Thermax Limited in the Arab World
Thermax operates in the Arab World through its sales and service offices in the UAE, Saudi Arabia (Al Khobar & Jeddah),Yemen, Egypt, Kuwait and Oman.The company's products for this region encompass Boilers and Heaters for Oil & Gas and Power sector, Absorption Cooling Systems, Chemicals and Water Treatment Systems.The company has nearly 400 clients in the Middle East, from various sectors including Oil & Gas,Textiles, Rubber, Petrochemicals, Concrete Blocks,
Cosmetics, Lubricants and Hotels.
Thermax in the UAE
The company operates in the UAE through its sales and service offices in Abu Dhabi and Dubai for Boilers, Heaters and Chillers.The boiler pressure parts are exported from the company's manufacturing plant in India to its offices in the Middle East, where they are assembled and distributed to customers or erected at the site.
The company's operations in all the countries in the Middle East are directly handled by its Dubai office.
Factors for Success
Focus on Strategic Alliances
Thermax focuses on strategic alliances and joint ventures with global technology leaders, which have enabled it to update its technology. In 2004, the company entered into a strategic alliance for a joint marketing programme with Cummins Diesel
Company Background
Thermax, originally incorporated as Thermo- Dynamics Private Limited in 1980, is engaged in providing energy and environment management products and services for industrial scale clients.
The company is a market leader in Boilers, Heaters and Absorption Coolers, and exports these to the EU, the US, Russia, and the Middle East. Exports presently contribute around 20 per cent to the company's revenue.The company has developed energy efficient and environment friendly products with technological collaboration with Babcock and Wilcox (USA), the Kawasaki Thermal Engineering Company (Japan), Bloom Engineering (Germany) and Energy Performance Services (USA).
Thermax has seven subsidiaries around the globe, including Thermax Instrumentation Limited, Thermax Inc., USA,Thermax Europe Ltd, UK, Thermax Energy Performance Services Ltd, Thermax Engineering Construction Co. Ltd, Thermax Hong Kong Limited, and Thermax do Brasil Energia e Equipamentos Ltda.These subsidiaries facilitate the company to grow its business in areas where it cannot export directly due to stringent entry barriers.
In 2005-06, the company recorded total revenues of US$ 352.3 million, with a net profit of
US$ 29.5 million.The total employee strength as on 31 March 2006 was 3,253.
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THERMAX LIMITED
Sales and Services (CDSS), which will provide energy solutions based on waste heat sources to various industry segments.
Customer Focus
The company has realigned its distribution channels and streamlined the number of its channel
associates.This improved network has allowed for a wider reach and increased cross-selling opportunities for Boilers, Heaters, Chemicals, Water Treatment packages and Air Pollution Control Equipment.The company is thereby able to position itself as a single-window provider of solutions and services, and can gain an edge over its competitors.
Future Plans
The company plans to expand its volumes in the Middle East by 30 per cent annually through the following strategies:
Focus on EPC Contracts
The company is focussing on Engineering,
Procurement and Construction (EPC) contractors in oil & gas, petrochemical, refineries and captive power generation to give a boost to its Boiler, Heaters,Waste Heat Recovery Systems and Cogeneration Division.
Focus on R&D
The company plans to invest around US$ 15-20 million for upgrading its facilities, conducting R&D and developing its foreign market.
Focus on Exports
Thermax is focussing on increasing the contribution of exports to total revenues, and growing the share of project exports from 5 per cent of total exports in 2004 to 40-50 per cent over the next three years. It plans to concentrate on the Middle East, South East Asia, the US, the UK, Brazil, and Russia.
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