Thermax (B)

Abstract

This case, sequel to Thermax (A) (BP0319(A)), describes strategy formulation and implementation associated with decisions over investment and internationalization after the firm raised capital through a public issue. While resolving top management succession issues, the firm finds itself in a business downturn that sharply erodes its shareholder value. The conflict between sustainable growth and shareholder value puts to test the core vision and values of the founders. The situation described requires the firm to evaluate which businesses to retain and which to divest in its bid to recover from the the double crisis it faces from sluggish domestic market conditions and uncertainty of international business.