Thermax Order Book Swells with Major Boiler and Power Plant Deals

Thermax Solidifies Market Leadership with Key Project Wins

Thermax Ltd., a leading provider of energy and environment solutions, continues to demonstrate its robust engineering and project execution capabilities by securing a series of high-value orders. The company's subsidiary, Thermax Babcock & Wilcox Energy Solutions (TBWES), recently announced a significant international contract worth Rs 516 crore. This order, from Jindal Energy Botswana Pty., is for the supply of two 550-tonne-per-hour (TPH) circulating fluidised bed combustion (CFBC) boilers. These units are a critical component of the second phase of a 600 MW power project being developed in Botswana, reinforcing Thermax's position as a key partner in large-scale global energy projects.

A String of High-Value Contracts

The Botswana order is the latest in a series of major wins that highlight the company's strong market presence. In 2022, Thermax secured a landmark Rs 1,176 crore order for a Sulphur Recovery Block, showcasing its expertise in complex process equipment for the refinery and petrochemical sector. During the same year, the company also won a Rs 522 crore contract to supply two 260 TPH high-pressure utility boilers and associated systems for a new refinery and petrochemical complex in Rajasthan. This turnkey project, managed by TBWES, includes everything from engineering and manufacturing to commissioning, slated for completion within 16 months.

Another notable contract was a Rs 293 crore order for a boiler package featuring three oil and gas-fired boilers for a petrochemical complex in western India. This engineering, procurement, and construction (EPC) project further solidifies the company's role as a comprehensive solutions provider, handling civil, structural, mechanical, and electrical controls work.

Focus on Environmental Solutions

Beyond conventional power, Thermax has made significant inroads into the environmental solutions market. The company bagged orders worth Rs 830 crore and Rs 545.6 crore in 2021 and 2022, respectively, for Flue Gas Desulphurisation (FGD) systems. These systems are critical for thermal power plants to meet stringent emission norms, positioning Thermax as a key player in India's transition towards cleaner energy generation. Further demonstrating its commitment to sustainability, Thermax has also signed a technology transfer agreement with Lambion for generating energy from waste and established Thermax Bioenergy Solutions Pvt. Ltd. (TBSPL) to offer turnkey bio-CNG projects.

Financial Health and Order Book

Thermax's consistent order wins have translated into a healthy order book, providing strong revenue visibility. The company recorded its highest-ever order book at Rs 9,410 crore and has consistently maintained a robust pipeline. As of the end of June in a recent fiscal year, the order book stood at Rs 2,569 crore. This sustained performance has been viewed positively by the market, with the company's stock reflecting investor confidence. For instance, following the announcement of the Botswana order, Thermax Ltd's stock closed 1.94% higher at Rs 4,730 per share on the NSE.

Strategic Partnerships and Diversification

Much of Thermax's success can be attributed to its strategic joint ventures and subsidiaries. The Thermax-Babcock & Wilcox partnership, particularly through TBWES, has been instrumental in securing large boiler contracts for mega power projects. The company has also diversified its technology portfolio through agreements like the one with Power Roll to develop the market for innovative solar film in India. These collaborations allow Thermax to offer a wider range of advanced technologies and maintain a competitive edge.

Management Perspective

Commenting on the consistent performance, Ashish Bhandari, MD & CEO of Thermax, has previously highlighted the company's strengths. Regarding a major order win, he stated, “This contract vouches for our demonstrated product expertise, compliance with quality standards, manufacturing capabilities, and execution of complex turnkey projects.” This sentiment underscores the company's core strategy of leveraging its technical proficiency and project management skills to win competitive bids both domestically and internationally.

Conclusion and Forward Outlook

Thermax's recent order acquisitions paint a picture of a company with a strong, diversified, and growing project pipeline. Its ability to secure large-scale EPC contracts in both traditional energy and emerging environmental sectors positions it well for future growth. With a solid order book and a clear focus on technological excellence through its subsidiaries and partnerships, Thermax is set to remain a pivotal player in the energy and infrastructure landscape in India and abroad.