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Growth in The Integrated Security Solutions Market
Across Indian Airports
A Sales Opportunity Analysis Presentation
By
Runaway Insights
PART 1
Sales Opportunities across Airports in India
Overview
The Indian government has outlined plans to develop and expand a number ofairports over the next 10 years. These developments are expected to providesignificant selling opportunities for electronic security solutions providers.
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Existing relationships amongst airport operators, contractors, and preferredsecurity OEMs and integrators may skew the decision making processes to favorprocurement of solutions from a few select providers.
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This situation adds on a layer of complexity for many video surveillance andsecurity providers looking to penetrate high-value sales opportunities across theAirports sector, one of the most lucrative end-user segments.
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In light of the above, we have created tools that allow the timely identification ofsales opportunities from this lucrative sector, aiding your sales team in raising theprobability of closing sales and penetrating untapped opportunities.
4
Thus, Runaway Insights presents one such example of a “Sales Opportunity Alert(SOA),” wherein we have identified one specific opportunity and offeredinformation to aid your sales teams’ efforts. This example follows.
5
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
Delhi Airport Expansion - Sales Opportunity Alert
SUMMARY
Delhi International Airport Limited (DIAL) is expected to construct a fourth runway and expand terminal 1to ease aircraft and passenger handling capacity constraints. As on February ‘17, the project wasapproved by the Ministry of Civil Aviation (MOCA) and is now awaiting environmental clearance forconstruction. This expansion may result in an opportunity to equip Delhi International Airport with videosurveillance and other integrated electronic security systems. Further details are given below.
DESCRIPTION
TYPE OF DEVELOPMENT
EXPECTED COMPLETION BY:
ESTIMATED SECURITY REQUIREMENTS FORESEEN
New Runway (Runway 4)
2020Video-based Intelligent Runway surveillance and Foreign
Object Debris (FOD) detection systems, Perimeter Intrusion Detection, Infrared/Thermal Imaging systems.
Terminal 1 Expansion
2020Intelligent CCTV & IP Surveillance Systems and solutions with
built-in video analytics, other video surveillance systems, moving and 360 degree cameras, video management software, DVRs, NVRs, access control, perimeter intrusion detection, fire
detection, scanning & X-Ray detection.New Domestic Terminal (T4)
2025
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
SUGGESTED ENGAGEMENT PROCESS
APPROACH Head of Procurement and Contracts at Delhi International Airport Pvt. Ltd. (DIAL)
DISCUSS
• How video surveillance systems and other integrated security solutions are expected to be sourced for the new infrastructure.• Whether DIAL/AAI has already engaged any vendors to fulfill such requirements.• If not, how does DIAL/AAI plan to fulfill these requirements?• Any current and future budgetary constraints DIAL may be facing in regards to security procurement and DIAL’s views on obtaining scalable, integrated electronic security as a solution to these constraints.• What other similar infrastructural developments may be undertaken near the Airport premises that may warrant the future need for security?• The importance for DIAL to prioritize security in light of the 2014 robberies citing lack of surveillance infrastructure in place.
UNDERSTANDDIAL’s concerns and perspectives on implementing electronic security measures in regards to investment and maintenance of technology and cost-effectiveness for future security requirements due to expansions.
PITCHThe appropriate solution that would suit DIAL’s needs and highlight the value proposition offered to DIAL.
CHECKFor any new tenders on the appropriate AAI and/or DIAL websites to take heed of other current and future sales opportunities.
Sales Opportunity Alert – Making the Pitch!
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
ADDITIONAL INFORMATION TO SUPPORT ENGAGEMENT PROCESS
KEY PERSONNEL
Name & LinkedIn Designation E-Mail Contact Number(s)
Mr. Pankaj Kalra Head of Procurement at DIAL [email protected] +91-11-4719-7403 / +91-11-4719-7000/01
Mr. DiwakerKheterpal
Asst. Gen. Manager –Procurement & Contracts at DIAL
[email protected] 11-4719-7000/01
TENDER WEBSITES
Organization/Link Additional Link 1 Additional Link 2 Additional Link 3
AAI Tenders E-Tendering Information -
DIAL Tender Notice News & Media Releases -
GMR Not Available Media & Press Releases -
PROJECT REFERENCE WEBSITES
Link 1 Link 2 Link 3 Link 4
Sales Opportunity Alert – Practical Information
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
PART 2
Airport Developments in India
- 2017 and Beyond -
Overview
This part of the presentation will shed light onIndian airport developments and the resultantdemand for video surveillance and other electronicsecurity systems over the near future.
Our objective is to provide perspectives on howyour organization can effectively increase theprobability of selling security solutions towardsthese new airport developments.
This presentation is targeted towards OEMs andIntegrators who are primarily focused on providingvideo surveillance solutions as well as otherintegrated electronic security solutions.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
Summary
Objective
TargetAudience
Key Areas of Discussion
Airports in India: Current Scenario and Structure by Ownership
Snapshot of Airport Developments in India: 2016 - 2020
List of Airport Developments in India: 2017 Onwards
Procurement of Security by Airports: Existing Tendering Process
Competitive Environment: Security Providers in India
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
Overview – The Near Future
Increasing passenger traffic and aircraft movements are expectedto cause overcrowding across several airports in India over thenext five years.
Further to this, the country is also expected to witness a surge indemand for air travel from many Tier 2 and Tier 3 cities which arenot connected by airports.
Thus, the government plans to develop and expand a number ofairports over the next ten years to ease capacity constraints andcater to unmet demand.
These developments are expected to result in an increaseddemand for a range of video surveillance and other integratedelectronic security systems in the near future.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
TOTAL ACROSS INDIA450 +
AAI + PPP AIRPORTS133
OPERATIONAL102
NON-OPERATIONAL31
AAI94
PPP8
AAI31
ALL OTHERS317 +
Chart: Categorization of Airports across India by Ownership
Airports in India – Current Scenario
Currently India has close to 133 Key Airports of which 125 airports are owned and operated by Airports Authority of India (AAI), and the remaining 8 are owned under a Public Private
Partnership (PPP) basis.
Note: PPP airports are generally owned and operated by a Joint Venture (JV) Company / Consortium collaboratively established by AAI and other privately held airport investment companies. In PPP agreements, AAI has a minority stake in the airport in comparison to the privately held company/companies holding a majority of the stake.
AAI: Airports owned and operated by Airports Authority of India (AAI)PPP: Airports owned and operated under a Public Private Partnership (PPP) agreementAll Others: These include a number of underdeveloped airports with negligible activity to be properly classified.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
2016 2020
No. of OperationalAirports
102 250
Total PassengerTraffic (In Millions)
242 369
0
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Snapshot: Airport Operationalizationin India (2016 – 2020)
No. of Operational Airports
Total Passenger Traffic (In Millions)
Airport Developments in India – 2016 to 2020
No. of Operational
Airports
To increase from 102Airports in 2016 to 250
Airports by 2020.
Driven by:
Refurbishment of small/no-frills Airports
Operationalization of a number of existing non-
operational “ghost” airports across the country.
Greenfield & Brownfield
Development of Larger Airports
Expansion of existing large-scale PPP and AAI-owned
airports as well as the development of newer
airports.
The following slides present a non-exhaustive list of some of the key Brownfield andGreenfield Airport developments being undertaken over the next few years in India.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
Key Short-to-Immediate-Term Brownfield Developments
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
Name of Airport Development
Start EndDetails of Immediate-Term Developments
Approximate Total Investment (INR)
Delhi International Airport
2016 2019 Runway 4: Construction
~ INR 16,000 Crore2016 2019 Terminal 1: Expansion
2019 2022 Terminal 4: New Construction
Mumbai International Airport
2016 2019 Terminal 2: Expansion
Over INR 12,000 Crore
2016 2016 South East Pier Development
2016 2019 Metrolink: Construction
2016 2019 Airside Taxiway: Construction
2016 2017 Air-Side Tunnel: Construction
BengaluruInternational Airport
2016 2021 Terminal 2: Construction~ INR 4,000 Crore
2016 2018 Runway 2: Construction
ChennaiInternational Airport
2016 2021 Terminal 1: Reconstruction
More than INR 2,500 Crore
2016 2021 Terminal 2: Reconstruction
2016 2021 Multi-Level Car Park Development
2016 2017 Taxiway: Construction
2016 2021 Airside Refurbishment
NOTE: Approximate Total Investment may include airport expansion and development plans beyond the end-date mentioned.
Key Short-to-Immediate-Term Greenfield Developments
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
Name of Airport Development
Start EndDetails of Immediate-Term Developments
Approximate Total Investment (INR)
Kannur International Airport
2014 2017 Terminal: Construction~ INR 2,000 Crore
2014 2017 Runway: Construction
Navi Mumbai International Airport
2016 2020 Terminal: Construction
~ 16,000 Crore2016 2020 Runway: Construction
2016 2020 Technical Building: Construction
2016 2020 Cargo Complex: Construction
Mopa International Airport, Goa
2017 2020 Terminal: Construction~ INR 3,000 Crore
2017 2020 Runway: Construction
Dholera International Airport
2017 2019 to 2022 Runway: Construction~ INR 1,000 Crore (Initial Investment)
2017 2019 to 2022 Terminal: Construction
Shirdi AirportBefore 2013 2017 ATC Tower: Construction
~ INR 340 CroreBefore 2013 2017 Terminal Building: Construction
Parule Airport2013 2017 Terminal Building: Construction
~ INR 492 Crore2013 2017 Runway: Construction
NOTE: Approximate Total Investment may include airport expansion and development plans beyond the end-date mentioned.
Key Brownfield and Greenfield Airport Developments
Summary of Airport Development Efforts & Resultant Demand for Security: 2017 onwards
Expand airport infrastructure at existing PPP & AAI airports across major cities.
Develop new Greenfield PPP & AAI Airports in upcoming cities and near major cities.
Refurbish existing smaller-scale, non-operational airports to recommence operations.
Key Focus Areas ofDevelopment• Runways• Terminals• Aerobridges• Air-Side• F&B / Retail• ATC/ATM• Parking Lots
Resultant Demand for Electronic Security:• CCTV• IP Surveillance• Access Control• Biometrics• Perimeter Intrusion Detection• Scanning & Detection
Demand Catered to by Security Providers:• National & International Security OEMs• Security Integrators
The following Slide briefly explains the procurement process in place linking Security Providers with Airport Operators.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
AAI-owned Airports
Airports Authority of India (AAI)http://www.aai.aero/public_notices/aaisite_test/main_new.jsp
Development by Airport Type
Tender Issuing Body / Bodies
Online Tendering Process on AAI website:https://etender.aai.aero/irj/portal
Tendering Process
PPP Airports, e.g. Mumbai, Bangalore, Delhi, Hyderabad, Cochin
Joint Venture (JV) CompanyAirports Authority of India (AAI)
Tenders & Notices available on:- JV websites - AAI website
Procurement of Security Solutions by Airports
Directorate of Airport Systems, AAIhttp://www.aai.aero/departments/Airport_Systems_new.jsp
Security Procurement
Decision-makers
Individual Airport Directors
General Overview of Tendering Procedures by Type of Airport
Airports across India procure electronic security systems via tenders. Decision making authorities raisethese tenders to fulfill projected security requirements as a result of airport expansions and new airportdevelopments. However, many other factors such as the need for security solutions refurbishment andthe addition of new F&B/Retail establishments also drive authorities to raise these tenders. The belowchart briefly highlights the general tendering process by different types of airports across India.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
Competitive Environment: Security Providers
The market for providing video surveillance solutions across airports consists of major international OEMs and a number of Indian origin integrators that have partnerships with foreign OEMs to effectively penetrate the market.
Due to the high up-front investment required to fulfill security needs, there is a significant demand for scalable and cost-efficient video surveillance and other integrated solutions which are reliable and easy to maintain.
Greater foreign and public-private participation is leading to closer-ties between airport operators and security providers, thereby, creating barriers to effectively penetrate new sales opportunities.
Further to this, the need for achieving integration of video surveillance systems with other electronic security solutions is driving purchase preferences towards companies with diversified products.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
Conclusion and Key Takeaways
The procurement process is via tenders and yet, occasionally, there is a markedpreference to procure solutions from a few select security providers. However,we believe there are potential opportunities to penetrate this market.
By obtaining timely information on airport developments, reaching out to theright people, understanding their requirements, and pitching the right solution,security providers can increase their chance of penetrating the airports segment.
Smaller, AAI-owned airport developments are largely untapped and are lesslikely to have existing preferences for select security solutions providers. Assuch, these are lucrative opportunities for security providers to target.
For larger scale airport developments, security providers can increase theirprobability of closing sales by engaging with relevant personnel from newupcoming projects directly and discussing new possible sales opportunities
In light of these views, Runaway Insights offers “Sales Opportunity Alerts” fromthe Airports end-user segment as well as a range of other segments on a regularbasis to aid organizations’ sales teams to effectively target their selling efforts.
Source: Runaway Insights Analysis, Secondary Research Articles and Publications
ENGAGE WITH US
Our Services – Research Provided
We provide the following consulting and researchdeliverables in the security solutions industry to enableclients to achieve sustained growth:
- Custom Consulting Reports
- Market Insights
- Sales Opportunity Alerts
- End-User Vertical Analysis
- Competitor & Customer Analysis
- Demand Patterns and Analysis
Security Segments Coverage
Our Range: Consulting & Research
ON
Surveillance & CCTV Access Control & Biometrics Perimeter Intrusion Detection
Scanning & Detection / CBRNE Radar Systems UAV / UAS Technologies
ACROSS
Airport Security Mass TransportationSeaports & Maritime
SecuritySafe Cities / Smart
Cities
Critical Infrastructure
ProtectionLarge Events
Buildings & Structures
PRODUCT SEGMENTS
END-USER APPLICATIONS
We research a range of product segments across major end-user customer industries as shown in the chart below.
Engage with us
WAYS OF ENGAGING WITH US
As a start-up company, Runaway Insights is open to understanding variedcustomer needs and requirements and discuss on the same. Thus, in efforts toaccurately identify and cater to your needs, Runaway Insights proposes thefollowing process of engagement:
Discuss your company’s needs
and preferences on any customized
services preferred.
We devise the outline of the
customized deliverable as per your preferences
and request a Request for Proposal from your company
for the same.
We revert to your company with a
proposal and commence the
process of deliverable
formulation.
STEP 1 STEP 2 STEP 3
THANK YOU
CONTACT
Research Director: Neil DaveEmail: [email protected]
Website: www.runawayinsights.comPhone: +91 98201 60819 (M)
+91 22 4003 3526 (T)
