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7/31/2019 Ajay Vaghela 43
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INTERNATIONAL
BUSINESSName: Ajay Vaghela
Roll No.: 43
Country Study
Company: THERMAX LTD.
Product: 1. Boilers
2. Heaters
3. Steam accessories
4. Vapour Absorption systems
5. EPC power plants
6. Chemicals
7. Water and waste management
8. Dust controller
9. Bagfilters
10. Electro static precipitator.
Country: CHINAUK
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Thermax is a leading company engaged in the manufacture of capital goods
mainly in the areas of energy and environment. It also undertakes turnkey projects in
the areas of waste heat management, pollution control and captive power plants up to
100MW. The company has a strong technology base. Over the years, what started as a
boiler manufacturing and equipment fabrication firm, has diversified into air conditioning,
refrigeration, waste heat recovery, pollution control and turnkey project contractor.
Recently the company has tied up with Allied Signals of USA for sourcing micro turbine
technology.
Operating on the principle of'Sustainable Business Solutions for Business
Improvement', Thermax is one of the few companies in the world that offer integrated
solutions in Energy and Environment management. With its broad spectrum engineering
expertise in heating, cooling, power, water and waste management and chemicals,
Thermax enables corporations to be energy efficient and at the same time,
environment-friendly. Thus contributing to industry's bottomline and the growing global
efforts towards sustainabledevelopment.
Thermax is committed to developing, procuring and supplying the best technologies tomake integrated energy and environment solutions a profitable and attractive option for
all sectors of industry. Through a strong customer focus, Thermax will strive to deliver
the most cost-effective options, with the best quality.
Thermax has a global reach, with 8 overseas offices and a domestic network of 12
sales & service offices.
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COMPANY PROFILE
Thermax was incorporated in 1966 through a technical collaboration with Wanson, a
Belgium
company manufacturing coil-type boilers.The company offers products and services in
the areas of heating, cooling, waste heat recovery, captive power, water treatment and
recycling, waste management and performance chemicals. It has technology
partnerships with leading companies such as Babcock & Wilcox, USA, the Kawasaki
Thermal Engineering Company, Japan, and Bloom Engineering, Germany. In 2005-06,the company was restructured into three business groups Cooling and Heating,
Chemicals and Water, and Projects to achieve synergies in related businesses. It was
also among the 20 Indian companies featured in Forbes list of Asia's best under a
billion companies.
Thermax Limited (Thermax) came to business in 30th June of the year 1980,
headquartered in Pune, India, Thermax provides sustainable solutions in Energy and
Environment by the way of standard products in the 6 areas of business, such as
Boilers and Heaters, Absorption Cooling, Water and Waste Solutions, Chemicals forEnergy and Environment applications, Power and Cogeneration systems and Air
Pollution and Purification.
Thermal's international operations are spread over South East Asia, Middle
East, Africa, Russia, UK and the US. Tulsi Fine Chemical Industries Private Ltd and
Kailas Castings Private Ltd were merged with the company with effective from 1st July
of the year 1982. As at 1st July 1989, Thermax became a deemed public company. In
the year 1991, T. K. Steel Industries Ltd was merged with the company. During the year
1994, the company's status was changed from deemed public company publiccompany.
The process heat division came out with a new boiler design in the year 1995, an
oil fired smoke boiler, shell Max and Cambia, a boiler specially designed to burn agro
fuels like rice and groundnut husk, saw dust, coffee waste etc. also in the same year of
1995, a Memorandum of Understanding (MoU) was signed with Bharat Shell for thermic
fluid, therma, for heat transfer system.
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The process heat projects division received an order from PT South Pacific
Viscose, an Indonesian Company for supply of 3 boilers of 22.5 tonnes per hour of
steam. Energy System Division of the company was born in the year 1996 by the way of
merger of two division, one in the energy area and the other in heat recovery area to
pool the expertise with a view to addressing the heat recovery business and also in the
same year launched fine circulation fluidised bed combustion boiler. The MoU was
signed with Bharat Shell and the Process Heat Division of the company. During
the year 1997, the company had received the AD-Merkblatt certification for the entire
manufacturing unit at Chinch wad. An electronic network called Thermnet linking all
establishments of the company in the country was introduced during the year same year
of 1997 and also Thermax had entered into a joint venture with Fuji Electric Company of
Japan. The Company had introduced five new products in the standard packaged boiler
range during the year 1998 and also launched a wide range of products incorporating
Kawasaki modular technology in our Vapour Absorption Division.
Thermax Co-gen Limited became a subsidiary of the company in the year 1999.
During the same year 1999, the company had developed a more advanced process
called PDP II. During the year 2000, Thermax had acquired ME Engineering, a UK-
based company belonging to the Beel Industrial Boilers Plc group. The Company has
signed an exclusive distribution agreement for South Asian markets with US company
Purafil Inc to market their dry gas scrubbers popularly known as chemical filters.
Thermax had signed a memorandum of understanding with the Society of
Applied Microwave Electronics Engineering and Research for commercialisation of thelatter's microwave disinfections system for treating pathological bio-medical waste
generated by hospitals and research institutes. The Company had set up wholly owned
subsidiary company in the US, namely Thermax Inc and another one in Detroit, USA in
the year 2001. Thermax had acquired 50% of stake in Energy Performance Service
(Thailand), a subsidiary of Energy Performance Service of Canada. The Company and
Cummins Diesel Sales and Services had entered into a strategic alliance to provide
attractive energy solutions to various industry segments. With the investment of US $
200,000, the company had incorporated a wholly owned overseas (WOS) subsidiary in
Brazil during the year 2003.
Thermax had bagged an order for Captive Power Plant in the year 2004. During
the year 2004-05, the company's chemical plant at Paudh, near Mumbai had received
the OHSAS 18001:1999 certification from BVQI. COFEX 2005 honoured with special
award for Thermax's contribution to the HVAC industry. Thermax had inked a technical
know-how transfer and license agreement with Balcke-Durr, Germany in October of the
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year 2007 for dry and wet electrostatic precipitators (ESPs), air pollution control
equipment for power, industrial and utility segments up to 300 MW.
As at February 2008, the company had signed a technical transfer license
agreement with US-based Babcock & Wilcox Power Generation Group (B&W) to
engineer, manufacture and sell sub critical B&W radiant utility boilers in India. As of May
2008, the company had inked a protocol of agreement for an export order, for supply of
heat recovery steam generator (HRSG). Thermax had received an order from a major
refinery in July of the year 2008, to supply pulverised coal fired boilers for their captive
cogeneration plant valued at approximately Rs. 8.2 billion and also in August of the
same year 2008, received an order of Rs. 4.15 billion, from a leading steel making
company in August pf the year 2008, for setting up a captive power plant for their
upcoming blast furnace complex on an EPC basis.
Thermax is planning to set up a new Rs. 5-billion manufacturing plant for largeboilers of capacity 100 mw to 800 mw for power plants. In the first phase, the company
will have a capacity to produce sub-critical boilers with total capacity of 1,500 mw per
annum, which would entail an investment of Rs. 3 billion. In the next phase the
company will scale up the capacity of the boilers of equivalent to 3,000 mw with an
additional investment of Rs. 2 billion.
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THERMAX IN INDIAN MARKET
1. Thermax SPX Energy Technologies Ltd.
Your company has entered into a joint venture with SPX Netherlands BV, a wholly-
owned subsidiary of SPX Corporation, USA
2. Thermax Engineering Construction Co. Ltd.
Thermax Engineering Construction Co. Ltd. (TECC) undertakes and executes
engineering construction projects mainly for the Boiler and Heater (B&H) business unit
of your company.
3. Thermax Instrumentation Limited
Thermax Instrumentation Limited (TIL) focuses its operations on installation and
commissioning of power and cogeneration plants including civil construction.
4. Thermax Sustainable Energy Solutions Limited
With the looming threat of climate change and the need to reduce carbon emission,
Thermax Sustainable Energy Solutions Limited (TSES) is entering into businesses
related to clean development mechanism (CDM).
5. Thermax Onsite Energy Solutions Limited
Thermax Onsite Energy Solutions Limited (TOESL) was incorporated in September
2009.This subsidiary, focusing on the area of green energy from biomass and other
alternate sources, plans to develop utility delivery business to customer on unit-
consumption basis
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THERMAX IN WORLD MARKET
1. Thermax Inc., USA
This step-down subsidiary is the front-end value chain for your company's cooling andchemical businesses in the USA.
2. Thermax Europe Ltd., UK.
The year witnessed a significant slow down in business activities in all European
economies due to credit crunch.
3. Thermax Hong Kong Limited, Hong Kong
Thermax Hong Kong Limited (THKL) was formed in December 2003 as part of the
strategy to enter the Chinese absorption cooling market.
4. Thermax (Zhejiang) Cooling & Heating Engineering Co. Ltd., China
Thermax (Zhejiang) Cooling & Heating Engineering Company Ltd. that began
commercial operations in September 2008 completed its first full year of operations.
5. Thermax International Ltd., Mauritius
During the year, your company has invested USD 25,000 in the share capital of this
subsidiary to meet operational expenses.
6. Thermax do Brazil Energia e Equipamentos Ltda., Brazil
During the fiscal year the subsidiary earned an income of BRL 0.12 million (USD
0.07million) and made a profit after tax of BRL 0.04 million (USD 0.02 million)
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THERMAX IN CHINA
Thermax operates in China through the newly formed subsidiary, Thermax
(Zhejiang) Cooling & Heating Engineering Co Ltd, China. In this market, the company
focuses on its cooling business and has set up an absorption chiller manufacturing
facility.
The new facility began full commercial production in July 2008. Located near Shanghai,
the plant will initially produce 100 chillers per year, and scale up to 400 chillers a year.
Primarily catering to China, it will gradually meet the needs of other Asia-Pacific
markets.
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The plant has state-of-the-art machinery and is based on a lean manufacturing platform.
Chillers are assembled on trolleys and robotics is used for improving welding quality.
Materials are sourced locally to speed up production, while dedicated small cranes at
work stations, reduce lead times.
Starting with the production of chillers in the 500 TR range, the plant has the capability
of building chillers upto 3000 TR. The plant has performance testing infrastructure that
meet the global standards desired by international markets.
Thermax is investing $8 million (Rs 36 crore) to set up an absorption chiller
manufacturing facility in China. The senior company management said the
Chinese market currently accounted for about half of the $600 million global
market for absorption chillers.
Thus, the investment in the neighbouring country is expected to ensure thatThermax is located close to major customers. Absorption chillers are used largely
as chilling solutions in the industrial and commercial sector, including malls and
offices, provided the key input of a piped gas network is readily available, say
analysts.
BEIJING: Energy and environment solutions firm from India, Thermax Limited, has
opened a manufacturing facility under its subsidiary in Zhejiang province in east China
with a registered capital of $11.47 million.
The facility set up under Thermax 100 per cent subsidiary, Thermax (Zhejiang) Cooling
and Heating Engineering Company Limited is the companys first overseas
manufacturing unit.
The plant with a capacity of over 400 absorption chillers per annum with the state-of-
the-art machinery would cater to the absorption chiller market in China and some other
overseas markets, the company said.
Consul General of India in Shanghai Vishnu Prakash inaugurated the facility in the
presence of Thermax Group Chairperson Meher Pudumjee and Jiaxing Vice-Mayor
Jiang Ren Huan, a company statement said. Thermax Limited, a USD 800 millionleading company in energy and environment solutions, offers total integrated solutions
in the areas of heating, cooling power, water and waste management, air pollution
control and chemicals, it said. Headquartered in Pune, Thermaxs international
operations are spread over China, South East Asia, Russia, West Asia, Africa, UK and
the US
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THERMAX IN UK
THERMAX have specialised in the design, manufacture, installation and
maintenance of fire curtains and smoke curtains since 1986.
Later developments, such as glass smoke screens and environmental screens
(air barriers) demonstrate the flexibility and ingenuity necessary to be at the forefront of
building fire safety design throughout UK and Ireland
All fire curtains and smoke screens are fully tested, certified and comply to the
relevant BS or EN standards.
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GLASS SMOKE SCREENS
THERMAX glazed smoke screens have become an alternative to automatic smoke
curtains offering a suspended, unframed, clear glazed smoke screen as part of the fire
protection strategy of the building.
AUTOMATIC SMOKE CURTAIN
THERMAX automatic smoke curtains descend fail-safe into the fire alarm position when
all consumable primary and auxiliary power sources are removed, in the event of wiring
system corruption, or any combination thereof.
ENVIRONMENTAL SCREENS
THERMAX custom-designed factory partitions and screens are manufactured from
reinforced flexible materials and are tailored to match your building shape in a number
of easily handled pre-fabricated sections.
http://www.thermax.co.uk/environmental-screens.htmlhttp://www.thermax.co.uk/automatic-smoke-curtains.htmlhttp://www.thermax.co.uk/glass-smoke-screens.htmlhttp://www.thermax.co.uk/environmental-screens.htmlhttp://www.thermax.co.uk/automatic-smoke-curtains.htmlhttp://www.thermax.co.uk/glass-smoke-screens.htmlhttp://www.thermax.co.uk/environmental-screens.htmlhttp://www.thermax.co.uk/automatic-smoke-curtains.htmlhttp://www.thermax.co.uk/glass-smoke-screens.html7/31/2019 Ajay Vaghela 43
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ABOUT THERMAX IN UK
Thermax entered the EU by establishing Subsidiaries in the UK.These
subsidiaries were set up to enable business with countries where direct export was notpossible because of countryspecific entry barriers. It also assisted in gaining a foothold
in the shell boilers product category, particularly in the Western European market.
Thermax has two subsidiaries in the UK:
Thermax Europe Ltd.
ME Engineering
Thermax Europe Ltd.
It was established in 1996 as a wholly owned subsidiary of Thermax Limited
India.The company provides integrated cooling and heating solutions to its clients. Its
heating division has a wide product range that includes thermal oil heaters, steam
boilers and hot water generators. Since April 2006, the subsidiary has been given the
charge of handling the packaged boiler business in the EU countries and the UK.The
company has a widespread dealer network in the EU. It generated revenues of EUR
2.59 million in 2005-06.
The companys main product line is absorption chillers.This technology is used to
generate chilled water from hot water coming from the cogeneration plant.Thermax is
one of the few companies in the world with this superior technology. Since, EU is a
signatory to the Kyoto Protocol; it is bound by the agreement to reduce carbon
emissions. High efficiency cogeneration plant has been identified as one of the
technologies to help EU countries to reduce the emissions.Thermax, through this
technology, is playing a vital role in two important issues concerning the EU energy
efficiency and environmental issues (carbon emission). It has over 250 installations
across the EU, sold through a network of distributors in the UK, Germany, Spain, Italy,
Hungary, Sweden, Denmark, Luxembourg, Portugal, the Netherlands and Switzerland.From 2006, the shell boiler business which was previously dealt through ME
engineering has been transferred to Thermax Europe and the company is expecting to
have a combined turnover of EUR 6-7 million.
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ME Engineering
It was acquired by Thermax Limited India in 2000. The company provides
solutions in the field of energy-related engineering and undertakes the management of
projects related to the energy sector. It also caters to sectors such as combined heat
and power cooling, power, chemical, refinery, process, and renewable energy
industries. Some of its key clients include Rolls Royce, Solar, Samsung and AMEC.The
company has doubled its revenues in the last five years.
Factors for Success
Market Penetration
The company has country-specific business models. In order to overcome entry
barriers in the EU, it acquired companies and also set up subsidiaries.
Thermax India has leveraged its resources by combining its downstream
expertise in oil and gas with the upstream know-how of its subsidiary, ME Engineering,
in the UK.This has enabled it to effectively target the oil and gas industry.
Focus on Quality
The company has maintained a high level of quality, which is reflected in theinternational quality certifications it has been awarded, including ISO 9001, 9002, 14001
and the new European pressure directive. It also has its own testing facilities for raw
materials as well as finished products.
Competitive Solutions
Thermax is a diversified manufacturer of energy equipment and environmental
systems. The company is a market leader in boilers and Absorption coolers. It is one of
the few companies in the world that offers integrated equipments and Services in
energy. Some of the key initiatives undertaken by Thermax that have helped inimproving the companys competitiveness are as follows:
Cost reduction measures
Global sourcing
Upgrade of IT systems
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Business process improvements
Knowledge management
R&D investments of approximately EUR
12.42-16.56 million
Its joint ventures and strategic alliances with global technology leaders,
such as Wartsila in Europe, are helping the company to upgrade its technology
as well as penetrate the EU market further.
Future Plans
Focused Approach
Thermax wants to adopt a focussed approach across its EU operations to reduce
overall costs and improve quality. The company is planning to introduce chillers that can
deliver lower temperature water for industrial and food industry. This will further open
the market in a segment that has been non-existent till now. It is also exploring the
possibility of finding new application and product in the efficient burning of bio fuels - an
emerging area in the EU.
Operational Excellence
Thermax is planning to invest in its existing facilities to achieve operational
excellence.The UK being an important market for the company, it aims to modernise its
UK operations.This initiative is expected to have a direct impact on cost, quality, and
lead-time and on-time performance.
Future Investments
Thermax is planning to increase its production capacity by investing in the following two
areas:
Research and Development
Market Development