Thermax on Tuesday said that the National Company Law Tribunal (NCLT) has approved the demerger of its arms Thermax Cooling Solutions and Thermax Instrumentation.

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"National Company Law Tribunal, Mumbai Bench vide its order dated December 20, 2023, which was received on December 25, 2023, has approved demerger of the wholly owned subsidiaries of the company namely, Thermax Cooling Solutions Ltd (TCSL/ Demerged Company) and Thermax Instrumentation Ltd (TIL/Resulting Company)," a regulatory filing stated.

According to the petition before the NCLT, the vertical integration of operations for Thermax Instrumentation will result in enhanced coordination and flexibility in operations.

It also that the demerger will result in enhanced management focus on the business of TIL post the proposed demerger due to complementary business being consolidated under the same entity resulting in scalability and operative effectiveness.

It will also eliminate duplication of administrative and compliance functions resulting in cost savings.

Thermax's portfolio includes clean air, clean energy, clean water and chemical solutions. Thermax operates 14 manufacturing facilities across India, Europe, and Southeast Asia and has 37 Indian and international subsidiaries.

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