Engineering solutions provider in the area of energy and environment Thermax has inked a deal to buy 33 per cent stake in Pune-based alternative energy solutions firm First Energy Pvt Ltd. It would hike its holding to get a majority stake in the firm over the next four to six years. It did not disclose the deal amount.
First Energy focuses on consumers in the commercial and home cooking segments. Its brand, Oorja, a combination of a ‘micro-gasification’ stove and biomass-based pellet fuel, is adopted by customers as a substitute to fossil fuels such as LPG and diesel. First Energy had recorded revenues of Rs 42 crore in 2014-15.
“The partnership offers Thermax synergy and new opportunities in the commercial space to serve customers with alternative and cost saving solutions,” said M S Unnikrishnan, MD & CEO, Thermax.
Mahesh Yagnaraman, co-founder and CEO of First Energy, said, “As a leader in heat transfer technologies and applications, Thermax is a valuable strategic partner for us. We are confident that this partnership will enable Oorja to scale up faster, building on our passion to innovate and enhance consumer satisfaction.”
This is the first inorganic expansion move by Thermax in over three years. The company which is known for its boilers business had acquired the steam division of Virgo Valves & Controls Ltd, India and its German subsidiary company Rifox-Hans Richter GmbH in early 2012.