Thermax expands service businesses

Thermax Ltd on April 10, 2007 has announced the expansion of its Operations & Maintenance (O&M) and energy audit business to cater to the rapidly growing market demand.

In order to make O&M a major business in the next five years, the Company is making forays into new markets segments. Currently, the Company's O&M contracts are restricted to customers where it has put up turnkey captive power plants. The Company will now offer services to power plants that are not built by it. It also plans to offer O&M expertise to power plants in the higher range of 100 MW and over.

Mr. M S Unnikrishnan Executive Vice President, of the Company said, "The emerging trend of outsourcing this activity is evident from the business Thermax has picked up from the cement sector which is on the fast track of becoming cost competitive." Till end March 2007, the Company has signed five O&M contracts. A typical Rs 100 crore captive power plant in cement factory would spend Rs 36 crore on annual fuel bills and one of the major benefits the Company offers is a reduction in energy costs with highest power plant productivity. The efficient use of water, with conditioning chemicals in both the boilers and cooling tower, also adds to the productivity of operations.

The Company's experience in engineering, procurement and construction of captive power plant coupled with expertise in water treatment, performance chemicals and pollution control makes it a credible player in the power O&M business. It also has the related O&M experience of waste water recycling, and sea water desalination for large industrial equipments.

The Company’s other service business of energy audit is also being expanded. The Company expects to conduct more than 100 energy audit this year, compared to 35 last year. It is now mandatory for process Industries to conduct annual audited of their utilities, by the Bureau of Energy Efficiency (BEE) accredited auditors. The Company has energy audit professionals certified by BEE. The energy audits the Company conducts go beyond reports and help industries to implement energy saving measures in their utilities.

Source : Equity Bulls

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