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4	4
5	5	= Overview =
6	6
	7	+Thermax Group is an INR 5,831 Cr. (822 Million US$) company headquartered in Pune, India. Its business portfolio includes products for heating, cooling, water and waste management, and specialty chemicals. The company also designs, builds and commissions large boilers for steam and power generation, turnkey power plants, industrial and municipal wastewater treatment plants, waste heat recovery systems and air pollution control projects.{{footnote}}https://www.thermaxglobal.com/about-us/{{/footnote}}
7	7
8		-Thermax Group is an INR 5,831 Cr. (822 Million US$) company headquartered in Pune, India. Its business portfolio includes products for heating, cooling, water and waste management, and specialty chemicals. The company also designs, builds and commissions large boilers for steam and power generation, turnkey power plants, industrial and municipal wastewater treatment plants, waste heat recovery systems and air pollution control projects.
9		-
10		-[[https:~~/~~/www.thermaxglobal.com/about-us/>>url:https://www.thermaxglobal.com/about-us/]]
11		-
12		-
13	13	The systems, products and services developed by Thermax help industry achieve better resource productivity and improve bottom lines, while maintaining a cleaner environment. Even as the company convert costs to profits, the company help to protect the environment in its own limited ways. A win-win for industry and the society at large.
14	14
15		-
16	16	The company operate globally through 29 international offices and 14 manufacturing facilities – 10 of which are in India and 4 overseas.
17	17
18		-
19	19	The company's presence spans 88 countries and supports customers through an extensive sales & service network spread over Asia, South East Asia, Middle East, Africa, Europe and the Americas.
20	20
21		-
22	22	The group consists of 7 wholly owned domestic subsidiaries and 21 wholly owned overseas subsidiaries.
23	23
24	24
	18	+[[image:THERMAX0.jpg||height="572" width="715"]]
25	25
26	26
27		-Plant Location
	21	+== Plant Location ==
28	28
29		-Domestic
	23	+**Domestic**
30	30
	25	+* Pune
	26	+* Chinchwad, Pune, Maharashtra.
	27	+* Bhosari,Pune, Maharashtra.
	28	+* Chinchwad, Pune,Maharashtra.
	29	+* Solapur,Maharashtra.
	30	+* Paudh,Maharashtra.
	31	+* Savli,Gujarat.
	32	+* Mundra SEZ,Gujarat.
	33	+* Jhagadia,Gujarat.
	34	+* Dahej,Gujarat.
	35	+* Sri City,Andhra Pradesh
31	31
32		-Pune
33	33
34		-Chinchwad, Pune, Maharashtra.
	38	+**International**
35	35
36		-Bhosari,Pune, Maharashtra.
	40	+* Indonesia
	41	+* Denmark
	42	+* Germany
	43	+* Poland
37	37
38		-Chinchwad, Pune,Maharashtra.
39	39
40	40
41		-Solapur,Maharashtra.
	47	+[[image:THERMAX2.png||height="348" width="721"]]
42	42
43		-Paudh,Maharashtra.
44	44
45		-Savli,Gujarat.
	50	+== Subsidiaries ==
46	46
47		-Mundra SEZ,Gujarat.
	52	+* Thermax Babcock and Wilcox Energy Solutions Pvt. Ltd.
	53	+* Danstoker A/S (Denmark)
	54	+* Boilerworks A/S (Denmark)
	55	+* Danstoker Poland Społka Z Ograniczona Odpowiedzialnoscia (DSPL)
	56	+* PT Thermax International, Indonesia (PT TII)
	57	+* Thermax (Zhejiang) Cooling & Heating Engineering Co. Limited, China (TZL)
	58	+* Thermax Onsite Energy Solutions Limited (TOESL)
	59	+* Thermax Inc. (USA)
48	48
49		-Jhagadia,Gujarat.
50	50
51		-Dahej,Gujarat.
	62	+= Product and Services =
52	52
53		-Sri City,Andhra Pradesh
	64	+Thermax is a leader in delivering water treatment plants for the diverse needs of industries. With 50 years of experience in designing, building and managing the construction of water treatment projects, the company create and implement tailored or standardised industrial water treatment solutions.{{footnote}}https://www.thermaxglobal.com/water-waste-solutions/water-treatment/{{/footnote}}
54	54
55	55
56		-International
	67	+== Solutions ==
57	57
58		-Indonesia
	69	+* Water Treatment
	70	+* Wastewater Treatment
	71	+* Zero Liquid Discharge
	72	+* Desalination
59	59
60		-Denmark
61	61
62		-Germany
	75	+== Products ==
63	63
64		-Poland
	77	+* Water Treatment
	78	+* Sewage Treatment
	79	+* Effluent Treatment
	80	+* Pharmaceutical Ro
	81	+* Solid Waste Management
65	65
66	66
	84	+== Services ==
67	67
68		-<img>
	86	+* Plant Upgrade & Improvement
	87	+* Plant Management Services
	88	+* Spare Parts Management
	89	+* Plant Audit & Evaluation
	90	+* Characterisation & Treatability Test
	91	+* Membrane Integrity, Autopsy
	92	+* Outsourced Utility Services
69	69
70	70
71		-Subsidiaries
	95	+[[image:THERMAX1.png||height="773" width="716"]]
72	72
73		-Thermax Babcock and Wilcox Energy Solutions Pvt. Ltd.
74	74
75		-Danstoker A/S (Denmark)
	98	+= Industry Overview =
76	76
77		-Boilerworks A/S (Denmark)
	100	+the macro conditions remained weak due to factors such as non-banking financial sector crisis, liquidity crunch, lower GST collections and strain on fiscal deficit. Key economic parameters like consumption, investment and export plunged significantly over the year, bringing down the total growth. The already stressed economy was battered by the coronavirus pandemic in Q4, as India enforced a nationwide lockdown, one of the strictest in the world. The economy expanded by 3.1% in Q4 and dragged the full year FY2019-20 GDP growth to 4.2%, weakest since the financial crisis hit more than a decade back. India’s industrial output in FY2019-20 contracted 0.7% over FY2018-19, which was primarily driven by a severe fall of 16.7% in March, because of the closure of a large number of factories during the lockdown. All major sectors registered a considerable degrowth year-on-year. {{footnote}}https://www.thermaxglobal.com/wp-content/uploads/2020/12/Annual-Report-2020.pdf{{/footnote}}
78	78
79		-Danstoker Poland Społka Z Ograniczona Odpowiedzialnoscia (DSPL)
80		-
81		-PT Thermax International, Indonesia (PT TII)
82		-
83		-Thermax (Zhejiang) Cooling & Heating Engineering Co. Limited, China (TZL)
84		-
85		-Thermax Onsite Energy Solutions Limited (TOESL)
86		-
87		-Thermax Inc. (USA)
88		-
89		-
90		-
91		-
92		-Product and Services
93		-
94		-
95		-
96		-
97		-Thermax is a leader in delivering water treatment plants for the diverse needs of industries. With 50 years of experience in designing, building and managing the construction of water treatment projects, the company create and implement tailored or standardised industrial water treatment solutions.
98		-
99		-[[https:~~/~~/www.thermaxglobal.com/water-waste-solutions/water-treatment/>>url:https://www.thermaxglobal.com/water-waste-solutions/water-treatment/]]
100		-
101		-
102		-
103		-
104		-Solutions
105		-
106		-
107		-Water Treatment
108		-
109		-Wastewater Treatment
110		-
111		-Zero Liquid Discharge
112		-
113		-Desalination
114		-
115		-
116		-Products
117		-
118		-
119		-Water Treatment
120		-
121		-Sewage Treatment
122		-
123		-Effluent Treatment
124		-
125		-Pharmaceutical Ro
126		-
127		-Solid Waste Management
128		-
129		-
130		-Services
131		-
132		-
133		-Plant Upgrade & Improvement
134		-
135		-Plant Management Services
136		-
137		-Spare Parts Management
138		-
139		-Plant Audit & Evaluation
140		-
141		-Characterisation & Treatability Test
142		-
143		-Membrane Integrity, Autopsy
144		-
145		-Outsourced Utility Services
146		-
147		-
148		-Industry Overview
149		-
150		-
151		-the macro conditions remained weak due to factors such as non-banking financial sector crisis, liquidity crunch, lower GST collections and strain on fiscal deficit. Key economic parameters like consumption, investment and export plunged significantly over the year, bringing down the total growth. The already stressed economy was battered by the coronavirus pandemic in Q4, as India enforced a nationwide lockdown, one of the strictest in the world. The economy expanded by 3.1% in Q4 and dragged the full year FY2019-20 GDP growth to 4.2%, weakest since the financial crisis hit more than a decade back. India’s industrial output in FY2019-20 contracted 0.7% over FY2018-19, which was primarily driven by a severe fall of 16.7% in March, because of the closure of a large number of factories during the lockdown. All major sectors registered a considerable degrowth year-on-year.
152		-
153		-[[https:~~/~~/www.thermaxglobal.com/wp-content/uploads/2020/12/Annual-Report-2020.pdf>>url:https://www.thermaxglobal.com/wp-content/uploads/2020/12/Annual-Report-2020.pdf]]
154		-
155		-
156	156	Capital goods being a derived demand sector, Thermax’s growth depends on the investments in core sectors of the economy. As shown below, the following sectors contributed to the order booking of the company during the year under review.
157	157
158	158
159		-Power
	105	+== Power ==
160	160
161	161	Based on data from the Central Electricity Authority (CEA), India targets a power generation capacity of around 480 GW by the end of FY2021-22 from 370 GW as of March 31, 2020, and of this, renewables will contribute about 175 GW. As a signatory to the COP 21 agreement on climate change, India has pledged that by 2030, the greenhouse gas emission intensity of its GDP will be reduced by 33-35% below 2005 levels and 40% of its power capacity would be based on non-fossil fuel sources. The Union Budget 2020-21 allotted Rs. 2,516 crore for solar power - a 10.35% increase over the last Budget, apart from Central Financial Assistance for a capacity addition of 7,500 MW of solar power in FY2020-21. This strong government focus on renewables is expected to offer new opportunities for Thermax.
162	162
163		-
164	164	Compliance with new emission norms requires that existing thermal power plants be retrofitted with auxiliaries such as Flue Gas Desulphurisation (FGD) systems. To ensure uninterrupted power supply, the implementation is slated to be carried out in phases, covering around 160 GW of power plant capacity. The market size of FGDs is expected to be Rs. 650-800 bn over the next four years. This opportunity augurs well for the company, with the possibility to translate it into orders for FGD from customers operating thermal power plants and from select cement customers.
165	165
166	166	However, it is likely that in FY2020-21, private power distribution companies will revisit their capex plans. According to an estimate by Confederation of Indian Industry (CII), the nationwide lockdown could result in total demand compression of up to 36 billion units of electricity, implying a net revenue loss of around Rs. 30,000 crore at the discom level. The commercial and industrial sector in India consumes around 52% of electricity, followed by 24% by domestic households and 18% by the agriculture sector. The higher tariffs are borne by the commercial sector, thereby significantly denting the collections of discoms. Push towards energy efficiency is likely to spawn opportunities for cogeneration solutions, where power and steam are generated simultaneously.
...	...	@@ -168,29 +168,29 @@
168	168	Notwithstanding the medium and long-term prospects, renewable energy capacity addition is likely to be impeded by the COVID-19 crisis. Solar projects, largely dependent on imported modules from China and Malaysia, will be impacted due to raw material shortage, production delays, supply chain disruption and the recent standoff with China. As per industry reports, India is expected to add only 5,000 MW of solar capacity in the year 2020, nearly 32% lower than 2019, due to extended project timelines. Additionally, inconsistencies in net metering policy across different states pose significant challenges for rooftop solar.
169	169
170	170
171		-Food, Beverage and Packaging
	116	+== Food, Beverage and Packaging ==
172	172
173	173	The fast moving consumer goods (FMCG) sector is also currently facing challenges. High unemployment, rising inflation rates and a minimal uptick in income levels are taking a toll on urban demand. With domestic consumption contributing to almost 60% of India’s GDP, steps are being taken by the government to revive consumption. The Union Budget 2020-21 announced reforms such as a change in the income tax slab to ensure more free income in the hands of the new earners. This, along with an emphasis on targeted measures for boosting the rural economy, is expected to have a twin positive impact on consumption. Budgetary incentives to boost investments in the dairy industry are also expected to support revival of the rural economy and domestic consumption. Till the onset of COVID-19, expected consumption growth was likely to stimulate investments in capital goods by FMCG, food processing and dairy sectors. However, limited mobility to prevent the COVID-19 spread and rising unemployment may derail sales, leading to the postponement of capex plans by consumer-facing companies.
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175	175
176		-Chemicals
	121	+== Chemicals ==
177	177
178	178	The chemical industry has witnessed a positive momentum, maintaining a CAGR of 17% between 2016 and 2019, even when India’s economy faced headwinds. Thermax’s chemical business was a beneficiary of this growth with opportunities predominantly for its performance chemicals in the developed markets. The growth is likely to continue despite the economic challenges that caused India’s GDP growth rate to drop substantially. Chemical companies can also benefit from rising domestic demand in chemical end-use sectors, many of which fall under the ‘essential goods’ category which is expected to be less impacted by the economic slowdown and COVID-19 crisis. India’s attractiveness as a manufacturing destination, given the trade conflicts, especially among China, the United States, and Western Europe and its improved ease of doing business, are some of the other positive factors.
179	179
180	180
181		-Cement, Metal and Steel
	126	+== Cement, Metal and Steel ==
182	182
183	183	The infrastructure sector has been the biggest focus area for the government. The National Infrastructure Pipeline has lined up 6,500 projects across key sectors while the Union Budget 2020-21 has proposed the development of 2,500 km access control highways, 9,000 km of economic corridors, 2,000 km of coastal and land port roads and 2,000 km of strategic highways. The thrust on road construction has fuelled demand for the company’s waste heat recovery based captive power plants from the cement industry. Infrastructure development also generated enquiries for capital goods from the sponge iron industry. While the demand from the steel industry remained muted due to stressed balance sheets of several steel companies, supply constraints from China could result in an uptick of domestic demand. However, the lockdown has resulted in various infrastructure project sites staring at closure owing to labour shortage and supply chain disruptions. The existing grave fiscal situation in the construction sector for both the Centre and states further implies that continued funding of infrastructure capital expenditure will be a challenge in the near future. Additionally, as focus shifts towards rolling out of relief packages to help overcome the loss of income due to the crisis, it may undermine the government’s ability to spend on infrastructure projects over the next one or two years.
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186	186
187		-< img Segmt>
	132	+[[image:THERMAX3.png]]
188	188
189	189
190		-Business Segments
191	191
	136	+= Business Segments =
192	192
193		-Energy Segment
	138	+== Energy Segment ==
194	194
195	195	The Thermax Energy segment comprises Process Heating, Absorption Cooling and Heating, Boiler and Heater and Power (EPC and Solar) businesses and related services. Under the Process Heating business, the company offers packaged boilers, thermal oil heaters, heat recovery boilers and hot water generators. Thermax is among the leaders in vapour absorption cooling and heating systems, with its chillers used worldwide for industrial refrigeration, air conditioning, process cooling and heating. Thermax Cooling Solutions Limited (TCSL), a wholly owned subsidiary, offers a range of wet and dry cooling solutions for energy efficient heat removal from process and manufacturing industries. TBWES, a 100% subsidiary of Thermax, provides steam generation solutions for process and power needs, and offers renovation and modernisation services for old boilers and process furnaces. The company has domain experience in setting up captive power, cogeneration and trigeneration plants on an EPC basis, with an installed base of more than 3,300 MW. The company is leveraging this capability for solar installations across various industries. Investments in digital capabilities and R&D have been increased for driving sustainable solutions across its growing portfolio of products and services. Thermax and its group companies have supplied global markets with heating and cooling systems and power plants generating energy from renewable sources such as biomass, waste heat from industrial plants and solar energy.
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...	...	@@ -197,7 +197,7 @@
197	197	The Energy segment contributed 80.4% (79.4%) of the group’s gross operating revenue in FY2019-20. Operating revenue (net) at the group level stood at Rs. 4,677 crore (Rs. 4,799 crore) for the year, while segment profits for the same period stood at Rs. 249 crore (Rs. 322 crore). The order booking for FY2019-20 stood at Rs. 3,280 crore, lower than the previous year’s figures of Rs. 4,476 crore. Despite opening the year on a promising order book, the revenue recognition was impacted severely due to the onset of the pandemic in the crucial last month of the financial year. Muted enquiries from the core sectors during the year resulted in no major project orders being concluded. The FY2020-21 outlook for the segment continues to be challenging.
198	198
199	199
200		-Environment Segment
	145	+== Environment Segment ==
201	201
202	202	Environmental norms for processdriven industrial sectors are getting stricter and more closely regulated, with serious concerns over air pollution and effluent management. Thermax’s solutions for controlling emission and for minimising waste discharge and maximising recycling are a strategic fit in helping customers reduce their impact on the environment. Thermax offers air pollution control systems for both particulate and gaseous emissions to a wide range of industries – cement, steel and ferrous metals, power generation, chemical, fertilisers, etc. The Water and Waste Solutions (WWS) business supports industrial and commercial establishments to treat water for their process requirements and to clean sewage and effluent; often recycling the water, especially where there is a shortage of water. Led by its expertise in handling various pollutants and fuel firing conditions, the company’s Enviro business has garnered sizeable market share in India and completed marquee projects in South East Asia which it plans to develop as a second domestic home market. The WWS business includes water treatment, wastewater treatment/recycling, zero liquid discharge solutions, sewage treatment/recycling and desalination plants. The business has to date completed over 20,000 installations. The growth of the Environment segment has been underpinned by the company’s technological knowhow and customised solutions.
203	203
...	...	@@ -204,7 +204,7 @@
204	204	The segment accounted for 12.4% (13.7%) of the group’s gross operating revenues in FY2019-20. Operating revenue (net) at the group level stood at Rs. 722 crore (Rs. 828 crore) for the year, while segment profits for the same period stood at Rs. 38 crore (Rs. 57 crore). As in case of the Energy segment, the Environment segment faced a similar challenge of revenue recognition in the last month. The order booking for FY2019-20 stood at Rs. 1,777 crore, higher than the previous year’s figures of Rs. 741 crore. The order booking for the segment surpassed the Rs. 1,500 crore mark for the first time on the back of the two major FGD orders bagged during the year. Opening the year with a promising order carry forward, complemented with increased enforcement of emission norms and regulatory discharge norms are likely to augur the growth of the segment in the coming year.
205	205
206	206
207		-Chemical Segment
	152	+== Chemical Segment ==
208	208
209	209	The Chemical segment manufactures and markets a wide range of specialty chemicals to help improve processes across a spectrum of industries. It comprises the following: microporous resins, performance chemicals, paper chemicals, construction chemicals and oil field chemicals.
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...	...	@@ -215,10 +215,8 @@
215	215	In FY2019-20, the Chemical segment accounted for 7.2% (6.9%) of the group’s gross operating revenue. The Chemical business segment posted operating revenue of Rs. 421 crore (Rs. 415 crore). The profit for the segment was Rs. 78 crore as compared to Rs. 62 crore in the previous fiscal. The profitability of the Chemical segment has improved due to the increase in capacity utilisation, efficient sourcing and lower cost of key raw materials. Order booking for the segment in FY2019-20 stood at Rs. 441 crore. The Chemical business achieved growth in revenue, attributed to a healthy order booking from domestic and international customers in FY2019-20. The business is expected to continue its growth momentum in the coming year on account of demand from the US and European markets providing essential goods and services and growth in the pharmaceutical and food & beverage sectors in the domestic market.
216	216
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	163	+= Financial Highlights =
218	218
219		-Financial Highlights
220		-
221		-
222	222	The company posted total income of Rs. 3,319 crore for the nancial year 2019-20, against last year’s income of Rs. 3,664 crore. On a consolidated level, the group income was at Rs. 5,831crore (Rs. 6,123 crore).
223	223
224	224	The energy segment contributed 80.4% (79.4%) to the group’s operating revenues in FY 2019-20.
...	...	@@ -233,16 +233,13 @@
233	233
234	234	During the year, the directors have approved payment of interim dividend of Rs. 7/- (350%) per equity share of face value Rs. 2/- each for distribution of the prots of the company for the quarter and nine months ended December 31, 2019, which had resulted in a payout of Rs. 101 crore including dividend distribution tax of Rs. 17 crore.
235	235
236		-
237	237	The total number of permanent employees on the rolls of the company as on March 31, 2020, was 3,325 compared to 4,110 employees in the previous year. The signicant reduction in number of employees is due to transfer of employees to subsidiaries of the company.
238	238
239	239
240		-Thermax Consolidated December 2020 Net Sales at Rs 1,410.59 crore, up 0.04% Y-o-Y
	182	+**Thermax Consolidated December 2020 Net Sales at Rs 1,410.59 crore, up 0.04% Y-o-Y **{{footnote}}https://www.moneycontrol.com/news/business/earnings/thermax-consolidated-december-2020-net-sales-at-rs-1410-59-crore-up-0-04-y-o-y-2-6455031.html{{/footnote}}
241	241
242		-[[https:~~/~~/www.moneycontrol.com/news/business/earnings/thermax-consolidated-december-2020-net-sales-at-rs-1410-59-crore-up-0-04-y-o-y-2-6455031.html>>url:https://www.moneycontrol.com/news/business/earnings/thermax-consolidated-december-2020-net-sales-at-rs-1410-59-crore-up-0-04-y-o-y-2-6455031.html]]
	184	+**February 05, 2021**; Reported Consolidated quarterly numbers for Thermax are:
243	243
244		-February 05, 2021; Reported Consolidated quarterly numbers for Thermax are:
245		-
246	246	Net Sales at Rs 1,410.59 crore in December 2020 up 0.04% from Rs. 1,410.05 crore in December 2019.
247	247
248	248	Quarterly Net Profit at Rs. 83.26 crore in December 2020 down 2% from Rs. 84.96 crore in December 2019.
...	...	@@ -252,3 +252,8 @@
252	252	Thermax EPS has decreased to Rs. 7.39 in December 2020 from Rs. 7.54 in December 2019.
253	253
254	254	Thermax shares closed at 1,206.75 on February 04, 2021 (NSE) and has given 64.50% returns over the last 6 months and 16.79% over the last 12 months.
	195	+
	196	+
	197	+= References =
	198	+
	199	+{{putFootnotes/}}