The Pune-based Thermax has acquired the 50 per cent stake of the US-based Culligan International in Thermax Culligan Water Technologies (TWT), the equal joint venture between the two formed four years ago. The price at which the deal was struck has not been disclosed.
Following the acquisition, TWT has become a 100 per cent subsidiary of the company. Earlier this year, Thermax had restructured its business portfolio. Consequently, it entered into a co-packaging and sales and distribution agreement with Coca-Cola India for its bottled water business.
Under the agreement, TWT's 20-litre brand 'Good Water' will be replaced by Coca-Cola's bottled water brand 'Kinley'. With this acquisition, Coke has the advantage of getting 1,600 bulk customers of TWT in Mumbai and Pune.
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With the sale of its packaged water business, the company is now focusing on the core business of industrial products.
The group, which is undergoing a restructuring exercise, has shut down the operations of its wholly owned subsidiary Thermax Electronics. Thermax Electronics was in the business of manufacturing passive electronic components, such as resistors. Thermax has sold its electronics business to Thakor Electronics for an undisclosed amount.
In keeping with Thermax's decision to exit non-core business, the company has sold its surface-coating business to a local company. Thermax began the process of exiting non-core businesses in 1999-2000 with the exit from it's joint venture Thermax Fuji Electric.
Meanwhile, Thermax Ltd is planning to delist from the smaller stock exchanges as there is hardly any trading in the stock.