Thermax is stepping up its global expansion efforts as it looks to double its existing presence across Southeast Asia, Africa, and the Middle East, according to a top executive.
“About 20 per cent of our book is international markets, and in the recent past, it is 30 per cent,” said Ashish Bhandari, chief executive officer of the company.
The company’s outstanding order book was recorded at Rs 10,681 crore in the quarter ended June 2024, according to its investor presentation.
Thermax, Bhandari said, has a renewed focus on energy transition technologies, particularly hydrogen, carbon capture, and water management.
The engineering major’s international growth is fuelled by the rising demand for sustainable solutions. In Africa, the company has capitalised on the continent’s shift to biomass, which has proven to be a cost-effective green alternative. “Using bio-waste is actually a way of cutting down costs because Africa has a lot of agricultural supply,” said Bhandari. “So there are many solutions that are money-making and are also green,” he added.
The company’s global footprint includes over 90 countries and 14 manufacturing locations (10 in India and four overseas), and it remains bullish on expanding its sustainable solutions portfolio through research and development (R&D) efforts. The R&D focus is in line with the company’s commitment to cut its carbon footprint by 50 per cent by 2030, with 2019 as the baseline. A 30 per cent reduction is expected by the end of this year.
This international growth is underpinned by Thermax’s expanding portfolio of projects across key regions. In the Middle East, for instance, Thermax’s subsidiary, Thermax Babcock & Wilcox Energy Solutions (TBWES), received a major order for two 250 total petroleum hydrocarbon (TPH) gas-fired boilers for a refinery in the UAE. The company also recently commissioned a significant project in Nigeria’s largest refinery.
Bhandari noted that the company’s R&D spending has “significantly increased” over the past five years, with this year seeing the highest jump. He added that for India to scale up its manufacturing capabilities, investment in domestic R&D, particularly for India-specific solutions, is crucial. Thermax plans to start reporting its R&D investments soon.
First Published: Sep 26 2024 | 6:18 PM IST
