Thermax Secures 51% Stake in JV with OCQ to Boost Chemical Portfolio

Energy and environment solutions provider Thermax Ltd announced on Monday (March 10) that its wholly-owned subsidiary, Thermax Chemical Solutions Private Ltd, has entered into an exclusive shareholder’s agreement with Oswaldo Cruz Química Indústria e Comércio Ltda (OCQ), a leading Latin American chemical company specialising in resins and polymers.

Thermax will hold a majority 51% stake in the newly formed company, while OCQ will retain a 49% share. The partnership is expected to create significant value by strengthening both companies’ global market presence and delivering high-performance chemical solutions to various industries.

Manufacturing and Operations in Gujarat

The new entity will be responsible for manufacturing, trading, marketing, and selling OCQ-formulated materials while leveraging Thermax’s extensive infrastructure, resources, and customer base.

To facilitate these operations, Thermax will adapt its existing industrial facility in Jhagadia, Gujarat, to accommodate the first production line for acrylic resins.

Focus on Acrylic Resins with Future Expansion Plans

Ashish Bhandari, Managing Director and CEO of Thermax emphasised the importance of the partnership, stating, “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.”

Initially, production will be focused on acrylic resins, which are widely used in paints, adhesives, infrastructure, textiles, and waterproofing applications. In the future, the plant is expected to expand operations to include the manufacturing of polyester and alkyd resins, further broadening Thermax’s chemical solutions portfolio.

Strengthening Thermax’s Chemical Offerings

The new joint venture will significantly enhance Thermax’s chemical portfolio, which currently includes ion exchange resins, water treatment chemicals, oil field chemicals, and construction chemicals.

By diversifying its offerings, Thermax aims to cater to a broader segment of industrial needs while reinforcing its position as a leading provider of chemical solutions.

Strategic Global Expansion into New Markets

Francisco Fortunato, Founding Partner of the OCQ Group, highlighted the strategic nature of the collaboration. “We see this as a key step in expanding our geographic presence and international reach in collaboration with Thermax. With its six-decade legacy, trusted reputation, and deep industry expertise, Thermax is an ideal partner for this venture.”

Fortunato also acknowledged the challenges of entering a market that Brazilian companies have yet to explore extensively. However, he expressed confidence that Thermax’s strong regional presence and proven track record would help both companies seise the opportunity and tap into the promising Asian market.

Stock Performance 

On March 11, 2025, Thermax share price traded 1.18% lower at ₹3,293.05 at 12:25 PM (IST). Thermax’s share price reached a 52-week high of ₹5,835.00, and a 52-week low of ₹2,949.45. As per BSE, the total traded volume for the stock stood at 1,219 shares with a turnover of ₹40.54 lakhs.

At the current price, Thermax shares are trading at a price-to-earnings (P/E) ratio of 92.19x, based on its trailing 12-month earnings per share (EPS) of ₹35.72, and a price-to-book (P/B) ratio of 10.95, according to exchange data.

Conclusion

With this joint venture, Thermax and OCQ are set to leverage their combined expertise to bring high-performance chemical solutions to a wider audience. The collaboration marks a significant milestone for Thermax as it ventures into a new line of business within the chemical sector while reinforcing its global market position.

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