Nitin Fire Protection near deal for UAE firm buy

Nitin Fire Protection Industries (NFPI) is close to acquiring a fire protection company in UAE in a bid to achieve its plan to tap the European market. The company has tied up the requisite fund of Rs 80 crore through term loan from a consortium of banks for the acquisition.

Further, the company has an enabling resolution approved by the shareholders recently to raise up to Rs 250 crore through QIP (qualified institutional placement). The leading fire protection and intelligent building management company has recently bagged an order worth $3.5 million (Rs 16 crore). It will design, test and commission a special fire fighting and liner heat detection systems for its client's utility tunnel.

The company's Visakhapatnam unit in special economic zone for making CNG cylinders is witnessing robust demand due to revival of automobile sector. Cylinder demand for industrial usage is also on the uptick. NFPI expects turnover from cylinder business to grow 25 per cent in FY'11 from an expected topline of Rs 300 crore in FY'10. Of the annual production capacity of 500,000 cylinders a year, the company currently utilises 32 per cent.

NFPI has initiated talks with Ashok Leyland, Bajaj Auto and Scooters India to supply CNG cylinders. It already has a tie-up to supply cylinders to Swaraj Mazda and Tata Motors. The company expects substantial income from its investment in an oil block in Rajasthan along with GAIL, Gujarat State Petroleum Corporation, HPCL and BPCL. It had invested Rs 30 crore for 11 per cent stake in the joint venture. Revenue from the oil block will add up to its profit from next year.