Thermax said on Wednesday that climate change was an important topic of discussion in all of its board meetings. The company is currently thinking about how to deal with climate change and how to make a transition, as it continues to be a focal point on the agenda of its recent board meetings.
To understand the company’s strategy on how it plans to deal with climate change and its outlook, CNBC-TV18 spoke with Ashish Bhandari, CEO and CEO of the company.
“Climate change as a whole is a big, big talking point at every board meeting. So there are discussions about how to manage climate change, how to manage this transition, it gives rise to very, very interesting discussions, ”he said.
Bhandari added: “There are also discussions with customers, especially now that coal prices are high and people are looking for energy efficiency.”
According to him, Thermax’s backlog in a typical quarter is mostly on the green side and at present it is the leader in several biomass projects.
Bhandari said, “Overall about 70% of our backlog in a typical quarter is green and on the green side we are leading in areas around biomass, providing energy with all kinds of energy. biomass, be it bio CNG, electricity with biomass, even steam with biomass. On the other hand, we are increasing our capacity in solar more and more, also making solar OPEX for industrials looking to provide storage solutions based on it.
The company has been in the news since announcing it had secured an order worth Rs 830 crore to set up flue gas desulphurization systems for a private power company. FGD systems will be installed to reduce Sox (sulfur oxide) emissions and comply with air quality standards set for fossil fuel power plants.
The scope of the project includes design, engineering, fabrication, civil works, construction and commissioning of FGD systems and the project is expected to be completed in 36 months.
Thermax Ltd, a provider of energy and environmental solutions, is one of the few companies in the world to offer innovative integrated solutions in the areas of heating, cooling, electricity, water, including management of waste, air pollution control and chemicals. It has manufacturing facilities in India, Europe and Southeast Asia.
“The order is Rs 830 crore and that’s fine with a private player. Historically, the margins for this type of order have been quite tight. These are quite competitive projects and the industry as a whole, in previous such projects, has not done a good job. We usually carry out these projects and maintain our profitability through them. So this one, we hope we perform much better and deliver profitability in line with the larger Thermax business, that’s the wait, ”he said.
Electricity contributes, depending on the period, to around 10 to 20% of Thermax’s business, Bhandari explained.
Bhandari also said the company is one of the main players when it comes to managing process waste and converting it back to energy.
He added: “On the process side, all along the value chain, we are one of the biggest players in the management of process waste and its conversion into energy, whether in paper mills, food processing plants and a variety of other applications. So a multitude of applications.
For the full interview, watch the accompanying video …
-With PTI inputs
(Edited by : Dipikka Ghosh)
First publication: STI