High Pressure Seamless Cylinders

Report
Nitin Fire Protection Industries Limited
November 15, 2010
Disclaimer
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.
Agenda
1.
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
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
1
Milestones
• Successful bid for
NELP VI in
Rajasthan
Established
• Forbes Award –
Listed on
Forbes Asia for
best under a
billion
• IPO – Listed at
BSE & NSE
1995
2004
• Agreement with
BTIC, China for
manufacture of
cylinders
• ISO 9001:2000
Certification
2007
2008
2009
• Acquisition 40%
stake in New Age
Co. LLC in UAE
• NCL started
commercial
production
2
Business Activities
Fire Protection &
Security Solutions
High Pressure
Seamless Cylinders
Oil Exploration
• 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”.
3
Business Activities
Fire Protection &
Security Solutions
High Pressure
Seamless Cylinders
Oil Exploration
• 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
Products
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
4
Business Activities
Fire Protection &
Security Solutions
High Pressure
Seamless Cylinders
Oil Exploration
• 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 markets
o ISO 11439 for the Middle Eastern Markets
o CCOE for the Indian markets
o 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
5
Business Activities
Fire Protection &
Security Solutions
High Pressure
Seamless Cylinders
Oil Exploration
• 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
NFPIL, 11.11%
Halworthy,
11.11%
GSPC, 22.22%
BPCL, 11.11%
GAIL, 22.22%
HPCL, 22.22%
6
Corporate Structure
NITIN FIRE PROTECTION
INDUSTRIES LIMITED
100%
Alert Fire
Protection
Systems
Pvt Ltd
Logicon
Building
Systems
Pvt Ltd
Nitin Global
Pte Ltd,
Singapore
Nitin Ventures
FZE, UAE
Nitin Cylinders
Limited
Eurotech
Cylinders
Pvt Ltd
49%
New Age
Company LLC,
UAE
7
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 Limited
For manufacturing of high pressure seamless cylinders as per specifications
8
Strengths
Leading Fire Protection
Company
End-to end solutions
provider
Marquee Clients
NFPIL
International presence
Strong Tie ups
Strong execution track
record
High quality standards
backed by domestic and
international approvals
9
Industry Overview: Fire Protection Equipment
The industry can be classified into three categories:
Future Outlook:
• 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
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
•Fire Fighting Systems
oWater based fire fighting systems for building protection
Key Competitors:
oHydrant Sprinklers
• Honeywell, Firepro, Siemens, Tyco,
Johnson Controls, Kidde and Mini Max
Fire Protection Industry – Size and Growth
50
40
CAGR: 25%
30
CAGR: 18.6%
20
10
10
2006
2009
2012 (P)
Industry Overview: High Pressure Seamless Cylinders
• High Pressure Seamless Cylinders,
based on their application, can be
broadly classified into: Industrial
Cylinders and CNG Cylinders.
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.
•Industrial Cylinders cater to gases,
healthcare, food & beverage, fire
fighting, welding, chemicals, energy
industry, metallurgy, defence, space
research, etc.
•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:
• CNG cylinders cater to automobile
sector as onboard CNG cylinders.
•Incentives provided by governments of various countries including India
for conversion to and use of CNG vehicles.
• 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
•Increased environmental awareness and global warming concerns
leading to a move towards more eco-friendly CNG powered vehicles.
• Indian players include Everest Kanto
Cylinders, Rama Cylinders and Nitin Fire.
•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
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
12
Growth Strategy
Growth
through
Acquisitions
Increase
Market
Share
Developing
Alliances &
Tie-up’s
Expand
Distribution
& Sales
Presence
13
Board of Directors
Led by a highly
disciplined and
motivated team of
professionals
CHAIRMAN & MANAGING DIRECTOR
Nitin M. Shah – Promoted Nitin Fire Protection Industries Limited. Expanded
company operations over the years and currently looks after overall business
activities
EXECUTIVE DIRECTORS
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.
NON-EXECUTIVE DIRECTORS
K. H. Vaidyanathan - Responsible for all technical negotiations with suppliers and
customers for cylinders and allied items.
INDEPENDENT DIRECTORS
Board members are
from diverse
backgrounds
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.
14
Key Managerial Personnel
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.
Managed
by a highly
qualified
team with
an
extensive
experience
in the
industry
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.
15
Key Clients
Customer Mapping
Company Focus: Widening the customer base
16
Past Financials
Rupees in Millions
Fire Protection, Safety & Security Solutions
Cylinders
2000
Sales
3,500
3155
3,000
1500
2460
2,500
2456
1000
2,000
1,500
1,000
1324
1005
500
500
0
FY07
FY08
FY09
FY10
0
Sep.10
FY07
FY08
Debt
EBITDA
PAT
EBITA Margin
FY09
FY10
DER
1.00
2000
PAT Margin
0.78
1750
700
518
20.00%
500
386
400
316
285
300
200
25.00%
606
600
240
194
170
15.00%
357
100
-
0.00%
FY07
FY08
FY09
FY10
* PAT is excluding share of profit from associate
0.69
1500
1250
0.47
0.47
FY08
FY09
0.50
1000
750
10.00%
5.00%
100
Sep.10
0.32
500
250
0
0.00
FY07
FY10
Sep.10
Sep-10
17
Shareholding & Key Market Data
Shareholding Pattern
Institutional Holdings
Name of the Shareholder
DII, 5.9%
FII, 6.3%
Others,
17.6%
Promoter
Group,
70.2%
%
Orange Mauritius Investment Limited
3.83%
United India Insurance Company Ltd
3.52%
General Insurance Corporation Of India
Swiss Finance Corporation (Mauritius) Limited
Others
2.38%
1.92%
0.58%
Total
12.23%
as on November 12, 2010
Market Information
Share Price Performance
(‘000)
Volume (000's)
500
Nitin
Sensex
400
2,000
Particulars as on 15/11/2010
1,500
CMP (BSE)
75.45
Market Cap (Rs. mn)
4,753
300
1,000
200
500
100
2
Mar-10
Feb-10
Dec-09
Nov-09
Sep-09
Aug-09
Jul-09
May-09
0
Apr-09
0
Face Value (Rs.)
Rs.
18
Thank You
Corporate Headquarter
501, Delta, Technology Street,
Hiranandani Gardens, Powai,
Mumbai 400 076. INDIA
Tel.:
+91-22-40457000
Fax:
+91-22-25701110

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