MUMBAI: Security and Intelligence Services (SIS), which made several acquisitions in the past two years, is exploring more deals in the coming year to maintain its strong growth pace.
The New Delhi-based, BSE-listed security services provider had acquired four companies in the past year alone. “Our focus is on India as this is where we will see the most growth in the coming years. We are looking at organic and inorganic growth, but the focus will be on India,” group managing director Rituraj Sinha said.
Sinha did not elaborate on his acquisition plans but added: “Our organic growth has been close to 25% CAGR in the last 20 years. The inorganic growth through acquisitions is to supplement our organic growth.”
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SIS has a presence in Singapore, Australia, and New Zealand, in addition to the home market. In January this year, the company bought a majority stake in Henderson, a Singapore-headquartered company, for about Rs 220 crore.
SIS, which provides services in the security, facility management, and cash logistics segments, had raised around Rs 1,000 crore through pre-IPO and IPO placements and from an Australian bank in 2017 to fund mergers and acquisitions.
Sinha said the acquisitions are aimed at establishing the company’s leadership credentials in the security management space. He claimed the company is already one of the top two players across all three business lines it operates in.
“India is a very fragmented market, and two players in the sector have about 10% of the market share. In the coming years, there would be consolidation as multiple drivers are at play,” said Sinha.
One of the drivers for it is enforcing regulation, which includes a labor code and rules around minimum wages that he expects would weed out smaller players. Meanwhile, the goods and services tax has brought some transparency in how security companies would charge their companies.
