Nitin Fire to buy 40% in Dubai fire protection co
Nitin Fire Protection Industries (NFPIL), a fire protection and security solutions company, is close to acquiring around 40% stake in a UAE-based fire protection company - New Age Company. The deal may be worth over Rs 150 crore, according to anal...
By Rajesh Unnikrishnan, TNN |
MUMBAI : Nitin Fire Protection Industries (NFPIL), a fire protection and security solutions company, is close to acquiring around 40% stake in a UAE-based fire protection company — New Age Company. The deal may be worth over Rs 150 crore, according to analysts. The publicly-listed NFPIL is in the final round negotiations with the Dubai firm and the deal is likely to be concluded by the end of the month, sources said.
The privately-held New Age makes fire detection, protection and suppression systems, electronic security systems for consumers and businesses segments like aviation, marine, transportation and government security system.
When contacted by ET, NFPIL’s executive director, Rahul Shah, said, “As a part of our growth strategy, we have been scouting for acquisition in the overseas market. We cannot comment on individual deals.” On Tuesday, NFPIL’s stock moved up 10% to close at Rs 508, from its previous days’ close of Rs 461, on BSE.
The Mumbai-based NFPIL is a leading end-to-end solution provider for fire protection, safety and security with capabilities in manufacturing, designing, engineering, commissioning and maintenance.
The company, which specialises in high-pressure seamless gas cylinders , has been in the process of scouting for acquisitions in the overseas market as the foreign market offers strong growth potentials in countries like Iran, Pakistan, Egypt and Malaysia.
They said countries such as Iran are rich in gas reserves, and CNG cylinders business offers strong growth potentials. In most of these countries, CNG cylinders and kits are exempt from duties and taxes. The demand for CNG cylinders for automobiles is expected to grow at an average annual growth rate of about 10%.
The company intends to make and sell CNG cascades and fuel dispensers for which it has entered into a technology transfer MoU with Kraus Global of Canada for supplying dispensers globally.
The privately-held New Age makes fire detection, protection and suppression systems, electronic security systems for consumers and businesses segments like aviation, marine, transportation and government security system.
When contacted by ET, NFPIL’s executive director, Rahul Shah, said, “As a part of our growth strategy, we have been scouting for acquisition in the overseas market. We cannot comment on individual deals.” On Tuesday, NFPIL’s stock moved up 10% to close at Rs 508, from its previous days’ close of Rs 461, on BSE.
The Mumbai-based NFPIL is a leading end-to-end solution provider for fire protection, safety and security with capabilities in manufacturing, designing, engineering, commissioning and maintenance.
The company, which specialises in high-pressure seamless gas cylinders , has been in the process of scouting for acquisitions in the overseas market as the foreign market offers strong growth potentials in countries like Iran, Pakistan, Egypt and Malaysia.
ADVERTISEMENT
Industry analysts said in the developed world, America and Europe have been successful in their CNG programmes and have a strong industry supply of CNG cylinders. It is to be noted that the manufacturers in the Asian region have been catering to the needs of their domestic markets through imports. They said countries such as Iran are rich in gas reserves, and CNG cylinders business offers strong growth potentials. In most of these countries, CNG cylinders and kits are exempt from duties and taxes. The demand for CNG cylinders for automobiles is expected to grow at an average annual growth rate of about 10%.
The company intends to make and sell CNG cascades and fuel dispensers for which it has entered into a technology transfer MoU with Kraus Global of Canada for supplying dispensers globally.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
