Tata Group: Which companies are investors' picks - Page6 - The Economic Times

The Economic Times: Tinplate Company of India (TCIL) is the country's largest producer and supplier of tin mill products, which are used in the metal packaging industry. TCIL corners about 35-40% of the domestic market.

Growth in the packaging sector is closely linked to the processed foods and beverage industry, which is expected to grow at 18-20% in 2012. Over the past five years, its sales and profits have grown at a compounded rate of 13% and 14%, respectively.

Though the long-term prospects are promising, the company's profitability has been under pressure on account of high input and borrowing costs. Since the March 2011 quarter, its sales and profits have been falling. In fact, in the September 2011 quarter its net loss almost doubled as it was not able to pass on the rise in raw material prices to consumers. Till this happens, the company's profitability will remain under pressure.