Thermax Fuji, which posted a turnover of Rs 35 crore last year, was established in 1996 to address the control systems, software and instrumentation markets. Subsequently, Thermax's control and automation division dealing with gas analysers and microprocessors-based controls was merged with the company. When the venture was established for manufacturing transmitters, the company had estimated the market to grow to 50,000 transmitters by 1999-200 but the market size barely crossed the halfway mark. The venture was also expected to carry out some software job for Fuji which did not materialise.

The Thermax Fuji plant was operating at 40 per cent capacity and was unlikely to break even. Further, the unprecedented rise in the yen also adversely affected the company. Fuji Electric, which is restructuring its business worldwide and centralising operations in Japan, was not keen on continuing the venture.

Fuji will be taking back the equipment while Thermax will get back its land, building and machinery. The Pune-based company will continue in the business of gas analyzers for process gas, stack monitoring and ambient air monitoring which will now become part of the environment division.

Nalawade said that of the 100 employees, 35 original employees of Thermax have been retained while 65 others were released after a compensation averaging around Rs 3 to 4 lakh.

Next on the block is the electronics business for which Thermax is looking for partners, Nalawade indicated. Thermax has already sold off Thermax Systems & Software to Novasoft of US.

"The company is carrying out internal restructuring and will now remained focussed on its core areas - energy, environment, chemicals and power," Nalawade said. The debt-free company also plans to use its financial resources to get into BOT projetcs in energy and environment and would be setting aside around Rs 50 crore for this business.