Success under pressure

Rishi Joshi        Print Edition: November 15, 2009

Thermax’s MD & CEO M.S. Unnikrishnan
Thermax’s MD & CEO M.S. Unnikrishnan
Thermax in BT 500
Rank ‘09: 105Avg. Market Cap (Rs cr)*: 4,636
Rank ‘08: 106Market 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...
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."

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