Security companies are going on an overdrive to modernise and expand. While the Rs 1,500 crore Delhi-based Security and Intelligence Services (SIS) has embarked on a Rs 50-crore expansion plan, global security company Securitas has opened six training centres in Bangalore. Integrated security solutions provider Group4Securicore India (G4S) has acquired another security agency, Terra Force and is now conducting pilot run of its new offerings.

Even the Central Association for Private Security Industry (CAPSI) is focussing on training to create a force equipped with specialised skills to deal with emergency situations. Industry experts expect such developments to catalyse the growth of the Rs 10,000-crore private security business. The industry has been logging a growth rate of 25% year on year for the last five years.

Says Rituraj Sinha, chief operating officer, SIS, ?The business is on an upswing. We are planning to start a Rs 50-crore expansion plan from Delhi and then spread to Mumbai, Chennai, Ahmedabad, Kolkata and Bangalore.? Starting next quarter, the company will begin setting up cash procuring centres to provide services like cash collection, counting, sorting and counterfeit verification.

The company has also inked a memorandum of understanding with the government for training and placement of rural youth under its Swarn Jayanti Shahri Rozgar Yojna, which is a scheme to provide gainful employment in urban areas. Says Rituraj Sinha, ?During the next two years, 21,500 youth will be identified, trained and certified in collaboration with Indira Gandhi National Open University. Almost 50-60% of them will be absorbed by us and the rest will be assisted in procuring jobs from outside.?

Securitas, which started India operations last year, is building resources to tap the growth potential in the industry. Says Harsh Vardhan, chief operating officer, Securitas, ?Our investment is largely focussed on training and recruitment. We have opened six training centres in Bangalore for equipping our manpower with skills in specialised guarding, executive protection, and transport security. Also, depending on the needs of the current and future clients, we will keep investing in security technology.? Securitas has a presence in 38 countries.

G4S India has recently acquired Terra Force, which provided security services predominantly to DLF Properties. Says Rupal Sinha, regional managing director, G4S India, ?We have also lined up new products and services to be launched next year. As of now, we are conducting pilot run of our offerings. Depending on the response, these products will be launched in the next financial year.? The group plans to hire 18,000-20,000 personnel this year.

Even industry body CAPSI is playing a leadership role in training security personnel. Says Kunwar Vikram Singh, chairman of CAPSI, ?We have signed with most state governments to provide training at the town level. We are setting up 2,000 security training centres to be funded by state governments.? As per the Private Security Agencies Regulation Act, 2005, every security agency should be registered with the state government and provide 160 days training to its staff.

CAPSI, which has representatives in each state, has inked a pact with Ultimate Tactical & Combat to provide training to security personnel in the industry. Says Vikram Kapoor, MD, Ultimate Tactical and Combat, ?We will provide training in areas like specialised guarding, executive protection, and transport security among others.? Ultimate boasts of clients like National Police Academy, Hyderabad, anti-hijacking unit of National Security Guards, and Gorkha Regiment of the Indian Army, among others.

While all these steps are in the right direction for the private security business, these developments many not be enough to address the growing security challenges and the ensuing opportunity in the country. After the Mumbai blasts, even IT companies have approached the Central Industrial Security Forces (CISF) for cover. In fact, about 100 CISF personnel have been deployed at the Infosys campus in Bangalore. Wipro, Reliance and Oberoi Hotel are also waiting for the deployment of CISF in their premises. In all, 79 corporate houses have approached the Home Ministry for similar arrangement. The government, on its part, has already tweaked the CISF Act to allow it to protect private sector companies.

But private security companies do not see CISF eating into their share of business. They see it as a complementary force. Says Rituraj Sinha of Security and Intelligence Services, ?CISF and private security are not either, or case. You need both of them. It is about an appropriate mix of both to design a comprehensive and cost-effective solution.? He adds that every business in India is not in the league of the business houses that have approached the government for CISF cover. Even provisions have to be made for the security needs of businesses in the small and medium sectors also.

Rupal Sinha of G4S adds, ?The security market is so big that there will always be a demand for both private as well as the government security. CISF and private security offerings are different in terms of both costs and roles.? She also adds that CISF’s presence will make clients expect more from private security providers, which will make industry gear up for the competition.

The industry feels that since the CISF cost is high (Rs 50,000 per personnel against Rs 10,000 per guard) for clients, there is a need to empower the security companies to deal with serious security threats as well. With a strength of 55 lakh as of now, the sector can serve as the eyes and ears of the police and intelligence.

To begin with, a more enabling environment would help. D C Nath, president of International Institute of Security & Safety Management, says that the Private Security Agencies Regulation Act of 2005 needs to be implemented. Ten states have adopted it, but not implemented it. He adds, ?The private security industry needs to be built up to take on a proactive role in counter-terrorism. It will be more productive than stretching the CISF, which is already serving public sector units and airports, among others.?

Rituraj Sinha of Security and Intelligence Services adds, ?The Private Security Agencies Regulation Act of 2005 should be amended and provision should be made for armed security.

The government should amend the Act to provide licences to ex-servicemen and allow use of automatic and semi-automatic arms.? In countries like the UK, Australia, China, and South Africa, security guards are empowered with the right to detain a suspected person until police takes over. Even if the government does it, it?s bound to take time. In the meantime, private security agencies can do well to continue to upgrade.