TO FIND THE MARKET POTENTIAL FOR BWC,CWC,RO & POLYELECTROLYTE

AND TO DETERMINE THE EXISTING MARKET SHARE OF THERMAX AND

COMPARE IT WITH ITS COMPETITORS MARKET SHARE.
 ABSTRACT
The project mainly deals with finding the market potential for four major products
ie. BWC(Boiler water chemical) , CWC(Cooling water chemical) , RO(Reverse
osmosis) & Polyelectrolye.BWC is used for the purpose of descaling , anti
corrotion etc.BWC is added to the water inside the boiler for this purpose.CWC is
used in cooling towers for cleaning the water. RO is a process of in which water is
allowed to move through number of membrane for cleaning
purpose.Polyelectrolyte is a chemical which is added in the ETP (Effluent
Treatment Plant).

Major part of the project was a field work moving from company to company
collecting the data.The data thus collected was used to find out the existing
market potential for the above four products.The other objectives of the project
were to find out market share of THERMAX and compare it with share of its
competitors such as ION EXCHANGE & NALCO.Data is also used to find out the
factors influencing buying decision of the customer and also factors that will make
customer to shift from non-Thermax chemical to Thermax chemical.It also gives
Idea about how much market is covered by the Dealer in that particular region
and how much actual market potential is there.And last but extremely important
thing was to get feedbacks from the customer which helps a lot to improve
service of the company and its dealer.The project was completed over a period of
3 months.The different regions that were covered are Tarapur &
Nagpur(Maharashtra), Vapi , Surat & Baroda(Gujrat),Indore & Bhopal(MP),Guntur
& Prakashm(AP),Trichy,Madurai,Coimbatore and Tirupur(Tamil Nadu), & Kerala.
CHAPTER 1 OBJECTIVES
1.To find out the market potential of BWC (Boiler water
chemical),CWC(Cooling water chemical),RO(Reverse osmosis), and
Polyelectrolyte.

2.To find out the existing market share of Thermax.

3.To compare the market share of Thermax with its competitor like Ion
Exchange and Nalco.

4.To compare the actual market potential with the market covered by the
dealers.

5.To find out factors influencing buying decision of the customer.

6.To find out factors that will make customer to shift from non thermax
chemicals to thermax chemicals.

7.To get feedbacks from existing customers.

Chapter 2 Company Profile

Thermax Limited was incorporated on 30th June, 1980, with itsregistered office
situated at Pune, India.Thermax initiated major expansion plans in India. Tulsi
Fine Chemical Industries Private Ltd and Kailas Castings Private Ltd were merged
with Thermax with effect from 1st July 1982. As on1st July 1989, Thermax
became a deemedpublic company. In the year 1991, T. K. Steel Industries Ltd was
merged with Thermax. During the year 1994, the company's status was changed
from deemed public company to public company.With the investment of US $
200,000, the company had incorporated a wholly owned overseas (WOS)
subsidiary in Brazil during the year 2003.
BUSINESS AREA OF THERMAX : Thermax provides sustainablesolutions in
Energy and Environment by the way of standard products in the 6 areas of
business, such as Boilers and Heaters, Absorption Cooling, Water and Waste
Solutions, Chemicals for Energy and Environment applications, Power and Co-
generation systems and Air Pollution and Purification. Thermax's international
operations are spread over South East Asia, Middle East, Africa,Russia, UK and
the US.
SUBSIDIARIES
DOMESTIC : Thermax Engineering Construction Co. Ltd, Thermax
Instrumentation Limited,
OVERSEAS : Thermax Inc., U.S.A., Thermax Europe Ltd., U.K, Thermax Hong
Kong Limited, Hong Kong, Thermax (Zhejiang) Cooling & Heating Engineering
Co. Ltd., China, Thermax do Brasil - Energia a Equipments Ltd., Brazil (TdB),
PRODUCTION FACILITIES : The process heat division came out with a
new boiler design in the year 1995. An oil fired smoke boiler, shell Max and
Combiac, a boiler specially designed to burn ago fuels like rice and groundnut
husk, saw dust, coffee waste etc. was introduced in the year of 1995. A
Memorandum of Understanding (MoU) was signed with Bharat Shell for thermic
fluid, therma, for heat transfer system. The process heat projects division received
an order from PT South Pacific Viscose, an Indonesian Company for supply of 3
boilers of 22.5 tonnes per hour of steam. Energy System Division of the company
was born in the year 1996 by the way of merger of two division, one in the energy
area and the other in heat recovery area to pool the expertise with a view to
addressing the heat recovery business and also in the same year launched fine
circulation fluidised bed combustion boiler.
RECENT DEVELOPMENT AND PLANS : As at February 2008, the company
had signed a technical transfer license agreement with US-based Babcock &
Wilcox Power Generation Group (B&W) to engineer, manufacture and sell sub
critical B&W radiant utility boilers in India. As of May 2008, the company had
inked a protocol of agreement for an export order, for supply of heat recovery
steam generator (HRSG). Thermax had received an order from a major refinery in
July of the year 2008, to supply pulverised coal fired boilers for their captive
cogeneration plant valued at approximately Rs 8.2 billion and also in August of the
same year 2008, received an order of Rs 4.15 billion, from a leading steel making
company in August pf the year 2008, for setting up a captive power plant for their
upcoming blast furnace complex on an EPC basis. Thermax is planning to set up a
new Rs 5-billion manufacturing plant for large boilers of capacity 100 mw to 800
mw for power plants. In the first phase, the company will have a capacity to
produce sub-critical boilers with total capacity of 1,500 mw per annum, which
would entail an investment of Rs 3 billion. In the next phase the company will
scale up the capacity of the boilers of equivalent to 3,000 mw with an additional
investment of Rs 2 billion.
FINANCIAL REVIEW : Total operating income of the company was Rs 804.1
crore compared to Rs 770.1 crore in the same quarter of the previous year. Net
profit stood at Rs 57 crore compared to Rs. 69.2 crore in Q2 last year. The Q2
profit reported is after providing for foreign exchange losses of Rs 37.4 crore for
the quarter (last year gain Rs. 3 crore).In the first half of the financial year the
company's net profit stood at Rs. 120.7 crore (Rs125.2 crore) and the total
operating income was Rs. 1521 crore (Rs.1436.6 crore). The profit reported for the
half year is after providing for foreign exchange losses of Rs. 53.1 crore (last
year gain Rs. 7.2 crore). On a consolidated basis, year to date, the Thermax group's
total operating income was Rs. 1612.4 crore (Rs. 1530.7 crore). Net profit was Rs.
112.7 crore, compared to Rs. 128.1 crore in the corresponding period last
year.Revenue for the quarter includes exports of Rs. 203.50 crore, all physical
exports compared with Rs. 210 crore of exports consisting of both physical and
deemed exports. Net profit stood at Rs 57 crore compared to Rs. 69.2 crore in Q2
last year. The Q2 profit reported is after providing for foreign exchange losses of
Rs 37.4 crore for the quarter (last year gain Rs. 3 crore). In the first half of the
financial year the company's net profit stood at Rs. 120.7 crore (Rs125.2 crore) and
the total operating income was Rs. 1521 crore (Rs.1436.6 crore). The profit
reported for the half year is after providing for foreign exchange losses of Rs. 53.1
crore (last year gain Rs. 7.2 crore).On a consolidated basis, year to date, the
Thermax group's total operating income was Rs. 1612.4 crore (Rs. 1530.7 crore).
Net profit was Rs. 112.7 crore, compared to Rs. 128.1 crore in the corresponding
period last year. Revenue for the quarter includes exports of Rs. 203.50 crore, all
physical exports compared with Rs. 210 crore of exports consisting of both
physical and deemed exports.
Chapter 3 Industry profile

ROLE OF CAPITAL GOODS SECTOR IN INDIAN ECONOMY : The

capital goods sector performed well despite sluggish conditions in the Indian
manufacturing sector, and the hard interest rates. The production of capital goods,
which is a measurement for the domestic investment activity, accelerated its
growth to 21.87% in July 2008, which is the highest growth recorded in the last
seven months. The sector's growth has rebounded from 12.27 % in July 2007. But
on a cumulative basis, the growth in production remains lower at 11.27% in April-
July 2008 compared with a 17.34% increase in April-July 2007.While there is
slowdown in fresh order intake in many sectors including Textile Machinery,
construction equipment, process equipment (except for Oil & gas sector) etc India
is marching on a strong note as regards infrastructure development and power
generation capacity additions. Hence, the capital goods industry is poised to see
good growth in the coming months. However further rise in key interest rates may
play a spoilsport, forcing the industry to defer new capacity expansion plans,
especially in the current global economic turmoil scenario.
INDUSTRY PERFORMANCE REVIEW : The capital goods sector grew
21.87% in July 2008 compared with 12.27% in July 2007. The sector grew 11.27%
in April-July 2008 compared with a 17.34% increase in April-July 2007.
SEGMENT ANALYSIS : Generally looking at the performance of BSE Capital
goods constituents while the Power Generation and Electrical goods companies as
well as the two EPC giants (Larsen & Toubro and Punj Lloyd) have carried their
growth momentum on the back of strong order book. In spite of the cushion of
price variation clause (PVC) for SEBs/ Utility orders the margin of quite a lot
companies seen pressure on the back of forex volatility and higher provisions apart
from commodity price escalation, which was to large extent mitigated by PVC.
ENVIRONMENT (AIR POLLUTION CONTROLS) : Consistent growth in
key industrial segments like cement, steel and captive power continued to fuel
demand for the company's air pollution control equipment.
ENVIRONMENT SEGMENT : In 2007-2008 the water and waste solutions
business upgraded its project management skills by undertaking large turnkey
projects for industrial and municipal sectors. Rapid urbanization and growing cities
have created the paradox of depleting water supply and increasing amounts of
sewage. As the municipal sector invites expertise to tackle this water challenge,
your company has positioned itself with the relevant technologies and the EPC
capabilities to execute and commission large projects.
BOILER & HEATER : The Boiler & Heater business continued to grow during
the year. A large chunk of the business came from sectors like iron & steel,
petrochemicals and captive power.
POWER : Two of the major initiatives seeded in recent years, namely the
formation of a dedicated group for small power plants and the entry into operation
& maintenance (O&M) of captive powerplants, have now been established and
contribute to the growth of this business unit. During the year, the small power
projects group bagged a sizeable number of orders that are now under execution.
The O&M arm of the power business already provides services to support over 125
MW of power plant operations.
COOLING & HEATING GROUP :
COOLING : The Cooling SBU maintained its performance with exports
accounting for 44% of the business. There was an overall growth of 12% in the
order booking, which in the Indian market grew by 10%.
SERVICES : During the year, the service business showed a (FEMS) business
grew in line with the expectations and doubled its income compared to last year.
New products were added to provide further growth impetus to the FEMS
business.
CHEMICAL : The Chemical business stagnated during the year with exports
accounting for 44% of its income. Income and profitability of this business were
affected due to the rupee's appreciation as well as rise in costs of key raw materials
like styrene, petroleum and divinyl benzene.
DEMAND OUTLOOK : The capital goods sector has recorded rebound growth in
July 2008 which reinstates positive outlook for the future investment trend. But, it
has to be accepted with a pinch of salt that the low base effect of significantly
lower index level of July 2007 also played crucial role in July 2008 growth story.
The critical question in the mind of investors is will this rebound growth will
continue in near term.The capital goods sector has recorded rebound growth in July
2008 which reinstates positive outlook for the future investment trend. But, it has
to be accepted with a pinch of salt that the low base effect of significantly lower
index level of July 2007 also played crucial role in July 2008 growth story. The
critical question in the mind of investors is will this rebound growth will continue
in near term.We find that the investments in the infrastructure sector including
power remains strong. India's investment requirements are huge, and the recent
relaxation of ECB norms for infrastructure sector augurs well. But the current
global financial crisis may take time to settle, and it also depends on how the US$
700 billion bail out planned by US government will impact global financial and
commodity markets. Until then, rising funds is going to be tough and the costs of
funds will remain high, leading to slower new project intake. But the outstanding
order book itself is quite robust, and can run for a couple of years, if not more,
giving stability to the industry in the short run. The softening metal prices can only
add cream to their profitability, more so, in the case of fixed price contracts.
Industry players continue to see strong growth momentum especially those are
linked to infrastructure sector. Investment in manufacturing sector though slowed
down on the back of hardened interest rates affecting the related capital goods
sector even within the players catering to process industries such as Oil & Gas are
witnessing steady growth momentum as the investment in that segment has not
slowed down. The industry players having augmented their capacity results in
increased burnout of order book and similarly the move up of value chain also
allow them to capture increased opportunities in domestic as well as global
markets which are not touched down by economic slowdown such as Middle East
and Africa.
Chapter 4 PRODUCT PROFILE
4.1 BWC(Boiler Water Chemical)

A boiler is used for generating steam. It does this by heating water to its boiling
point, after which steam will evaporate from it. When you boil a kettle of water,
you will shut off the fire or electric power when the water comes to a boil.
Generation of steam is a continuous process. Once a boiler is generating steam,
it may take quite a long while before it is stopped. When steam is evaporated
from the water, new water has to be added in to replace the water given out.
As more and more steam is evaporated, the water becomes more and more
concentrated with salts and other impurities. If you use your kettle for a long
while, you will see some chalky deposits inside it. The fresh water supplied to
replenish those lost through evaporation cannot be pure and free from salts.
Even minute quantities of salt in the water will eventually become so
concentrated as to form scales or deposits, because of its inverse solubility
property .The deposits are usually calcium or magnesium salts. These scales are
very damaging to the boiler because they interfere with the heat transfer and can
lead to overheating and eventually, boiler rupture. Soft water is water that
contains very little calcium or magnesium salts. They are used to feed the
boilers. However, they tend to be acidic in nature. Acidic water tends to
corrode. This is not good for the boiler. Corrosion can weaken the boiler. By
treating the boiler water with chemicals, we can control the acidity of the water
as well as the softness of the water. This will solve the problem with scales and
corrosion, but it is not the ultimate cure-all. The boiler water will continue to
become more and more concentrated as the steam evaporates. The next step to
take is to remove the concentrated water and replenish it with fresh, soft water.
The process of removing the concentrated water is called blow-down. Boiler
water treatment chemicals recommended  considering pressures.
4.2 CWC(Cooling Water Treatment Chemicals)

1.
A successful cooling water treatment must address initial conditioning, scale,
fouling and corrosion control. Thermax cooling water treatments can be applied
to virtually any cooling system with any type of makeup water. Proper
application of water chemistry for a given system, our cooling water treatments
provide clean heat transfer surfaces that are free of corrosion and scale, and
operate at top efficiency. Formulations for control of scale and corrosion for a
variety of makeup water chemistries are available on request. Control of scale
and corrosion requires a balanced approach based on a careful appraisal of
water quality and operating conditions.
 4.3 RO(Reverse Osmosis Chemical)

Thermax offers a complete range of Reverse Osmosis Chemicals, in the form of

antiscalants, cleaning chemicals and biocides, to take care of the different scales of
slime formation that form due to inorganic and organic impurities present in water.
Thermax is in the field of water treatment for more than 30 years and is an
established name in water treatment equipment and is known as a ‘Water
Management Company'. We manufacture RO chemicals for a variety of water
chemistry and carry out membrane autopsy studies.
An antisclant and cleaning chemicals range with biocides is also available.

Antiscalants
The Maxtreat range of antiscalants reduces membrane scaling or fouling
tendencies, giving sustained performance for a longer time reducing unscheduled
shutdowns and cleaning costs. It also disperses silt and colloidal particles, keeping
the membrane surface clean.Maxtreat provides optimum control of feed water with
concentrate LSI up to + 2.50, which can be safely used as potable water, certified
under ANSI/NSF Standard 60.
Cleaning Chemicals:-Our Maxtreat range of cleaning chemicals (inorganic or
organic) is a specially formulated blend of cleaner for the inorganic and organic
compounds, which also includes biological slime.
Benefits: Liquid cleaner which allows shorter mixing time Low foaming
formulation Cost effective program for carbonate or sulfate scale and also for
organic compound and slime
Biocides The Maxtreat range of non-oxidizing biocides work speedily and
provide effective response even in heavily contaminated water.
Benefits: Biocide activity spans over a broad spectrum of micro-organisms Liquid
formation Heavy slime deposit can be eliminated or controlled by regular use of
biocide in heavily infected reverse osmosis system
 4.4 POLYELECTROLYTE CHEMICAL

Thermax has a range of polyelectrolytes for raw water clarification, effluent

treatment, colour removal and a range of process applications.
Polyelectrolytes are water-soluble polymers carrying ionic charge along the
polymer chain. Depending upon the charge, these polymers are anionic or cationic.
Polyelectrolytes are available in a wide range of molecular weights and charge
densities. Homo polymers of acrylamide are also included in the family of
polyelectrolytes though they do not carry any charge. These are called nonionic.
Polyelectrolytes have got a wide range of applications right from water
purification, oil recovery, colour removal, paper making, mineral processing, etc.
Polyelectrolytes are both flocculants as well as deflocculants depending upon the
molecular weight. A flocculant is essentially a solid liquid separating agent while a
deflocculant is a dispersing agent.

CHAPTER 5 RESEARCH METHODOLOGY

 CHAPTER 6 ANALYSIS
4.5

3.5

2.5 price
quality
2 availability
service
1.5

0.5

0
Vapi Tarapur Nagpur Surat Baroda MP AP Tamil nadu Kerala
5
 4.5

3.5

2.5 price
quality
2 availability
service
1.5

0.5

0
Vapi Tarapur Nagpur Surat Baroda MP AP Tamil nadu Kerala
6

4.5

3.5

2.5

2 price
quality
1.5 availability
service
1

0.5

0
pi ur ur ra
t da P AP u la
Va ap gp Su ro M
nad era
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Ta N B m
Ta
7
 4.5

3.5

2.5 price
quality
2 availability
service
1.5

0.5

0
Vapi Tarapur Nagpur Surat Baroda MP AP Tamil nadu Kerala
8

4.5

3.5

2.5

2 price
quality
1.5 availability
service
1

0.5

0
pi ur ur ra
t da P AP u la
Va ap gp Su ro M
nad era
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9
 4.5

3.5

2.5 price
quality
2 availability
service
1.5

0.5

0
Vapi Tarapur Nagpur Surat Baroda MP AP Tamil nadu Kerala
10
 4.5

3.5

2.5 price
quality
2 availability
service
1.5

0.5

0
Vapi Tarapur Nagpur Surat Baroda MP AP Tamil nadu Kerala
11
 4.5

3.5

2.5

2 price
quality
1.5 availability
service
1

0.5

0
pi ur ur ra
t da P AP u la
Va ap gp u ro M ad ra
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Ba li n Ke
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12

vapi

Thermax
Ion Exchange
Nalco
Vasu
Sai
Others

13
14 Brief Contents Covered in each Market Survey Report

Introduction Dealers Network Whether Exists or Not

Industrial Structure Apparent Consumption

Performance of Industry Supply

Installed Capacity Demand & Supply Gap

Present Manufacturers & their Capacities, Trend in the Increase of Demand

Prices prevailing in the Market
Expected Increase over Five Years
Present Consumers with their Consumption
Pattern Seasonal Effect in the Market if Any

Assessment of Demand Location

15 Brief Contents Covered in each Market Survey Report

Introduction Dealers Network Whether Exists or Not

Industrial Structure Apparent Consumption

Performance of Industry Supply

Installed Capacity Demand & Supply Gap

Present Manufacturers & their Capacities, Trend in the Increase of Demand

Prices prevailing in the Market
Expected Increase over Five Years
Present Consumers with their Consumption
Pattern Seasonal Effect in the Market if Any

Assessment of Demand Location

CHAPTER 4 CONCLUSION