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Private Security Industry : Opportunities & ChallengesASSOCHAMMay, 2011


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Global Private Security Industry

Global Private Security Services Industry is estimated at USD 150 Billion (2009)

2

46%

28%

17%

9%

Manned guarding Alarmmonitoring Cash handling Other

100% = US$150bn

Acti vi tiesSegmentMarket

Manned guarding

Cash handling

Electronic security

services

Equipment

manufacturing

Services

Locks

Perimeter / entrance

security

Secure storage

Cash automation

Electronicsurveillance systems

Systems integration

and installation

SIS Group activities

Acti vi tiesSegmentMarket

Manned guarding

Cash handling

Electronic security

services

Equipment

manufacturing

Services

Locks

Perimeter / entrance

security

Secure storage

Cash automation

Electronicsurveillance systems

Systems integration

and installation

SIS Group activities

Projected growth 7.5% pa. Estimated Size USD 200 Billion by 2012

North America is the largest market ~42% share followed by Western Europe ~ 26% share

Asia Pacific Region contributes 12% - 13% of World Market

Growing at 14% pa. Asia Pacific (ex J apan) shall comprise of ~ 20% of World Security

Market by 2017.


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Indian Private Security Industry

Indian Private Security Industry is estimated at USD 3 Bn / INR 13,500 Crs (2010)

3

1.92.7

4.1

0.8

1.5

2.4

0.2

0.2

0.40.9

0.1

0.1

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2005 2007 2010E 2012E 2015E

Manned guarding Cash services ESS Consulting, Training Others

1.1

1.8

3.2

4.7

7.5

26.8%

21.7%

18.8%

31.6%

24.0%

21.5%

21.4%

14.9%

24.8%

18.8%

15.1%

17.0%

Growing at ~ 20% pa (2005 2010). Projected growth 2011 2015 ~ 17%

Man Guarding constitutes +60% of the sector. Followed by ESS at +25%

Man Guarding : ESS ratio changing rapidly

Highly fragmented. Top 10 Players hold < 25% of the market.

Estimated to be amongst the Top 10 security markets in the world by 2020. (~ 4% of global market)


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Demand Drivers

4

Terrorism/ crime

GDP: on a strongrebound

Wealth disparity

Cash cycle

Current economic environment Socio-economic trends

Increase in

demand forSecurity

Litigation and

regulation

Cost pressure

Competition

Unionisation From PeersFrom Public

Administrations

Drivers

Risks

Outsourcing Privatisation ConsolidationSector trends

Terrorism/ crime

GDP: on a strongrebound

Wealth disparity

Cash cycle

Current economic environment Socio-economic trends

Increase in

demand forSecurity

Litigation and

regulation

Cost pressure

Competition

Unionisation From PeersFrom Public

Administrations

Drivers

Risks

Outsourcing Privatisation ConsolidationSector trends


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Challenges : Growth Pangs

Acute shortage of good quality manpower Availability & Attrition

Inconsistent service delivery supervisory & management

limitations

Lack of segment specialisation understanding, capability

development & leverage

Sub optimal use of technology over dependence on manpower

Compliance concerns

5


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Coordinated Action : Need of the hour

Distinction between unskilledworker and trained securitypersonnel Better Pay to attract better talent

Talent retention Fair employment practices & career progression

Thrust on training. Industry Standards - Standardised content Third

Party Certifications Sector Skills Council

Integrated Security Programmes ManTech Solutions

Review of Regulation (PSARA) National License, Scope to provide

armed security service

Innovation Static Guarding to ESAS

6


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Thank YouThank You

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mr.-rituraj-kishore-sinha-chief-operation-officer-coo-sis-india-ltd..pdf