E ratio it is getting.

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thank you everyone for input . i am also interested in buying this company .
thesis :-
1)its a TATA company
2)showing good growth in term of sales
3 )part of packaging industry specially in food segment which includes oil and canned food and non food like paint , sprays etc.
4 ) with growing consumerism chances of consumption of these items will increase so use of tinplate
5) there is almost none domestic competition , but there is risk of cheap Chinese competition if FSSAI give license to them

antithesis :-
although this company makes product focused on consumer but there is wide fluctuation in EPS , for which it behaves like a cyclical company. it may be because of rise in input cost , but it again arise a suspicion why its not able to pass the input cost to its customer.

if anyone of you have this answer i will be obliged and will make a decision to buy some part of company

Intimation of the scheme of amalgamation of The Tinplate Company of India Limited
(“Transferor Company” or “Company”) into and with its parent company, Tata Steel
Limited (“Transferee Company”) -


This is not a good news for Tinplate shareholders I guess.
Disclosure- Sold it at a marginal loss as I am not interested in Tata Steel business
Dr. Vikas

Market is god.
This might be the reason for the recent runup and some spike in volumes.
Sadly for me, my thesis has failed, it is going to be literally dependent of and part of Tata Steel.
Will watch how the latest capacity addition contributes to revenue this quarter. Will exit if they aren’t satisfactory.

I know, so much for thinking this was a dark horse consumption non-cyclical play. I was tracking this to take a position soon but I will hold off on this.

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