Thermax, on Wednesday, said that climate change is a big discussion point in all its board meetings. The company is currently brainstorming on how to handle climate change and bring about a transition, as it continues to constitute a focal point as far as the agenda for its recent board meetings are concerned.
To understand the company’s strategy on how it plans to handle climate change and its outlook, CNBC-TV18 spoke to Ashish Bhandari, MD and CEO of the company.
“The whole climate change is a big, big discussion point at every board meeting. So there are discussions held around how to manage climate change, how to manage this transition, makes for some very, very interesting discussions,” he said.
Bhandari further added, “There are also discussions happening with customers, especially now when coal prices are high and people are looking for energy efficiency.”
According to him, Thermax's order book in a typical quarter is majorly on the green side and at present, it's leading in several biomass projects.
Bhandari said, “Overall, about 70 percent of our order book in a typical quarter is green and on the green side, we are leading in areas around biomass, providing energy with all kinds of biomass, whether it's bio CNG, power with biomass, even steam with biomass. On the other side, we are increasingly increasing our capability in solar, doing solar OPEX as well for industrials that are looking to provide storage solutions based on it.”
The company has been in the news ever since it announced bagging an order worth Rs 830 crore to set up flue gas desulphurisation systems for a private power company. FGD systems will be installed to cut down Sox (sulphur oxide) emissions and comply with the air quality standards set for fossil fuel-based power plants.
The scope of project includes design, engineering, manufacturing, civil work, construction and commissioning of the FGD systems and the project is slated to be completed in 36 months.
Thermax Ltd, an energy and environment solutions provider, is one of the few companies in the world that offers integrated innovative solutions in the areas of heating, cooling, power, water including waste management, air pollution control, and chemicals. It has manufacturing facilities in India, Europe, and Southeast Asia.
On the FGD systems order, he said, “The order is of Rs 830 crore and it is indeed with a private player. Margins for these kinds of orders historically have been quite tight. These are quite competitive projects and the industry overall, in such previous projects did not do a good job. We usually deliver these projects and maintain our profitability through them. So this one, we hope we will execute much better and deliver profitability in line with the larger Thermax business, that is the expectation.”
Power contributes, depending on the period, about 10 to 20 percent of Thermax’s business, Bhandari shared.
Bhandari also mentioned that the company is one of the biggest players as far as managing process waste and converting it back into energy is concerned.
He added, “On the process side, across the value chain, we are one of the biggest players in managing process waste and converting it back into energy, whether it is in paper mills, in food processing plants and a variety of other applications. So a whole host of applications.”
(With PTI inputs)
For full interview, watch accompanying video.