Captain Courage: For Anu Aga, reviving Thermax was fulfilling, but social work is more enjoyable

The large office room in Pune is without a trace of ostentation. Anu Aga, 82, who insists on being addressed by her first name, does not revel in the achievements of Thermax or her contribution to the company. In fact, she is at peace doing the simplest of things.

“I am not very aware of social media, something my grandchildren are a little embarrassed about. I have other interests. It’s a question of how much my brain can absorb,” she says with a smile.

Aga’s journey at Thermax started in the HR department in what turned out to be a base for more learning. There’s a bit of a story-with many twists-on how she took charge of Thermax. Aga’s husband, Rohinton, in his 40s, had a massive heart attack and two days after that, a stroke. “He was a remarkable man but, all of a sudden, could not recognise me or write the letters of the alphabet. It was through determination that he bounced back,” she says. This made her realise the importance of health. “His first passion was work and I was his mistress,” she says with a straight face, followed by a quick laugh.

The company, which is today a name in energy (boilers, waste-heat recovery systems, and absorption chillers) and environment (air-pollution control equipment and water treatment chemicals), had many non-core businesses such as electronics, software, grain silos and paint booths. “We got into software even before Infosys,” she recalls. These businesses were adding to the top line but were hardly profitable. As a result, the stock fell from Rs 400 to Rs 36. Finally, it was an anonymous letter from a shareholder who was unhappy about the company’s financial and stock performance that triggered a transformation within Aga. She had to be tough and divest some non-core businesses.

During that difficult period, Arun Maira, then the Chairman of BCG India, came home for dinner. “I showed him the shareholder’s letter and he said, just engage us.” Thermax could not afford him, but she thought it was the need of the hour. The board had reservations, but Aga was adamant, swinging the decision.

In 1996, her husband passed away aged 60, and three days after that, the Thermax board asked her to take over. “I was not fond of technology or finance and I was missing him,” she recalls. The discomfort with finance continues and she sheepishly speaks of her daughter (Thermax Chairperson Meher Pudumjee) being nervous about her adding a few zeros each time she writes a cheque.

Pain before gain

There was more pain in Aga’s personal life. Her son passed away. “She approached me as a friend when her son died soon after her husband had passed away and she was thrust into the role of CEO,” says Maira. Thermax’s small shareholders were not happy with its financial performance. “The company was not doing too well and so they were not benefiting from it as much as they wanted to. This sounds like a business management problem. The small shareholders said while the company’s financial performance may not matter too much to Aga herself, because she was a very decent person who was not extravagant in her lifestyle, they were not so well off and needed more.”

"There was no doubt the company would bounce back because of its innate strength and Aga’s ability to deal with the situation- M.S. UNNIKRISHNAN, ex-MD & CEO, Thermax"

Another person she spoke to was Vallabh Bhansali, Co-founder & Chairman, Enam Group, who recalls his association with Rohinton and describes him as a “sharp person.” He came on the board, something he normally does not do. “We had taken the company public and I knew the business well,” says Bhansali.

“Anu reached out to me when things were getting out of hand. I was quite pained by what I saw,” says Bhansali. The situation was difficult but all he told her was, “Sab kuch seedha karenge (we will set everything in order).” In his own mind, there was no doubt it could be done if a clear strategy could be drawn up. “They had a great brand in Thermax. What stood out about Anu was her honesty, humility and strength of character,” he adds. Bhansali joined the board on the condition that he would step down the moment things were back on track. “Anu was an HR person but knew the business in great detail. Once the strategy was in place, things started to fall into place,” he adds.

Bringing it together

The brief to BCG was clear: make Thermax a high-performing company. The diversification of businesses was increasing the top line but did little by way of bottom line. It was clear some hard decisions had to be taken, and fast. Plus, she needed the right kind of board that would give the company a sharper focus and make it ready for the future.

“You will see that Aga’s lack of knowledge of engineering was not a handicap for the real change that was required. Her commitment to her values, of fairness towards all human beings and all stakeholders in the enterprise, especially the least powerful—blue collar workers, small suppliers, small shareholders-was her strength,” says Maira. From his point of view, it enabled the right changes to be made in structure, governance, and management of the enterprise.

Aga says people both inside and outside Thermax wanted her to succeed. And what if things had not worked out? Pat comes the answer. “I loved my company very much, though there were moments of apprehension. I do not have a problem in not knowing something and have always asked for help quite shamelessly.”

M.S. Unnikrishnan, who was in Thermax from 1997 to 2020, and the company’s MD & CEO for 13 years, points out that once Aga is convinced of a certain approach, she will go for it. “Anu operates at a strategic level and always gets the larger picture,” he says. Equally, when people are not performing, the line of thinking is different. “She will never blame the person saying it’s not his mistake but that of the management.” Unnikrishnan says there was no doubt the company would bounce back because of its innate strength and Aga’s ability to deal with the situation.

Aga stands out in so many other ways. For instance, at 61, she decided to step down as Chairperson. “When you encounter success, it goes to your head. Before ego came, I decided to take the decision,” she says.

Beyond work

Social work has had a profound impact on Aga, she feels more motivated doing it. “I know I am in a field where I can contribute,” she says. A meeting with Shaheen Mistri of Akanksha Foundation, which works with underprivileged children, was the starting point. “We got along well. She wanted to follow the Teach For America model.” As Thermax’s promoter, she decided that 50% of dividends must go to philanthropy.

One can’t help but prod her a little on the difference between this and heading Thermax. “Reviving the company was very fulfilling. Social work is more enjoyable,” she says. Understandably, the pressures of running a business are different. “Of course, there was struggle and many sleepless nights. The excitement lay in pushing yourself. Now it’s about having more free time and doing other things.”

The grounding at Thermax made her a lot tougher. There were multiple challenges to deal with, and now, she has time for the more basic things, like reading. “Today, I can pick and choose the things I want to do,” she says. Aga ensures she is committed to what she does. Time and again, she speaks of the need to not have an ego. “Our stay on this earth is short, our roles are dispensable and our impact inconsequential. So, when you are full of your achievements, it is important to remember these words to bring you back to mother earth,” she says without halting for a second. That clarity of thought is what makes Anu Aga so different. 

@krishnagopalan