Companies

SIS India eyes ₹21,000-cr revenue in next five years

Abhishek Law Kolkata | Updated on September 30, 2019 Published on September 29, 2019

Rituraj Kishore Sinha, Group Managing Director, SIS India

SIS India, which provides security, facility management and cash-logistics services, is looking at a three-fold jump in revenues over the next five years to more than ₹21,000 crore (or $3 billion).

Topline growth will come as the company strengthens its presence in the core business of providing security and facility-management services.

SIS, listed on both the NSE and BSE, is the largest security services provider in the country, and reported a turnover of ₹7,100 crore ($1 billion) in FY19.

Of this, ₹3,000 crore came from security services provided in India, and ₹3,000 crore from overseas operations in markets such as Australia, New Zealand and Singapore. The remaining ₹1,000 crore comes from facility-management services.

In the cash-logistics vertical, it operates as a minority shareholder in a joint venture with Prosegur of Spain, the world’s second-largest cash-management company.

According to Rituraj Kishore Sinha, Group Managing Director, SIS India, security services solutions provided by it are “recession proof” and it can emerge as ₹9,000-crore vertical.

GST helps

The rollout of GST (which has led to more transparency in pricing) has helped increase demand for organised players. Moreover, there is rise in demand for tech-enabled security and high-end electronic surveillance systems (use of cameras).

On the other hand, enforcement of regulations such as the implementation of labour code and rules around minimum wages maytake out unorganised and smaller players.

“There is increased demand for specialised and tech-enabled security services, especially from organised players. So, there is a good scope of growth in the security services segment,” he told BusinessLine.

The security services market in India is pegged at ₹70,000 crore, with unorganised and smal players having 60 per cent market share.

“Even as we speak, there is a shift happening towards organised players,” said Sinha, adding that the company has been witnessing 20-25 per cent growth annually and this is expected to continue.

According to him, there is no immediate plan to expand to new overseas markets in the security-services vertical. Rather, it will concentrate on existing ones. Growth in overseas markets has been complimented through acquisitions there.

Published on September 29, 2019
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