Thermax Ltd: Strategic Analysis of Operations and Partnerships

This report provides a comprehensive analysis of Thermax Ltd, a public company operating in the energy, environment, and chemical industries. It examines the company's current operations, including inbound and outbound logistics, marketing, and sales, highlighting how these activities align with its vision. The report details the contributions of various partners and identifies the most effective types of relationships, particularly technology partnerships with companies like Babcock & Wilcox and Balcke-Dürr. It evaluates the opportunities and threats within the industry, such as globalization, emerging markets, and technological advancements, alongside challenges like government intervention, energy costs, and resource availability. The report also explores technologies not currently utilized by Thermax Ltd and their potential benefits, assessing the impact on stakeholders and associated risks. Finally, the report offers strategic recommendations based on the analysis.

Assessment 2

Table of Contents
MAIN BODY...................................................................................................................................3
Current operation of organisation and the way it fulfil its vision................................................3
Contribution made by partners and identification of most appropriate type of relationship need
to be maintained...........................................................................................................................5
Opportunities and threat posed in industry and evaluation of the way organisation has
critically responded to emerging megatrend................................................................................6
Facilitators and challenges to adopting new technologies...........................................................7
Technology that not has been used by Thermax Ltd and its benefits..........................................9
Impact on Stakeholders..............................................................................................................10
Impact of associated risk ...........................................................................................................11
Recommendation.......................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Manager of company is responsible for formulating appropriate strategies that could be
fruitful in achievement of end goals. It devote high efforts and time in order to develop better
strategies and promote smooth operation of businesses so that better services can be delivered to
customers at minimum time possible. There are numerous changes in external environment and
development of technology which has forced company to effectively adapt to new trends so that
needs of customers can be meet and end objectives can be attained. Innovative technology
contribute in making optimum utilisation of resources so that maximum value can be provided to
people at minimum price possible. Thermax Ltd is public company founded by family concern in
1996 by A. S Bhathena and it went public in 1995. This report has covered necessary
information related to current operation, the way it fulfil its vision and identification of
contribution made by each partners. Moreover, it has included information related to
opportunities or threat posed by industry and the way company has responded for its growth and
sustainability. It is has also included information related to technology which is not adopted by
company but it is beneficial for its growth and success of business.
Current operation of organisation and the way it fulfil its vision
There are various function or operation performed by manager of Thermax Ltd so that it
can delivered wide range of services to customers and attained competitive advantages.
Operation management is process of administration of several practices of business so that
maximum outcome can be gathered at minimum time frame for achievement of end goals. Like
human resources management, customers services, information technology, procurement and
many more (Hitka and et.al., 2018). Therefore, current operation performed by organisation can
be explained through Value chain analysis such as:
Primary activities: These are all operation which are directly concerned with development of
products and services so that needs of end individuals can be fulfilled in effective manner.
Operation that are performed by Thermax Ltd are inbound logistic, outbound, marketing and
sales which are illustrate as follows:
Inbound logistic: The first and foremost operation which is currently performed by obtaining
raw material from suppliers so that end products or services can be delivered to customers for
satisfaction of its requirements. Company have build strong relationship with several suppliers

which helped it in gathering material at minimum time and cost that has helped in growth and
success of organisation (Lingyu, Lauren and Zhijie, 2019 ).
Operations: It is second operations in which Thermax Ltd added value to raw material so that it
can be converted into final products. Thereby company by adding value is able to motivated
customers to select it rather than other competitors in market. Likewise thermal Ltd has
predefined each operation and activities that need to be performed by specific individual that has
helped company in gaining competitive advantages. For examples, it converts chemical energy
of coal into electrical energy so that services can be delivered to end users in the best possible
manner. So, smooth operation of various activities contribute in delivering services to people in
limited time frame and cost.
Inbound logistic: It is another key operations which has been performed by firm in order to
provide products or services to end users so that their respective needs can be fulfilled. Company
has ensure strong supply chain operations, network channel or distribution so that varieties of
products can be delivered in minimum time frame.
Marketing and sales: Thermax LTD in order to generate sales and its aware among several
individuals performing various operations related to marketing and sales. Company in its
operations has effectively market its products and services through different channel or medium
so that maximum sales can be generated (Shestak, Shcheka and Klochkov, 2020).
Support activities: These are steps or operation which has been taken by organisation to support
primary activities so that end goals can be achieved. Such as:
Human resource: It is also current operations in which Thermax Ltd has ensure effective
management of diverse range of individuals or human resources so that they can make best
utilisation of their skills for benefits of organisation. Company in its operations has focused on
motivating, influencing employees to work hard for achievement of end goals.
Procurement: Thermax Ltd also perform operations of procurement of resources, by evaluating
different sources from which it can raise and utilise so that product or services can be
manufactured at minimum price. Company through this operations is able to ensure sufficient
resources in the organisation so that needs of various individuals can be fulfilled.
So, it can be stated from above analysis that several operations has been undertaken by
company such as procurement of resources, effectively management of human resources and
marketing and sales in order to fulfil its vision and mission. Like marketing has contributed in

adding more and more customers in the organisation through making aware about company and
its services (Zhu and et.al., 2018). Better procurement strategy has also helped company in
getting raw material at minimum price thus providing services to customers in better manner.
Contribution made by partners and identification of most appropriate type of relationship need to
be maintained.
Partners are key individuals that are ready to work together to promote growth and
operation of businesses by sharing capital and profit or losses in specific ratio. A written
agreement is made between partners which clearly specify their relationship with each others and
the way they will share profit or loss or capital of organisation so that end goals can be achieved.
Technology partnership of thermax
Company has formulated partnership with various firm in order to expand its businesses
operations across worldwide so that it can earn huge profitability and market share. Thermax Ltd
has partnership with babcock and Wilcox enterprise that sell as well as manufacture selected
industrial supercritical utility boiler (Shpak and et.al., 2018). It is up-to 8000 MW in thermal
power plant so company by maintaining strong relationship with company is able to gained
competitive advantages.
Moreover it has make technology partnership with Balcke durr which offers electrostatic
precipitators, pulse jet bag-filters and regenerative air gas heaters. Strong technological
partnership between both the company has contributed in delivering extreme qualitative products
and services to customers thereby contributing towards success of firm. It has also helped in
sharing of resources and enhancing operations capabilities so that maximum value can be
delivered to customers in minimum time possible. It has become wholly owned subsidiary of
thermal Ltd.
Thermax Ltd has also formed partnership with lambion energy solution operating in
Germany which is one of the company that offer grate technologies. Company by promoting
accepting or balancing partnership with several companies is able to work together as a team.
Thus, rather than competing they support each others so that both can grow and survive in
external environment by meeting changing needs of customers. Thermax has planned to make
use of strength of both the technology partnership with an main objectives to get maximum
outcome at minimum price possible. So, effectively relationship between several partners has
helped in achievement of company goals.

Furthermore, Thermax Ltd has also formed technology partnership with Marsulex
environment technologies which provide wet and semi dry flue gas desuphurisation technologies.
In this partnership company has make use of active and passive relationship as one partners take
active role in all decision and management process so that end goals can be attained (Abou-
Moghli, 2018). Thermax Ltd take all responsibilities and roles very happy and nicely that helps
in maintaining strong relationship and expansion of firm in external environment.
Opportunities and threat posed in industry and evaluation of the way organisation has critically
responded to emerging megatrend
There are several opportunities and threat present in external environment which could
be used by enterprise in order to gain competitive advantages. Manager of Thermax limited has
tried to make best utilisation of available opportunities and overcome threat so that it can growth
and sustain in Energy, environment and chemical industry for longer time frame. Various
opportunities that are present in industry Thermax limited operates and the way it has respond to
emerging megatrend can be explained as follows:
Globalisation: It can be stated that globalisation has lead to better connection between countries
or trade of products and services therefore it has provided opportunities to company to expand its
businesses internationally in order to attained the end goals. Thermax limited with globalisation
has expanded its operation in 29 countries and 14 state of art manufacturing facilities across
Indonesia, Denmark and Poland. Government by promoting open trade between countries has
created opportunities for industry as well as company to grow and expand their overall business
operations (Kurennaya and et,al., 2019.).
Emerging demand in new market: With increase in disposable income of customers, company
have opportunities to expand its business in new emerging market by meeting needs of different
customers. People wants to have more better products or services as they are various company
in energy, environment and chemical that provide more better services. So, Thermax by
understanding changing demand and needs of customers is able to gain competitive advantages.
Technology: There are various improvement and development in the technology that has created
opportunities for energy, environment and chemical. Thermax has tried to adapt to new and new
technology in order to delivered services to customers or performed several operation so that end
outcome can be achieved in best possible manner. Like information technology has been used by
company in order to retained data related to employees performance, overall sales volume and

many more (Terziev and et.al., 2017). Thus, technology has helped in maintaining records of
several information which is fruitful for manager in decision making. Company has make best
use of various technology in order to handle several operations as well as individual that are
working in organisation so that end objectives can be achieved. It has also helped in enhancing
overall communication between several individuals that are working in the organisation.
Furthermore, contributed in effective inventory management which has helped in saving cost of
company to stores additional material. So, it can be stated that it has lead in optimise overall
production of company thereby meeting needs of customers in better manner.
Despite of all the opportunities, there are several threats in energy, environment and
chemical which needs to be removed so that it can sustain for longer time frame.
Government intervention: It is one of the biggest threat which is suffered by chemical industry
in European due to largely state government intervention. The industry is facing threat of
imposition of regulation or more government intervention therefore Thermax Ltd while
operating its business needs to considered all legal laws for benefits of organisation.
Energy and feedstock: Moreover, energy, chemical and environment industry is also suffering
from energy and feed-stocks as cost of electricity is rising at rapid stage which can put Europe
industry into great disadvantages. So, the most common threat which is faced by industry is that
of demand of fuels falls which resulted in fall of availability of petrochemical feed-stocks from
refinery stocks and gas. At the same time demand of fuels in dramatically increasing that has
resulted in reduce in amount of feed available for chemical (Anasenko and et.al., 2018.).
Therefore, thermal Ltd is suffering from threat of energy and feedstock so it need to decided
appropriate strategies that it could used in order to grow and sustain businesses for longer time
frame.
Availability of resources: It can be understand that there are limited resources in environment
and with increase in more demand and use of such resources has resulted in constant increase in
overall price of products. Due to limited amount of resources, companies such as thermax Ltd
may suffer challenges of arranging resources which could be useful in meeting customers
expectancy and achieving end goals of organisation.

Facilitators and challenges to adopting new technologies
Technology has important impact on businesses operations as no matter what is the size
of enterprise, it can make use of different technology in order to complete several task and
attained end objectives. With development in technology and changed in demand and
preferences of customers, company have emphasis on making use of new technologies so that it
can gained competitive advantages from other firm. The factors which facilitators to adapt to
new technologies by companies such as thermax Ltd can be illustrated as follows:
Customers expectancy: It is one of the most important facilitators that has influenced
companies to adapt to new technologies so that they needs can be satisfied beyond their
expectancy level. Innovative technology helps in completing task in more easier and simpler
manner thus contribute in meeting customers expectancy.
Efficiency in operations: It is another reason which has facilitators of adaptation of technology
by company as it helps in better preservation of records related to actual resources, capital or
cash with firm. Technology also helped Thermax company in effectively keeping records of
material, labour, cost and many more by completing several task in limited time possible. It
contributed in reducing warehouse inventory or storage cost thus company is able to delivered
products and services at reasonable rates. New technology contributed in sending several
messages to large number of individuals in limited time frame thus completion of task in better
manner. Manager through information technology and continuous mo0nitoring has tried to
ensure that all operation of company move smoothly so that end objectives can be achieved. So,
overall company by making optimum utilisation of new technology has enhance its efficiency in
operation and retained its market share.
Type of businesses: Another facilitators of adaptation of technology by organisation is type of
businesses in which company deals such as Thermax is an engineering company that has to make
use of new and innovative technology to operates its various function so that end outcome can be
gained (Shpak and et.al., 2018). Like in order to make best utilisation of wastage of resources,
firm has to make use of technology that can helps in yielding or providing maximum benefits to
customers.
Businesses culture: Company may also adapt to new technology in order to build strong
relationship with diverse range of individuals that are working in different location of enterprise.
Thermax Ltd has good organisation culture which means it focus on providing more healthy

culture to employees so that they can easily communicate with each others. Digital technology
used by company has helped in better interconnection of people, or flow of information from one
individuals to another.
Security: It is also one of the facilitators that influence organisation to adapt to new technologies
in order to achieve its end goals in best possible manner. With more use of internet by number of
individuals from different purposes, businesses are proven to threat of loss of private
information. So, technology adaptation has helped company in retaining or securing or protecting
its information from several harm or used by other individuals for different purpose. Therefore,
in simpler manner it can be understood that technology has helped in business in keeping its
innovative idea aware from its competitors.
Therefore it can be understand from above study, there are several reason which acts as a
facilitators for organisation to adapt new technology so that company can retained and gained
competitive advantages in external environment (Abou-Moghli, 2018). On the other hand, there
are several challenges related to adaptation of technology by company which are explained
below as:
Limited financial resources: The basic challenges which is faced by most of the organisation
while adapting to new technologies is limited availability of financial resources to implement
technology. There are continuous development in technology so companies does not have
enough fund to adapt to each new technology in order to satisfied customers wants.
Inadequate staff: Another reason or challenges in adaptation of technology is that companies
does not have sufficient staff or employees that have knowledge, skills and capabilities to use
particular technology (Hitka and et.al., 2018). Therefore, Thermax has focused on hiring and
training employees about the way they can make use of new technology while delivering several
services to customers.
Regulation: There are several rules and regulation that are made by government which also acts
as a challenges in adaptation of technology by company. As it has to abide to each law, incurred
several associated expenses so that technology can be used in different operations for
achievement of goals.
So, all these were numerous challenges which has been suffered by organisation while
making use of new technology in different operations so that needs of customers can be fulfilled.

Technology that not has been used by Thermax Ltd and its benefits
Manufacturing Execution system technology : As in today's world, the manufacture should
have the knowledge regarding the ways to improve the organization so that Thermax Ltd can get
competitive advantage. Manufacturing execution technology help Thermax Ltd to make more
output with less contribution. Basically this technology lead to monitor and connect machines as
well as working centre on the manufacturing place. The aim of this technology is to
implementation of this and to increase the production with efficiency. The technology has
different benefits when it is implemented. With the help of this Thermax Ltd will move its
process more digital and increase the effectiveness of production equipments (Rao and et.al.,
2017).
Thermax Ltd will change at high extent with this technology because earlier company is
using paper documents in calculation work with MES technology the company can easily more
to digitalization and use less paper work. The company have comparatively less production in
the market but with the use of this technology the efficiency and effectiveness of equipments
which are being used in production process are upgraded and production enhanced. Previous
Thermal is using physical store to distribute its products but company can change this process
and sell its product more by digitalized way. With the help of MES company can enable the
connection of its industrial equipments as well as the devices. The company is not that much
efficient to identify the real- time so with this technology the company is more efficient to note
the actual time taken in process (Shukla, Sudhakar and Baredar, 2017).
When Thermal Ltd will use the Manufacturing execution technology then various
function and their performance will affect because the technology will change the production
work and employees performance as the equipments will develop and updated it will increase the
production. The timing for the manufacturing the product is also minimized the equipments are
more effectively used by the technology. The employees of Thermax Ltd also trained in a way
that they can effectively use the undated equipments and produce more. Use of paper is also get
changed to digital work. The performance is changed in a manner that the all the functions of
Thermax Ltd have improved and helping in enhancement of company. Employees in the
organization are also motivated because they are developing their skills and knowledge by this.
The planning is more effective in nature by the technology and customers are also satisfied with
the provided service (Sahin and Yip, 2017). As the potential employees are comfortable with the

previous technology, and they face issues while adopting the technology when they are into this
they get more knowledge and skill which is used in production cycle.
Impact on Stakeholders
Basically the stakeholder are those who are having their individual interest in the company as
they have invested their money in the company. Thermax Ltd stakeholders are had affected with
change in technology of the company (Macchi, Roda and Fumagalli, 2017).
Employees: As employees are the main stakeholder in any firm Thermax working employees
earlier using the paper work and there are fewer uses of digital technology but the employees are
now influenced and trained to use digital technology to deal with companies customers. The
company have to manage its staff if they are not fitting according to use of technology then new
staff will appoint and the potential staff is placed under-training.
Investors: This is external stakeholder for Thermax as the technology will enhance by the
company so more investors are willing to invest in the company. As the company will increase
its production and ultimately the profit is all increased. The investor invest their money to get
comparatively benefit in market and this technology will give them benefit, so they are also
majorly effected.
Customers: The customers are another main stakeholder for the Thermax Ltd. If the company is
using innovative technology which is not yet used by rivals then customer are automatically
moved towards the Thermax as it is using the latest technology which is more effective and
provide a better quality of product. A normal customer want that their product is having a
premium quality at lower price and having good technology.
Impact of associated risk
The technology change is on wide scale in the organization so with advantages the Thermax Ltd
is having some risk to implement the manufacturing execution system technology. As the
technology is new and more developed so it have certain risks.
Financial risk : MES technology is very expansive so the Thermax have to invest a huge
amount to adopt this technology. So the possibility of losing money is being high as if the
technology will not utilize effectively than company will have to face the loss. Thermax Ltd is
having its creditors and investors money to work, and they have to give profit appropriation to

them so if there is any uncertainty then company not able to pay to its external stakeholders. This
risk is very main for Thermax because if technology not able to attract the customer and failed in
the market then company will have pay a huge amount to its creditors.
Legal risk : The government uses to change its rules and regulation regularly and the technology
is rigid in nature so if the manager of Thermax Ltd is not able to make changes in the technology
or MES then it will not able to work in the market. The government also not let this technology
continue if it is not dynamic in nature. If the company not able to match its technology according
to the policy provided by government then it has to bear loss (Nguyen and Dang, 2018).
Strategy risk : Thermax Ltd gas made strategy to develop its technology and with than it will
achieve the objective of the organization. But if the technology is not that much efficient to
attract the customer and other stakeholders than the strategy will suffer failure in the market.
Recommendation
As the Thermax Ltd is brand dealing in electrical goods so if the company needs to
improve its operation system then they should use to equipments that make work flow in a
streamline and simplify by which the productivity get increased and the employees are more
focused towards the work. The way of communication is also clear between the team so that
there are no conflicts. The operational activities can be more effective in the Thermax Ltd if the
worker are sufficient to resolve small issue by them self so that the problem get easily handle and
now much time is wasted in resolving process. Company can improve its operation with being
according to trend so that more customer are attracted to the brand. To operate better Thermax
Ltd should measure its performance on time and motivate the group of employees in
organization so that they can operate well. The technology can be enhanced by the employees
who are using it if the technology is not used in a better way than it will make a great loss so to
make use of a new technology the manager should train the employees so that they can use the
technology in effective way so the resources will optimum utilize and production is also get
increased and manager should analyse the risk which can be occurred due to use of new
technology so manager should make respective major so that the risk get avoided. The manager
is managing its process which map the activities done by the employees. Process can more
effective if they are analysed by the support team and on the basis of that they redesign the