Cashing in on insecurity
The Mumbai terror attack opens up a huge market for security products.
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“The terrorist attacks in Mumbai have radically changed the security scenario in India. It requires a paradigm shift in the manner in which security services have to be provided now,” says Anil Puri, Executive Director of Delhi-based APS Group, which has formed a joint venture with ARES Group, the $150-million Israeli security firm, to provide counter terrorism solutions, security training and consulting services and psychological profiling, among others. “World-class knowhow and training is required to be imparted to our manpower so that they become ready to meet the stringent and complex demands being made on them today,” Puri adds.
Says Asaf Nadel, CEO, ARES Group: “India and Israel face similar security threats and the joint venture has been formed to provide fast solutions. India is one of the main engines of a resurgent Asia. I think we would be able to bring to India and the region, world-class technology, expertise and capabilities in the new security paradigm.” The 50-50 joint venture will initially invest $5 million and is projected to book $10 million in revenues by 2010.
Godrej, as well as HCL Security—a subsidiary of HCL Infosystems—are the other major companies offering holistic security solutions. HCL’s “Safe State” offers advanced security solutions by integrating futuristic and intelligent technologies that can help secure a state, city and critical or vulnerable areas, buildings or facilities like hotels, hospitals, educational institutions, transport, railways, IT-ITES firms, utilities, SEZ etc.
HCL and ARES-APS
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“In view of the increasing threat perception in India as it emerges as a global player, security and surveillance is increasingly becoming an important requirement. ‘Safe State’ will prevent, detect, protect and respond,” says Ajai Chowdhry, Chairman and CEO, HCL Infosystems. HCL and ARES-APS Security Services are in talks with airlines, hotels, banks, private sector organisations to offer their services.
Says Dara Byramjee, Vice President & Business Head, Security Equipment division of Godrej, a leading provider of premises security solutions in the country: “Security is much more complex now and needs an expert’s intervention. It’s an amalgamation of products and practices.”
Industry sources put the size of India’s overall security market at around Rs 4,000 crore. From most accounts, the Mumbai terror attacks have swelled this figure considerably, making India one of the hottest markets for security products in the world today.