security industry

Surveillance Security Pvt Ltd (SSPL)

A Corporate & Industrial Security Provider

Presented By :

Shekhar Singh MP 13055Shwet Kashyap MP 13057

Akhilesh Prasad Shukla MP 13005

Security Industry in India

Globally to rise 7.4 % to USD 244 Billion ( Rs. 15.86 Lakh Crores) by 2016

Private Security Industry in India set to double by 2020

Industry to touch 80,000 Crores in India ( FICCI Report)

Potential to employ more than 50 Lakh People in the next 5 Years

Largest Segment : Manned Guarding ( 80%)

The private security services industry is one of the largest employers in India. There are around 6–6.5 million private security personnel employed across the country.

The sector is involved in skill development and employment of backward, economically weaker sections of our society, particularly from the rural and semi-urban areas of the country.

Security Industry in India : Reasons for Growth

Explosive growth of several key sectors in the Indian economy, including retailing, real estate, infrastructure, telecommunications, entertainment and financial services, has resulted in growing demand for the services of private security agencies and for sophisticated gadgets and devices.

Development of Industries & Residential Complexes

Rapid Growth of Urbanization & Retail Boom

Government Initiatives of 100 Smart Cities and Make in India Campaign

When compared to some of the other markets, while India ranks significantly high on terror activity index (7.15 incidents v. 3.5 incidents for US and 2.5 incidents for Europe).

One of the lowest police-to-citizen ratio (1.3:1,000 v. global median of 3:1,000).

Surveillance Security Pvt Ltd (SSPL)Company Profile

• Formed in Year 2001

• Promoters : More than 25 years in Security Services

• Area of Operations : North , East and North Eastern India• Sites : More than 50 Sites Pan India

• Personnel : Executives 16+ , Total Staffs ( Including Guards) 1500+

• Major Clients : L & T , Emami , Nagarjuna Group , Vedanta, JUSCO..

• Head Office: 403 , Ashiana Trade Center , Jamshedpur 831013

• www.ssplsecurity.com

Surveillance Security Pvt Ltd (SSPL)Major Business

• Manned guarding implies providing guarding services in client premises against unauthorized access or occupation, and guarding property against destruction and damage

Key industry user segments

• Medium and Large Industries• IT/ITES• Manufacturing • Retail • Commercial

Manning Guards is an important component of the Business of SSPL

Loss Mitigation adds to the bottom lines of Company / Institutions

Manned guarding industry is estimated to be INR340–360 billion currently and is expected to grow at a CAGR of 20% by FY18

Surveillance Security Pvt Ltd (SSPL)Problem Areas : High Attrition Rates

• High Attrition Rate of the Personnel: Attrition is a major cause for concern for SSPL and the Private Security Industry as a whole.

This is due to several factors which were identified during our interactions / interviews with the guards / employees:

• Poor benefits and compensation packages• Improper understanding of the operating environment• Lack of development opportunities to allow employees to grow• Perception of Not such a Respectful Job• Multiple Expectations of Clients• Untimely Payments

Risks of police cases and other charges from the client side• Risks of life in sites located in Remote and Naxal Affected Districts• Interference by local goons / politicians in local areas

Surveillance Security Pvt Ltd (SSPL)Problem Areas : Lack of Quality Manpower

• We found that this industry is manpower intensive, and requires a considerable number of personnel to sustain its growth momentum, however getting quality manpower is a huge challenge.

Reasons Identified:

• A majority of security guards do not receive significant higher wages than the stipulated minimum wages. This makes it difficult to attract and retain personnel.

• Furthermore, a large number of manpower comes from rural areas. However, schemes such as Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) have led to creation of employment opportunities in rural India and hence, have resulted in a decline in flow of manpower from rural areas that can be deployed in the security services industry.

• Furthermore, with upgrading of skills and technical capabilities, security guards explore alternate employment options such as cab driving, electrician, etc., which enables them to enhance their income.

• Clients often require trained security personnel. However, several players, particularly in the unorganized sector, do not appear to invest significantly in training infrastructure.

Surveillance Security Pvt Ltd (SSPL)Problem Areas : Compliance Requirements

Being a labor intensive industry, and consequently, is governed by a number of regulations related to wages, working hours and training. Other than the PSARA Act, which has guidelines related to licensing and training that needs to be provided to guards, the Minimum Wage Act and Employee State Insurance Act are some of the other regulations that have an impact on the industry.

Increasing compliance requirements such as training and minimum wages has lead to escalation of costs, which has pressurized margins as well as reduced the attractiveness of certain opportunities for leading players, where the unorganized sector, with low compliance costs, are more cost competitive.

Jamshedpur alone has more than 90+ Small Non Organized Players which spoil the market dynamics and also lead to more attritions and migrations of employees.

The Government of India (GoI) has enacted The Private Security Agencies (Regulation) Act, 2005 to provide guidelines for regulation of the industry. Several state governments have enacted the PSARA Act where the state government have laid down the guidelines related to the security services industry such as licensing norms and training requirements for guards. All private security agencies in the state have to be licensed under this act.

Getting a license for operating in multiple states has become a major hindrance.

Surveillance Security Pvt Ltd (SSPL)Problem Areas : Site Management

• Remote Locations Management is a major issue for SSPL

• Gathering accurate data relating to working hours, Attendances, Site Audit Reports, duplicity and redundancies of data's.

• Background Checks of New Personnel's Recruited

• Security personnel's ratings

• Calculations of exact conveyances allowances etc

• Sharing of Information's with Clients

Surveillance Security Pvt Ltd (SSPL)Actions Plans for overcoming Problem Areas

Surveillance Security Pvt Ltd (SSPL)Actions Plans for overcoming High Attrition

Rates , Attracting Employees..

• Continuous supply of manpower is critical to meet client requirement and ensure serviceability. The demand supply gap tilts the balance of power in favor of the manpower.

Consequently, we suggested the following key areas to be addressed to mitigate the attrition rates to as low as possible :

a) Pay more than average minimum wages to ensure high retention rate. Micro Loans

b) Push towards better training facilities

c) Digitized Recruitment Process by using IT

d) Background Checks

e) Sharing of Informations with clients

f) Professionalizing the local industry will help to counterbalance distrust and any mishaps

g) Advances Specialised Training is particularly important since many guards are recruited from rural areas and are unfamiliar with many aspects of working in urban areas, but are quickly expected to know who should be allowed in a facility, spot trouble, and serve as first responders in cases of accidents and fires.

H) We have also suggested and SSPL has agreed to invest jointly with Security Sector Skill Development Council for setting up a training and skill development state of art training center for which SSPL has already have acquired land in Saraikela Kharaswan District

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Surveillance Security Pvt Ltd (SSPL)Actions Plans for overcoming Competition

and Shrinking Margins for SSPL

In recent times ,given the growth potential and intense competition in the industry, developing a robust strategy roadmap to channelize capital and management bandwidth across various high growth segments such as manned guarding, cash management and related services is important.

We came to the conclusion that SSPL will need to identify their future focus areas for growth and develop a robust plan to evaluate new initiatives related to existing business verticals and entry into new business segments (such as cash management electronic security services, facility management, etc.)

In order to grow, SSPL will need to increase share of customers’ wallet by leveraging existing credentials and relationships for auxiliary offerings such as facility management and pest control.

Technology-enabled services, such as remote site monitoring, installation and operating of electronic security services are also some of the key avenues of growth being evaluated by SSPL on our advise.

SSPL could also consider to provide value-added services such as consultancy and training, which may offer better margins.



In Consultation with the management we have identified the following areas where SSPL can diversify easily ( Long Term & Short Term)

1. Cash Management : The cash services industry size is estimated to be INR14–17 billion currently, and is estimated to be growing at 25% p.a.

The cash services segment is gradually evolving as a key and fast-growing service offering within the private security services industry.

The key offerings within the cash services are:

• ATM replenishment: Involves providing cash replenishment and first-line maintenance services for ATM networks of banks

• Cash-In-Transit (CIT): Involves movement of cash and high value items within a bank’s branch network

• Cash Pickup and Delivery (CPD): Involves secure pickup and delivery of cash and cheques for large corporate houses and their business outlets



In Consultation with the management we have identified the following areas where SSPL can diversify easily : ( Short Term)

2. Electronic Security Services : The electronic security services market is estimated to be INR35–40 billion36 in FY13 and is expected to grow at around 25% over the next few years.

Electronic security systems include CCTV, alarm systems, access control systems and other electronic equipment installed for security reasons. include product installation and O&M services.

The Electronic security services market is driven by a sustained threat perception and investments in both public and private infrastructure

India continues to be an attractive offshoring destination for global players, which is likely to lead to increased investments in commercial real estate such as in IT and ITES, thereby leading to an increase in demand for security systems.



Electronic Security Services :

SSPL started Adroit Tech Pvt Limited specially for foray into Electronic Security Services as per our advise to them.

We were able to procure 4 Medium Sized Order for Installations & Services of Security Cameras in the following organizations :

a) Synergy Drycleaners

b) Global Resources Pvt Limited

c) Adityapur Toll Bridge

d) Sachdeva Sales / Cycle Mart

Surveillance Security Pvt Ltd (SSPL)Actions Plans for managing Remote Site

Locations

Remote Site Management issues can only be solved by use of IT. With Low Margins industry , technology can be a differentiator that can have a measurable impact on the bottom line.

www.bluescan.me : Smart Phone based application that is allows Security Services agencies to digitize their recruiting processes , safeguarding from hiring bad hats and cost savings by multiple features like attendance mgt, single window information, Night checks and audits etc.

http://www.bluescan.me/

Surveillance Security Pvt Ltd (SSPL)Actions Plans for Regulatory Compliance

Increase in adherence to regulatory norms can contribute to growth of the industry.

Increased awareness among customers about compliance related norms and increase in organized play in user.

Industry segments are expected to emphasize on compliance.

A company that scores better on wage-related compliance norms will be able to retain and attract quality manpower.

Advised SSPL to appoint some dedicated staffs to take care of compliance and regulatory affairs.

Surveillance Security Pvt Ltd (SSPL)Actions Plans for Operational Excellence

Strong local influence is required for smooth coordination with local authorities and better management of industrial relationships especially in industrial and retail sectors.

Furthermore, many clients insist on having high proportion of local manpower with fluency in regional languages.

Local presence also helps the companies to meet the incremental demands ofclients and enhances their ability to scale up in limited time.

Advised SSPL to recruit more Retired Police / Military Professionals at Head Office and Regional Levels for more effective co-ordination.

Surveillance Security Pvt Ltd (SSPL)Actions Plans for Operational Excellence

Flexibility in service delivery and regular touch points with customers to gaugemanpower requirement and plan for them is critical for client retention for SSPL

Developing robust procedures for manpower management and client interaction can help companies retain and grow key accounts.

The use of IT and installation of Smart Phone based application would help them reduce costs and also increase image amongst clients.

Regular use of feedbacks and informations from employee's for better co-ordinations between management and staffs.

KEY DELIVERABLES / ACHIEVEMENTS

1. Decision to foray into Electronic Security services.

2. Establishment of a separate company for this diversification.

3. Implemented 4 orders procured by our team for Installation Security Cameras

4. Decision to implement IT based Smart Phone Application for all guards for Effective Remote Management and Control

5. Decision to partner with Security Sector Skill Development Council, New Delhi for establishment of a Training College in Saraikela Kharswan District

6. Appointment of separate staff for Regulatory Compliances

7. Appointments of Ex Police / Military Personnel for better image

8. Implementation of Micro Loan advances for guards and their families

9. Opening of bank accounts for families of guards operating in remote areas.

10. Advanced Life Covers for operations in risky / remote sites.

RENUMERATIONS

KEY CONTACT

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