Firepro Systems plans tie-up with Honeywell

To foray into West Asian markets

Bangalore-based Firepro Systems Pvt Ltd, a provider of end-to-end safety and security solutions, is planning to enter into a strategic tie-up with the Indian subsidiary of US-based Honeywell Analytics Ltd, a part of the Honeywell Inc, for sourcing gas leak detection systems.

Said Firepro's chairman and managing director, N S Narendra, "As part of our expansion of product offerings, we are planning to introduce gas leakage detection systems in the country. For this, we are currently in talks with Honeywell for a possible partnership with them for sourcing gas leakage detection system."

Honeywell has recently formed a subsidiary, Honeywell Analytics Ltd, following their acquisition of Switzerland-based firm, Zellweger Analytics, a global leader in hazardous gas detection technology. "We have initiated talks with their Indian subsidiary based in Delhi for entering into an agreement to source their products," he told Business Standard.

Apart from sourcing gas leakage detection devices, Firepro also wants to get their engineers trained by Honeywell. The company aimed to set up a separate sales team and create awareness about the importance of this device, Narendra said. This tie-up with Honeywell will get Firepro an access to innovative gas detection products for use in semiconductor, industrial and oil and gas industries.

Major applications for this product will be in large industries such as ONGC, BHEL, GAIL and infrastructure projects like airports, metro railway, among others.

Firepro, which raised $12 million from private equity firm American International Group (AIG) by divesting 15 per cent stake for two months ago, is in the process of expanding its presence in both the domestic and international markets.

Currently, it has offices in seven major cities including Bangalore and plans to open four more offices in cities like Jaipur, Jamshedpur, Vishakapatnam and Kochi.

Narendra said Firepro will use the money for expansion and working capital requirements.

"We have been growing at over 100 per cent in the past two years and are confident of achieving 70 per cent growth as against the industry growth of 35 per cent during the current year," he said.

The company plans to make an overseas foray this year. "We plan to enter into the West Asian markets and open office Dubai. We have already received a lot of enquiries from companies in Dubai. We are also looking at setting up a component sourcing hub in Singapore. We wish to import safety and security components at low cost from Singapore and neighbouring countries like China," Narendra stated.

Firepro reported Rs 115 crore turnover during 2005-06 and aims to achieve Rs 200 crore during the current fiscal.

The company already has alliances with global majors such as Bosch, GE and Trend and its customers area is spread across IT, ITeS, hospitality, healthcare, education, industrial and residential sectors.