Prospects of Security Industry in India

OPPORTUNITIES IN THE INDIAN HOMELAND SECURITY MARKET
A Research Presentation by

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Services in Research, Tie-Ups and Training since 2002
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Associates in USA,UK, Russia, Germany, Japan
Well networked within industry and government
Worked with well known Indian companies, MNCs, government bodies
Specialised services for the Security Industry - Business Intelligence, Partner search, Management support, Business Formation and Location advice

OVERVIEW OF INDIA

Seventh largest and second most populated country
Population of more than 1 billion
29 states and 6 Union Territories
Largest democracy in the world
Median age of 25 years compared to in 43 Japan and 36 in USA
Working age population to be 70% by 2030-largest in the world
Among the fastest growing economies in the world
Number of airports : 454
12 International airports
Major ports : 12
About India

4th largest and 2nd fastest growing economy in the world
GDP growth of 6.7 % in 2008-09
Forecasted growth of more than 6 % in 2009-10
Consumer market to be 5th largest by 2025
Mergers and Acquisitions and group restructuring deals grew nine times to US$ 2.27 billion in March 2009 against February 2009
Fast being established as a global manufacturing hub
Services account for almost half of the GDP
8th largest investor in the UK
Indian Economy

INDIAN SECURITY SCENARIO

Continuous security problem due to terrorism, left wing extremism & local crime
Terrorist threats in border states and metros
More than 30 terror outfits active in India.
Al Qaeda’s top terror targets include India
Insurgency in North East and left wing extremism in Central India continues.
Left wing extremism gained momentum and active in 22 states
Indian Security Scenario

AFFECTED ZONES

Terror Incidents
More than 600 killed and hundreds maimed in terror attacks since last 6 years
Central India Left wing extremism-16 policemen killed in May 2009, 15 in February 2009
Mumbai - November 2008 : Series of terror attacks killing more than 172
North East-Assam Oct 2008 : 45 killed in 18 bombings
North India- Jaipur - May 2008 : 63 killed in 9 bomb blasts
South India - Bangalore : July 2008 : 8 low intensity bomb blasts
New Delhi – December 2001 : Attack on Parliament left 9 policemen dead

Key observations
Terror attacks in virtually all parts of the country
Common targets :Business centres, tourist places and common citizens
Left wing extremism target local administration and police
Mass transport systems vulnerable to attacks
Airport security not completely fool proof
Post 26/11- Coastal security lapses exposed
Disturbed relations with border countries in the North

Post 26/11
Security today a key concern to business, individuals, government.
Terror attacks a real and serious threat across the country
Security beefed up in offices, hotels, malls, tourist places, small establishments and other public places.
Security measures include physical checks, metal detectors, X-ray machine scans, bomb detection equipments
Corporate have upped security budgets by 35-40%

INDIAN SECURITY MARKET

Indian Security Market

Presently, 1.3 billion GBP industry, would touch 2.2 billion GBP in the next 4 years and 4.5 billion GBP by 2016
Growth rate of 25 per cent over the past 5-7 years and would achieve a rate of 125 per cent by 2012.
1/3rd spend on Airport Security
Number of companies : 5000 (includes unorganized and registered)
ISO certified: 150 companies
Number of police officers : 3.2 million
Number of private guards : 5 million
Indian Security Market

Key areas :Electronic and non-electronic gadgets
Organized : Around 50 companies
Unorganized : Around 800 companies
Key gadgets used : CCTVs, Access control systems, Metal detectors, Intrusion detection systems, door intercoms
Imports : Israel, China, Taiwan, Korea, UK and US
Imported gadgets form 30-35% of the total market
Imports to increase to GBP 2.5 billion in the next two years
Security Equipments market

Security Equipments Market

Demand for integrated solutions
CCTV, metal detectors, baggage scanners demand to increase.
Emphasis on quality training from accredited sources.
Need for threat assessment growing
Security of physical infrastructure, resilience of system and disaster recovery mechanism
Small scale industries, educational institutes, private offices, residential apartments, government premises, jail security new growth areas.
Future of Security Industry

Recent developments
Government to spend GBP 5 billion on homeland security in the next 2 years
Wish list includes UAVs, weaponry for urban warfare, light capabilities like helicopters, aircraft and precision munitions
Raytheon offers radar system for Indian homeland security
Israel and India come together as partners in homeland security
Swedish company Securitas AB picks stake in Delhi based company
Security company in India in talks for takeover of UK company.
Indian Premier League organisers had planned a 10 fold increase in security with 16 bullet proof buses and 64 armoured SUVs

Key Success factors

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Prospects of Security Industry in India

by Pankaj Muthe on Mar 09, 2010

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