Thermax is now aiming at the paper business in Indian as well as south-east Asian markets. In order to fulfill this objective, the Rs 2,210 crore energy and environment company has signed a seven-year technology & licensed manufacturing contract with US-based Georgia Pacific Chemical LLC.

MS Unnikrishnan, managing director, Thermax Ltd, who signed up the contract with Peter Williams, vice-president, Georgia Chemicals, stated that the deal would completely synergize with the company’s business of water management and energy conservation services that its supplies to paper makers.

At its Pune plant, the company would be fabricating the specialty chemicals including performance chemicals, oilfield chemicals and water treatment resins.

“The products, which Thermax would manufacture under the licensed agreement, would enable it to expand its business in the paper industry in India and South East Asia,” he said.

According to Mr. Unnikrishnan, the country’s paper demand is projected to increase twofold by 2015, though at this time the installed capacity is higher at 8.5 million tonnes annually (mtpa) as compared with demand (6 mtpa). Until this demand rise, numerous paper and paper product makers have aligned big investments on capacity growth.

While stating that the company’s Pune plant was among the biggest in the country, Mr. Unnikrishnan said, “This is a positive sign for Thermax and its products as with the agreement in place, we will now be able to offer further value-added services and solutions to the paper industry.”

He said Thermax would now be capable of meliorating the competitive edge of its customers by assisting them in bettering output, lessening raw material and production costs, minimising plant downtime and also guarantee better quality and security.

“The company is always on the lookout for business improvement and technology development, either in-house or through licensing. As and when an opportunity comes, the company would tap it,” he said.

He added that the company had no plan to branch out into paper manufacturing unit.

Thermax also offers integrated solutions in heating, cooling, power, waste management and air pollution control. The company’s new plant at Savli in Gujarat will produce chillers, boilers, chillers and heat recovery equipment.