Govt proposition of anti-dumping duty on imported steel causes setback to the Metal Packaging sector
Mr. Sanjay Bhatia, Vice President, Metal Container Manufacturers Association expressed his discontent saying, the duty will raise questions on business continuity
Tweet-- The Govt of India on Tuesday proposed anti-dumping and safeguard duty on imported steel. The announcement came as a blow to the consumers of imported steel. The government had earlier put off taking a decision when the industry made a demand earlier for 25% safeguard duty on hot-rolled coils. The opinion in the government then was that the domestic industry did not have enough ground and consumer-industries too opposed any prohibitive duty on the ground it will deprive them of cheaper inputs.
With China raising the tax relief to its domestic steelmakers and hoping for abundance in shipment might have come as good news to the steel importers; the Indian steelmakers did not welcome the step. However, no action will be taken until a formal complaint is lodged by the domestic steelmakers.
The can manufacturing industry in India is very dependent on imported steel for catering to the local market. The domestic tin packaging industry needs about 400,000 metric tonnes of tinplate and the domestic availability is only about 60% hence it has to import tinplate from several countries mainly Europe and USA amongst others.
Mr. Sanjay Bhatia, Vice President Metal Container Manufacturers Association and Managing Director of Hindustan Tin Works Ltd and Rexam HTW Beverage Can India ltd expresses his displeasure, “The packaging steel suffers a virtual monopoly scenario in the country and certain categories of Tinplate including DWI (Draw Wall Iron) tinplate steel used for beverage cans, is not produced in India at all. The anti-dumping duty imposed on steel will threaten the business continuity. Although India is progressing in terms of steel manufacturing, it will be a slow process and in a sector like packaging especially for food and beverage, it is very important that we meet the standards and for us that need is fulfilled by the steel that we import, hence we would only request the govt to have a fair play in this.”
Internationally, the prices for tin plate have reduced only by approximately 25% against a price hike of around 60% in 2008. Moreover, Rupee has depreciated by 20 - 25% over the early 2008 rupee-dollar parity. The packaging industry is still struggling with heavy dose of earlier price increase, and duty imposition of 5 %( total impact about 6%) has worsened the position for the can makers further and put their existence at stake. The industry already operates at very small margins and with the price hike in 2008 and the rupee dollar parity being against us at this point, the industry requires restoration of nil import duty on tinplate to help the industry to reduce packaging costs to the user segment like food and beverage.
Notes to Editor
HINDUSTAN TIN WORKS
Hindustan Tin Works (HTW) is the pioneer and leader in the metal container industry. For four decades, the company has been meeting the packaging requirements for a host of products, many of them are now brand leaders. HTW cans, finds its way into many Indian homes and industries with an array of baby products, to processed food, coffee, dairy products, paints, lubricants, pesticides etc.
Some of the representative brands of the product (cans) are Lactogen, Cerelac, Everyday, Tata Coffee, Asian Paints, Cherry Blossom, Haldiram rasgullas and much more. HT Cans or “Green Cans” as it is called, produced by Hindustan Tin Works are the No. 1 Packaging choice today. User-friendly and recyclable, they are environmental friendly. Hindustan Tin Works is the largest manufacturers of lithographed metal containers equipped with the most sophisticated machinery from UK, Switzerland, Germany, USA, Taiwan, Italy and Japan.
HTW is listed on the Bombay stock exchange and has about 7000 shareholders.
REXAM HTW
Rexam HTW Beverage Can (India) LTD is the first and the ONLY 2piece beverage can maker in the Indian subcontinent. The company is a joint venture between Rexam PLC of UK & Hindustan Tin Works Ltd (HTW).
The first 2piece beverage can project broke ground in October 2005 by Hindustan Tin Works Ltd and later on October 14th 2006 REXAM, the world leader in consumer packaging bought 51% of the company resulting into the formulation of this joint venture. This plant has started to replace the currently imported Aluminium cans. The capacity of the current line for 33centi - litres only is 400 million units.
The JV has been set up with the objective to locally manufacture DWI (Draw – Wall – Ironed) Beverage Cans for the Indian sub continent and meet any other customer demands using the wide REXAM & HTW portfolio.
The two companies have joined forces taking a long term view of the market and wish to create awareness of the REXAM HTW brand and make REXAM HTW perceived as the leading and preferred beverage can supplier in the India subcontinent.