Propelling a Sustainable Growth Strategy

Operating Context

Factors Impacting Businesses

Capital goods being a derived demand sector, Thermax is subject to cyclicality, based on the capital formation plans of its customers. During the year, the company initiated a strategic plan – ThermaxNXT – to mitigate the effects of such cyclicality. As part of this strategy, Thermax has identified the following levers of growth:

ThermaxNXT is focussed on:

The company expects these efforts to translate into incremental revenue growth and stronger alignment to the green ethos.

Strategy Planning Process

Strategic Imperatives

Increase the share of green offering in line with the company’s vision of providing sustainable solutions
  • The contribution of green offerings to Thermax’s portfolio is approximately the same as last year
  • Order bookings from green offerings comprise utilisation of non-fossil fuels from the Energy segment, including TOESL, all orders booked by the Environment segment and non-fossil application based orders from the Chemical segment

For more details on Business Segments click here

Grow products and services
  • Order booking from products and services contributed to 53% in FY2021, similar to the previous year
  • Focus continued on order booking from products, as well as a mix of spares and value-added services, to de-risk the cyclicality of the projects’ business

For detailed information on the Strategy section in the MDA click here

Focus on selective internationalisation
  • Growth in revenue from the international business as a percentage of total business stood at 35% during the year; however, it did not perform as per the desired levels

For detailed information on the above, to read the Strategy section click here

Strategic Enablers

Technology leadership through innovation
  • Applied for four patents in the areas of heating, steam engineering and waste heat recovery for mobility applications
  • Responding to government’s policies and enablers, to increase the share of biofuels in India’s energy mix by utilising carbon-neutral technology
  • Partnered with Power Roll to develop the solar film market in India
  • Working with DRDO to build indigenous AIP for the Indian Navy
  • Signed technology agreement with Steinmüller Babcock Environment for waste to energy boilers

For detailed information on the above, to read the chapter on Intellectual Capital click here

Operational excellence to deliver high quality solutions to customers at competitive costs
  • Driving efficiencies through operational excellence as a way of life
  • Leading market position, supported by cost competitiveness, technical skills, technology tie-ups, and proven track record in the domestic market
  • ‘OPEX - Project Management’ app and portal developed by Business Technology Group, to provide a live and dynamic perspective to all operational excellence projects undertaken, on a single platform

For detailed information on the above, to read the chapter on Intellectual Capital click here

Build a ‘Smart’ and efficient Thermax through a structured digitalisation roadmap
  • Leveraging digitalisation to deliver customer-centric applications and adding value to customer processes
  • Introduced a digital engineer-to-order process for supporting advanced engineering calculations and integrating design software with customer needs

For detailed information on the above, to read the chapter on Intellectual Capital click here

Talent development and retention
  • Attracting, developing and retaining talent - a key strategic priority at Thermax
  • Fostering capability and continuous learning to build human capital and empower employees

For detailed information on the above, to read the chapter on Human Capital click here

For detailed information on Strategies and its Key Enablers click here