Michael Rukin: Ervist and Security Market

Since its inception in 1996, Michael V. Rukin holds the position of General Director of Ervist Group. Due to his executive, industry expertise and leadership skills, the company grew from a small installation outfit to a Group that currently commands front-runner position in Russian security market for industrial special hazards and fire alarm systems. Mr. Rukin started his industry career as an expert engineer at the Complex Information Security Center of ELERON, one of the biggest in the world Russian Governmental Scientific and Production entity. After inauguration of Ervist, over the last decades he evolved as one of the principal experts in Russian integrated industrial safety field. His technical notes, publications and conference reports are widely cited and acclaimed in professional domain. In collaboration with his team, Mr. Rukin plays decisive function in development of Ervist Group – that serves as a crucial input to its business success. Under his leadership, the Group currently expanded to four companies that cover major part of Russia - and deliver over 1,500 titles of diverse security products of domestic and foreign vendors. Currently the Group has one of the best in Russia distributing infrastructure that includes technical engineering center, support and warehouse facilities. Mr. Rukin is well known for his extensive educational and training activities, delivering key presentations for engineering community and at a number of in-service training courses. Michael V. Rukin is a graduate of Moscow Technical University of Telecommunications and Informatics, and resides in Moscow.

 

Russian Security Systems Market is fragmented and mostly non-transparent. Thus, I assume that it would be of interest to learn how Ervist Group made its own way into current position. 

So, here is what Michal Rukin has to say.

Way back in March of 1996 Russian economy was in a rather chaotic situation – a lot of new entities were formed, many of formerly state-owned enterprises became private, the whole system of provision of security services was shaken. However, the market requirement was clear: an unquestionable need for security. It happened that hundreds of small companies were registered; many professionals of the industry were trying to start their personal foray into business. It was very important to select the right approach, the right team and the right way to implement your ideas and opportunities. As I was employed with ELERON, I have learned a lot – but looking back – I would like to pinpoint that the major consideration for me was understanding of the proper attitude to security business and how to select the proper team. With a group of my colleagues, we commenced our own private business. The first three years were crucial, as we laid the groundwork for corporate strategy: first we started with installation of security systems for small and medium-sized companies – which evolved to bigger ones: Vympelcom (Beeline) with their offices, base stations; ROLF with their car sales offices and car maintenance facilities; Udarnitsa confectionary factory; various sites of Sheremetyevo Airport; installations of Mosenergo and Russian Railways. In total we serviced about 500 installations in the first three years.

At around 1998 we entered another market niche – trading of equipment, parts and materials for newly designed security systems; in 1999 we started focusing on production and deliveries of industrial special hazards and fire alarm systems – that gradually evolved into major area of our business.

At this time we understood that Russia has a tremendous scientific and production potential for advanced products in security field. That is why we initiated and developed close collaboration with the leading Russian vendors of such systems: Spetspribor, Kazan; Eridan CJSC, Ekaterinburg; Etalon NPK, Vlogodonsk; Magntio-Kontakt, Ryazan. Thus, we started active participation in the process of design, development and distribution of the whole set of new systems and products. The following slide gives the list of what we have developed up to date. 

As an example, I want to pinpoint one of the products that we jointly developed with our partner – ETRA Spetsavtomatika from Novosibirsk. This is perfect example of practical implementation of Russian scientific engineering potential. The system is based on utilization of the Raman Effect of light scattering for fire detection – and is critical and cost-effective solution for large scale industrial hazard enterprises. 

Alongside with development of new solutions, we substantially strengthened our dealership and trading divisions – signed appropriate agreements with more than 30 Russian vendors; as well as with global industry leaders: TYCO, Xtralis, BOSCH, STAHL, MEDC, MIKA, Protectowire. 

Currently we have three companies in our Group:

This allows us to cover significant part of Russia, and to perform services to various customers, including such giants as GAZPROM, RAO UES of RUSSIA, ROSENERGOATOM, and others.

We believe that workshops and seminars are the important components of Ervist Group activities in the Russian Security Systems Market. Regular interactions/communications with partners, designers and engineers of systems and specific projects are of the utmost importance. Not long ago we started Ervist-Forum Program, which envisions online seminars/webinars. Information and technical workshops are another realm that exists in Ervist’s undertakings for a number of years. As a rule, The Group’s experts are invited by the partner companies to present detailed information on solutions and equipment for industrial special hazards and fire alarm systems; this is being supplemented by actual demonstrations of hardware and discussions panels. Thus on the average, each year, about a dozen Russian cities are covered and 600-700 industry professionals attend. Just a few days ago, we had a workshop that was successful indeed and showed that we are on the right way.

We are optimistically looking forward – we are planning to increase our sales and distribution efforts both domestically and abroad. We are looking for new partners - in Russia and worldwide. In addition, we do feel that there is a good potential – as our products and solutions are in demand, and what is most important – represent the full specter of Russian engineering potential.