Gujarat, Bangalore blasts lead to spurt in security spend

MUMBAI: It has been a tough time for Bangalore and Ahmedabad. The bomb blasts have sent shock waves across these two cities. If that was not enough, the fear of more such blasts in places like Surat has only complicated things. The result has been enhanced security at public places. All this translates to more security spend.

It���s probably odd that a crisis of this nature has thrown up a business opportunity but that���s precisely what has happened. ���It is sad but true that such events such events raise the concern on security��� says Rehana Qureshi, regional marketing director, Group4S India.

It is not hard to guess where security has been beefed up. It is in high traffic areas like malls, hospitals and airports. Simply put, the current situation has meant increased business for the $1-billion security services industry. Importantly, this is expected to grow by over 25% per annum. While the large players like Tops Group and Four S account for a significant chunk of the industry, there are also localised players who though scattered, have their own market. Globally, the industry is much larger at around $125-150 billion and growing.

In India, owners of malls are taking no chances. After the blasts in Bangalore and Ahmedabad, security has been tightened everwhere. For instance, there have been tighter physical checks, greater patrolling and the use of sniffer dogs. Over the weekends, this has got even more stringent with conservative estimates suggesting that traffic is up by 50% during that period.



���While we had 40 guards earlier, we have increased the same to 50 at our Ahmedabad mall���, says JP Infrastructure director Amit Gupta. His company manages the Iscon Malls in Ahmedabad, Rajkot and Surat. Those providing security concede that there has been an unexpected focus on security over the last few days.

Tops Group chairman Diwan Rahul Nanda points out that there has been a sudden increase in demand for security personnel. He predicts that companies will spend 20% more on security services. ���Earlier, we added 4,000 people every month. That demand has increased substantially and Tops Group will now add 10,000 to 12,000 people per month��� says Mr Nanda. Growth is expected is to be at 30% per annum.

Meanwhile, increased security also means an increase in demand for equipment as well. Over the last few days there has been an increase in the demand for hand held metal detectors and also for vapour detection systems. While metal detectors can detect a bomb only if metal traces are found, it cannot detect bombs with RDX or gelatin based products.

���We have recommended some such sophisticated products, which could cost anywhere between Rs 5 to 10 lakhs. These have to be imported by our clients��� says Nanda.

For now, companies are keen on making sure that there is no security concern. And if it is going to cost a little more than what it did, so be it.