The company has already bagged its first order, valued at Rs 10 crore annually, for the O&M of the water and effluent treatment plant supplied by it to Arvind Mills in Gujarat.

As reported earlier, Thermax has also identified the need for such O&M services on a build-operate- own (BOO) or build-operate-transfer (BOT) basis for power, co-generation and captive power plants. It will set up a new company, Thermax Cogen Pvt Ltd, for the same which will have a share capital of Rs 2 crore.

Thermax has reported a drop in its order bookings up to August 31, 1998, which stood at Rs 190 crore as against Rs 305 crore registered in the previous corresponding period. Chairperson Anu Aga attributed this to the overall economic conditions in India and abroad. The Southeast Asian monetary crisis has lead to an "evaporation" of marketslike Indonesia and Thailand while the competition from Japan and Korea for the existing markets has become more fierce. This has had an adverse impact on Thermax's exports to the CIS countries.

Outlining Thermax's strategy for survival and growth over the next three years, Aga said the product business is showing a better trend than last year in the domestic market while exports are expected to rise by about 25 per cent. Orders worth US $3 million have been bagged in Kenya and the CIS which are under execution.

Thermax has undertaken a cost reduction exercise which involves an increase in productivity per employee. Under its "enabling moves", Thermax has redeployed 150 employees.

Addressing shareholders at the 17th annual general meeting (AGM) of the company on Wednesday, Aga added that the agreement with AlliedSignal Power Systems Inc, a subsidiary of AlliedSignal Inc for marketing their TurbGenerator small power systems, would tap the potential for this product in the small- and medium-scale industryand commercial establishments.