Nitin Fire Protection to enter Russian market

Active negotiations are underway with an oil exploration company in Russia

Nitin Fire Protection Ltd (NFPL), an end-to end solutions provider in production and installation of the segment, is entering the Russian market, to cater to oil exploration units.

Rahul Shah, executive director, said: “Active negotiations are underway with an oil exploration company in Russia, to be finalised very soon.” He said the order could be in the range of Rs 150 crore.

NFPL is exploring growth opportunities outside the traditional markets like India and the United Arab Emirates (UAE). It will shortly enter into an agreement with a power plant and a number of metro rail stations in Turkey, expected to fetch orders worth at least Rs 100 crore. Additionally, the company has stepped up penetration in the UAE.

An Elara Capital report said the Middle East business, with around half of consolidated sales, has grown at a compound annual rate (CAGR) of 42 per cent over FY12-14 and was likely to do so at 22 per cent over FY14-16. After lower growth in FY12-13 due to economic slowdown, the region reported 75 per cent growth in financial year 2014, due to the low base effect and revival in the economy.

The company has also won the bid to host EXPO 2020 in Dubai. This will add momentum to growth in regional operations, the report added. The current order book of the Middle East is Rs 5.5 billion, implementable until 2018.

“We are planning to supply equipment from India to Russia and Turkey. We don’t have any plan to set up a manufacturing unit in these countries,” said Shah.

The company has already secured safety equipment and installation orders worth Rs 300 crore from airports and refineries in the UAE. Also, orders received worth Rs 325 crore from various projects in India. With all these, the order book is set to swell to Rs 2,000 crore by the end of the current financial year and Rs 3,000 crore by 2015-16.

The global fire and security market is estimated at $100 billion, with annual growth of 10 per cent. The company says it expects its top line and bottom line to grow by at least 20-25 per cent annually in the coming years.

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