Thermax to wind up arm

Thermax Limited has commenced the process to wind up its subsidiary, Thermax Energy Performance Services Limited (TEPS).

The decision to approach the authorities with an application for a voluntary winding up was made in an extraordinary general meeting of TEPS on Wednesday.

The company, a 51:49 joint venture between Thermax and US-based EPS Asia Inc, was set up to pitch for offering performance guarantees for the energy systems supplied by Thermax Group companies.

The guarantee offered would be in terms of quantified reduction in the electricity bills or other energy costs of the customers.

A Thermax spokseperson said the company had been thinking over shutting down TEPS as the business proposition it offered did not find acceptance in the market.

The company, in its annual report for the year 2005-06, had noted the failure of the business model and hinted at winding up of TEPS saying adequate technical and financial support from the joint venture partner was not forthcoming.

An official liquidator would soon be appointed and legalities of liquidation would be followed, the spokesperson said.

Thermax has, over the last few years, closed down many subsidiaries or joint ventures, which did not add significantly to the group's overall business interests.