Thermax, OCQ Team Up to Manufacture High-Performance Chemicals in India

Thermax Chemical Solutions, a subsidiary of Thermax, has signed an exclusive shareholder agreement with Oswaldo Cruz Quimica Industria e Comercio Ltda (OCQ) for the production of high-performance chemicals in India.

OCQ is said to be the leading Latin American chemical company focusing on resins and polymers. According to the agreement, Thermax would hold a 51% majority stake in a new joint venture, with OCQ holding the balance 49%.

The primary aim behind the joint venture is to create a greenfield acrylic resin manufacturing facility for India using the infrastructure and wide customer base that Thermax has developed. The new company would manufacture, trade, market, and sell materials formulated by OCQ.

Thermax will refurbish its industrial plant in Jhagadia, Gujarat, to carry out the erection of the production line for acrylic resins. The first focus will be on acrylic resins being used across industries such as paints, adhesives, textiles, infrastructure, and waterproofing.

OCQ is a leading company in its space, and partnering with them will help us manufacture and deliver high-performance chemicals to a wide range of industries", said Ashish Bhandari, Managing Director and CEO, Thermax.

In the future, there may also be possibilities to expand the production of polyester and alkyd resins. The strategic alliance builds upon existing markets within Thermax's chemical portfolio, including ion exchange resins, water treatment chemicals, oil field chemicals, and construction chemicals. The agreement would also see Thermax leverage into a new business line under chemical solutions.

Thermax is a global provider of integrated energy and environmental solutions. It offers a range of innovations across heating, cooling, power, water, waste management, control of air pollution, and chemicals.

The company has manufacturing facilities in India, Europe and Southeast Asia. Financially, the consolidated net profit shrank 51.37% year-on-year on account of low demand to ₹115.90 crore in the latest quarter. An increase in revenues would still indicate a process of recovery. Thermax's stock fell 1.73% at ₹3,274.90 on BSE.