Market Research Report : Security Equipment and Services Market in India 2014 - Sample

Security Equipment and Services Market – India
July 2014

2
Executive Summary
Market
Overview
Security equipment and services market in India was valued at INR xxx bn in 20-- and is expected
to attain a CAGR of xx% to reach INR xxx bn by the end of 20--
Currently, the market can be broadly segregated into CCTV & other equipment, electronic access
control, IT security and private security service segments
Drivers and
Challenges
Competitive
Landscape
Major Security Equipment and Services Vendors
Player 1 Player 2 Player 3 Player 4
CCTV and other Equipment
 Drivers
 Government Demand
 Corporate Demand
 Booming Real-estate Sector
 Challenges
 High Duty and Taxation
Structure
 Competition from Un-
organized Sector
Electronic Access Control
 Drivers
 Increasing Security Breaches
 Demand for Upcoming
Government Projects
 Economic Growth and Rise in
Employable Population
 Demand for Better Security
from R&D Centers
 Challenges
 Lack of Awareness
 Lack of end-to-end solution
providers
Private Security Services
 Drivers
 Insufficient Police
Protection
 Cost of Electronics
 Challenges
 Lack of Proper Training
 Firearms not Allowed
SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT

3
•Macro Economic Indicators
•Introduction
•Market Overview
•Types of Products
•Market Entry Strategy
•Vendor Opportunity
•Drivers and Challenges
•Future Outlook
•Competitive Landscape
•Strategic Recommendations
•Appendix

4
Increasing security awareness among both end users and
corporate establishments is largely pushing the market
• Fast spreading awareness about the necessity and usefulness of electronic security equipment, coupled with the
increased demand for manpower security, is fueling the growth of the overall market
• CCTV and Electronic Access Control will continue to dominate the electronic security equipment segment
 Growth drivers such as government regulations, growing real estate and the booming corporate sector will primarily boost this
segment
• Security services market will also greatly benefit from the on-going and future establishments of large corporations
and real estate based developments within the country
Security Equipment and Services Market Overview – India
a
b
c
d
e
0
INR bn
xx%
xx%
2018e
xxx
xxx
2017e
xxx
xxx
2016e
xxx
xxx
2015e
xxx
xxx
2014e
xxx
xxx
2013
xxx
xxx
Security Equipments and Services Market Size – India
Segment 2Segment 1

5
Electronic Security Equipment (x/x)
• The overall electronic security equipment segment has shown significant growth in the past couple of years in India so
far and the segment is further expected to grow at a CAGR of about xx% during 2013 to 2018, to reach an estimated
market size of INR xxx bn
• Competition in the market is stiff, wherein majority of the players can be classified under the unorganized sector
 Although, the unorganized sector has a large presence, nevertheless it caters to a mere xx% - xx% of the total Indian market, whereas
on the other hand, players from the organized sector dominate more than xx% of the market
 The primary reason for this is the emergence of system integrators and value providers, which is mainly controlled by the organized
sector
• Some of the major challenges identified include currency fluctuations, high ownership cost and price sensitivity among
others
Electronic Security Equipment – Segmentation
xx
xx
xx
2013
xx
xx
xx
2015e
xx
xx
xx
2018e
Segment 3Segment 2Segment 1
Note: xxx

6
SAMPLEElectronic Security Equipment (x/x)
Accounts for
nearly xx% of
Indian imports
Emerging threat to xxx
manufacturers from
cheaper xxx goods
• The US, UK, Germany, Japan and Israel happen to be the major xxx to India
• High dependence on xxx since xxx is low and concentrated on xxx, xxx, primarily because most Indian firms have xxx and limited xxx
• Due to technological advancement made in foreign countries, it is unviable for new Indian companies to start indigenous development
from scratch and invest large amounts of capital required for product development
xxx is major source of
smuggled goods for
grey market
Exporters from xxx,
xxx, xxx and xxx
compete on price
Israel
Major xxx
Minor xxx
U.K. Germany
Japan

7
• Entry of foreign players and the growing demand for
private security services across corporate houses,
retail establishments and residential complexes are
the major growth drivers for the segment
 The current trend of global players buying smaller
domestic players in India has greatly increased the liquidity
in the market
– In 2010, International Service System acquired 49% of SDB Cisco
– Recently, the Indian arm of G4S bought Terra Force
• Owing to the volume dependent business model,
investments made in the market can yield returns as
high as xx%, which in turn has attracted a plethora of
investors
• Currently, the manned security segment accounts for
the majority share in the market followed by the cash
logistics segment
 Players operating in the cash logistics segment carry up to
INR xx bn and up to INR xx bn in their vaults
a
b
c
d
e
0
INR bn
xx%
2018e
xx
2017e
xx
2016e
xx
2015e
xx
2014e
xx
2013
xx
Market Segmentation – India (20--)
xx
xx
xx
xx
xx
xxxxxxxxxx
Private Security Services
Market Size & Growth – IndiaPrivate Security Services Overview – India

8
Drivers & Challenges – CCTV and Other Equipment
Drivers
Government Demand
Corporate Demand
Booming Real-estate Sector
Challenges
High Duty and Taxation Structure
Competition from Un-organized
Players

9
SAMPLE
Increasing security breaches and slow government response
will be a major driver for the market
• Terror attacks and the lurking danger of infiltration across major cities in the nation has had a
huge impact on the mindset across all quarters of the society including the government,
businesses and citizens
 Apart from threats along its borders, it also faces significant levels of threat from domestic terror outfits in
various parts of the country
 This has led to an overhauling of national and state level security infrastructure, thereby proving to be
beneficial for the market segment by a large extent
• Additionally, crimes such as domestic robbery, theft, motor vehicle theft from apartments have
become common in most of the parts of the country, thereby raising the demand for electronic
access systems significantly
Increasing Security breaches Impact
a
b
c
d
0
Auto Theft
xxxxxx
Burglary
xxxxxx
Unit Nos
xx
xx
xx
xxxx
Robbery
xxxxxx
Preparation and
Assembly for Dacoity
xxxxxx
Dacoity
xxxxxx
xxxx
National Crime Statistics – All India

10
SAMPLExx
Hospital xx xx
Education
Market
xx xx
Shopping
Mall
xx xx
Automated
Teller Machine
xx xx
Special Event xx xx
Real Estate xx xx
Sector Market Growth Outlook

11
SAMPLECompetitive Benchmarking (x/x)
Public Trading Comparable (FY 20--)
Market Capitalization (INR mn) 244.130 329,955.3 4,389,119.1 1,162.5
Share Price (INR) 7.30 10,500 5,591.20 66.05
EV/EBITDA (INR ) -15.4 23.4 11.4 5.4
EV/Revenue (INR) 4.6 3.4 1.9 0.7
PE Ratio N.A. 34.66 18.71 2.83

12
SAMPLEKey Ratios of Major 4 Companies – Operational Basis (FY 20--) (x/x)
Competitive Benchmarking (x/x)
• xxx
8.537.05
4.15
24.55
2.84
5.94
8.25
0.12
0
5
10
15
20
25
Player 2 Player 3Player 1 Player 4
Inventory Turnover Ratio Debtors Turnover Ratio
Note: Assuming all sales are credit sales

13
SAMPLE
Key People
Products and Services
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Name Designation
Head Office
Hyderabad
Category Products/Services
Company Information Offices and Centres – India
Public: Domestic Company – Player 1 (x/x)

14
SAMPLEFinancial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of negative INR 321.8 mn in FY 2013, as
compared to net profit of negative INR 475.8 mn in FY 2012
• The company reported total income of INR 2163.4 mn in FY 2013, as
compared to INR 7946.7 mn in FY 2012
• The company earned an operating margin of negative 31.85% in FY 2013, a
decrease of 33.04 percentage points over FY 2012
• The company reported debt to equity ratio of 0.60 in FY 2013, a decrease
of 7.50% over FY 2012
Key Financial Performance Indicators
Indicators Value (30/04/2014)
Market Capitalization (INR) 244.130
Total Enterprise Value (INR) 7015.649
EPS* (USD) N.A.
PE Ratio* (USD) N.A.
Particulars
y-o-y change
(2013-12)
2013 2012 2011 2010
Profitability Ratios
Operating Margin -33.04 -31.85% 1.19% 17.53% 22.42%
Net Margin -8.89 -14.87% -5.99% 12.31% 10.46%
Profit Before Tax Margin -20.38 -26.02% -5.64% 11.21% 15.89%
Return on Equity 2.38 -7.87% -10.25% 18.58% 16.78%
Return on Capital Employed -17.09 -15.33% 1.76% 15.10% 18.86%
Return on Working Capital 204.71 187.69% -17.03% 50.51% 67.42%
Return on Assets -4.07 -3.55% 0.52% 9.31% 11.40%
Return on Fixed Assets -81.18 -73.27% 7.90% 86.56% 50.71%
Cost Ratios
Operating costs (% of Sales) 46.18 144.96% 98.78% 82.37% 77.41%
Administration costs (% of
Sales)
6.16 25.67% 19.51% 18.52% 5.32%
Interest costs (% of Sales) -26.93 -32.82% -5.89% -6.17% -4.69%
Liquidity Ratios
Current Ratio 1.97% 0.98 0.96 1.48 1.43
Cash Ratio -33.18% 0.02 0.02 0.02 0.02
Leverage Ratios
Debt to Equity Ratio 7.50% 0.60 0.56 0.27 0.30
Debt to Capital Ratio 4.69% 0.38 0.36 0.21 0.23
Interest Coverage Ratio -760.1% 1.37 -0.21 -2.86 -4.82
Efficiency Ratios
Fixed Asset Turnover -74.85% 1.63 6.48 4.91 2.24
Asset Turnover -81.50% 0.08 0.43 0.53 0.50
Current Asset Turnover -83.38% 0.11 0.63 0.93 0.89
Working Capital Turnover -70.09% -4.17 -13.96 2.87 2.98
Capital Employed Turnover -78.15% 0.23 1.07 1.18 1.23
Improved Decline
Net Profit/LossTotal Income
7946.78931.48232.3
-475.81,099.9
0
5000
10000
-500
0
500
1,000
1,500
INR mnINR mn
2013
-321.8
2163.4
201220112010
860.9
*: Data corresponds to 1st May 2014

15
SAMPLE
100%100%100%100%
0%
50%
100%
2013201220112010
97% 94%97%95%
0%
50%
100%
2013
6%
2012
3%
2011
3%
2010
5%
Business Highlights (x/x)
Description News
Segment 1
Key Business Segments Key Geographic Segments
Country 1 Country 2

16
SAMPLE
Description News
Business Highlights (x/x)

17
SAMPLE
• xxx • xxx
• xxx• xxx
TO
WSStrength Weakness
Opportunity Threat

18
SAMPLEPrivate: Domestic Company – Player 2 (x/x)
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Company Information Offices and Centres – India
Head Office
Hyderabad
Key People
Products and Services
Name Designation
Category Products/Services

19
SAMPLE
Name No. of Shares held
Total 22,000,000
100.00%
Directors or Relatives of Directors
Note: Shareholding pattern as on AGM dated 29th Sep 2011
Private: Domestic Company – Player 2 (x/x)
Shareholders of the Company Ownership Structure

20
Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of INR 10.8 mn in FY 2011, as compared
to net profit of INR 35.2 mn in FY 2010
• The company reported total income of INR 316.8 mn in FY 2011, as
compared to INR 600.2 mn in FY 2010
• The company earned an operating margin of 5.06% in FY 2011, a decrease
of 3.76 percentage points over FY 2010
Particulars
y-o-y change
(2011-10)
2011 2010
Profitability Ratios
Operating Margin -3.76 5.06% 8.83%
Net Margin -2.47 3.40% 5.86%
Profit Before Tax Margin -3.81 5.07% 8.89%
Return on Equity -12.28 4.08% 16.36%
Return on Capital Employed -20.06 4.57% 24.63%
Return on Working Capital -604.02 14.22% 618.24%
Return on Assets -19.95 4.53% 24.48%
Return on Fixed Assets -642.38 38.69% 681.07%
Cost Ratios
Operating costs (% of Sales) 3.77 94.94% 91.17%
Administration costs (% of Sales)
18.51 24.77% 6.26%
Interest costs (% of Sales) N.A. N.A. N.A.
Liquidity Ratios
Current Ratio 28.52% 1.36 1.06
Cash Ratio -56.33% 0.64 1.47
Leverage Ratios
Debt to Equity Ratio N.A. 0.33 N.A.
Debt to Capital Ratio N.A. 0.25 N.A.
Interest Coverage Ratio N.A. N.A. N.A.
Efficiency Ratios
Fixed Asset Turnover -90.09% 7.64 77.12
Asset Turnover -67.74% 0.89 2.77
Current Asset Turnover -80.72% 0.74 3.86
Working Capital Turnover -95.99% 2.81 70.01
Capital Employed Turnover -56.94% 1.20 2.79
Improved Decline
Net Profit/LossTotal Income
0
20
40
30
10
800
600
400
200
0
INR mn INR mn
2011
10.8
316.8
2010
35.2
600.2

21
Description News
Business Highlights

22
SAMPLE
• xxx • xxx
• xxx• xxx
TO
WS
Private: Domestic Company – Player 2 (x/x)
Strength Weakness
Opportunity Threat

23
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Security Equipment and Services Market – India report is part of Netscribes’ Information
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Market Research Report : Security Equipment and Services Market in India 2014 - Sample