"We have been growing 15-20% per year in the last decade. Last fiscal, the growth was only 15%. But there has hardly been any tinge of slowdown in manpower security business. We have been hiring about 25,000 to 30,000 people every year," says Sinha.
Amidst jitters of job shakedown in various sectors, manpower security giant SIS (Security & Intelligence Services) India is planning to recruit 30,000 people, across the country, in 2020. Manpower security, its core vertical, has seen more than 30% growth this year.
“In future, we would need more of ManTec capable security personnel, who can handle technology gadgets, alongside regular duties,” Rituraj Kishore Sinha, group managing director, SIS India told FE.
“I hardly worry about tech skill shortages because people’s survival instincts make upgradations fast. Remember, nobody taught the Amazon delivery boy any tracking technology and yet they do the job.”
SIS, however, has a small in-house IT intelligence battery of 18 people in its New Delhi and Bengaluru offices to divide the needs and customise solutions, be it in machine learning or camera technology.
Even in downturn, what makes the security business pie grow bigger is that the demand for personnel to guard the factories on lay-off and materials never dries up. According to a FICCI report, India’s security solutions market is projected to grow from Rs 390 billion in 2015 to Rs 970 billion in 2020, clocking a CAGR (Compounded Annual Growth Rate) of 20%. It is seeing expansion owing to ‘growing concerns about crime, terrorism, inadequate public safety measures and urbanisation’, says the report.
Besides security business, SIS India, listed on both NSE and BSE, had recently spread its wings across facility management and cash logistics. In cash logistics, SIS is the country’s number 2 player. With leading banks on its client list, the company looks forward to three-fold leap in revenues in next five years in cash logistics vertical. In the ongoing year, SIS has surged to number one in India’s security business, from its long-standing number 2 position. Manpower security is still the anchor segment, accounting for 40% of its Rs 8,500-crore annual revenue.
“We have been growing 15-20% per year in the last decade. Last fiscal, the growth was only 15%. But there has hardly been any tinge of slowdown in manpower security business. We have been hiring about 25,000 to 30,000 people every year,” says Sinha.
On the new Code of Wages Act, Sinha says,“It will help fair wages to security guards and ensure that customers pay security agency in time.”
After acquiring Chubb Security in Australia in 2008, SIS had emerged the first Indian MNC in manpower security business. SIS International had earlier projected $1billion revenues by 2020.
“Indian and Australian operations together maintain 20% growth, 20% RoE (return on equity) and 50% OCF ( operating cash flow)/Ebitda. SIS International contributes higher RoE and free cash generation, but SIS India business grows at a faster clip,” Sinha says.