When several COVID-19 and global recession-hit Indian companies are seen downsizing their loss-making international operations or restricting investments, Security and Intelligence Services Ltd. (SIS India), a leading security services company, has found its international operations to be a hedge.
“Our international business, which accounts for 40% of the total revenue, has been a great investment,” Rituraj Sinha, Group MD, said in an interview. “The international market has been less impacted [during this crisis].”
Of the Group’s total revenue of ₹8,500 crore in FY20, the international businesses contributed ₹3,500 crore. “In the context of Corona, it is a lesson for all of us. India is a growth economy but the economy has become extremely volatile,” he said.
Volatile situation
He said India is heading for a projected contraction of 5% in 20-21 compared with 7 to 8% growth a few years ago. “This kind of volatility [in the $2.5 to $3 trillion Indian economy] is unprecedented. “But, Australia and New Zealand are less impacted in terms of health and economy.”
He said governments in those countries were very forthcoming to help businesses such as SIS, which helped in creating jobs.
“Those governments provide incentives, employment-support scheme, payroll benefit scheme and business-wise it is good.”
SIS is now Australia’s largest private security provider with a 20% market share. The company has set up bases in New Zealand and Singapore, where it is the third largest player.
He said in India, the company was less impacted than companies in most sectors.
“Our services are amongst the least impacted and will be the first on to recover. On March 24, when the lockdown was declared, security services were listed as essential services and these services have been less impacted because of the pandemic.”
The company is now looking for growth in hygiene, infection control and disinfection services and is open for both organic and inorganic growth. Mr. Sinha said Indian market was going to throw more opportunities for M&As.
