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The subsidiaries of two of the leading private sector steel companies in India have announced their decision to ramp up capacities in tinplate- a downstream product in the flat steel segment.
Two of JSW Steel’s wholly owned subsidiaries- JSW Coated and JSW Vallabh Tinplate announced hike in capacity from 3.5 lakh tonnes to 6.2 lakh tonnes. The company cited increased urbanization as one amongst the reasons for increased capacity. The additional capacity is expected to go on-stream by March next year.
Also, Tata Steel’s subsidiary, the Tinplate Company of India, announced capital investment of approximately INR 1,800 crore to boost the current capacity of 3.79 lakh tonnes, augmenting it by additional capacity of 3 million tonnes. The extension was approved by the board by end-August this year and is likely to take nearly three years for completion. The anticipated control measures on imported tinplate is likely to lead to increased demand in future, said company sources.
Incidentally, imports account for 30-35% of the total market demand for tinplates in the country. The remaining demand is mainly met by Tata Steel and JSW Steel. The country had imported 2.5 lakh tonnes of tin plates and tin-free steel in FY20 and 1.8 lakh tonnes in FY21.