Thermax acquires Danstoker, gears up for ME expansion
Khaleej Times | 2 December 2010
DUBAI — Thermax, an Indian engineering major with a strong presence in the GCC, has announced its acquisition of Danstoker, a leading European boiler manufacturer and its German subsidiary, Omnical Kessel.
With this acquisition, we are looking forward to strengthen our presence in the Middle East and South East Asia as both Omnical aid MS Unnikrishnan, Managing Director of the Thermax, a Rs33 billion energy and environment solutions leader.
In the Middle East, Thermax customers include Emirates Refining Company, Petrofac, VOPAC, Sharjah Oil, Castrol, Caltex UAE, Kuwait National Petroleum Company, SABIC, Arabian Petrochemicals Saudi Arabia. Thermax has provided them boilers, heaters cooling systems and chemicals for water treatment and boiler operations, said Unnikrishnan.
The acquisition is valued at Euro 29.5 million.
Danstoker, headquartered in Herning, Denmark is a respected brand in renewable energy and with over 1200 installations in Europe, it has a strong presence in Nordic countries, Germany, UK, France and Russia.
Danstoker manufacturing facilities are located in both Denmark and Germany, where it had acquired Omnical in 2003. Omnical, the Danstoker subsidiary is a respected brand in the Middle East and has several global names on its client list – Volkswagen, BMW, Damiler Benz, Audi, Shell, Exxon, Du Pont, Bayer, BASF, Ferrero and Coca Cola, among others.
“Omnical systems will strengthen the offerings of Thermax, which over the last two decades have commissioned several heating, cooling and waste heat recovery projects for oil-gas, petrochemical, food and paper sectors in the Middle East,” said Unnikrishnan.
AM Roshan, head, Corporate Communications of Thermax, speaking from Thermax head office in India, said the acquisition offered a strategic fit for Thermax's packaged boiler business, under the Cooling & Heating Business Unit. “Providing state-of-the-art technology and process know-how for the company's heating business, it will enable the division to enhance its product portfolio and extend it to new untapped markets.”
Thermax will add 237 experienced employees to its rolls with this acquisition, apart from a well organized and established supply chain rooted in the high-quality European engineering industry. It will also benefit from the strong business relations that Danstoker and Omnical have built with customers, dealers, packagers and consultants in Europe. Capitalising on Thermax's engineering and project management capabilities, Danstoker can enhance its market share in the growing European green energy market.
Operating predominantly within Germany, Omnical brand is well known in markets like the Middle East using oil and gas based heating and power systems. It also has supplier relationships with European and Japanese gas turbine manufacturers for their requirements of waste heat recovery systems.
Renewable and green products account for over 50 per cent of the current revenues of the Danstoker Group. This acquisition will enable Thermax to leverage the ongoing renewable energy movement of Europe aimed at generating 20 per cent of its overall energy generation from renewables.