tinplate company of india1

INDUSTRY SCENARIO

• Edible oil consumes 70% of the industry output

• Battery and Crown industry are the growth drivers of the industry with CAGR of 11% and 12% respectively

• High competition from the substitutes like plastics, PET, aluminum, Tetra Pak, etc.

• Continuously reducing tariffs promoting higher imports and hence increased competition from the international suppliers

• Great surge in the import of secondary Tinplate to the country

• Lackadaisical regulations has increased the use of secondary tin in Food sector

• Market is divided into two type of customers• Price sensitive edible oil producers• High service demanding customers

PROBLEM STATEMENT

• Above all implications has led to low capacity utilization which further leads to high cost of production

• The sales force of the company is not specialized for a particular type of customer – as the style and content required for customer in different sectors are different.

Government policies • Increasing competition from foreign players• High use of secondary tinplate in edible oil packing

New types of packaging products

• Substitutes are eating away the market share

Changing Customer demands

• Mismatch of product delivery and the customer needs

EDIBLE OIL MARKET - TCIL

• Edible oil consumes 70% of the industry output

• Company earns 76% revenue and 70% profit from this segment

• The substitutes may not be great threat as they are not eco-friendly

• TCIL charges 50% higher than the players In the unorganized sector

• Its present customers are those who are more sensitive to specific product parameter, but they are not loyal still

• SAIL is penetrating the market with the claim of high quality at low price

SCOPE

HIGH STACKES IN EDIBLE OIL

Buying Centre Influences

Purchaser Decision-maker Influencer Users

Battery Purchaser CEO Production / Marketing / R&D

Production/ Quality Control

Edible oil Purchaser / owner of the company

CEO / Owner of the company

Middleman / Marketing


Crown Purchaser CEO Production / Marketing/ Quality Control


Processed Food Purchaser / owner of the company

CEO / Owner of the company

Marketing / Packaging / Production/ Quality Control

Production/ Quality Control/ Packaging

ENTRY POINTS

ACTION STEP - I

4 SEPARATE (EXPERTISE + PRODUCT BASED) BUSINESS UNITS - MARKETING

COMMON PRODUCTION / DISTRIBUTION FACILITY

Edible oil sector

Processed Food Crown Battery &

others

EDIBLE OIL PEOCESSED FOOD BATTERY CROWN

Can employ direct sales person which is the most common method used by all the company

Scope of reduced cost due to separate accounting

Sector specialists can work more closely with the R&D of Tinplate and its customers to come up with changing demands of the customers

Perceived brand differentiation due to different brands for different sectors

ACTION STEP - II

BRANDING• Get some national or international quality certifications• Add the brand TATA to the products which will bring trust to the TCIL brand


Only quality conscious will bother for this

It will act as a testimony for the quality & service provided by the company. This will help sales persons to atleast get lead into the companies preferring international suppliers only

Perceived brand differentiation due to different brands for different sectors

ACTION STEP - III

EXPANSION

• Target some international player in the Food processing and Crown sector• Focus more on domestic Food process sector which is dominated by a single

supplier (TMN – 78% market share)


Scope of reduced cost due to high capacity utilization

R&D of Tinplate will get exposed to the new type of Tins that can be produced according to the varied demand

Supply to international companies will act as a testimony for the quality & service provided by the company. This will help sales persons to atleast get lead into the companies preferring international suppliers only

NOTE: -• Getting into international market could be difficult• Food process industry is highly obsessed with the brand of the tinplate and

company may take time to expand in this sector till it build its brand

• Providing value added services, like printing, lacquering, etc.• Entering into value chain of customer to evolve more cost effective and

consumer friendly packaging solutions and enhance tinplate consumption

Forward Integration


Reduced cost due to synergies in the value chain

Create a differentiation, which will be new to the industry

Will help us bypass the middlemen One stop solution will attract customers, as they can focus on their core activities

Allow to charge price premium, as they are offering one stop solution and thus reduces their concern area

ACTION STEP - IV

ACTION STEP - V

LOBBY / CONSUMER AWARENESS• Lobby with other established players in the industry to ask government not

to reduce the custom tariffs• Industry association can be formed which will promote the consumer

awareness of packing material they are purchasing their food item in• Do the ‘Intel Inside’ story for end consumers to make them aware of the

importance of high quality (TCIL) tin cans they are using


Reduced competition from the importers

Chances of customers shifting to TCIL due to high price differentiation between international supplier and TCIL

Company command high price premium by selling prime tin to the customers

Customers will have to consciously use good quality tin and hence more demand for our tinplate

THANK YOU

Total Foreign Influence

• Total Indian Market = 210000 MT per annum (approx.)• Total Import = 131252 MT per annum• Domestic supply by SAIL & TCIL= 80000 MT per annum (approx.)• Hence, there is no other significant domestic presence

tinplate company of india1

Documents