Mumbai: To tap growing demand for tinplates primarily from the packaging industry, JSW Steel is doubling its tinplates capacity to 0.5 million at its Tarapur facility investing around Rs 420 crore.
The company had last fiscal commissioned a 2.5 lakh tonne tinplates plant at the Tarapur facility at an investment of Rs 575 crore and to double the output, it will invest an additional Rs 419 crore. It however, did not offer a time-line for the expansion plan. The company attributed the rationale for capacity augumentation to the rising demand from the packaging industry, which is opting for sustainable packaging material as an alternative to single-use plastic which the government plans to eliminate by 2022.
"This will spawn higher demand for tinplates, and the company is plannign a second tinplate plant at Tarapur, which will double its capaciy to 0.5 million tonne," it said Friday. Accroding to JSW Steel's annual report, it will be investing Rs 419 crore for this. JSW Steel currently has an installed capacity of 3.5 lakh tonne tinplates, of which 1 lakh tonne is with JSW Vallabh Tinplate joint venture, and the balance 2.5 lakh tonne come from its Tarapur facility, in Maharashtra. It markets its tinplates products under the label of JSW Platina. "Our total investment in tinpaltes will be close to Rs 1,000 crore at Tarapur and this capacity expansion reflects the burgeoning opportunity for tinplates," commercial director Jayant Acharya said.