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Thermax Ltd.

BSE: 500411 Sector: Engineering
NSE: THERMAX ISIN Code: INE152A01029
BSE 00:00 | 30 Sep 2169.70 -16.35
(-0.75%)
OPEN

2175.05

HIGH

2186.95

LOW

2151.95

NSE 00:00 | 30 Sep 2169.50 -19.25
(-0.88%)
OPEN

2166.00

HIGH

2188.15

LOW

2151.00

OPEN 2175.05
PREVIOUS CLOSE 2186.05
VOLUME 4765
52-Week high 2678.50
52-Week low 1306.65
P/E 126.00
Mkt Cap.(Rs cr) 25,852
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2175.05
CLOSE 2186.05
VOLUME 4765
52-Week high 2678.50
52-Week low 1306.65
P/E 126.00
Mkt Cap.(Rs cr) 25,852
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Thermax Ltd. (THERMAX) - Chairman Speech

Company chairman speech

Thermax has always been a firm advocate of ESG (Environment SocialGovernance). Being a leading energy and environment solutions provider it has managed asignificant shift in its energy mix - coal combustion forms less than 20% of our revenues.

My Dear Shareholder

I am delighted to share the 41st Annual Report of yourCompany for the financial year 2021 -22. The past year brought unusual challenges for bothpeople and businesses. The global economic recovery faced significant headwinds amid newwaves of Covid-19 infections supply chain challenges uncertain shipping and commodityprice increases and rising inflationary pressures. However many countries includingIndia adopted various economic and financial policies to promote financial stability andreduce vulnerability to the crisis.

On the domestic front positive momentum continued as the Union Budget2022-23 pushed the energy transition agenda further with an additional allocation forenergy efficiency electric mobility and grid-connected energy storage. Enabling policieslike the Production-Linked Incentives (PLI) to boost domestic manufacturing prioritisingfully integrated manufacturing units and reducing dependency on imports added to themomentum.

FY 2021 -22 was indeed a year of change; continuing with the secondwave that was devastating for many across the world and particularly in India. I rememberhow many of our people were desperate to find a hospital bed.

My heart goes out to families who lost their loved ones. Let's pray andhope we don't witness any further dangerous Covid waves.

Despite the challenging global and domestic environment the year underreview indicated a satisfying journey for Thermax as we continued to drive change withpartnerships and strategic tie-ups. Businesses secured many more green orders with acontinued focus on service orientation and digitalisation; helping our customers enhanceenergy efficiency ensure high plant reliability and adopt best practices on cost andresource optimisation. Overall there was a build-up of pride and positive energy whilegetting used to a hybrid working environment.

I take this opportunity to thank our Board for theirvaluable guidanceand support especially under difficult circumstances. On behalf of the Board my sincerethanks to Ashish for having successfully led the business during such unprecedented times.I am proud of the work he and his entire team are doing to make the organisation a lotmore energetic and vibrant customer-facing growth-oriented employee-centric as well asbringing a fresh perspective to investing in new energy initiatives and technologyorientation.

A warm welcome to Dr. Ravi Gopinath who has joined our Board as anIndependent Director. He worked as Chief Operating Officer Chief Product Officer andChief Strategy Officer in AVEVA pic a FTSE listed industrial software company from2018-2022. Ravi is based in Singapore and brings a perfect blend of engineeringmanufacturing and digital domains which will benefit Thermax as we navigate towardsbecoming a digitally-enabled organisation.

With a heavy heart we say goodbye to Dr. Valentin von Massow as heretires from the Board in July 2022. Valentin has been associated with Thermax since theyear 1999-2000 when he was the MD of Boston Consulting Group (BCG) India and led theturnaround of our Company.

It's after his early retirement from BCG that he joined our Board andhas been a strong pillar of strength both in the Board room and outside. We thankValentin for his immense contribution and wish him a very happy and healthy retired life.

Our Board members and the Company have been a strong proponent ofgreen. With India having pledged to be ‘carbon neutral' by 2070 at the COP26 summitlast November our brand promise ‘Conserving Resources Preserving the Future'clearly expresses the purpose of our existence and the goals we hope to accomplish.

As stated last year we have set an internal blueprint for achieving25% carbon reduction by 2025 from a 2019 baseline within the Company.

Thermax has always been a firm advocate of ESG (Environment SocialGovernance). Being a leading energy and environment solutions provider it has managed asignificant shift in its energy mix - coal combustion forms less than 20% of our revenues.Thanks to the sustained efforts of our employees we have significantly reduced ourdependency on fossil-based solutions and yet grown our revenue significantly. This year weinvested in expanding our renewable energy business through our wholly-owned subsidiaryFirst Energy Private Limited. In doing so we will be partnering with our customers intheir energy transition journey through customised off-grid captive solar poweredsolutions. This complements our build-own-operate renewable energy model of TOESL (ThermaxOnsite Energy Solutions Limited) which owns and operates green utilities.

With capacity enhancement projects going on in multiple industries weare witnessing continued strength in new enquiries and robust order inflows fromindustrial segments like cement steel power chemicals refining and petrochemicals. Theyear saw our highest-ever order book. With climate change and the present spike in fossilfuel prices more and more companies are looking to enhance energy efficiency reducetheir carbon and water footprint and move away from coal to other forms of energy.Thermax is poised to play a major role in this shift keeping in mind energy security asIndia moves into a just transition.

In summary we have brought significant impetus to the businessbuilding muscle to deliver continued profitable growth. We are preparing Thermax forfurther flexibility agility and nimbleness. We are constantly trying to be a fasterbetter more efficient greener more sustainable and a performance-oriented organisationthat nurtures and grows talent. We have a lot of work to do and so much to look forwardto.

It also gives me great pleasure to mention that we are one of thesignatories to the ‘Social Compact' (SoCo) initiative launched in September 2020.This is very much a part of the ‘S' of ESG and continues in partnership with NGOsDasra Aajeevika Bureau and Centre for Social Justice. Although slow in taking off eachof our businesses is working towards meeting certain criteria to ensure equity and dignityof our informal labour force. We hope to shift gear this year and move a level deeper asbusinesses continue to engage.

As a step ahead Thermax Foundation along with Bajaj Auto jointlylaunched a ‘Worker Facilitation Centre (WFC)' mobilised by our NGO partners atPimpri Chinchwad Municipal Corporation (PCMC) which is one of the major industrialclusters in Pune.

We look forward to the WFC playing a key role in facilitating awarenessand linkages to government-entitled schemes providing services to workers in thecommunity and other outreach programmes.

In closing I would like to extend my sincere gratitude to all thosewho contributed to our success - our customers for believing in us; our employees whoensured we maintain leadership in a competitive landscape; our shareholders for theircontinued support trust and confidence in us; our business and supplier partners andother stakeholders for helping us meet our commitments through a tough year.

Together we hope to achieve an even brighter future for theenvironment and society at large. Stay safe.

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