'Security business in India to grow 20% for the next five years'

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New Delhi-based security services firm, Securities and Intelligence Services (SIS), catapulted itself into the big league last month by acquiring the Australian guarding and mobile patrol unit of American conglomerate United Technologies in a deal worth Rs 1,000 crore. SIS chief operating officer Rituraj Sinha discusses the companies’ expansion and investment plans in an interview with Ashutosh Kumar. Excerpts:

Post the Rs 1,000 crore Australian deal, please share the details of your domestic expansion and acquisition plans, and also the amount SIS is planning to invest in the next two to three years.

Our capital outlay for the next two years is around Rs 200 crores. We are targeting a revenue of Rs 1,600 crore in FY 09. We are concentrating on organic growth of key business verticals like guarding & cash in transit. The venture into the cleaning services space with ServiceMaster is also being developed as a growth engine for the future. The Australian transaction has catapulted SIS to the big league of the global security business. Our future development strategy is focused on leadership in the Asia Pacific markets.

Do you see your existing investors like the global PE major DE Shaw increasing their stake in the company post the deal. Have you been approached by PE firms and investors post the deal.

We would be looking to raise additional capital to the tune of $50 million by January 2009. Post the deal, we have had keen interest from some private equity majors. However, it is premature to comment on source of funding. we remain open for talks with other interested funds.

Are there any new business verticals that you are looking to foray into. Please share the details and investment plans.

Earlier this year, we announced foray into the cleaning services space with ServiceMaster, the largest cleaning business in the world with proprietary technology and supplier relationship. SM is a fortune 500 company with revenues in excess of $5 billion. This business will roll out in the next quarter as scheduled. We hope to setup operations across major markets in the country by 2010. SIS ServiceMaster business would be positioned as the “highly automated” cleaning provider. Our target is to be the leader in the cleaning business in India by 2011 with revenues of Rs 300 crores. Through the ServiceMaster relationship, we have access to international best practices and experience of specialised product offerings .