Nitin Fire Protection Ltd (NFPL), an end-to end solution provider in fire safety equipment production and installation, is eyeing the Russian market for further growth.
Confirming the development, Rahul Shah, executive director of NFPL, said, "Active negotiations are underway with an oil exploration company in Russia which will be finalized very soon. This will allow us to enter into Russian market."
Without divulging the name of the Russian company, Shah said the order could be in the range of Rs 150 crore.
NFPL is exploring growth opportunities outside India and the United States Emirates (UAE). The company said it will enter into an agreement with a power plant and a number of metro stations in Turkey, which would fetch orders worth at least Rs 100 crore.
Additionally, the company has stepped up penetration in United Arab Emirates.
An Elara Capital report said the Middle East business, with around half of consolidated sales, has grown at a CAGR of about 42% over FY12-14 and is likely to grow at a CAGR of 22% over FY14-16. After lower growth over FY12-13 due to the economic slowdown, the Middle East reported 75% growth in the financial year 2014, due to the low base effect and revival in the economy.
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The company has won the bid to host EXPO 2020 in Dubai. This will add further momentum to its Middle East operations, the report added. The current order book of the Middle East is Rs 550 crore.
"We are planning to only supply fire safety equipment from India to Russia and Turkey. We don't have any plan to set up a manufacturing unit in any of these countries," said Shah.
The company has already secured fire safety equipment and installation orders worth Rs 300 crore from airports and refineries in the UAE. It has also received orders worth Rs 325 crore from various companies in India. With all these orders, the company's 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 an annual growth of 10%. With around 20% lower production costs and several cost cutting measures adopted, the company expects topline and bottomline to grow at least between 20-25% in coming years.