Preview Case

STEAMING AHEAD: CORPORATE The 1990s: International strategy of setting upa

STRATEGIES AT THERMAX* resin plant in the US; strategic allunces wirh fuel
Thermax Ltd. (formerly Wanson India Pvt. Ltd) suppliers; Joint venture with US-based Engincering.
WIs formed in 19%6 to make small boilers. Building Procurement and Construction services busnesses,
theit business definition around the basic for energy service business; related diversification
customer
function of stcanm gencration, they saw the 1973 oil into cogeneration business; divestment of Thermax
crists as an opportunity and started manufacturing Engineering Construction Company as a wholly
coal- fired boiers. From steam owned subsidiary: joint venture for Culligan Inter
generation to water
treatment was a logical extension, extended further national for water treatment business.
to manufacturing pollution-control The 2000s: Faced losses for the first time in 2001:
equipment.
Thermax Group is providing a range of engi entire board of directors stepped down; embarked
neenng solutions to the energy and environment on restructuring and turnaround; divestments from
sectors. lt is headquartered in Pune, India, and op and abandoning joint ventures in non-core sectors
erates giobally through international offices, sales such as electronics and software, and focus on core
and service ofices and its manufacturing facilitics in
activities in energy and environment, and power and
Ind:a andoverseas. The group consists of domestic chemicals; continual internal expansion; moving be
wholly-owned subsidiaries, overseas wholly-owned yond exports through international expansion.
subsidiaries, and joint ventures. The vision of the The 201Os: Strategic alliances and expansion con
company is 'to be aglobally respected high-perform tinues; builds up good order book positions; en
Ance organisation offering sustainable solutions in hanced activity in solar cooling systems and capive
cnergy and environment'.
Ahistorical account shows how the company power plants; acquisition of German steam prod
ucts company Rifox.
has followed several types of corporate strategies Beyond 2010s: Focus on technology tie-ups for
1n its corporate history in order to ensure survival, technology upgradation in energy and environment
growth, and profitability. through joint ventures; related diversification into
Late 1960s: The company is formed; starts making high tech power generation equipment; offering
coil-rype packaged boiler and thermic Auid heaters. outsourced energy management and power plant
The 1970s: Expansion to make the first packaged management services; participating in green energy
tube boiler for Indian coal and other solid fuels;
programmes; operating in six Core businesses of
related diversification into water-treatment plants; boiler and heater, cooling and heating, power gen
takeover of Tulsi Fine Chemicals and the establish eration, chemicals and water, air pollution control,
ment of a chemicals division; expansion for making and renewable energy.
large ficld-erected boiler; related diversification into
0s
surface-coating and pollution-control [Link] represents a typical company that
The 1980s: Related diversification into energy trying to consolidate its position and absorb che
Conservation equipment; unrelated diversifications impact of the rapid changes and development it
into sofrware, financial engineering, electronics, and has experienced over the past several years. It is
related to oil-field equipment projects; joint venture attempting toincrease its tnternattonal presence with
sup
with Deviebiss; joint venture with BabCock and Willgher exports and leveragng its cost advantage
COx.
 Preview Case
STEAMING AHEAD: CORPORATE The 1990s: International strategy of setting up a
STRATEGIES AT THERMAX resin plant in the US; strategic alliances with fucl
Thermax Ltd. (formnerly Wanson India Pvt. Ltd.) supplicrs; Joint venture with US-based Lrngineering,
wIs formcd in 1966 to makc small boilers. Building Procurement and Construction services businesses,
their business definition around the basic customer for energy service business; related diversification
function of steam gcneration, they saw the 1973 oil into cogencration busincss; divestment of Therrnax
crisis as an opportunity and started manufacturing Engineering Construction Company as a wholly
coal-fired boilers. From steam generation to water owned subsidiary: joint venture for Culligan Inter
treatment was a logical extension, extended further national for water treatment business.
tomanufacturing pollution-control equipment. The 2000s: Faced losses for the first time in 2001;
Thermax Group is providing a range of engi entire board of directors stepped down; embarked
ncering solutions to the energy and environment on restructuring and turnaround; divestments from
sectors. It is headquartered in Pune, India, and op and abandoning joint ventures in non-core sectors
erates globally through international offices, sales such as electronics and software, and focus oncore
and service offfces and its manufacturing facilities in activities in energy and environment, and power and
India and overseas. The group consists of domestic chemicals; continual internal expansion; moving be
wholly-owned subsidiaries, overseas wholly-owned yond exports through international expansion.
subsidiaries, and joint ventures. The vision of the The 2010s: Strategic alliances and expansion con
company is 'to be aglobally respected high-perform tinues; builds up good order book positions; en
ance organisation offering sustainable solutions in hanced activity in solar cooling systems and captive
energy and environment. power plants; acquisition of German steam prod
A historical account shows how the company ucts company Rifox.
has followed several types of cotporate strategies Beyond 2010s: Focus on technology ie-ups for
in its corporate history in order to ensure survival, technology upgradation in energy and environment
growth, and proftability,. through joint ventures; related diversification into
Late 1960s: The company is formed; starts making high tech power generation equipment; offering
coil-type packaged boiler and thermic fAluid heaters. outsourced energy management and power plant
The 1970s: Expansion to make the first packaged management services; participating in green energy
tube boiler for Indian coal and other solid fuels; programmes; operating in six core businesses of
related diversification into water-treatment plants; boler and heater, cooling and heating, power gen
takeover of Tulsi Fine Chemicals and the establish eration, chemicals and water, air pollution control,
ment of achemicals division; expansion for making and renewable energy.
large field-erected boiler; related diversification into Thermax represents a typical company that is
surface-coating and pollution-controlequipment. trying to consolidate its position and absorb the
The 1980s: Related diversification into energy
impact of the rapid changes and development it
conservation equipment; unrelated diversifications has experienced over the past several vears. It is
into software, finanial engineering, clectronics, and attempting to increase its international presence with
related to oil-feld equipment projects; joint venture gher exportsand leveraging its cost advantage
sup
and Will-
with Deviebiss; joint venture with Babcock
COx.
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