Thermax Signs agreement with Georgia Pacific Chemical, LLC, USA

Thermax Ltd has announced that the Company and Georgia-Pacific Chemicals LLC, based in Atlanta, Ga., USA, have signed a technology and manufacturing License agreement for performance enhancing chemicals which find extensive applications in the paper industry. The agreement, which will be valid for seven years, was signed by M S Unnikrishnan, Managing Director, of the Company and Peter Williams, Vice President, Sales and Marketing, Georgia-Pacific Chemicals at the Company's Pune office on October 03, 2007. Products based on the licensed technology will enable the Company to expand its business in the paper industry in India and South East Asia as per the agreement.

The paper & pulp business is highly competitive in India and overseas. This technology agreement will enable the Company to improve the competitive edge of its clients by improving productivity, reducing raw material and production costs, and minimising plant downtime white enhancing quality and safety. "Georgia- Pacific's technology will give us some real credibility in offering long-term solutions to paper manufacturers," said Mr. Unnikrishrian.

India produces about 6 million tones of paper and paperboard, including newsprint, at 600-odd paper mills with an installed capacity of 8.5 million tons. The challenge facing the Indian paper industry in meeting the rising demand is the shortage of fibre in the Country. Many well-known Companies import pulp to meet demand.

According to analysts, the major players in the industry have lined up close to Rs 8,000 crore (US$ 1,750 million) in capital expenditure, a major part of which will be used by 2008. The demand for paper and paper products is projected to double in 2015, from the present 6 million tons. The paper market in South East Asia is also very buoyant and the big players are investing in new capacities.

The estimated market for specialty paper chemicals in India is approx. Rs 390 crore (US$ 85 million) and a whopping Rs 1,600 crore (US$ 355 million) in the Asia Pacific region.

The stock was trading at Rs.700, down by Rs.31.75 or 4.34%. The stock hit an intraday high of Rs.758 and low of Rs.691.

The total traded quantity was 121037 compared to 2 week average of 31073.

Source : Equity Bulls

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