Success under pressure
Thermax in BT 500 | |
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| Rank ‘09: 105 | Avg. Market Cap (Rs cr)*: 4,636 |
| Rank ‘08: 106 | Market Cap (Rs cr)*: 5,345 |
| *April-Sept | |
When you make boilers, you know all about pressure. So, when the downturn almost took the steam out of Thermax, the boiler maker acted on a wide front. Customers were deferring deliveries, cancelling orders and clamouring for a renegotiation of terms. Thermax reined in costs, got a handle on cash flows and trimmed the workforce. The savings: Rs 80 crore.
Says M.S. Unnikrishnan, MD& CEO: "… a leaner organisation.… allows us to offer shorter and faster execution of contracts."
The company has been... |
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| Pruning costs |
| Building capacities |
Thermax also entered new businesses like utility boilers. Then it bagged an order from an independent power producer. By executing only those orders that have a sufficient line of credit, Thermax has been able to improve its cash position vastly.
Says Unnikrishnan: "With the economic recovery gathering momentum… Companies across sectors… will spend more on capital equipment, which is good news for us."
