Country or Region: India Fire Safety Equipment

Fire Safety Equipment (SEC) Page 1 of 4

Swaminthan Ramakrishnan
Date (05/2006)
ID:136957

Summary
Indian fire protection market is expanding to meet the growing demand from the user segment. Large office
space, technology parks, commercial complexes, airports, petrochemical complexes, manufacturing ventures are
expanding and these ventures continue to support the growth of the fire protection equipment demand in the
country. Over 100 local manufacturers compete with the international firms supplying the latest equipment to end-
users. The government’s Fire Service Department is the major end user of the fire protection devices. Other
major end users are airports, oil/gas projects, petrochemical projects, and software technology parks. Technically
trained agents and distributors are looking for business opportunities to promote the fire protection equipment in
the country.

Market Overview
This report focuses on the market trends for fire safety equipment including fire alarm & fire fighting equipment,
fire extinguishers, carbon dioxide flooding systems, hydrants, sprinklers, water deluge systems and the whole
range of fire vehicles (multi-purpose crash tender, water tender, foam tender, jeep fire engine and trailer pumps),
mobile fire engines, hand fire extinguisher, fire fighting accessories, breathing apparatus, and related products.

Fire maintenance is a state government responsibility in India and the working pattern of public fire brigades/fire
service organizations is not uniform throughout the country. In some states, fire protection services of major cities
are under the municipalities, while several states and union territories have separate fire service departments.
Additionally, organized fire services are maintained by the International Airport Authority of India, Oil and Natural
Gas Commission, Gas Authority of India, all major ports, the Nuclear Power Corporation, the Department of
Atomic Energy, steel plants, oil refineries and several public and private sector companies.

The public fire brigades (Delhi & Bombay), the West Bengal Fire Service, the Central Industrial Security Force and
fire services at major airports are equipped with the most modern fleet of fire fighting equipment. However, rapid
industrial growth and new technology and manufacturing processes have increased the demand for fire services.

Direct losses from fires in India are estimated at over USD 2 billion per year. Small fires go unreported and no
data is available. Only major fire disasters get recorded. With rapid industrialization/urbanization and new
process technologies, the fire accident scenario is becoming more frightening.

There are several local firms who have commissioned large fire protection systems for the defense, railways, state
fire services, power/steel plants, telecommunication complexes, aviation, chemicals and textiles industries. Many
firms in the unorganized sector supply fire-fighting equipment to hotels, hospitals, banks and domestic consumers.
Local firms manufacture almost all types of fire extinguishers, carbon dioxide, hydrants, sprinklers, water deluge
systems and the whole range of fire vehicles (multi-purpose crash tender, water tender, foam tender, jeep fire
engine and trailer pumps), mobile fire engines, hand fire extinguisher, fire fighting accessories and breathing
apparatus and safety equipment.

For controlling class B fires (involving flammable or combustible liquids such as petroleum products) foam liquids
are used to effectively cut off the air supply. There are eleven firms who manufacture foam compound/foam
making equipment. The key players are: Foam and Accessories India Private Limited (Calcutta), Air Foam
Industries New Delhi, Kooverji Devshi and Company Private Limited, Mather & Platt (India) Limited, New Age
Industries, Brijbasi Udyog and Vijay Fire and Protection Systems (Bombay).

Fixed foam system is also used as fire protection in power plants (in fuel handling area and fuel oil storage tanks).
The foam used is 100% protein type or synthetic type with fluorinated surfactant additive to deposit a vaporization
preventing film on the surface of the fuel. This is added with stabilizing additives and inhibitors to protect against

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freezing, corrosion of equipment/containers and to resist bacterial decomposition and to control the viscosity. The
foam concentrates designed for use on class B fires work well with a compressed air foam systems. There is
good demand for foam type fire extinguishers, foam making equipment, water/foam branch pipes & monitors and
aspirating nozzles for producing foam solutions for different applications.

Market Trends
The fire-fighting industry in India has tremendous potential. As the economy grows, both industry and government
are updating fire protection systems for continued operations in industrial plants and offices. To ensure
continuous productivity, safety of investment and human resources, the use of advanced fire protection systems is
inevitable. Government regulations for fire safety are now mandatory and this has further
brightened the market outlook for fire-fighting equipment/systems in India.

The Indian Information Technology (IT), IT Enabled Services (ITES), Back Office Operations (BPO) continue to
drive the growth of large office complexes in the country. Recording over 25 per cent CAGR, the Indian IT/ITES
provisional sales revenue is estimated at $36 billion during 2005-06. According to industry estimate, the Indian
IT/ITES segment alone will create 5 million new jobs by 2012, requiring additional office space. These technology
parks and office buildings are expected to continue to support the fire protection equipment demand.

The Government of India is planning to upgrade existing airports and new airport projects are planned in
Bangalore, and Hyderabad. These airport projects will continue to support the growth of fire protection equipment
growth in the country.

Several private sector hospitals are upgrading their facilities and/or adding new facilities, mostly in the major
Indian cities. The World Health Organization report projected that India needs to create at least 80,000 hospital
beds per year for the next five years to meet the expanding demand (Source:
http://www.ciionline.org/sectors/60/default.asp). These new facilities will continue to support the demand for fire
protection equipment.

The Indian retail sector is undergoing a transformation in the recent past. Several Indian business groups are
planning to enter the retail sector in a major way. For example, Reliance Group plans to invest over $750 million
in the next five years. Several others are also planning to create supermarkets and hypermarkets. These large
buildings will continue to support the firefighting equipment demand.

Large refineries, petrochemical complexes, biotechnology ventures, pharmaceutical, other manufacturing projects,
oil/gas exploration programs, banks, and financial institutions, are expanding in the country. These large projects
will continue to support the demand for fire fighting equipment for the next three years and beyond.

Import Market

The U.S. share of the market is estimated to be 15-20 per cent. Technical superiority and price are the main
factors of purchase. To tap the fire fighting market, the U.S. manufacturers should appoint agents/distributors to
market their products and services in India. In view of the high shipping costs from the U.S., and low production
costs in India, interested U.S. firms could tie up with local firms or set up their own manufacturing facility in the
country to manufacture products for local market. The existing collaborations are able to import and sell certain
special fire and security system on the strength of their service network. An agent or collaborator in India will
enable U.S. firms to export to India and have their Indian partner provide technical services. This will offer them a
ready-made distributor/service network.

Germany, the U.K., Canada, Japan, Norway, Finland, Israel, and Italy are other major competitors supplying their
firefighting equipment either directly or through their Indian agents.

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Competition

Over 100 Indian firms manufacture fire fighting equipment, consumables and supplies and meet approximately 60-
70 per cent of the domestic demand. Alarm systems activated by smoke/gas/heat or flame, alarm system for
automatic sprinklers, fire hydrants, fittings, empty seamless high pressure carbon dioxide gas cylinders, sprinkler
system and components, fire fighting hoses, portable fire extinguishers, deluge valves, fire vehicles/extinguisher,
breathing apparatus and safety equipment, foam making equipment, carbon dioxide cartridges, centrifugal pumps
mounted on trailers, jeep or truck chassis are some of the products manufactured by the Indian firms. Several
Indian firms have collaborated with foreign manufacturers to manufacture the fire fighting equipment locally.
Existing Indian manufacturers of fire protection products are looking for joint venture and licensing arrangements
to produce latest products for Indian market.

End Users

Fire Service Departments of the state governments are the major end users of the fire fighting equipment in the
government sector. All government procurement follows the tendering process. Government financial institutions,
banks, public sector companies such as Indian Oil Corporation, ONGC Limited, defense establishments, research
and development laboratories, international organizations and stock exchanges are the major end users of the fire
protection equipment. Hospitals, hotels, airports, and malls, leisure centers, office complexes are also major end
users of the fire fighting equipment. Large residential complexes have started installing fire-fighting equipment in
major cities and this trend is likely to continue in the future.

Market Entry

The importation of fire safety equipment is subject to custom duties, while the manufacture and sale of such
equipment is subject to excise duties and sales taxes. Financing is as per international norms and is available
locally. Both long-term and short-term funds are available from a variety of financial institutions.

Indian importers establish an irrevocable letter of credit covering the value of imports, payable in favor of the
supplier, against presentation of shipping documents. The Government of India's Reserve Bank does not
normally allow advance payments for imports. Government purchases follow a tendering process. Most of the
government tenders follow two parts: technical bids and commercial bids. All government tenders are time
consuming and generally the government decides on the lowest bidder.

Maintaining one or more technically trained Indian agent is the best way to enter the Indian security and safety
market. Agents must offer service support for all equipment and provide after-sales support. Indian end users
consider service support as an important factor in the capital equipment purchase decisions. The agent obtains
advance information regarding potential business, handle trade promotion activities, and keep the foreign supplier
abreast of local market opportunities, conditions and competition.

Opportunities for Profile Building

The civil defense, home guard and fire service all operate under the ministry of Home affairs, Government of
India. http://mha.nic.in/ch13.html. They render fire prevention and fire-fighting services, renders technical advice
to States/Union territories and Central Ministries on fire protection, fire prevention and fire legislation. Officers of
Fire Service are trained in the National Fire Service College, http://nfscnagpur.nic.in/, Nagpur, a subordinate
training establishment of the Ministry of Home Affairs, Government of India. Fire and Safety Association of India
(http://www.fsaindia.org/index.aspx) is a major industry association facilitating the growth of the industry sector.
Fire Protection Association of India (http://www.fpai.in/) is another industry association supporting the industry
sector. These associations may be the point of contact for the U.S. firms interested in entering the Indian market.

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Key Contacts

The Bureau of Indian Standards is an excellent source of information about safety and security product
requirements in India.

Bureau Of Indian Standards (www.bis.org.in )

Institute of Petroleum Safety, Health & Environment Management (http://www.ongcindia.com/ipshem.asp#f )

Loss Prevention Association of India Ltd. (http://www.lpaindia.org/home.htm)

Delhi Fire Service (http://dfs.delhigovt.nic.in/ )

Mumbai Fire Brigade – (http://www.mcgm.gov.in/forms/departmentmain.aspx?dno=MjE%3D-

JUY4i8o28%2FE%3D)

Tamil Nadu Fire and Rescue Service (http://www.tnfrs.tn.nic.in/ )

Upcoming Trade Shows/Events

Indian Trade Promotion Organization organizes “International Security, Safety & Fire Exhibition” at the Pragati
Maidan in New Delhi. This exhibition will display security equipment and fire alarms and fire fighting equipment.
Please visit http://www.indiatradepromotion.org/pro/index.asp for further information on the exhibition.

Fire Protection Association organizes the “Fire India” exhibition at the Grand Hyatt Exhibition Ground, Mumbai.
Fire India is an established show that showcases latest products, technology and integrated system solutions in
the field of Fire-Safety and Prevention. Please visit http://www.servintonline.com/FireIndia2006/elisting.htm
for further information and registration details.

For More Information

The U.S. Commercial Service in Chennai, India, can be contacted via e-mail at:
swaminathan.ramakrishnan@mail.doc.gov ; Phone: (91-44) 2857-4477; Fax: (91-44) 2857-4212; or visit our
website: www.buyusa.gov/your_office .

The U.S. Commercial Service — Your Global Business Partner

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the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S.
companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the
U.S. nearest you by visiting http://www.export.gov/.

Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every
effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the
accuracy or completeness of information in this or any other United States government document. Readers are advised to
independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal
advice.

International copyright, U.S. Department of Commerce, 2006. All rights reserved outside of the United States.

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