1.0 situational analysis
The Tinplate Company of India Limited (TCIL) is one of the major tinplate manufacturing companies of India. It was started in 1922 and is jointly held by Burmah Shell, Shaw Wallace, Tata Steel and Tata Iron & Steel Company. TCIL used to import its major raw material, Tin Mill Black Plate (TMBP), till 1997. However, like all major steel mills worldwide it attained self sufficiency in TMBP by setting up its own cold rolling facility. It clearly showed that TCIL has the technical expertise to introduce new technology and commission new equipments, if required.
TCIL supplies tinplate to manufacturers in four major product segments: edible oil cans, soft drink crowns, processed food and batteries. It produces about 60,000 metric tons of tinplate per annum, with annual revenue of about Rs. 163 crores and gross profits of about Rs. 20 crores (Refer Annexure A for details).
This implies that TCIL is cash rich, or at least will have a favorable credit rating for future investments. Factors affecting customer satisfaction differ across various segments.
However, broadly, it can be inferred that price is the main criteria for customer satisfaction in the edible oil segment, whereas, product quality (temper, size, dimensional tolerance, etc.) is the main criteria in other segments. Basis these criteria, the different segments can be classified into two broad categories: edible oil category and other segments category. Business prospects of TCIL in either of these categories can be analyzed using SWOT Analysis: Edible Oil Category:
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Strengths
Supplies prime grade tinplate, as against secondary tinplate supplied by some unorganized suppliers Perception of better quality
Weaknesses
Higher price as compared to competition
Opportunities
Size of the market is very large
Growth in hotels industry is propelling growth
Threats
With household units becoming smaller, demand for bulk container units will reduce Lack of regulatory standards allows widespread use of defective tinplate Availability of alternative packaging materials
Managerial Case Analysis –
Communication – 1 Tinplate Company of India
Graded Assignment #1 Page | 4
Other Segments Category:
Strengths
Price competitiveness as compared to foreign suppliers
Better delivery records
Weaknesses
Poor quality as compared to competition
High cost of credit for all segments in this category
Opportunities
Rapidly growing market in all segments
Absence of any other national player
Threats
Removal of customs tariff may increase price competitiveness of foreign players TCIL lacks a distinct edge over its competitors in any of the segments. The future growth of TCIL is dependent upon pursuing a course of action that will enable it to negotiate this situation suitably.
