Thermax Babcock & Wilcox Energy Solutions Limited (TBWES), a wholly owned subsidiary of Thermax Limited, has secured an order worth over Rs. 580 crore from Dangote Industries, a major West African conglomerate. The order is for the supply of utility boilers and associated systems for Dangote's refinery and petrochemical complex in Nigeria.

Order Details

Scope of Work

The comprehensive project scope includes:

• Design and engineering
• Manufacturing
• Testing
• Supply of plug-and-play modules
• Supervision of construction and commissioning

This order marks a continuation of Thermax's partnership with Dangote Industries, which began in 2017. The company had previously secured a publicly disclosed contract valued at approximately US$157.00 million in 2017 for Dangote's refinery project in Lekki, Nigeria.

Strategic Importance

This order is significant for several reasons:

1. Market Expansion: It strengthens Thermax's presence in the African market.
2. Technological Prowess: The order showcases TBWES's capabilities in designing and manufacturing high-capacity utility boilers.
3. Long-term Partnership: It reinforces the trust Dangote Industries places in Thermax's expertise and quality standards.

Management Comments

Ashish Bhandari, MD & CEO of Thermax, expressed satisfaction with the order, stating that it supports Dangote's aspiration to advance Africa's energy independence and security. He emphasized that the order reflects Dangote's trust in Thermax's expertise, quality standards, and ability to execute complex projects.

Aliko Dangote, Founder and President of Dangote Industries, highlighted the long-standing partnership with Thermax, praising their expertise and reliable solutions as instrumental in the success of their projects.

This order not only bolsters Thermax's order book but also underscores its position as a trusted partner in energy transition and industrial solutions across international markets.

Thermax Limited , a leading energy and environment solutions provider, has made a significant move in its investment strategy. The company has allocated 2,35,00,000 equity shares to its own account on a rights basis, specifically for investment in Fortmax Chemicals.

Investment Structure

The allocation involves an investment structure, with Thermax Chemical Solutions Private Limited (TCSPL), a wholly-owned subsidiary of Thermax Limited, playing a key role. The investment is intended to flow through TCSPL to Fortmax Chemicals India Private Limited, which is a subsidiary of TCSPL.

Details of the Allocation

Regulatory Compliance

In compliance with Regulation 30 read with Schedule III of SEBI (LODR) Regulations, 2015, Thermax Limited has informed the stock exchanges about this development. The company had previously intimated about the additional equity investment in TCSPL.

Implications

This move suggests Thermax's strategic intent to strengthen its position in the chemical solutions sector. By channeling the investment through its subsidiaries, Thermax is potentially aiming to optimize its corporate structure and enhance its operational capabilities in the chemical industry.

While the specific plans for Fortmax Chemicals remain undisclosed, this substantial equity allocation indicates Thermax's commitment to expanding its footprint in this sector. Stakeholders will likely be keen to observe how this investment translates into business growth and potential market advantages for Thermax in the coming periods.

Investors are advised to conduct their own research and consider their financial goals before making any investment decisions based on this corporate action.