The case describes the growth journey of an Indian multinational engineering conglomerate, Thermax Limited (hereinafter Thermax), over its last five and a half decades of existence. Thermax, a family business spanning three generations, pursued responsible growth. This involved first meeting the energy requirements of energy-starved markets (such as India and Africa) and then investing in sustainable energy business practices. Its future growth vision centered on the adoption of a greener international portfolio of sustainable products, projects, and services.
The present MD and CEO, Ashish Bhandari, was given the mandate of responsibly managing and accelerating growth by increasing the annual turnover threefold from INR 60 billion to INR 185 billion by 2030. This significant growth posed challenges such as managing the growth responsibly, financing the required capex, and managing the human resources requirements.
Thermax provides integrated solutions in clean energy, air, and water through its four business units: energy, environment, chemicals, and services. The energy business includes the traditional fossil-fuel-based energy as well as renewable energy solutions. The family’s business philosophy had always championed and encouraged the adoption of sustainable and green operations. The company focused on sustainable medium-term profitability and not on short-term increases in market capitalization. Moreover, it had conservatively concentrated on sustainable growth and a debt-free financial model for business growth.