| Edible
Oil/Vanaspati Though this
segment perhaps accounts for the largest consumption of tinplate even now (about 1/20/000
MT) it is perhaps also the segment which has seen tinplate being substituted by alternate
packaging medium to the maximum. The use of tinplate for consumer packs ( 5 kg and below)
is almost nonexistent. Even in bulk packs (15 kg/ltr), plastic jars have made deep
inroads. To make matters wors there is rampant reuse of old tins in spite of the recent
amendment to the PFA Act (effective from May 20/2001) specifying the use of only prime
tinplates conforming to BIS standards (IS 1993) and containers conforming to BIS Standard
IS 10325 & 10339. The use of tinplate misprints, TFS and even blackplate for
manufacturing cans for edible oils is also rampant in spite of the very clear guidelines
in the PFA (10th Amendment) Rules 2000. This industry offers an opportunity for the
tinplate industry to at least double the usage provided competitive packaging solutions
are made available in the consumer pack segment and the PFA Act is strictly implemented.
Cashew is mainly exported from India. Less than half the
cashew packaging requirement is currently serviced by tinplate. Flexi packs have made deep
inroads into this segment. Several factors have contributed to this state of affairs
-primary among them being the preference of importers, especially in USA, for flexi bags,
based on the perception that it is less dangerous to handle such packages. Moreover DEPB
rates offer an incentive of 2% to cashew packed in plastic containers against an incentive
of only 1 % for tin containers. Thus in spite of the proven advantage of tinplate
containers over flexi pouches to prevent 'infestation' and its obvious eco-friendly
nature, the lower cost of the flexi packs coupled with the advantageous DEPB rate and the
perceived safety in handling such packs have prompted exporters to opt for this
alternative. As a result only 30% of the cashew is exported in tins, accounting for about
5000 MT of tinplate consumption annually. This segment, which currently uses 20 kg tins
made from 0.28 mm thick tinplates, offers opportunities for use of DR reduced tinplate to
make it more cost effective. However, with soldered cans still being used widely for
packing cashew, technological changes at the fabricators end are called for to make the
use of DR Tinplate possible.
The dairy products packed in cans include cheese, milk
powder (including infant food) condensed milk and ghee. Value added milk products such as
paneer and flavoured milk have recently been added to this range. The annual tinplate
consumption in this sector is estimated at about 25,000 MT. However, in this segment also
there have been large shifts in packaging preference from tinplate to alternative
materials such as bag in box and tetrapacks. With consumer packs gaining in popularity, it
is imperative for the tinplate industry to come up with cost effective packaging solutions
to compete with other options available to fillers and consumers currently.
The carbonated beverage segment -soft drinks and beer
-consume about 17,000 MT of tinplate and TFS. While for soft drinks -dominated by the two
majors Pepsi & Coke -TFS is exclusively used, for beer both TFS & Tinplate are
used based on the filler's requirements. The presence of the MNCs in this segment has
driven major improvements in crown manufacturing technology to meet international
standards. However, the shift to PET bottles, especially in the soft drink segment,
coupled with competition from bottled mineral water has resulted in a stagnation in the
crown industry. Huge capacities built up by crown manufacturers to cater to projected
growth in this segment currently remain underutilized.
As mentioned earlier, in spite of India being one of the
largest producers of fruits and vegetables, only about 2% of the total produce is
processed for packaging. Similarly with a marked preference for consuming fresh marine
foods, there is very little available for packaging. In spite of this, processed foods
account for about 16,000 MT of tinplate consumption currently. About two thirds of the
Open Top Sanitary Can quality tinplate required for this segment is currently catered
through indigenous sources -the rest being imported either in the form of flattened cans
or tinplates. The main products packed are mango pulp, mushroom, vegetables, fish, fruits
and fruit juices.
The battery segment consumes about 13,000 MT of tinplate
annually. With MNCs in the fray this is a highly quality conscious segment -the key
quality requirements being closer tolerances on thickness and temper. While in the dry
cell segment, in which the small size battery predominates (70%), the growth is around
5-6%, in the new emerging alkaline cell segment the growth rate is about 30%, albeit on a
smaller base.
Packaging of Paints accounts for 30,000 MT
of ETP / TFS consumption annually. While enamels, which constitute 50% of the demand, is
entirely packed in cans, emulsions (30%) are packed in both tins and plastic containers.
Distempers are currently exclusively packed in plastics. With the paint industry expected
to grow by 10% annually, this represents a huge marketing opportunity for tinplate.
However, the cans used in this industry are almost entirely produced from non-prime ETP
/TFS, the requirements being sourced from arisings and overruns both through imports and
from indigenous suppliers. This being a very cost sensitive segment, tinplate
manufacturers need to develop low cost solutions to tap the obvious potential for growth
in this segment.
The pesticide industry, which is growing at the rate of 10-12%
annually, consumes about 5,500 MT of tinplate currently. Only 50% of the packaging
requirement in this industry is currently met through tin containers, with aluminum (20%)
and HDPE (30%) meeting the balance requirement. However, with the recent directive from
the Government to pack pesticides only in metal containers, an opportunity exists to
increase tinplate's market share in this segment. However, in spite of subsidiaries of
various MNC's being active in this sector, non-prime tinplate is widely used by
fabricators to produce pesticide cans.
A new emerging market for tinplate is aerosol cans.
Though the aerosol industry can still be considered to be in its infancy, it is a growing
segment and presently accounts for a consumption of 1,000 to 1,500 MT of tinplate. Though
tinplate aerosol cans are cheaper as compared to aluminum aerosols, the latter enjoys
about 80% of the market share currently. Two-piece aluminum cans are perceived to offer
better leak and corrosion resistance as compared to the 3-piece tinplate aerosols produced
currently. Technological innovations with respect to tinplate quality and
can-manufacturing technology are called for to increase the market share in this segment.
It is ironical that today virtually the entire lube oil
industry uses plastic cans for packaging its product, considering the fact that at one
time, the shortage of containers for packaging petroleum products led to the birth of the
Indian Tinplate Manufacturing Industry. While many attribute this to the lower cost of
plastics as compared to tinplates, this is not necessarily true for all pack sizes.
Innovative designs coupled with the selection of the right pack size may make it possible
for tinplate to partially re-capture this market at least in the 51tr segment. Considering
the cost of the contents, the cost of packaging may not be a major issue, if the price
difference between tin and plastic containers can be contained within reasonable limits.
|