A Project Report

On

“Market Research for Boilers in South America”

(Focus Country- Brazil) at Thermax limited

By

VARUN VIDYANAND DEODHAR

ROLL NO.: 15011022

Under the guidance of

“Prof Jayashree Vispute – Internal Project Guide”

Submitted to,

“Savitribai Phule University, Pune”

In partial fulfillment of the required for the award of

the degree of

Master of Business Administration (MBA)

Through

VISHWAKARMA INSTITUTE OF MANAGEMENT,

PUNE

DECLARATION

I, hereby declare that the report entitled “Market Research for Boilers in South

America” (Focus Country- Brazil) is based on my learning at Thermax limited.

I further declare that this project report is submitted as per requirement of MBA

curriculum, is my original work and based on the findings during the project.

This project report would not be submitted in any other institute for any award of any

other degree, diploma, fellowship or other similar title or prices.

This project report would not be submitted for any other degree in future and no other

person will be allowed to copy from this project in any other form.

If I am found to be guilty of not fulfilling the above promises, my submission can be

declared invalid and college has the right to reject this report.

Date:

Place: Varun V. Deodhar

ACKNOWLEDGEMENT

The satiation and euphoria that accompany the successful completion of the

project would be incomplete without the mention of the people who made it

possible.

I would like to take the opportunity to thank and express my deep sense of

gratitude to my corporate mentor Mr. S. P. Ganeshan, (HOD) and Mr. Sachin

Kothawade (Asst. Manager) at Thermax limited and my internal guide Prof.

Jayashree Vispute at Vishwakarma Institute of Management. I am greatly

indebted to them for providing their valuable guidance at all stages of the study,

their advice, constructive suggestions, positive and supportive attitude and

continuous encouragement, without which it would not have been possible to

complete the project.

I also owe my thanks and appreciation to the entire staff of the Company for their

cooperation and assistance during the course of my project.

Lastly, I would like to thank my parents for supporting me through my studies in

College and providing me with everything I could possibly want.

PREFACE

To achieve partial and concrete results, it is necessary that theoretical

knowledge must be supplemented with the practical environment. Keeping this view

in mind, I have completed my research work regarding “Market Research for Boilers

in South America” (Focus Country- Brazil) based on my learning at Thermax

limited.

By doing this research work I have learned a lot of things which would be really helpful

for me in future. This experience in decision-making and practical application

of knowledge has contributed greatly to my growth.

This report is the written account of what I learned and experienced during my training.

I wish those going through it, will not only find it real but also get useful information.

INDEX

CHAPTER NO. NAME PAGE NO.

Executive summary

Chapter 1 Introduction 1-6

Chapter 2 Literature Review 7-13

Chapter 3 Industry & Company Profile 14-29

Chapter 4 Research Methodology 30-32

Chapter 5 Data Analysis & Findings 33-52

Chapter 6 Conclusions 53

Chapter 7 Recommendations & Suggestions 54

Chapter 8 Limitations of the study & Scope for further research 55

Annexures

56

INDEX

SR. NO. CHARTS, MAPS &

TABLES

PAGE NO.

1 Data analysis and findings

(Demographical factors)

34

2 Data analysis and findings (Cultural

factors)

36

3 Data analysis and findings (Economical

factors 1)

38

4 Data analysis and findings (Economical

factors 2)

40

5 Data analysis and findings

(Environmental factors)

42

6 Data analysis and findings (Political

factors)

43

7 Data analysis and findings (Industrial

factors)

46-47

8 Data analysis and findings (Types of

boilers)

49-50

Executive summary

Project Title: “Market Research for Boilers in South America” (Focus Country- Brazil)

The period of project was from 5-6-2016 till 5-8-2016 at Thermax limited, Chinchwad branch

in Boilers & Heaters Department under the guidance of Mr. S. P. Ganeshan (HOD) and Mr.

Sachin Kothawade (Asst. Manager)

Research Problem/ Challenges:

There were some restrictions. It is very difficult to extract data from competitors and

complimentary companies.

Because personally going to Brazil and collect the data physically was not possible.

Hence, I had to rely on secondary data.

Project Objectives:

Market research for overall trends and factors of Brazil.

Forecast for upcoming challenges in Brazil.

Find out opportunities and threats for boiler market in Brazil.

Scope of the project:

The purpose of market research is to collect information from a variety of sources in

order to make conclusions and recommendations on new/ existing strategies. It allows

the company to address preferences, trends, and cultural influences and act on up

incoming opportunities that they might not have known.

It effectively gives them new information on their specific targeted group and is

essential to their success in a new market.

Research methodology:

Secondary method: Collected data from internet and company brochures.

Major observations & findings:

In Brazil, the installed capacity of manufacturing industries is increasing to meet the

demand in automotive industries, petroleum industries, mining industries and sugar

industries. So, there will be an increase in 10-20% in upcoming plants and projects of

those sectors which can be targeted by the Thermax.

The increased industrial production will require the increase in power generation

capacity. So there will be a great opportunity for boiler market.

The parameters of biomass boiler are comparatively lower than competitor companies.

In Brazil, the existing competitor companies are more experienced than Thermax Ltd.

Learnings from the project:

The factors should be considered for market research of any country.

If there is demand for your product.

Who is demanding your product?

The working of the boiler.

Opportunities and threats for your marketing campaign.

Strengths and weaknesses of your product and your competition are a product.

1

Chapter 1

Introduction

Background & Present Scenario

Thermax is the Energy and Environment engineering Company based in India and Britain. It manufactures

boilers, vapours absorption machines, offers water and waste solutions and installs captive power projects.

Thermax is now trying to enter in Brazil with their major product boiler. They are doing research on

overall Brazil and industrial market for boilers. The primary objective of my project is to do research on

Brazil with all perspectives and analyze the opportunities and threats for Thermax.

Boilers: A boiler or steam generator is a device used to create steam by applying heat energy to water and

worked at low to medium pressure (1–300 psi or 6.895–2,068.427 kPa) but, at pressures above this, it is

more usual to speak of a steam generator. The boiler for use in various processes or heating applications,

including water heating, central heating, boiler-based power generation, cooking, and sanitation.

Types of boiler:

There are two general types of boilers: ''fire-tube'' and ''water-tube''. Boilers are classified as "high-

pressure" or "low-pressure" and "steam boiler" or "hot water boiler." Boilers that operate higher than 15

psi are called "high-pressure" boilers. A hot water boiler, strictly speaking, is not a boiler.

The types of boilers on the basis of their structure are,

Haycock and wagon top boilers

Cylindrical fire-tube boiler

Multi-tube boilers

2

The types of boilers on the basis of their combustion material are,

Solid fuel firing

Superheater

Supercritical steam generation

Need for the study

After assessing if any business is ready for export, the next step of your market research is to understand

which market to enter and the trends and developments in that market Initial market research can be done

through secondary sources. However, in order to give strong recommendations and conclusions using

primary data is necessary.

Is There a Market for your Product or Service?

Possibly the most important aspect of market research is to determine if there is a need for your product in

your chosen market. Opportunities to extend a product lifecycle, exporting unused inventory or even

producing out-of-date technology may exist in new underdeveloped markets.

Key indicators to look at when determining a need for your product are:

Income levels

Size and growth of the industries

Access to technology, and

Raw material availability

Who will be your Competitors?

Competition in an international market will be more dynamic than your domestic market. By completing a

competitor analysis you will be able to determine the nature of your competitors, their likelihood to

succeed and opportunities for you to gain market share over them. The easiest way to understand your

competitors is by searching their website. However, a more in-depth analysis will be needed to determine

your ability to succeed. This information will help provide you with a more in-depth understanding of

your competitors.

3

The key questions you will need to ask are:

1. Where are they located and how are they organized?

2. Who are the key people and what are their experiences and skills?

3. What are their main products?

Understand the Marketing Mix

The Marketing Mix is a tool designed to organize your marketing plan. It’s commonly known as the 4 P’s

(product, place, price and promotion). Although there are more detailed items to develop in your

marketing mix, we have highlighted the basics below.

Product: Ensure that you’re offering your product to the right people in the right market. In

international markets, it is likely that you will need to adapt your product in some way and this will

add to your costs.

Place (Distribution): The product needs to be delivered to the customer at the right place and the

right time. Strong distribution ties will ensure that your product gets to your customers. In many

markets, the distribution system can be difficult to enter particularly in mature markets or where there

is already a high degree of competition.

Pricing Strategy: Determining the right pricing strategy (skimming, penetration, bundling,) is an

important decision for entering new markets. Pricing is a strategic decision and will be determined

by your decision on positioning, competitive pressures, legal considerations and your determination

of margins.

Promotion: How you market and advertise is a going to be determined by culture, regulation, and

availability. Like in your domestic market creating the right targeted promotions, advertising and

sales to meet the consumer’s needs and persuade them to buy your product over the competitors.

There is a “fifth p” which is Perception or brand awareness. Unless you are Starbucks or Disney, it is

unlikely that your target market will have heard of you, no matter how popular you are in your domestic

market. Building brand awareness takes time and effort and should be part of your ongoing marketing

activities. Keep in mind that branding is not just product branding. Positioning both your business and

your products will require some creative strategic thinking. Understanding your market and competition

will help lead you in the right direction.

4

Legal/Regulatory Constraints and Considerations

It is important to remember that you are subject to all governmental political, legal and regulatory laws of

the country you’re doing business in. Political stability, leaders and attitude towards foreigners all need to

be considered when deciding which markets to target.

Should you encounter problems between your business and another country’s governmental organization,

contact the Canadian government for help with negotiations and problem solving.

Product Adaptation Requirements

Different countries have different standards when it comes to language, voltage, efficiency, safety, etc.

and you will need to adjust your product accordingly. These laws often change over time, especially in

developing nations where regulation may be lax now but will eventually increase.

Objectives of the study

Study Objectives are,

Market research for overall trends and factors of Brazil.

The demographical and economic growth of the country.

The Political stability and sustainability.

Overall industrial growth and utilization capacity.

Understanding consumer behavior

Particularly analyze the type of buying behavior, whether it is for value or for money, variety seeking,

dissonance reducing or habitual pattern noticed in casual shoe selection.

The criterion used and their importance in the purchase decision.

Specially ascertain how price, quality, need etc., attributes play a decisive role in the consumer's decision-

making process.

Forecast for upcoming challenges in Brazil.

The change in environmental and economic conditions.

The exchange rates and demand for the product.

5

Awareness of brand name and reference.

What are the brands that consumers are aware?

What is the level of awareness and their bonding?

How does the consumer judge the quality of boiler?

Find out opportunities and threats for boiler market in Brazil.

The presence of product competitors.

The quality of product compares to other competitors.

The availability of resources for the product.

6

Basic principle of boiler

The steam pressure produced by the boiler can be regenerate by using heaters and chillers to increase its

efficiency and pressure. The produce steam pressure used in various processes or heating applications,

including water heating, central heating, boiler-based power generation etc.

7

Chapter 2

Literature Review

Boilers:

Boilers are pressure vessels designed to heat water or produce steam, which can then be used to provide

space heating and/or service water heating to a building. In most commercial building heating

applications, the heating source in the boiler is a natural gas fired burner.

Boiler Efficiency:

The percentage of total heat exported by outlet steam in the total heat supplied by the fuel (coal) is called

steam boiler efficiency.

It includes with thermal efficiency, combustion efficiency & fuel to steam efficiency. Steam boiler

efficiency depends on upon the size of boiler used. A typical efficiency of the steam boiler is 80% to 88%.

Actually, there are some losses occur like incomplete combustion, radiating loss occurs from steam boiler

surrounding wall, defective combustion gas etc. Hence, the efficiency of steam boiler gives this result.

Types of Boiler:

There are mainly two types of boiler used more frequently, Fire tube boiler & Water tube boiler.

Fire tube boiler: In fire tube boiler, there are numbers of tubes through which hot gasses are passed

and water surrounds these tubes. There are different types of fire tube boiler likewise, external

furnace and internal furnace fire tube boiler. External furnace boiler can be again categorized into

three different types-

8

1. Horizontal Return Tubular Boiler.

2. Short Fire Box Boiler.

3. Compact Boiler.

Again, internal furnace fire tube boiler has also two main categories such as horizontal tubular and vertical

tubular fire tube boiler. Normally horizontal return fire tube boiler is used in the thermal power plant of

low capacity. It consists of a horizontal drum of which there are numbers of horizontal tubes. These tubes

are submerged in water. The fuel (normally coal) burnt below this horizontal drum and the combustible

gasses move to the rear from where they enter into fire tubes and travel towards the front into the smoke

box. During this travel of gasses in tubes, they transfer their heat into the water and steam bubbles come

up. As steam is produced, the pressure of the boiler developed, in that closed vessel.

Advantages of Fire Tube Boiler

1. It is quite compact in construction.

2. Fluctuation of steam demand can be met easily.

3. It is also quite cheap.

Disadvantages of Fire Tube Boiler

1. As the water required for operation of the boiler is quite large, it requires a long time for rising

steam at desired pressure.

2. As the water and steam are in the same vessel the very high pressure of steam is not possible.

3. The steam received from fire tube boiler is not very dry.

Water tube boiler: Water tube boiler is the reverse of the fire tube boiler. In water tube boiler the

water is heated inside tubes and hot gasses surround these tubes. There are many types of water

tube boilers, such as

1. Horizontal Straight Tube Boiler.

2. Bent Tube Boiler.

3. Cyclone-Fired Boiler.

9

1. Horizontal Straight Tube Boiler again can be sub - divided into two different types,

a) Longitudinal Drum Water Tube Boiler.

b) Cross Drum Water Tube Boiler.

2. Bent Tube Boiler also can be subdivided into four different types,

a) Two Drum Bent Tube Boiler.

b) Three Drum Bent Tube Boiler.

c) Low Head Three Drum Bent Tube Boiler.

d) Four Drum Bent Tube Boiler.

Advantages of Water Tube Boiler

1. The Larger heating surface can be achieved by using more numbers of water tubes.

2. Due to conventional flow, movement of water is much faster than that of fire tube boiler, hence the

rate of heat transfer is high which results in higher efficiency.

3. The Very high pressure in the order of 140 kg/cm2 can be obtained smoothly.

Disadvantages of Water Tube Boiler

1. The main disadvantage of water tube boiler is that it is not compact in construction.

2. Its cost is not cheap.

3. Size is difficult for transportation and construction.

Principle of boilers:

The tubes are thus surrounded by water. The heat from the flue gasses is transferred from the tubes to the

water in the container, thus the water is heated into steam. This steam pressure is used for various uses like

power generation, heating etc.

Market research:

Market research can help to reveal key aspects of the competitors' products, services, marketing strategies,

and target audience. Using this information within your own campaigns can help to lead in

the market over your competition and add value to your business or brand. International market research

can be used to: determine new markets, test products and determine public opinions on certain strategies.

10

Market research process:

1. Define the objective of the research

2. Identify the actions needed to collect the research

3. Identify how to achieve those actions

4. Identify the sources of information needed to achieve your objective

5. Determine how to collect data i.e. in person, online, in hard copy

6. Conduct analysis of the research collected

7. Make recommendations based on the information collected

There are two types of data to be used in research.

Primary research method:

Meanwhile, primary data is documentation and research that you have created or conducted

yourself. Primary data is usually completed through these methods:

Observation

Experimentation

Interviews and surveys

Expert estimation

Primary Sources

Corporate annual reports

Records of shareholders meetings

Corporate websites

Company product catalogs

Personal interviews with company executives or with company customers

Market surveys and focus groups

Secondary research method:

Secondary data (existing data) is information that is easily available on the internet or from governmental

sources. It can be valuable information for companies in the beginning stages of market selection.

It can be become out-of-date quickly and irrelevant to your research. Also in some developing countries,

secondary data is either non-existent or out-of-date.

11

Secondary Sources

Country reports

Articles in business newspapers

Books

Studies by consulting firms

Trade commissioners’ reports

Reports by commercial banks or international organizations

Using the Internet Effectively and Efficiently

The internet is possibly the greatest business tool you have. It is inexpensive, easy to use and a worldwide

resource. You can use it to gather market information, research specific markets both geographic and

industry, inform yourself about country cultures, network with potential partners and identify contacts that

will be useful you to in the market(s) you have selected and provided a marketing platform that can draw

customers and potential partners.

12

Working of boiler

13

Process of market research

14

Chapter 3

Industry profile & Organisation profile

Industry profile

The industry is a group of manufacturers or businesses that produce a particular kind of goods or services.

The tourist industry includes all the commercial aspects of tourism. Workers in the textile industry design,

fabricate, and sell cloth.

In the boiler, industry includes all the boiler manufacturers. The Thermax Ltd is the major player in the

terms of shares and costumes in India. In a boiler, the source of heat is combustion of any of several fuels,

such as wood, coal, oil, or natural gas and generate steam pressure. Nuclear fission is also used as a heat

source for generating steam.

Major key players

1 | Thermax India Limited

Corporate Office – Thermax House14 Mumbai-Pune, Road Wakdewadi, Pune |

Establishment – 1988 | Business – Cooling, chillers, steam, Boiler, chemicals, Power etc |

Sector – Public | Website – www.thermaxindia.com

Thermax is such a company which is bound to help you out in any of your needs related to the boiler

industries, which include the likes of absorption cooling, power generation, air pollution control ,boilers,

wastewater treatment and recycling and solar solutions.

2 | Forbes Marshall

Corporate Office – P B # 29, Mumbai-Pune Rd., Kasarwadi, Pune, India |

Establishment – 1926 | Business – Boiler, Engineering, and Instrumentation |

Sector – Private | Website – www.forbesmarshall.com

Forbes Marshall, one of the most popular names in the industries related to the boiler world and those that

15

will help you with the solutions to fight against most of the problems that you can think of. The company

set up in the year 1926 by J N Marshall & Co who are the founders of the leading industry.

3 | Cheema Boilers

Corporate Office – S.C.O. 523 – 24, Sector 70, SAS Nagar, Chandigarh |

Establishment – 1999 | Business – Boilers |

Sector – Private | Website – http://www.cheemaboilers.com/

Cheema Boilers is the boiler that you would love to help you with all the boiler problems. The company

seems to be operating so well and perfectly normally.

4 | Vee Sons

Corporate Office –C14/2 Industrial Estate, Trichy |

Establishment – 1981 | Business – Non-Pressure parts and Boilers |

Sector – Private | Website – http://www.veesons.com/

the first company of this group turned up in the year 1994.

Government rules & regulations about boilers

Rising energy prices are affecting many households & industries. The government can’t control

unpredictable global energy prices but we can help households & industries keep their energy bills as low

as possible, support those most in need and take action to help secure energy supplies in the long term.

This Act may be called the Indian Boilers Act, 1923. It extends to the whole of India except the State of

Jammu and Kashmir. It shall come into force on such date as the Central Government may, by notification

in the Official Gazette, appoint.

In the case of any boiler which has been transferred from one State to another, until the transfer has been

reported in a prescribed manner

Unless a certificate or provisional order authorizing the use of the boiler is for the time being in

force under this Act

At a pressure higher than the maximum pressure recorded in such certificate or provisional order

Where the State Government has made rules requiring that boilers shall be in charge of persons

holding unless the boiler is in charge of a person holding the certificate required by such rules.

16

This Government policy helps to boiler manufacturers to increase production and create awareness about

the use of renewable energy sources.

In the case of renewal of the certificate. A certificate authorizing the use of a boiler shall cease to be in

force

On the expiry of the period for which it was granted

When any accident occurs to the boiler

When the boiler is moved, the boiler not being a vertical boiler the heating surface of which is less

than 3 [18.58 square meters]

When any structural alteration, addition or renewal is made in or to the boiler

In the case of duty of owner at the examination. On any date fixed under this Act for the examination of a

boiler, the owner thereof shall be bound

To afford to the Inspector all reasonable facilities for the examination and all such information as

may reasonably be required of him.

To have the boiler properly prepared and ready for examination in a prescribed manner

In the case of an application for the registration of a boiler, to provide such drawings,

specifications, certificates and other particulars as may be prescribed.

This Government policies secure & protect the rights of boiler manufacturers as well as prevent from any

explosion as the dangerous incident happens.

17

Organisation profile

Thermax is an Indian Energy and Environment-engineering company based in India and Britain. It

manufactures boilers, vapours absorption machines, offers water and waste solutions and installs captive

power projects. Thermax is also a historic brand-name of boilers and the name of a former toughened-

glass company.

Thermax was founded by Mr. A. S. Bathena and was later taken over by Mr. R. D. Aga who served as the

chairman. After the demise of Mr. R. D. Aga, Mrs. Anu Aga, his wife and Head-HR at that time became

the chairperson.

Thermax’s energy efficient and eco-friendly technologies offer reliable business-to-business partnerships

to respond to this critical challenge. Everywhere, enterprises face this challenge of delivering high-quality

products and services while ensuring margins and, as a corporate citizen, contributing to the efforts of

protecting the air we breathe and the water we drink. They provide the competitive edge to your enterprise

to make its mark with superior offerings and community goodwill.

Thermax came into being by harnessing the power of steam, produced by boilers. The company first

started with producing small, once through, baby boilers to cater steam required at that time by the

hospitals. Thus, the business was established in 1966. It was also the year Mr. A S Bhathena (father of Ex-

chairman Anu Aga) collabourated with a Belgian company, Wanson, to commence business operation as

Wanson India Ltd., manufacturing small boilers at a unit in Dadar, Mumbai. The company was renamed

Thermax Limited in 1980.

Company based in India, which has also made boilers, has four manufacturing centers and operates in

seventy-five countries. It became known as Thermax Ltd in 1980. In 1987 it started making vapour

absorption machines, in collabouration with Sanyo of Japan. It formed a joint venture in 1988 with North

Carolina-based Babcock & Wilcox, who make boilers, to make steam generation units for

heat (HRSGs). In 1992 it formed its Combined Heat and Power Group.

On 15 February 1995, it became a public company on the Bombay Stock Exchange. In 2009, it signed a

51–49 joint venture with US firm SPX Corporation to provide equipment and services for Indian power

sector. Indian wing is in Pune Area.

18

Vision and Mission

"To be a leader in utility delivery services, committed to long-term sustainability."

"We will harness best available technology, operational excellence, and service innovation to deliver

utilities to our customers. We will be extremely service focused – predicting and fulfilling customer needs

and expectations."

19

Costumes of Thermax

20

Organisation evolution (Globally)

Thermax’s solutions reach clients in 75 countries across Asia Pacific, Africa, Middle East, Europe, CIS

countries, the USA and South America. Its business operations are supported by 19 international offices,

sales and service teams, a network of Thermax Channel Associates, a robust and innovative R&D setup,

and 11 world class facilities – seven of which are in India, two in Denmark, one each in China and

Germany – that manufacture to stringent international codes.

Thermax Group is an INR 5516Cr. The company, providing a range of engineering solutions to the energy

and environment sectors. We are headquartered in Pune, India and operate globally through 19

International offices, 12 Sales & Service offices and 11 manufacturing facilities - 7 of which are in India

and 4 overseas. Its main divisions are,

A. Cooling and Heating (C & H) division.

B. Boilers and Heaters (B & H) division.

C. Power division.

D. Enviro division.

E. Chemical and Water division.

F. Solar energy division.

Group companies

Joint Ventures

Thermax Babcock & Wilcox Energy Solutions Pvt. Ltd.

Thermax SPX Energy Technologies Ltd.

Wholly Owned

Thermax Engineering Construction Co. Ltd.

Thermax Instrumentation Ltd.

Thermax Sustainable Energy Solutions Ltd.

Thermax Onsite Energy Solutions Ltd

21

Wholly Owned Overseas Subsidiaries

Thermax Inc., USA

Thermax Europe Ltd., UK

Thermax (Zhejiang) Cooling & Heating Engineering Co.Ltd., China

Thermax Denmark ApS

Thermax Netherlands B.V.

Danstoker A/S, Denmark

RIFOX – Hans Richter GmbH Spezialarmaturen

22

Globally footprints

23

Group companies

24

Products & Services

We heat, cool, power and we clean

Welcome to Thermax - an engineering company providing sustainable solutions in energy and

environment. The company’s vision for the future is firmly anchored in the belief that to stay competitive,

companies need to adopt sustainable development practices.

The systems, products, and services developed by Thermax help the industry achieve better resource

productivity and improve bottom lines while maintaining a cleaner environment. Even as we convert costs

to profits, we help to protect the environment in our own limited ways.

Thermax’s business portfolio includes products for heating, cooling, water and waste management, and

specialty chemicals. The company also designs, builds and commissions large boilers for steam and power

generation, turnkey power plants, industrial and municipal wastewater treatment plants, waste heat

recovery systems and air pollution control projects.

Systems to match wide-spectrum fuels

Operating on a wide range of fuels, including biomass and waste from industrial processes, Thermax

heating systems help customers achieve higher levels of energy efficiency. It's eco-friendly vapour

absorption chillers work on heat from any source and replace power guzzling cooling equipment. Thermax

also integrates its expertise in diverse areas to create combined heating, power, and cooling solutions.

More power for developmental initiatives

An established player in captive power plants, Thermax also builds utility power plants. It is one of the

few Indian companies that has sourced supercritical technology to build boilers for mega power plants.

Thermax also harnesses solar energy to support its clients in their heating, cooling and power generation

requirements.

Harnessing wealth from waste

Through its water and waste management solutions, the company supports industries and civic bodies to

reduce pollution, recycle resources and to generate revenue from waste. Also on offer are value added

services for retrofits and rebuilds, design and implementation.

25

Product and services

26

Boilers, Heaters & Chillers

27

Key executives

Name Board

Relationships Title

M. S. Unnikrishnan 11 Relationships Chief Executive Officer, Managing Director, Member of

Executive Council, Executive Director, Member of

Strategic Business Development Committee, Member of

International Investment Committee and Member of

Stakeholders' Relationship Committee

Amitabha Mukhopadhyay

B.Sc. (Hons), CA

No Relationships Group Chief Financial Officer, Executive Vice President

and Member of Executive Council

Ravinder Advani B. E.

(Hons). (Mech), PGDBM

7 Relationships Executive Vice President and Member of Executive

Council

Pravin Karve No Relationships Executive Vice President of Boiler & Heater Group and

Member of Executive Council

B. C. Mahesh No Relationships Executive Vice President of Power and Member of the

Executive Council

Hemant Mohgaonkar No Relationships Executive Vice President of Cooling & Heating and

Member of Executive Council

Rajan Nair No Relationships Executive Vice President and Member of Executive

Council

28

Awards and Recognition

Anu Aga receives Padma Shri award in 2010’ and ‘Anu Aga receives Lifetime Achievement

award by MAEER’s MIT group, Pune in 2015.

Thermax recently won the BML Munjal Awards 2015- Business Excellence through Learning and

Development in the Private sector (Manufacturing) category.

Thermax wins National Intellectual Property Award for 2013

Thermax MD and CEO, M.S. Unnikrishnan received the Asia Innovator Award at the 2012 CNBC

Asia Business Leaders Awards (ABLA) in Bangkok. He is the first Indian to be presented the

Innovation Award in the 11-year history of ABLA.

Thermax's Savli plant bagged the gold award for Safety and Health practices at the Greentech

Safety Award 2012.

M. S. Unnikrishnan accepted the CNBC TV-18 India award for the ‘most promising entrant to the

big league' from the Union Finance Minister, Pranab Mukherjee in January 2012.

Chinchwad factory bagged the Safety Innovation Award 2011 from the Institution of Engineers,

Delhi, for its innovative health, safety, and environment (HSE) initiatives.

Chinchwad factory won the Health, Safety, and Environment (HSE) appreciation award 2011 from

CII, Western region.

Gopal Mahadevan, Chief Financial Officer, and Executive Vice President received the best

performing CFO award in the Capital Goods sector by CNBC TV-18 in February 2012.

Business Standard 'Best CEO of the year', 2009 to Meher Pudumjee, Chairperson, Thermax.

Enertia Award 2008, for Business Excellence and Financial Engineering & Customer Service

Excellence award in water treatment chemicals by Frost and Sullivan

Featured, three years in a row (2005-07) in the Forbes Asia list of ‘Best under a Billion'

companies.

Listed by Business Today among the top 100 of India's 500 most valuable companies in 2007.

Top prize for R&D team for the most innovative product design at the BRY Air Award for

excellence in HVAC&R (2007). The Award was for the development of lithium bromide

absorption chillers.

Zee Astitva Business Woman of the Year Award, 2007 to Anu Aga, Director, Thermax, for her

contributions to industry and society.

29

Awards and recognition

30

Chapter 4

Research methodology

American marketing association defines market research as, the systematic gathering, recording and

analyzing of the data about the problems relating to the marketing of goods and services” the systematic

conduct of research required particularly these two qualities:

a. Orderliness, in which the measurements are accurate and the cross section is fair.

b. Impartially in analysis and interpretation.

The major two techniques of market research are,

a. Primary market research

b. Secondary market research

In which I have chosen the “secondary market research technique” Because personally going to Brazil and

collect the data physically was not possible. Hence, I had to rely on secondary data.

I have collected all the data from company websites and the others related websites like

www.statsmonkey.com, http://atlas.media.mit.edu/, www.bloomberg.com etc.

Research design:

A marketing research design specifies the procedure for conducting and controlling the research project.

The choice of particular research design would from the problem. However, any marketing research study

must explicitly state its plan about collection and analysis of data.

Type of data: What type of information is to be collected in the light of the marketing research

objectives?

The source of data: What are the possible sources of data for securing the above-mentioned

information? (Like primary, secondary or commercial data.)

31

A form of data: It refers to the specification of how data are to be collected. (By observation

method, sales audit, interviews etc.)

Nature of data collection: It relates to whether research data are to be collected at a single point or

different points of time. Moreover, whether the study will involve carrying out any sample

selection, if so, how the samples are to be selected? What is the possible method of analysis of

data? Etc.

Data collection technique: For supporting this project, the data which was collected was extracted from

the company websites and the other related boiler’s related websites.

32

Types of Market research

33

Chapter 5

Data Analysis & findings

Project Title: Market research of Brazil for Boilers

Project Objectives are,

Market research for overall trends and factors of Brazil.

Forecast for upcoming challenges in Brazil.

Find out opportunities and threats for boiler market in Brazil.

Market research factors are mainly,

Demographical factors

Cultural factors

Economic factors

Political factors

Environmental factors

Industrial factors

34

Market research of South America

(Focus country – Brazil)

35

Demographic factors

Capital: Brasilia

Area: 8,511,965 km2, Population: 207,847,528 (2015)

Year 2013 2014 2015 2016 2017 2018

GDP growth 3 0.1 -3.8 -3.5* -0.1* 1.5*

Purchasing power $2342000

billion

$3263000

billion

- $4050000

billion*

$4500000

billion*

-

Consumer

expenditure

$1337.51

billion

$1451.74

billion

$1573.44

billion

$1575.91

billion*

$1570

billion*

-

Income per capita $11894 $11570 $8802 $8118* $8000* -

Source: www.tredingeconomics.com Expected growth*

Interpretation:

The data shows that Brazil is one of the best-developing countries.

In 2008-2013 Brazil decreased exports to the US and increased export to China. The main export items

were iron ore and food products of about $44.3 billion. At the time, China was depreciating its currency to

protect local manufacturers and suppliers so all the external manufacturers started pulling out their

investments cause of insecurity & uncertainty. This resulted in the decline of growth in Brazil during this

period. There has been a decline in China’s automobile sector and construction sector, which require steel

and iron for their manufacturing, which affects lower demand in iron ore. Hence overseas shipments to

China declined by 11.2% till January 2016. So, the time of market crashes in China its results again in

decline the growth of Brazil.

After 2014 by working on various fronts, Brazil was able to increase industrial production as can be seen

from Industrial production table mentioned in Industrial factor. As a result, the GDP started improving

slowly. The Brazilian population is growing at 0.8% in which 40-50% population is between 24 to 60

years. The large young population will help upcoming projects as labour force which will increase the rate

of industrial production.

36

The increase in GDP shows Brazil is recovering rapidly from the China market crash. In future, to face

those much critical conditions, Brazil will have to concentrate on other countries for exporting. Brazil

might be starting to exports to the Germany, India, and Europe for iron ore and to the Southey Arabia,

Egypt, Japan and Sri Lanka for the food products. This will improve the economic condition of Brazil and

survive even though there any market crashes in China.

The income per capita shows the inequality of Brazil’s economy. The 20% of the total population earned

around 58.5% of total income of Brazil. In recent years the government policies like economic freedom

and business freedom are affecting positively to reduce inequality of Brazil. The decreased per capita

income is the result of the less inequality of Brazil.

The increase in purchasing power and a decrease in consumer expenditure show the increase in saving or

investment trend in Brazil rather than unnecessary expenses. But this trend affecting economic freedom

so, the economic freedom is getting low in Brazil.

37

Cultural factor

Language: Portuguese

Religion: Roman Catholic

Year 2013 2014 2015 2016 2017

Power

distance

86.6 78.5 75.3 70* -

Masculinity 35 40 49 50* -

Uncertainty

avoidance

67 70.5 76 80* -

Long term

orientation

40 38.5 44 48.3* -

Indulgence 50 47 59 63* -

Individualism 38 38.5 39 40* -

Source: www.geert-hofstede.com/brazil.html Expected growth*

Interpretation:

The cultural data shows the flexibility, loyalty, and inequality of Brazil.

The official language is Portuguese, with different regional accents characterizing each state. There are

Spanish, English, Italian, French and German languages spoken. There is no official religion, but

approximately 74% of the population are Roman Catholic, with another 15% Protestant. This High Power

distance shows the inequality on the basis of economy and religions.

The high indulgence shows their positive attitude and enjoyable lifestyle. There are 70-80% are literate in

which only 15% people pursue higher education. This shows the masculinity trend towards adventures and

sports activities. This might be the reason for the failure of the education system

The high long-term orientation indicates the strong bonding trend; also they prefer living with and

business with families rather than an individual. The high uncertainty avoidance shows there low risk

taking tendency. Which may affect domestic market negatively and it can be a barrier for new market

entries.

On another side, the low masculinity and individualism show their collectivism and protecting side. They

also possess a strong concern for human relationships.

So their long-term orientation is also high which indicates there loyalty and bonding as well as the high

indulgence show their positive attitude and enjoyable lifestyle.

38

The high indulgence shows they prefer better in a positive way which is the good sign for quality and cost

effective products. This might help to enter in Brazilian market but only with efficient and cost effective

product.

These all cultural trends are shown up in recent political activities.

39

Economical factor (1)

Currency: Brazilian real

Avg. economic growth: 4%

Personal Income tax:

7.5% to 27.5%

Year 2013 2014 2015 2016 2017

Exchange

rate

1.96 2.35 3.29 3.67 3.5*

Lending rate 7.8 10 12.5 14.25 14.25*

Deposit rate 7.8 10.2 10.5 11.2 11.5*

Foreign

investment

$6100

million

$9080

million

$7890

million

$6604

million

$6000

million

Gov. debts/

GDP%

51.69 57.19 66.23 70.30* -

Source: www.tredingeconomics.com Expected growth*

Interpretation:

The data shows the growing economic condition. There are many factors affecting the economic condition

in many ways.

The high decline of the exchange rate in the year 2014-15 is because of China market crash. The Brazil’s

currency was very weak during China market crash which resulted in low foreign investment. The weak

currency may reduce foreign investment. So, Brazil is trying to control over exchange rates.

Brazil is trying to increase the borrowing as well as the lending rates to increase the value of its currency

and make people habitual with saving. To control exchange rates Brazil increased interest rates but,

because of increased interest rates there came recession. Deposit rates also get increased to attract foreign

investment and make people habitual with saving.

The recession results into increased unemployment rate and national debt in Brazil. Another reason for the

rise in the unemployment rate is because of automation in industries. But the high unemployment rate

creates an opportunity for industries to get skilled labours in cheap labour cost.

Gov. Debts also get increased because of increase in interest rates and a decrease in foreign investments.

Brazil has sufficient raw material and manpower so they are focusing on foreign investment and trying

increase industrial production and stabilizes its economic condition.

The increased GDP shows that Brazil is taking control over the recession.

40

This shows all the Brazil’s economic policies are majorly targeting on foreign investment and control over

their economic condition.

41

Economical factors (2)

Year 2013 2014 2015 2016 2017

Economic

growth %

0.3 0.1 -1.0 -0.5* -0.1*

Inflation rate 6.2 6.8 9.8 9.5* 9.0*

Unemployment

rate

7.5 7.2 6.4 9.0* 10.0*

Economic

freedom

58 57.5 56.9 56.5* 56.2*

Source: www.tredingeconomics.com Expected growth*

Interpretation:

The major objectives of Brazil are to reduce inequality, corruption rate and increase foreign investment.

The economic growth is mainly depending on the industrial production. The overall industrial is

increasing in Brazil. The increase in industrial production results in an increase of economic growth rate.

Brazil has the high purchasing power as shown in the demographical table. The high purchasing power

and high demand effect on inflation rates. Brazil might be increased interest rates to make people habitual

with savings and investment but this may result in low money circulation. Brazil is trying to control

exchange rates, as the increase in exchange rates, the inflation rates also get increased. The inflation rate

and economic growth are always parallel to each other. Hence, the increased inflation rate is also might be

the reason of growing economic condition.

Brazil has a large number of female workers than male workers comparatively other countries. The female

workers mostly prefer service jobs rather than industrial sectors. Also, the failure of education system

reflects on unemployment rates. The most of the industries in Brazil has automated systems and robotics

which may also be a reason of high unemployment rate. In 2013-15 the unemployment increased because,

a large number of female workers, lack education and the decline in industrial production. In a positive

way, the increased unemployment rate may help industries to get the skilled labours at a cheaper price.

Brazil has increased interest rates to control over unnecessary purchasing and take control of exchange

rates. The increased interest rates have resulted in fewer options for expenses which decrease their

economic freedom. In Brazil, the income tax rates are around 30% which affect negatively the economic

freedom as well as the overall industrial production. The decreased economic freedom may cause to

reduce the number of new upcoming projects. Therefore there is low money circulation which affected the

economic growth negatively. Now, Brazil might be increased economic freedom to help economic

42

growth. The increased economic freedom will increase production and reduce corruption rates and

inequality.

43

Environmental factor

Avg. Temperature: 20°C- 40°C

Avg. rainfall: 750mm-800mm

Year 2013 2014 2015 2016 2017

Deforestation

rate/ km2

5500 5000 6000 5500* 5300*

Avg. Rainfall

rate (mm)

863.50 711.2 812.8 700* 850.20*

Avg. Temp

(Celsius)

26.5 27 26 26.5* 26*

Air pollution

(mg/cubic m)

57.2 62.4 64.1 68.50* 70*

Death rate

per 1000

5.90 6.10 6.18 6.50* 6.90*

Source: https://knoema.com/atlas/Brazil/Death-rate, http://envirocivil.com/environment.com Expected growth*

Interpretation:

The data shows the poor quality and unhealthy environment.

In 2014-15 because of the China market crash Brazil economic growth has declined. To increase

economic growth, Brazil is attracting foreign investment by making available land and raw material. This

resulted in an increase in deforestation rate in last 3 years.

Brazil increased deforestation to make available plants and power for an upcoming industry which affects

negatively on other environment factors like rainfall, temperature, and air quality. The increased

deforestation resulted into increase in temperature and air-pollution rate. The deforestation also affects the

evapouration which resulted into low rainfall.

In recent years all these activities affect on overall environment conditions which cause the unhealthy

environment in Brazil. The death ratio shows that Brazil is highly facing with health issues (diseases). The

incidence of typhoid fever, Sexually Transmitted Infections, and Malaria are highest in the North and

North-East Brazil. Recently, Zika virus is the most dangerous disease in Brazil which primarily spread by

mosquitoes and coming into contact.

Brazil comes to know the need to control over rainfall and air quality so Brazil has decreased deforestation

in recent years. In a positive way, the high air pollution rate also can be an opportunity for the air filter

products.

44

Political factor

President: Dilma Rousseff

Avg. Political stability: -0.11(2015)

Import Duties: 0%- 20%

Export duties: Avg. 30% (20%-150%)

Year 2013 2014 2015 2016 2017

Business

freedom

53 54 55 61 63*

Government

stability

-0.28 -0.1 -0.5* -0.1* 0.2*

Intellectual

property

rights

43% 42.6% 42.2% 42% 41.5%*

Corruption

rate

42 43 38 33* 30*

Source: www.heriteg.org.com Expected growth*

Interpretation:

The Brazilian government policy shows their main objectives are, to increase foreign investment & to

decrease inequality.

The present president Dilma Rousseff power is slipping away and the Michel Tamer may take over the

president office. In recent years under Dilma Rousseff, there was an increase in corruption rates. This kind

of political activities may result in decrease corruption rates and growth in political stability.

The government stability is depending on economic growth and rate of corruption. As the increase in

economic growth and a decrease in corruption rate, the government is getting stabilize.

In India, at the time of the last election the stock market went to high in the support of Mr. Narendra

Modi. The same situation is shown up in Brazil. The stock market is reaching up to 56852.80 BOVESPA

last month which shows the increased in foreign investment and trustworthiness towards Michel Tamer.

The import duty for Tech Companies is almost 0% which shows the IT enrichment in Brazil. The

government also offering the tax incentives, certain excise and sales tax exemptions are granted to foreign

investors to increase production. But on another side, the government is trying to protect their local

manufacturers. So the government have increased the additional taxes on imported goods and also

increased export duties than import duties to meet foreign trade policy and control inflation rate. These

45

government policies may discourage foreign countries or businesses from trying to sell products in a

Brazil.

The Brazil government has increased business freedom and economic freedom which may result in

attracting foreign investment and increase overall industrial production to stabilize economic growth.

Also, the increase in business freedom and decrease in intellectual property rights helps some of the

people to increase the production rate.

Brazil is increasing business freedom to decrease in intellectual property rights affects positively on

income equality. As the income inequality decreases the corruption also get reduced. On another hand, the

low intellectual property rights reduced the legal protection for any specific business which may affect

foreign investment negatively.

46

Industrial factors

Avg. change in Industrial production: -2.5%

Power Generation: 613.47 billion KWh (2015)

Power Consumption: 464.7 billion KWh (2015)

Year 2013 2014 2015 2016 2017

Industrial

production %

3 -2 -9 -5* -1*

Competitiveness

index %

4.4 4.32 4.34 4.08* 4.2*

Capacity

utilization %

82 81 80 76* 78*

Source: www.tradingeconomics.com/brazil Expected growth*

Interpretation:

The industrial data shows the growth in industrial production. In 2013-15 the industrial growth decreased

because of the market crash in China but in recent years there is an increase in industrial manufacturing

rate.

All government policies and other respected factors are focusing on attracting foreign investors to increase

industrial production results the increase in competitiveness. Also, the decrease in intellectual property

rights helps to increase industrial production which also may affect to increase the competitiveness. The

increased competitiveness shows the increased demand and the number of upcoming projects and plants in

Brazil.

In recent years as the decrease in industrial production results in the decrease in installed capacity

utilisation. But as the industrial production rate increases the capacity utilization will also get increased.

The insufficient install capacity clearly shows the number of upcoming projects and plants in the industrial

sector of Brazil.

(The production rate and its installed capacity of all kind of industries shown in excel sheet.)

Please click on the following hyperlink: Brazil.Industrial data.xlsx

47

Industrial factor (Power Generation)

Year 2013 2014 2015 2016

Total power

generation

537.8

Billion Kwh

530.7

Billion Kwh

613.47

Billion Kwh

750.00

Billion Kwh*

Total power

consumption

483.5

Billion Kwh

455.8

Billion Kwh

464.7

Billion Kwh

480.00

Billion Kwh*

Total installed

capacity

0.1217

Billion Kwh

0.1270

Billion Kwh

0.14123

Billion Kwh

-

Industrial sector

power

consumption %

38.90 40.70 43.17 50%*

Source: www.gwec.net , www.hydropower.org Expected growth*

Industrial factor (Power Sources)

Year 2013 2014 2015 2016

Hydroelectric 73% 67% 55% 42%*

Biomass 8% 8% 7% 10%*

Wind 2% 10% 17% 28%*

Solar - 2% 4% 6%*

Non-renewable 17% 12% 14% 10%*

Nuclear - 1% 3% 4%*

Source: www.gwec.net , www.hydropower.org Expected growth*

Interpretation:

A large amount of raw material availability and power supply are the major requirements for upcoming

industries. So, the Brazilian government is increasing power generation capacity by installing new power

plants to fulfill the requirements of industrial sectors.

The increase in industrial production affects the power consumption by industrial sector. Also, the per

capita electricity consumption in Brazil has grown strongly with 2800 kWh/yr in 2015. Because of

insufficient installed power generation capacity, Brazil is increasing their power generation plants as well

as the imported power rate (450-500TWh) which may help to increase for boiler demand.

48

The increase in overall industrial production will also increase the capacity utilisation which shows that

they need to increase the utilization capacity. So, there will be many of upcoming plants and projects.

These new projects and plants may help to increase boiler demand in Brazil.

The Brazilian government is forecasting as per the future need of the non-renewable sources they are

trying to focus on renewable power generation sources. In Brazil, there is the limited source of water and

non-renewable resources resulted in increased wind and solar energy power generation. In Brazil, there is

a large amount of solar power available also Brazil is a rich agricultural country so there are a large

amount of biomass available for power generation which results, increase in biomass and solar power

generation.

The amount of uranium ore is estimated at 100,000 tons and annual production capacity of uranium

concentrate is nearly 500 tons. The Brazil generating 3% of nuclear electricity with two nuclear reactors

and a third is under construction. So in future, there might be an increase in nuclear energy generation.

Industrial factor (Competitors)

In Brazil, the major two competitors for Thermax boiler are ZG boilers and CBC industries Pesadas. The

ZG boiler is Chinese based company and the CBC industries Pesadas is the Japanese company.

Introduction of ZG boiler

Since 1945, Zhengzhou boiler Co., Ltd. has been designing, manufacturing and installing the most reliable

and efficient industrial boilers and pressure vessels.

With boiler & pressure vessel installations in more than 50 countries, with 70 years’ experience and strong

technology power, they have manufactured 9 series 200 types of boilers, including Steam Boiler, Hot

Water Boiler, Power Plant Boiler, Fire Tube Boiler, Water Tube Boiler, CFB Boiler, Chain Grate Boiler,

Biomass Fired Boiler, Gas & Oil Fired Boiler, and Waste Heat Recovery Boiler. The products are widely

applied in manufacturing industry (chemical, cooking, papermaking, food processing, etc.), thermal power

plant, building material and other industry applications.

Introduction of CBC industries Pesadas

CBC Heavy Industries SA , initially called " Companhia Brasileira boilers " and " Brazilian Company

Boilers Heavy Equipment ", respectively, was founded in September 1955 in the city of Varginha, South

of Minas Gerais, with the participation of the group German Von Thyssen.

49

In 1963, the Mitsubishi Group of Japan, comprising: Mitsubishi Heavy Industries, Mitsubishi Corporation,

and Mitsubishi Electric Corporation, acquired control of the company. In 1976, he inaugurated a new

plant in Jundiaí, São Paulo, showing the obvious interest of the largest Japanese industrial complex for the

development of basic industry in Brazil, with the transfer of technology and manufacturing know-how,

developed and perfected by Mitsubishi Heavy Industries over the more than 140 years of its existence.

The both industries have mainly the three types of boilers which are used in Brazilian industries.

1. Waste heat boilers,

2. CFBC boilers,

3. Biomass boilers.

Waste heat boilers

Boiler manufacturers Evapouration

capacity (t/h)

Design pressure

(km/cm2g)

Steam temperature

(Celsius)

ZG boilers Up to 120 Up to 55 Up to 485

CBC industries

Pesadas

Up to 139 Up to 87 Saturated

Thermax limited Up to 500 Up to 160 Up to 560

Source: https://m.zgindustrialboiler.com , www.thermaxglobal.com , www.cbcsa.com

CFBC boilers

Boiler manufacturers Evapouration

capacity (t/h)

Design pressure

(km/cm2g)

Steam temperature

(Celsius)

ZG boilers Up to 400 Up to 100 Up to 350

CBC industries

Pesadas

- - -

Thermax limited Up to 1000 Up to 200 Up to 560

Source: https://m.zgindustrialboiler.com , www.thermaxglobal.com , www.cbcsa.com

50

Biomass boilers

Boiler manufacturers Evapouration

capacity (t/h)

Design pressure

(km/cm2g)

Steam temperature

(Celsius)

ZG boilers Up to 480 Up to 100 Up to 540

CBC industries

Pesadas

Up to 500 Up to 120 Up to 540

Thermax limited Up to 300 Up to 160 Up to 560

Source: https://m.zgindustrialboiler.com , www.thermaxglobal.com , www.cbcsa.com

Interpretation:

The boiler performance is depends on many parameters. The main parameters to measure boiler’s

performance are Evapouration capacity (t/h), Design pressure (km/cm2g), and Steam temperature

(Celsius).

In Waste heat boilers, the given data shows the evapouration capacity of boilers of CBC industries is less

than that of Thermax boilers.

The pressure capacity of Thermax boilers is also greater than competitive boilers. So the quality of

Thermax boiler is better than both major competitors. This may help to Thermax to enter in industries like

cement, steel, automobile etc.

In CFBC boilers, the evapouration capacity and the pressure are high from the competitive boilers. So it

can be the strength of Thermax in Brazil. The CFBC boilers may help to Thermax to enter in Brazil with

better performance.

In Biomass boilers, the evapouration capacity of Thermax boilers is less than other competitors. In Brazil,

the raw material for Biomass boiler is available in large scale and in cheap price. So many industries are

using Biomass boiler rather than other two boilers. If the evapouration capacity and pressure of Biomass

boilers can’t get increased then it will act as a barrier for Thermax to enter in Brazil’s market.

51

SWOT analysis of Thermax

Strengths Weakness

Global footprints in over 75 countries.

The parameters of CFBC boiler and

Waste heat boiler are higher than other

competitors.

The company also provides revised

accessories required for the improvement

of boiler performance.

The parameters of biomass boiler are

comparatively lower than competitor

companies.

The competitor companies are more

experienced than Thermax Ltd.

Opportunities Threats

The installed capacity is increasing to

meet the demand in automotive

industries, petroleum industries, mining

industries and sugar industries.

The increased industrial production will

result in increased power generation

capacity in biomass, solar, nuclear plants.

So, there will be an increase in 10-20% in

upcoming plants and projects of those

sectors which can be targeted by the

company.

The already existence of Japanese and

Chinese boiler manufacturers will be a

barrier.

Brand power and popularity compared

to that of competitors.

52

Some projects of Thermax

53

Chapter 6

Conclusions

a) The Brazil is very reliable and favorable country in a business perspective.

b) Thermax have global footprints in over 75 countries which may help them to reach out the

maximum people in Brazil. This brand image will help Thermax to enter in Brazil and compete

with local manufacturers.

c) The parameters of CFBC boiler and Waste heat boiler are higher than other competitors which are

the plus point of Thermax. If the demand for that particular boiler is high then it will be a great

opportunity for Thermax to introduce these products to the Brazilian industries.

d) The company also provides revised accessories required for the improvement of boiler

performance which gives the full package of boiler solution to the Brazilian industries. This will be

beneficial to the Brazilian industries.

e) The installed capacity of Brazilian industries is increasing to meet the demand in automotive

industries, petroleum industries, mining industries and sugar industries which can be an

opportunity for Thermax to introduce their products to upcoming projects and plants.

f) The increased industrial production will result in increased power generation capacity in biomass,

solar, nuclear plants. This will increase the demand for boilers to generate electricity.

g) There will be an increase in 10-20% in upcoming plants and projects of those sectors which can be

targeted by the company.

54

Chapter 7

Recommendations & Suggestion

The favourable situation in Brazil for Thermax boilers. So the company should enter in the

Brazilian market.

The company needs to increase the capacity & pressure (parameters) of a biomass boiler to

compete with their competitors in Brazil.

The company needs to focus on their brand power and popularity compared to entering in Brazil.

The company needs to improve the product quality and reduce the product price to tap a huge

boiler market in Brazil.

55

Chapter 8

Limitations and scope of study

Limitations of study

The exact boilers performance can’t be measured by only two-three factors.

There were some restrictions. It is very difficult to extract data from competitors and complimentary

companies. The information which is disclosed in this project is provided by the company superiors and

through the internet. Because personally going to Brazil and collect the data physically was not possible.

Hence, I had to rely on secondary data.

Advantages of study

There are certain distinct advantages of using secondary data in a market research study. The key

advantage is being the low cost of data collection. At times they offer insight and relevant information

which may be sufficient to solve the marketing problem or research questions.

Even if the marketing research issue cannot be completely solved with the aid of secondary data, such data

may be still valuable. The secondary data sources may suggest avenues for improvement of research

design, analysis plan etc.

The secondary data may be useful as a reference base to compare research findings. Thus even for a

relatively unique research situation, scanning the secondary data would possibly offer much useful insight.

Finally, the time required to obtain the relevant secondary data is much lower compared to some collected

data from primary research method.

56

References

www.articleshare.com

www.mecropress.com

www.areva.com

https://hbr.org/

http://www.techsciresearch.com/

www.slideshare.com

www.statsmonkey.com

http://atlas.media.mit.edu/

www.bloomberg.com

http://www.subseaiq.com/

www.gov.uk

dipp.nic.in

www.dli.mn.gov

www.myodesie.com

www.boilers.guide

www.indiacom.com

Bibliography:

Marketing research (Text, applications and case studies) – Prof. Ramanuj Majumdar (IIM, Calcutta)