Kolkata: Thermax Ltd, a Pune-based boiler and absorption chiller manufacturer has decided to set up a new Rs500-crore manufacturing plant for large boilers of capacity 100 MW to 800 MW for power plants.
“We have signed a technical agreement with US-based Babcock & Wilcox Co for making sub-critical boilers in India of minimum size that would produce 100 MW and up to 800 MW of power from each unit,” Thermax Managing Dirctor & CEO M S Unnikrishnan told PTI.
He said, the company has not yet finalised the location of the plant, but indicated it would be either in the west or north India.
“We are getting proposals from various state governments and we are finalising the location,” he said.
The new plant would be run by Thermax and not by its joint venture subsidiary in India with the same US collaborator, he added.
In the first phase, the company would have a capacity to produce sub-critical boilers with total capacity of 1,500 MW per annum, which would entail an investment of Rs300 crore.
“In the next phase we will scale up the capacity of the boilers of equivalent to 3,000 MW with an additional investment of Rs200 crore,” Unnikrishnan said.
“The entire funding would be from internal accruals and there would be no debt component at the moment,” Unnikrishnan informed.
Speaking about the new Rs 100-crore Baroda boiler component complex, the company said, the first phase was operational and by March 2009 the plant would attain full commercial production.
Giving an update on the Chinese subsidiary, Unnikrishnan said, an absorption chiller manufacturing facility in China under a wholly-owned foreign subsidiary Thermax (Zhejiang), located 150-km south of Shanghai, was inaugurated in the end of July.
The investment in the factory was $1,135 million. Initially, it would produce 100 absorption chillers. Later it would be scaled up to 400.
“We aim to grab 10% of the of the $300 million Chinese market in the next five years,” he said.