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Nitin Fire Protection Industries Limited
November 15, 2010
DisclaimerThis presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Nitin Fire Protection Industries Limited (”Company”) and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
Any person placing reliance on the information contained in this presentation or any other communication by the Company does so at his or her own risk and the Company shall not be liable for any loss or damage caused pursuant to any act or omission based on or in reliance upon the information contained herein. This presentation is not a complete description of the Company. Certain statements in the presentation and, if applicable, the subsequent question and answer session and discussions concerning Company’s future growth prospects, are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward looking statements. These risks and uncertainties include, but are not limited to, successfully implement our strategy, our growth and expansion, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Company. We do not have any obligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.
All information contained in this presentation has been prepared solely by the Company. No information contained herein has been independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation.
The figures for FY 2007, FY 2008 and FY 2009 are derived from the audited consolidated financial reports whereas the figures or FY 2010 are obtained from the Limited Reviewed unaudited consolidated financial reports of the Company.
This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Nitin Fire Protection Industries Limited (”Company”) and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
Any person placing reliance on the information contained in this presentation or any other communication by the Company does so at his or her own risk and the Company shall not be liable for any loss or damage caused pursuant to any act or omission based on or in reliance upon the information contained herein. This presentation is not a complete description of the Company. Certain statements in the presentation and, if applicable, the subsequent question and answer session and discussions concerning Company’s future growth prospects, are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward looking statements. These risks and uncertainties include, but are not limited to, successfully implement our strategy, our growth and expansion, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Company. We do not have any obligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.
All information contained in this presentation has been prepared solely by the Company. No information contained herein has been independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation.
The figures for FY 2007, FY 2008 and FY 2009 are derived from the audited consolidated financial reports whereas the figures or FY 2010 are obtained from the Limited Reviewed unaudited consolidated financial reports of the Company.
The Company accepts no liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation contents or otherwise arising in connection therewith. This presentation may not be used, reproduced, copied, distributed, shared, or in any other manner disseminated.
The Company accepts no liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation contents or otherwise arising in connection therewith. This presentation may not be used, reproduced, copied, distributed, shared, or in any other manner disseminated.
Agenda1. Company Overview
2. Key Milestones
3. Business Activities
4. Corporate Structure
5. Key Tie-ups
6. Strengths
7. Industry Overview
8. Growth Drivers
9. Growth Strategy
10. Board of Directors
11. Key Managerial Personnel
12. Financial Overview
1
Company Overview
• One of the leading and established players in the area of fire protection and suppression systems and security solutions
• Promoted 25 years ago by Mr. Nitin M. Shah with a strong domain expertise in the fire protection business
• Providing range of products and services
o Basic level fire extinguishers to the sophisticated fire protection & security systems and building management solutions
o High pressure seamless cylinders for CNG and Industrial applications
• 11.11% share in a JV with GSPC, GAIL and other consortium partners, for oil exploration in Rajasthan State
• Strong financial growth with Revenues growing from INR 1,005 mn in FY 2007 to INR 3,155 mn in FY 2010 registering a CAGR of around 46 %
NITIE 1230 Fire Suppression System
Fire Extinguishers Smoke Detector Fire Alarm Control Panel
CNG Gas Storage Cascade
CNG Gas Cylinders
2
Milestones
Established
• Agreement with BTIC, China for manufacture of cylinders
• ISO 9001:2000 Certification
• Agreement with BTIC, China for manufacture of cylinders
• ISO 9001:2000 Certification
• Successful bid for NELP VI in Rajasthan
• IPO – Listed at BSE & NSE
• Acquisition 40% stake in New Age Co. LLC in UAE
• NCL started commercial production
• Forbes Award – Listed on Forbes Asia for best under a billion
1995 2004 2007 2008 2009
3
Business Activities
• One of the country’s leading end-to-end solutions provider of fire protection, safety and security services
• Strong track record of executing projects for more than 15 years
• Primarily focused on Gas based suppression systems for mission critical areas
• Range of products approved by domestic and international agencies
o Only Indian Company to have approvals from Underwriters Laboratories Inc., USA; Loss Prevention Certification Board, U.K. and VDS, Germany
• Servicing marquee clients in the field of telecom, data centres, refineries, offshore oil platforms and institutions like BSE
• Strong domain expertise in Designing, integration, supply, installations, testing, commissioning and servicing of various types of fire protection systems & solutions
o Facility at Navi Mumbai for integration of various fire protection solution including fire extinguishers
• Fire protection equipments sold under the brand name “NITIE”.
Fire Protection &Security Solutions
High Pressure Seamless Cylinders Oil Exploration
4
• Sales of INR 1,731 mn for FY 10 accounting for ~55% of our total revenues
• CAGR of ~47% from FY 2007 to FY 2010
Fire Alarm Systems Conventional & Intelligent Addressable Ionization Smoke Detectors, Optical Smoke Detectors, Optical Beam Detectors, Heat Detectors, Multi-sensor Detectors, Flame Detectors, Video smoke Detectors, Carbon Monoxide Detectors, Manual Call Points, Fire Alarm Control Panel
Fire Suppression System Wet Chemical based, Kitchen Fire Suppression Systems, Water Leak Detection Systems, Gaseous Fire Suppression Systems (HFC 227ea , NOVEC™1230, CO2 and other inert gases), Foam based Fire Suppression Systems, Water based Fire Protection Systems (Hydrant and Sprinkler)
Fire Extinguishers Ozone Friendly Clean Agent Fire Extinguishers, ISI marked BC - Dry Chemical Powder and ABC Dry Chemical Powder Fire Extinguishers, ISI marked Carbon Dioxide, Extinguishers, Water CO2, Mechanical foam etc
Intelligent Building and Security Management Systems
Access control, CCTV, Perimeter Defense, Barrier controls, Turnstiles
Products
Business ActivitiesFire Protection &Security Solutions
High Pressure Seamless Cylinders Oil Exploration
5
• Manufacturing and supply of High Pressure Seamless Cylinders for CNG and Industrial applications
• Catering to both domestic and export markets
• Integrated manufacturing facility located at Vishakhapatnam SEZ (A.P.) with an installed capacity of 500,000 cylinders per annum
• 38 Domestic and international approvals including, o TPED for the European marketso ISO 11439 for the Middle Eastern Markets o CCOE for the Indian marketso NZS 5454 for Pakistan and Asian Countries
Products CNG Cylinders (20 - 250 litre)(Dia: 200 - 420 mm)
For all kind of light, medium & heavy vehicles such as three wheelers, cars, buses and Trucks
Industrial Cylinders (3- 80 litre)(Dia: 108 - 267 mm)
For industrial gases, fire fighting and beverage application, medical applications etc
Business Activities
Fire Protection &Security Solutions
High Pressure Seamless Cylinders Oil Exploration
6
• Entered into a production sharing contract for exploration and prospecting of a crude oil block in
Rajasthan (NELP VI)
• GAIL and GSPC are the main operators for the block
• As per recent estimates this block has a potential of 32.3 million barrel of prospective four wells of
oil reserve (Source: GSPC DRHP)
• As on March 31, 2010, Company has invested ~INR 128 mn
Business Activities
Fire Protection &Security Solutions
High Pressure Seamless Cylinders Oil Exploration
BPCL, 11.11%
GAIL, 22.22%
Halworthy, 11.11%
GSPC, 22.22%NFPIL, 11.11%
HPCL, 22.22%
7
Corporate Structure
Alert Fire Protection Systems Pvt Ltd
Alert Fire Protection Systems Pvt Ltd
Logicon Building Systems Pvt Ltd
Logicon Building Systems Pvt Ltd
Nitin Global Pte Ltd,
Singapore
Nitin Global Pte Ltd,
Singapore
Nitin Ventures FZE, UAE
Nitin Ventures FZE, UAE
Nitin Cylinders Limited
Nitin Cylinders Limited
Eurotech Cylinders
Pvt Ltd
Eurotech Cylinders
Pvt Ltd
NITIN FIRE PROTECTION
INDUSTRIES LIMITED
New Age Company LLC,
UAE
New Age Company LLC,
UAE
100%
49%
8
Tie-Ups
Kidde Fire Protection, U.K.Distributor for the “Argonite –C60 and Novec 1230 fire suppression systems”“FM 200 & Co2 Systems – UL / FM / LPCB Approved”
DuPont, U.S.OEM for HFC 227ea, Ozone friendly gas for fire suppression systems.
Apollo Fire Detectors Limited, U.K.Exclusive distributor in India for Fire detection products
Beijing Tianhai Industry Company LimitedFor manufacturing of high pressure seamless cylinders as per specifications
9
Strengths
Leading Fire Protection Company
Marquee ClientsEnd-to end solutions
provider
International presence Strong execution track record
Strong Tie ups
High quality standards backed by domestic and international approvals
NFPIL
The industry can be classified into three categories:
• Fire Suppression Systems
oGas based systems used for protection of high value equipments and critical assets
oClean agent gas based protection for Critical assets like server rooms and data centers
•Fire Detection Systems
oThese consist of Intelligent & conventional systems
oLatest systems use specialized cameras as detectors
oThese systems can be programmed through internet
•Fire Fighting Systems
oWater based fire fighting systems for building protection
oHydrant Sprinklers
The industry can be classified into three categories:
• Fire Suppression Systems
oGas based systems used for protection of high value equipments and critical assets
oClean agent gas based protection for Critical assets like server rooms and data centers
•Fire Detection Systems
oThese consist of Intelligent & conventional systems
oLatest systems use specialized cameras as detectors
oThese systems can be programmed through internet
•Fire Fighting Systems
oWater based fire fighting systems for building protection
oHydrant Sprinklers
Industry Overview: Fire Protection Equipment
-
10
20
30
40
50
2006 2009 2012 (P)
CAGR: 25%
CAGR: 18.6%
Fire Protection Industry – Size and GrowthFire Protection Industry – Size and Growth
Future Outlook:
In 2009, the fire protection equipment industry was estimated to be INR 20 bn and is expected to reach INR 39 bn by 2012, a CAGR of 25%
Key Growth drivers:
• Increasing investments in Data Centers, BPOs, Malls, R&D, Power/Petrochemical, Telecom and IT,
• Terrorist Threats
• Government Regulations
Key Competitors:
• Honeywell, Firepro, Siemens, Tyco, Johnson Controls, Kidde and Mini Max
Future Outlook:
In 2009, the fire protection equipment industry was estimated to be INR 20 bn and is expected to reach INR 39 bn by 2012, a CAGR of 25%
Key Growth drivers:
• Increasing investments in Data Centers, BPOs, Malls, R&D, Power/Petrochemical, Telecom and IT,
• Terrorist Threats
• Government Regulations
Key Competitors:
• Honeywell, Firepro, Siemens, Tyco, Johnson Controls, Kidde and Mini Max
10
Industry Overview: High Pressure Seamless Cylinders
• High Pressure Seamless Cylinders, based on their application, can be broadly classified into: Industrial Cylinders and CNG Cylinders.
•Industrial Cylinders cater to gases, healthcare, food & beverage, fire fighting, welding, chemicals, energy industry, metallurgy, defence, space research, etc.
• CNG cylinders cater to automobile sector as onboard CNG cylinders.
• Global players include Worthington (Austria), Luxfer (UK, USA, Australia), Faber (Italy), NK (Korea), Dynetek (Canada), Beijing Tianhai Industry Company (China), Mannesman Cylinder Systems Limited (Germany), Argentoil (Argentina), Cilbras (Brazil), etc
• Indian players include Everest Kanto Cylinders, Rama Cylinders and Nitin Fire.
• High Pressure Seamless Cylinders, based on their application, can be broadly classified into: Industrial Cylinders and CNG Cylinders.
•Industrial Cylinders cater to gases, healthcare, food & beverage, fire fighting, welding, chemicals, energy industry, metallurgy, defence, space research, etc.
• CNG cylinders cater to automobile sector as onboard CNG cylinders.
• Global players include Worthington (Austria), Luxfer (UK, USA, Australia), Faber (Italy), NK (Korea), Dynetek (Canada), Beijing Tianhai Industry Company (China), Mannesman Cylinder Systems Limited (Germany), Argentoil (Argentina), Cilbras (Brazil), etc
• Indian players include Everest Kanto Cylinders, Rama Cylinders and Nitin Fire.
Future Outlook:•Key demand driver for industrial cylinders is industrial gases, whose demand is set to grow at 5-6% y-o-y during 2006-12. The demand for cylinders is expected to show the same trend.
•Total number of CNG vehicles, including new vehicles and replacements, expected to reach 50 mn in 2020 as compared to 8.5 mn in 2007-08, a CAGR of 16% as per IANGV (International Association for Natural Gas Vehicles).
Key factors driving growth: •Incentives provided by governments of various countries including India for conversion to and use of CNG vehicles.
•Increased environmental awareness and global warming concerns leading to a move towards more eco-friendly CNG powered vehicles.
•Key manufacturing bases outside the developed markets are in India and China. The entire demand from growing markets of GCC, Iran and Egypt is fully catered through imports, as there is no local production.
•Demand in South East Asian regions such as Myanmar, Malaysia, Thailand, Indonesia etc is met through imports due to absence of any domestic or regional production base.
Future Outlook:•Key demand driver for industrial cylinders is industrial gases, whose demand is set to grow at 5-6% y-o-y during 2006-12. The demand for cylinders is expected to show the same trend.
•Total number of CNG vehicles, including new vehicles and replacements, expected to reach 50 mn in 2020 as compared to 8.5 mn in 2007-08, a CAGR of 16% as per IANGV (International Association for Natural Gas Vehicles).
Key factors driving growth: •Incentives provided by governments of various countries including India for conversion to and use of CNG vehicles.
•Increased environmental awareness and global warming concerns leading to a move towards more eco-friendly CNG powered vehicles.
•Key manufacturing bases outside the developed markets are in India and China. The entire demand from growing markets of GCC, Iran and Egypt is fully catered through imports, as there is no local production.
•Demand in South East Asian regions such as Myanmar, Malaysia, Thailand, Indonesia etc is met through imports due to absence of any domestic or regional production base.
11
12
Growth Drivers
• Growing economy leading to industrial growth
• Boost in infrastructure related projects in India
• Increased emphasis on safety and security, specially after the rise in terrorist attacks globally and in India
• Intelligent Building Management industry becoming an integral part of the modern construction expansion
• Revamping of Plants and Offshore oil Platforms
• Strong emergence of high growth verticals like Telecom, IT, Malls, multiplexes, retail chains etc.
• Government compulsion for upcoming and existing buildings to have fire protection systems
• Rising replacement demand
13
Growth through
Acquisitions
Developing Alliances &
Tie-up’s
Expand Distribution
& Sales Presence
Increase Market Share
Growth Strategy
14
Board of Directors
Led by a highly disciplined and
motivated team of professionals
Board members are from diverse backgrounds
Led by a highly disciplined and
motivated team of professionals
Board members are from diverse backgrounds
Rahul N. Shah – Experienced in commissioning and installation of Fire Detection and Alarm Systems, Gas Suppression Systems. All import transactions & dealings are done under his supervision.
Nitin M. Shah – Promoted Nitin Fire Protection Industries Limited. Expanded company operations over the years and currently looks after overall business activities
EXECUTIVE DIRECTORS
INDEPENDENT DIRECTORS
Dr. Surendra A. Dave – Is associated with various committees of Government of India dealing with reforms in the capital market, mutual funds sector, insurance sector and pensions.
Krishna Kant Jha - Was an Executive Director (Health, Safety & Environment) of Gas Authority of India Limited and has a total experience of 40 years in the areas of project management, operations and maintenance, administration and health, safety and environment related activities.
Ramakant M. Nayak – Is associated with various banking and advisory companies through which he actively contributes in areas of banking, finance, economy, human resources, business strategy and risk management.
CHAIRMAN & MANAGING DIRECTOR
NON-EXECUTIVE DIRECTORSK. H. Vaidyanathan - Responsible for all technical negotiations with suppliers and customers for cylinders and allied items.
Gopal Krishna Shahi – Associated with the Company for more than a decade, he is an experienced professional in the field of fire protection and safety equipments. Currently, he is in charge of the technological development of products and technical negotiations with customers, in respect of turnkey and general fire safety products.
Pravin Shah – An electrical engineer with 33 years of experience, he is currently the Technical Director, taking care of international approvals for various products and systems, technical support to sales, marketing and installation teams, vendor development, training to technical staff and quality system management.
Partho Roy – With more than 24 years of work experience in the area of IT, fire and safety, he is currently responsible for framing of policies and procedures, preparation, execution and implementation of long and short term business plans, recruitment, training and deployment of personnel, achieving corporate objectives and complying with statutory requirements.
Kulbir Singh Sadhu – Holds a Master’s degree in Science (Physics) with a specialization in electronics. He has a work experience of 31 years in the area of fire detection, alarm and automatic gas suppression systems, sound reinforcement and public address systems, electronic systems and building management systems and is currently heading the technical department of the UAE subsidiary.
Mukesh Ajmera – Associated with the company since its inception, he has an extensive experience in the existing industry. Currently, as the Vice President of the marketing department of the Company, he is responsible for overall marketing operations in the systems division as well as marketing of other products and services offered by the Company
Mony Narayan – With over 30 years of experience in the area of fire detection and suppression, he holds a Master’s degree in Mechanical Engineering from the Indian Institute of Technology, Kanpur. He is currently, the CEO of the Green Technology Division of the Company.
Rakesh Mishra – With over 15 years of work experience in the area of fire security, safety and Engineering Practices, he currently is the functional head of one of our subsidiaries.
Managed
by a highly
qualified
team with
an
extensive
experience
in the
industry
Managed
by a highly
qualified
team with
an
extensive
experience
in the
industry
15
Key Managerial Personnel
16
Key Clients
Customer Mapping
Company Focus: Widening the customer base
17
Past Financials
0.32
0.47 0.47
0.69
0.78
0
250
500
750
1000
1250
1500
1750
2000
FY07 FY08 FY09 FY10 Sep.10
0.00
0.50
1.00
Debt DER
1324
2460
3155
2456
1005
0
500
1,000
1,500
2,000
2,500
3,000
3,500
FY07 FY08 FY09 FY10 Sep.10
Sales
* PAT is excluding share of profit from associate* PAT is excluding share of profit from associate
Rupees in MillionsRupees in Millions
0
500
1000
1500
2000
FY07 FY08 FY09 FY10 Sep.10
Fire Protection, Safety & Security Solutions Cylinders
170
285
518
606
357
100
194
316386
240
-
100
200
300
400
500
600
700
FY07 FY08 FY09 FY10 Sep-10
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
EBITDA PAT EBITA Margin PAT Margin
18
Shareholding & Key Market Data
Promoter Group, 70.2%
FII, 6.3% DII, 5.9%
Others, 17.6%
Name of the Shareholder %
Orange Mauritius Investment Limited 3.83%
United India Insurance Company Ltd 3.52%
General Insurance Corporation Of India 2.38%Swiss Finance Corporation (Mauritius) Limited 1.92%Others 0.58%
Total 12.23%
as on November 12, 2010
Particulars as on 15/11/2010 Rs.
CMP (BSE) 75.45
Market Cap (Rs. mn) 4,753
Face Value (Rs.) 2
(‘000)
Shareholding Pattern Institutional Holdings
Share Price Performance Market Information
Thank YouThank YouCorporate Headquarter
501, Delta, Technology Street,
Hiranandani Gardens, Powai,
Mumbai 400 076. INDIA
Tel.: +91-22-40457000
Fax: +91-22-25701110
Corporate Headquarter
501, Delta, Technology Street,
Hiranandani Gardens, Powai,
Mumbai 400 076. INDIA
Tel.: +91-22-40457000
Fax: +91-22-25701110