Tinplate Company of India Ltd.

Group 7Vaibhav Sharma

Punnet SapraVikram Agarwal

Sugandha Gupta

The Industry

• Initially focused on producing large cans.• Tin Mill Black Plate(TMBP) imported till 1997

by TCIL.• Tinplate Prime and Tinplate Secondaries.• Market Size-210,000 Metric tones per annum.• Lack of knowledge attributed to high

Secondaries sales.

Market Segmentation

• TCIL supplied tinplate in 4 major segments:• Edible oil cans• Soft drink crowns• Processed food• Batteries• Competition from PET, plastic, paper,

aluminum, Tetra Pak

Edible oil can Market

• 70% of total tinplate demand.• Dominated by unorganized sector.• Low growth rate- 5% in 1997.• Sold in loose quantities.• Secondaries used in packaging.• Organized companies TCIL and SAIL catered to

organizations with specific product requirements.• TCIL ranked lowest in price.• Middleman exerted influence.

Soft Drink Crowns

• 7.14% of market share.• Multinationals: Coke and Pepsi.• High standard to product parameters

required.• Dominated by Foreign players(90%)• High growth rate: 15% in 1997• TCIL ranked lower in both price and other

quality parameters.

Processed Foods

• 16.67% market share.• Moderate growth rate: 10% in 1997.• TCIL had healthy relationship with Nestle and

Brooke Bond(22% market share).• High profit margin (5500 Rs per MT).• Perceived threat from alternate packaging.

Batteries

• Relatively low market share : 4.76%.• Very high growth rate.• Battery manufacturers demanded absolute

specification and quality.• Dominated by Foreign players.• TCIL ranked best in pricing of batteries.• No threat from alternate packaging.• High profit margin (6000 Rs per MT).

Should TCIL continue in the Edible Oil Segment?

• TCIL should stay in this category.• Comprises 74% of tinplate market share.• High Industrial growth(9%)- buoyant demand for

packaged foods.• Political climate Industry oriented- customer focused

companies.• More awareness.• TCIL should try to bring down prices by focusing less on

brightness, attractive packaging etc.• Advertise and make the consumer aware about ill-

effects of secondaries.

How can TCIL compete with Foreign Companies?

• Invest in battery and crown R&D : High growth potential segments.

• Maintain high quality and adhere to specific requirements in these sectors.

• Processed food poised to grow on its own due to potential Industrial growth.

• Develop stronger delivery channels.

What strategies can TCIL formulate based on Organizational buying behavior concepts?

• Focus more small packaging.• Keep the edible oil prices stagnant. Also, make

the consumer aware.