TCIL is a tinplate manufacturing company established in 1922 in India. It operates in four segments: batteries, bottle crowns, edible oil, and processed food. The document analyzes the decision making process for the edible oil and processed food segments. It finds that the processed food segment has higher profit margins, requires higher quality prime grade tinplate that TCIL produces, and is in an industry with high growth. Therefore, the document recommends that TCIL should concentrate on the processed food segment.

1. By:
Ankan Jyoti
Bhattacharyya
Trisha Chakraborty

2. • TCIL: An Introduction
• TCIL’s Decision Making Process
– Edible oil segment
– Processed food segment
– Key differences
• TCIL: Segment to Concentrate on

3. • Established in 1922, in Jamshedpur, India
• Started by manufacturing tinplate for
kerosene cans
• Owned jointly by three companies, viz.
Burmah Shell, Shaw Wallace & Tata Steel
• Started manufacturing tinplate for processed
food, battery jacket & baby food
• Four segments:
– Batteries
– Bottle Crowns
– Edible Oil
– Processed Food

4. STAGES Edible Oil
Segment
Processed Food
Segment
Key Differences
Problem
Recognition
Packing material
required for
versatile use
Packing material
required for
versatile use
None
Need Description Tinplate required
for bulk packs of
edible oil
Tinplate required
for preserving the
quality of the
product
Focus on Quality
(Processed foods)
v/s Quantity (Edible
oils)
Supplier search Companies look for
tinplate
manufacturers
supplying both
prime and
secondary grade
tinplate
Companies mainly
look for prime
grade tinplate
manufacturers
Difference in
quality of tinplate
sought by each
segment

5. STAGES Edible Oil
Segment
Processed Food
Segment
Key Differences
Proposal
Solicitation
Interaction with the
network of 15
agents throughout
the country
employed solely by
TCIL for edible oil
Interaction with the
sales team of 20
personnel of TCIL
to process orders
Dedicated sales
team for edible oil
v/s a common sales
force for processed
foods
Supplier Selection Supplier Selection
influenced by
middlemen and
price is the
determining factor
Supplier selection
influenced by R&D
and Quality Control
department
For processed food
quality is the main
concern unlike in
edible oil where
price plays a major
role hence edible oil
manufactures tend
to select even
secondary tinplate

6. • TCIL should concentrate on Processed Food segment
because
– Higher profit margin (Sales=33700, Profit=5500 ; Profit
Margin=(5500/33700)*100=16.3%)
– Increase in tinplate usage from 8% in 1993 to 10% in 1997
– TCIL shows an average score in customer satisfaction
– Processed food segment required prime grade tinplate which
was an advantage
– TCIL can also increase selling prices in this segment as buyers
in this segment are quality conscious instead of price
– High industrial growth (9%) and increased demand for packed
branded products
– Growth in Hotel Industry and demand for bulk packs