thermax ltd

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Thermax Ltd.

So far and way ahead.

Thermax Ltd. is an INR 3,246 crore (USD 800 million) company, providing a range of engineering

solutions to the energy and environment sectors. Headquartered in Pune, India operates globally through 19 International offices, 12 Sales & Serviceoffices and 4 Manufacturing facilities - three of which are in India and one in China. Our presence spans 75 countries across Asia Pacific, Africa and the Middle East, CIS countries, Europe,USA and South America. Tuning to the needs of the day, all the solutions are innovative, energy-efficient, environment-friendlyand easy to operate.

Solutions Suite Innovative and Eco-friendly

Our solutions specifically focus on:

y Heating equipment - using a variety of fuels, including biomassy Absorption chillers - fired by waste heat or steamy Power and captive cogeneration plantsy Waste heat recovery unitsy Waste water management systems pre-treatment, waste water treatment and chemical conditioning of

water, sewage effluent treatment and recyclingy Air pollution control systemsy Performance improving chemicals

Product Range Diverse and Efficient From our experience of over three decades in the energy sector, we offer a range of boilers and thermaloil heaters, energy chillers and customized products like exhaust gas boilers. Thermax absorption chillershave found a niche in green energy systems in Europe and Australia. We also help industries reduceenergy costs by shifting to abundantly available, alternate energy such as biomass.

Industry-specific Solutions Clean and Green

Thermax provides industries with clean technologies that recover pollutants; thereby reducing theirhazardous impact on the environment. Today, many iron & steel, cement, fertilizer and chemicalindustries reduce emissions using our air pollution control systems. Industries in the US and Japan consistently use our hi-grade ion exchange resins for specialisedapplications. Project Management Capabilities



Our project management capabilities extend to setting up energy-environment projects for customers inseveral markets. This is backed by a robust and innovative R&D setup, involved in technologydevelopment and adaptation for various industrial applications.

Technology Partnerships Over the years, Thermax has formed technology partnerships with global majors, including: Babcock &Wilcox (USA), Kawasaki Thermal Engineering (Japan), Balcke Durr (Germany), Eco-Tech (Canada) andGeorgia Pacific (USA). Yearly Progress1980 - The Company by name Thermo-Dynamics Pvt., Ltd was originally incorporated on 30th June,1980. LaterWanson (India) Ltd. along with Thermax India (Pvt) Ltd. was amalgamated with theCompany on 1st July. Subsequently the name was changed to Thermax Pvt. Ltd.

Tulsi Fine Chemical Industries Pvt. Ltd. and Kailas Castings Pvt. Ltd. were merged with the Companyeffective 1st July, 1982. The Company became a deemed public company with effect from 1st July,1989. 1991 - T. K. Steel Industries Ltd. was merged with the Company. 1994 - The Company became a full fledged public limited company. The Company was promoted by LateA. S. Bathena and was taken over by R. D. Aga. The products manufactured by the Company are heat recovery and energy conservation products, Chilling and air conditioning products, co-generation andcaptive power generation products, water treatment, air pollution control equipments, chemicals etc.

- The Company has following collaboration: (i) Struthers Scientific & International Corporation USAfor heat recovery and energy conservation products, (ii) Ansaldo, Italy for steam turbines and with NOVOPignone, Italy for gas turbines, (iii) Eco-Tec Inc. of Canada for distributorship of recovery system, (iv)ACW Services Ltd., U.K. for waste management equipments, (v) A.W. Chesterton Co., USA formaintenance products.

- 171,37,510 No. of Equity shares issued, subscribed and paid-up. Of which 21,35,640 No. of equityshares allotted other than cash as per various schemes of amalgamation and 34,27,500 shares issued asbonus in prop. 1:4. 1996- The Comp. merged two of its division, one in the energy area & the other in heat recovery area to pool

the expertise with a view to addressing the heat recovery business. A new division viz. Energy SystemDivision emerged out of this merger.- The process heat division introduced packaged bagasse fired boilers for paper mills in the range of 4 to16 tonnes. The heat division launched hot water generation for provision of hot water on taps in hotels,hospitals & dairies. The absorption cooling division introduced smaller capacity vapour absorptionmachines for hotels, hospitals, shopping malls & residential complexes.- The Comp. launched fine circulation fluidised bed combustion boiler. The Environ-division executed 3major export orders received from Indonesia. The Chemicals division developed and commercialised



various speciality co-polymers & resins for biotech & pharma industries for domestic & internationalmarkets.- To enter synergistic fields, the Comp. entered into a joint venture with WICOX limited forming ThermaxBabcock and Wilcox limited for manufacture of large size fluidised bed cumbustion boilers and non-cyclone circulating fluidised bed technology for captive power generation.- The Comp. entered into joint venture with Fuji Electric Company, Japan, for manufacture of smart

digital transmitters, a field instrument needed in most industries.- The joint venture viz., Thermax Fugi Electric limited would also manufacture advanced boiler ControlSystem & microprocessor based process control packages.- Another joint venture viz., Thermax Culligan Water Technology Ltd., was set up with CulliganInternational Comp. USA for bringing to market the latest technologies in drinking, commercial &industrial water treatment like ozonisation ultraviolet purification for treating bacteria & virus and reverseosmosis for desalination.- Thermax Energy Performance Services limited is a joint venture formed between the Comp. & EnergyPerformance Services Inc., USA for provision of energy saving projects in industrial sector. The joint project was set up to manufacture energy saving measures in the steel, aluminium, paper and pulp,textile and hotel sectors.- On February 16, 1996, Chairman & Managing Director, Rohinton D. Aga, passed away in Mumbai of

heart attack.- The Comp. received the ISO 9002 certification from the Lloyd Register Quality Assurance [LRQAs].- The Process Heat Division introduced the Combipac, a boiler specially designed to burn agro fuels likerice & groundnut husk, sawdust, coffee waste, mustard, etc., easily available in large parts of country.- A Memorandum of Understanding was signed with Bharat Shell & the Process Heat Division.- Heat Recovery Division for first time in India, commissioned an energy-efficient internal vaporisationunit [Dowtherm Vaporisers] for high-temperature heat requirements of Reliance Industries' plant at Hazira.- The Cogen Division is all set to build a 6 MW cogen facility for a paper plant in Northern India, for whicha letter of intent has been obtained.- The Cogen Division has also signed a Distributorship Agreement with Kawasaki Heavy Industries forpackaging Kawasaki gas turbines up to 6 MW.

- The Environment Division has successfully commissioned bag house systems in the steel sector. TheDivision has launched a new product -- high efficiency cyclone for trapping the flue-gas particulate matterespecially for boilers using agro waste.- The Waste Management Division has also developed a standard incinerator for incinerating infectiouswastes in hospitals & hopes to serve this market in a sustained manner in the coming years.- The Water Treatment Division is all set to enter the domestic & commercial sectors to provide highquality water purification devices. A Memorandum of Understanding has already been signed with aleading international company, which would shortly get converted into a joint venture agreement.- The Electronics Division has now entered the capacitors business for first time & is confident of almost trebling its revenues in the coming year.- The Canara Bank 'Best Exporter' shield in the Western region [except Bombays] for 1995-96.- An Export Award from Chemexil, the Indian Commerce Ministry export council for basic chemicals,

pharmaceuticals & cosmetics.- The `Innovation in Management' award at a global management event 2020 Marketing Vision--hostedby Standard Chartered Bank & the Indian Express Group.- The Giant International Award to the late Chairman R.D. Aga, for his outstanding contribution in thefields of business & industry. 1997- The Comp. received the AD-Merkblatt certification for entire manufacturing unit at Chinchwad.



- An electronic network called Thermnet linking all establishments of the Comp. in the country wasintroduced during the year, making Thermax virtually a single workplace- The Comp. entered into a joint venture with Fuji Electric Comp. of Japan - a Fortune 500 Comp. &leaders in the instrumentation and electrical engineering field.- The Comp. signed a joint venture agreement with Culligan International Comp. of USA, a world leaderin the treatment, conditioning & purification of water.

- The Absorption Cooling division has introduced smaller capacity vapour absorption machines [VAMss]for hotels, hospitals, shopping malls & residential complexes.- The Chemical Division entered the business of fuel treatment for refineries.- During the year, the following companies became subsidiaries of the company: Thermax Fuji ElectricLimited, Thermax Electronics Limited, Thermax International Limited, Thermax [UKs] Limited which haschanged its name to Thermax Europe Limited with effect from April 1, 1997.- Mr. G.K. Gureja, Director, retired with effect from August 31, 1996. Mr. P.K. Sen resigned as Directorwith effect from October 30, 1996. 1998- During the year under review, your Comp. introduced five new products in the standard packagedboiler range. The Comp. also launched a wide range of products incorporating Kawasaki modular

technology in our Vapour Absorption Division.- The products launched by TCWTL like Purichill, the household softener Eversoft & Point-of-Entrysystems have gained market acceptance.- During the year under review, Thermax Energy Performance Services signed its first Master EnergyrviceAgreement [MESAs] with a leading Comp. in Gujarat.- The Comp. developed & introduced a technology called Submerged Aerated Fixed Film [SAFFs].- The Waste Management division has entered into a technical transfer agreement with Ozone ProcessesInc., USA for state-of-the-art Electro-Precipitation technology.- During the year, a licence agreement was signed with Environmental Elements Corporation [EECs],USA, for electrostatic precipitators and large bag houses used by a range of industries.- The Company, during the year, also set up a Learning Resource Centre.- During the year, Thermax [Russ] Limited & Winman Gas Limited became subsidiaries of Company.

- Mr. R.A. Shroff resigned as Director with effect from 27th October 1997. Mr. B. F. Gagrat resigned asDirector with effect from 11th March 1998.- Issued, Subscribed and Paid up Capital includes 21,35,640 Equity Shares of Rs. 10 each allotted as fullypaid up for consideration other than cash as per various schemes of amalgamation & 34,27,500 shares of Rs. 10 each issued by way of bonus shares on capitalisation of General Reserve. 1999- The Comp. has technologies in areas of water & wastewater management to effectively meet thedemand for infrastructure water.- During the year under review, the Comp. developed a more advanced process called PDP II.- The Cogen/ power business was badly affected by delay in financial closures during the year underreview.

- The cogen plants supplied by Comp. to Arvind Mills at its two sites in Gujarat were commissioned duringthe year under review & are meeting the steam & power requirements of customer.- The Air Pollution division has signed a technology co-operation agreement with Schalke of Germany toenable steel industries control dust & obnoxious gas emissions from coke oven batteries, in line with arecent Govt. of India gazette notification.- During the year, Thermax Co-gen Limited became a subsidiary of the Company.- With effect from 1st July 1999, Mr. A.M. Nalawade, Managing Director of the Comp. has beenredesignated as Managing Director.



- The tenure of appointment of Mr. G. Trivedi,Whole-time Director of the Company, expired on 30th June1999.- The tenure of appointment of Mr. M.J. Shaikhali, Mr. R.V Ramani and Dr. N.D. Joshi as Whole-timeDirectors expired on 30th June 1999.- Mr D. L. Chavan resigned as Director with effect from 31st July 1998.

2000- The Comp. has acquired ME Engineering, a UK-based company belonging to the Beel Industrial BoilersPlc group.- The Comp. has signed an exclusive distribution agreement for South Asian markets with US Comp.Purafil Inc to market their dry gas scrubbers popularly known as chemical filters.- Thermax Ltd has signed a memorandum of understanding with the Society of Applied MicrowaveElectronics Engineering & Research for commercialisation of latter microwave disinfection system fortreating pathological bio-medical waste generated by hospitals & research institutes.- The Comp. appointed Mr. P.M. Kulkarni as the Managing Director effective from 21st July.- Thermax has entered into a share-swap arrangement with Global Tele-systems for its softwaresubsidiary, Thermax Systems & Software.- The Industrial Fan Division of Thermax limited has been taken over by the Mumbai-based Universal

Fans India Pvt. limited [UFLs].- Pune-based Thermax limited has received ISO 14001 certification for its environmental management system in its manufacturing plant at Chinchwad. 2001- Thermax has setting up of wholly owned subsidiary company, Thermax Inc, in the US with an initialequity base of $500,000 to enable it to push exports.- Thermax has set up its second overseas wholly-owned subsidiary, in Detroit, USA.- Thermax Ltd is acquiring a 50 per cent stake in Energy Performance Service [Thailands], a subsidiary of Energy Performance Service of Canada.- Thermax & Cummins Diesel Sales & Services, the wholly owned subsidiary of Cummins India, hasentered into a strategic alliance to provide attractive energy solutions to various industry segments.

- Thermax, which is restructuring its business, has sold its electronics & surface coating businesses. Thetwo businesses were carried out through two subsidiaries, Thermax Electronics & Thermax SurfaceCoatings, respectively.-Thermax limited the Comp. has acquired the 50% equity stake of Culligan Water Technologies Ltd[erstwhile Thermax Culligan Water Technologies Ltds]. Consequently Thermax Water Technologies hasbecome a 100% subsidiary of company. 2002- Sunil Lalai appointed as Comp. Secretary of Thermax.-Mr.Prakash Kulkarni acquires additional shares amounting to 2250 shares in Thermax Ltd.-Mrs. Meher P Pudumjee is appointed as non-executive vice-chairperson of Thermax Ltd.Year 2003

-Mr.Jairam Varadraj has been appointed as Additional Director on the Board of Thermax.-Shri Ashok Gehlot, Hon Chief Minister of Rajasthan inaugurated Thermax Captive Power plant in Beawar.-Anu Aga proposes her daughters name as chairperson post of Thermax Ltd.-Thermax Ltd has informed that the Comp. has incorporated & invested US $ 200,000 in a wholly ownedoverseas [WOSs] subsidiary set up in Brazil. 2004



-Thermax receives Letter of Intent for Rs. 744.70 mn Power Plant -Thermax Ltd has informed that the Comp. has set up a wholly owned subsidiary in Hong Kong, in thename & style 'Thermax Hong Kong Ltd'. This subsidiary would address the business opportunitiesidentified in the Asia Pacific Region & more particularly in China for Absorption Chillers.-Thermax bags an order for Captive Power Plant

2008- Thermax Ltd has informed that the Board of Directors of Comp. at its meeting held on January 29,2008, inter alia, has approved the appointment of Dr. R A Mashelkar, Independent Director as anAdditional Director of Comp. with immediate effect. 2009- Thermax Ltd has received an order of Rs 255 crore from a leading business conglomerate for supply of 4 x 250 TPH coal cum washery rejects CFBC boilers (Circulating Fluidised Bed Combustion Boiler).- Thermax on Sept 17 bagged an order for the supply of 270-MW power plant on a turnkey basis to beset up by a Hyderabad-based infrastructure company.-Business Excellence award for Thermax-Thermax wins order worth Rs. 1000 crore

-Thermax signs technology agreements for advanced wastewater treatment -Thermax-SPX joint venture agreement signed Future Prospects

Thermax, an energy and environment solution provider, has set its sights on renewable energy. It hasidentified four segments as having domestic potential. There is a renewed thrust on renewable energyand we believe the biomass, wind, solar and geothermal have potential for growth in India, saysmanaging director, MS Unnikrishnan.

With cash in hand of Rs 800 crore and an order book of close to Rs 5,200 crore (end-December 2009),Thermax, experts believe, is poised for strong growth. Specifically, they point out, the company is adding

to its expertise in the power equipment space. A likely pick-up in capital expenditure by industry shouldbring more orders for Thermax. The engineering firm recently bagged a Rs 580-crore order for a gas-based plant. That, say experts, highlights how Thermax is ramping up the EPC business in terms of size,scope and the client base.

The joint venture with B&W for manufacturing and supplying both sub- (above 300MW) and super-criticalboilers will help Thermax compete with the likes of Bhel, L&T, Gammon India, BGR Energy as well asKorean and Chinese international players. Considering that B&W has a strong track record of itstechnology, the JV is likely to have a decent market share, observes brokerage IDFC SSKI.

Thermax has the majority 51% stake in the joint venture, with B&W holding the rest. The JV will set up a3000MW- capacity plant, which is to be operational in 18-24 months. Observes IDFC SSKI, While the JV

for super-critical boilers is a step in the right direction, we believe the JV is unlikely to drive earnings overthe next two years.

The capital expenditure for the plant is estimated to be Rs 700 crore, of which the equity component islikely to be Rs 350 crore. Thermax will fund its equity of Rs 175 crore through internal accruals as it hascash of Rs 625 crore after accounting for Rs 175 crore to be paid for a US litigation settlement.

According to Kotak Institutional Equities Research, Thermax may receive about two- three orders forentry-level utility plants up to 300 MW over 2011-12. For the core energy business, excluding utility and



large captive power plant orders, orders are expected to come in at a modest 10% compounded annualgrowth rate over 2011-2013.

However, analysts are somewhat apprehensive that Thermaxs operating margins in the energy segment could contract as the company takes on large-sized boilers and EPC contracts. Margins for large-sizedcontracts could be as much as 200 bps lower than small-sized orders, says Kotak Institutional Equities

Research. The energy segment contributes about 80% to the companys revenues, with the remaining20% coming from the environment business. Holding the 80% ratio for the energy segment will bechallenge, says Unnikrishnan.

ConclusionAnu Aga the chairperson of the company 1996-2004, till she handed over the reigns to her daughter,Meher Pudumjee, was amongst the eight richest Indian women, and in 2007 was part of 40 Richest Indians by net worth according to Forbes magazine, in 2009 she was at number 55, and continues to bea board member. The company has seen tremendous growth during Anu Agas reigns. Futurediversification into alternative fuel sources biomass, wind, solar and geothermal hold bright prospects forthe company.

thermax ltd

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