Presented By: Priya Mishra Kratika Pandey Apeksha Shani Pratima Soni

Thermax

INTRODUCTION
It was started by Mr. Rohinton Aga in 1978 to

manufacture boiler parts.

Thermax limited is an multinational with production

facilities.
Thermax was Primarily a manufacture of capital

goods.

Major Business Units According to Products are: Chemicals for Energy and Environment Applications
Boilers and Heaters

Absorption cooling
Water and waste Solution Power and Cogeneration Systems Air Pollution and Purification

CHEMICALS
Major Clients for Chemical Businesses are: Oil Refineries Steel Plants Paper Mills

BOILERS AND HEATERS

Major customers in boiler and heater segments are: Chemical industry Refineries Hotels Food Processing Industry

Boiler Products Facility at Savli

External view of the facilities at savli plant

ABSORPTION AND COOLING

Absorption coolers or chillers is a high growth rate

area of Thermax.

Market leader for India

WATER AND WASTE SOLUTION

Manufactures equipment to handle waste material in

industries.

Accuring new technology for chemical waste.

Waste Heat Recovery Based Power Plant

Boiler

POWER AND COGENERATION SYSTEM

Thermax builds turnkey power plants of small capacity .
Thermax builds power plants running on
Washery rejects Biomass Cane pult etc.

AIR POLLUTION AND PURIFICATION

It produces air purification equipment for use on chimneys exhauts of industrial installation. It mainly produces
Electrostatic precipitators Cyclone precipitators Hazardous gas absorption filters Flue gas desulphurization systems

Revenue generated through different sectors are:UNITS

CHEMICALS BOILERS AND HEATERS ABSORPTION COOLING WATER AND WASTE SOLUTION

REVENUES 5% 55% 10% 6%

INTERNATIONAL OPERATIONS
Subsidiaries in UK , Russia, USA, Brazil and China.
USA and UK were the key contributors but now offices

opened in China and Brazil as a growth initiative.

A biomass plant was also set up in Philippines. Absorption chillers in China and a manufacturing plant is

Peoples Republic of China.

CONTINUED..
Thermax exports its services activities to more than 40

countries

Sales and services offices in 15 countries

Thermax Corporate Offices

Company Collaborations
Company collaboration and technologies from market majors like Kawasaki thermal engineering

Japan, Babcock & Wilcox USA, Eco Tech Canada, Honeywell USA, Struthers Well and Ozone systems USA, Bloom Engineering Germany, etc.

Hi-tech chiller manufacturing plant in China has commenced trial production

International Business (Thermax Group)

Series 1
950 850 750 crore

650
550 450 350 250

Series 1

150
50

The main subsidiaries of Thermax are as follow:

Thermax Inc., U.S.A.
Thermax Europe Ltd. UK Thermax Hong Kong limited, Hong Kong Thermax (Zhejiang)cooling &heating engineering co.

ltd., China

Technology Acquisitions/Partnerships
Technical Transfer Agreement between Thermax & Babcock and Wilcox (B&W), USA

With this agreement Thermax will manufacture subcritical utility boilers, upto 800 MW for the power sector

Technology Acquisitions/Partnerships..(Contd)
Agreement between Thermax & Georgia Pacific Chemicals, USA

This partnership will enable Thermax to manufacture performance enhancing chemicals for the paper industry

Technology Acquisitions/Partnerships..(Contd)
Partnership between Thermax & Balcke-Drr, USA

This partnership is for advanced design of air pollution control equipment for power, industrial and utility segments up to 300 MW

MARKET SHARE
Thermax has shown a stable performance during

2008-2009
Total income :-3303 crore which is 1.8%higher than last

years total income

Profit after tax :- 287 crore Exports income :-35% to Rs.912 crore from Rs. 715 .3

crore

Continue..
Boiler and heater , Power, cooling and heating divisions

contribute to 77% .

Environmental business which comprises Air pollution

Control, Chemicals manufactured along with water and wastewater solution contribute 23%.

21%share in dosmestic boiler market . Leader in manufacturing of domestic absorption machines

with 90%market share.

10%market share .

Rs.1200crore industrial water treatment business in which

International Growth Strategy

FOCUSED AREAS
Operational Excellence Innovation- Traditionally US n UK(key contributor), Absorption chillers initially mftd. in Pune then in China. Selective Internationalization

The Strategies of global expansion of Thermax

The company expanded globally by strategic alliances.

Establishment of wholly owned subsidiaries (WOS)

across the globe (US, Honk Kong, Brazil).

Expansion of manufacturing units abroad and

technological partnerships (Kawasaki modular technology).

Expansion of Thermax Fall under category of

Technological development

Market development Operation expansion

Frame Work For Analysis of Global Strategies

HIGH LOW

Market expansion Focus -High

WOS in Europe Thermax acquired ME engineering Wholly owned overseas (WOS) subsidiary in Brazil

Joint venture with fuji electric Thermax co-gen ltd became a subsidiary Acquired 50%of stake in energy performance service, thailand

Wholly owned subsidiary company in the US

WOS Thermax Honk Kong ltd. Technological advancement focus High Agreement with US- based Babcock &Wilcox power generation group(B &W) Joint venture with fuji electric

License agreement with Balcke-durr, Germany

From above analysis

Policy of establishing wholly subsidiary when there

was a requirement of global market expansion and expansion of operation

Policy of joint ventures License agreements and joint venture Technological

Advancement.

Value chain of Thermax divided in 3 activities

R&D Operations Marketing

Global Opr.

Global R&D

No. of industries Moderate

Overall value of business segment High

Boilers & Heater High-Most of WOS Absorption cooling Moderate 2 high-Global Oprn, limited mkt Low-Limited 2 india, marketed 2 Asia & US High-Spread across most of WOS

High-Japan, Germany,UK ,US Low-still to establish global assistance Low

Low-still not applicable in large scale Low

Low-Moderate

Chemicals

Low

Waste & water soln

HighExperienced player in this seg.

Low-limited 2 industries with high capacity heating system Low-Medium.

Moderate 2 high

Air pollution N control system

Medium-limited Medium 2 Europe & US Research Ltd.

Moderate 2 High

Captive power

Low-mostly limited 2 india

Low-Medium High-Applicable Low-Moderate Ltd to India ,US, 2 multiple

SWOT Analysis
STRENGTH WEAKNESS 1. Market leader in mid-sized boiler 2. Flexibility of fuels . 3. Very High Qualified & experienced work experienced Directors. 4. Growth Strategies over the time OPPORTUNITY 1.Technological barriers 2. Research is limited.

THREATS

1. Chemical industry 2. Thermal solar power plant 3. Industrial water treatment -Urban water projects

1.R&D cost is high 2. High licensing fees

Questionnaire.
Q1.How did Thermax formulated its strategy Q2. How did Thermax develop their global value chain Q3. Please do the external environment evaluation of Thermax . Q4. Please do the internal environment evaluations of Thermax . Q5. Please advice Thermax on their future growth strategies.

Q1.How did Thermax formulated its strategy

Focusing on Operational Excellence and innovation.
Selective Internationalization. Expanded Globally by strategic Alliances (Cummins &

Diesel) Wholly Owned Subsidiaries (Thermax Europe Ltd). Expansion of manufacturing units abroad and technological partnership . Example of POWER plant running on Washery rejects.

Q2. How did Thermax develop their global value chain

Through Industry Value Chain and activity of company

and their global locations Value Chain of Thermax- R & D, Operations & Marketing.

Q3.Please do the external environment evaluation of Thermax .

Technology-always try to acquire new technology.
Competition-Case of boilers & Heater. Legal- WOS Social-Manufacturing facility in Mexico has received

the Industria Limpia (Clean Industry) certificate by the PROFEPA (The Federal Office for Environmental Protection

Please do the internal environment evaluations of Thermax

Managerial changes-Management has been separated from its board.
Deficiency in Existing organization.

Nature of the work force.

Advice for Thermax on their Future Growth Strategies

Thermax has limited its area of operation to the energy and

environment related products conservative expansion

It has followed a strategy of judicious and slightly international Most of the expansion is by furthering the value chain and not

majorly through unrelated inorganic growth

Wait and Watch strategy South-East Asian plants is competitive bases for manufacturing

while exporting to other international markets

THANK YOU

THANK YOU SOLAR THERMAX