OPPORTUNITIES IN THE INDIAN HOMELAND SECURITY MARKET

A Research Presentation by

ABOUT SIDDHI MANAGEMENT CONSULTANTS

• Services in Research, Tie-Ups and Training since 2002• Team of Management professionals from Top-B

schools• 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

About 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

Indian Economy

• 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 SECURITY SCENARIO

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

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

Manned

Security Securit

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Management

Security Assessm

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Fire Detect

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Investigation

Services

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

Security Equipments 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

33%

13%6%5%

44%

CCTV - 100m / 45%Access Control - 50m / 30%Intrusion Detection - 3.5m / 20%Intercom - 3.5m / 30%Metal Detectors, X-Ray Scanners, Baggage Scanners - 20m / 30%

Future of Security Industry

• 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.

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

Step one •Generate enquiry

Step two •EDUCATE

Step three

•Sell

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