Commenting on the deal, Dr Diwan Rahul Nanda – global chairman and managing director at the Mumbai-based Topsgrup – told info4security: “The Shield acquisition will act as a strategic gateway for our global growth plans in the coming years. Shield exhibits great business ethics coupled with a strong management team and a loyal customer base. It has great synergies with Topsgrup. We envisage much cost and experience sharing across both companies that will benefit the Indian and British customers and employees. This is a proud moment, not only for Topsgrup but also for the entire Indian security industry.”
Currently, Topsgrup is India’s preferred security solutions provider with a human capital base of 65,000 employees partnering with over 6,000 customers served across its pan-India network of 110 offices. Through a combination of aggressive organic and inorganic growth, the company is poised to achieve revenues in excess of Rs 1000 crores by the end of the current fiscal year. Very recently, Topsgrup also acquired Guardwell Detective Services, the Rs 35 crore South Indian security company.
Some of Topsgrup’s key partners include Tatas, Birlas, Reliance, Airtel, Oracle, HSBC, Stanchart, ICICI and the FutureGroup.
The Shield Guarding Company is one of the Top 10 players in the UK market. Having been established in 1987, the company has garnered huge respect in the market place and secured an esteemed clientele spanning clients such as Disney, Fujitsu, Nokia/Vertu, Master Foods, Broadgate Estates, Ove Arup, Halliburton KBR and Porsche (among many others).
The company offers specialist security services in the areas of guarding, door supervision, CCTV (Public Space Surveillance), vehicle immobilisation and Cash-in-Transit.
Shield currently partners with over 350 customers, employs over 2,500 staff and operates out of four regional offices.
The global security industry
According to Gerry Paxton, executive chairman at Shield: “The strategic partnership of two nationally leading security brands augurs well for the rapidly growing global security industry which is estimated to cross the US$230 billion threshold by 2015. Shield is known for its business values, its focus on quality of service and commitment to the customers and its employees. We are delighted that we’ve found a perfect match in Topsgrup.”
Shield recorded a turnover of US$121 million and a profit before taxation of US$ 4.5 million for the year 2007-2008. It is poised to achieve revenues in excess of US$140 million in 2008-2009.
Topsgrup – the first Indian MNC security provider – offers tailor-made security solutions including guarding, electronic security systems, investigation, facilities management, cash management, consultancy, advanced training and an emergency response service called Topsline 1252. TopsSecurity Limited, the flagship company of Topsgrup, holds the distinction of being the first security firm in India to land private equity funding in 2007.
Last year, ICICI Venture invested Rs 115 crore ($28 million) for a 13.69% equity stake, while Indivision (the investment arm of FutureGroup) increased its existing stake in the company from 4.94% to 7.08% with an additional investment of Rs 25 crore ($6 million) taking its total exposure in Topsgrup to Rs 57 crore. Well-known stock investor Rakesh Jhunjhunwala also owns a 10.8% stake in Tops, and is a director on the prestigious Board.
The Indian market place
In India, the security industry – which is being termed the ‘sunrise industry’ in the corporate sector – is estimated to be worth Rs 2,500 crores, fragmented by the unorganised sector at Rs 1500crore. It’s growing at a staggering compound annual growth rate of 25%, and is expected to be a dominating sector in the coming years.
For its part, Topsgrup is in “expansion mode” and is putting a plan in place to achieve a turnover of $1 billion within the next five years. The company is said to be “scouting” for firms in the US, the Middle East and Asia Pacific.
