Security and Intelligence Services IPO.

sis

About the Company:

SIS Group is India’s second largest security services provider and Cash Logistics Company, they also operate the largest security services provider in Australia.The Group has expanded its footprint not just across 29 Indian states including the remotest corners, but also across a widespread network in Australia.Company’s portfolio of services includes private security services,Cash Logistics services, electronic security services and home alarm monitoring and response services and facility management services.

Now let us discuss about each of its businesses in detail:

Private Security Business:

Company is the second largest security services provider in India, in terms of revenue, as of March 31, 2016, and the fastest growing security services provider in India. Company also owns a wholly owned Subsidiary MSS Security Pty Limited (“MSS”) MSS Security is the largest security services provider in Australia, jointly with a competitor, in terms of revenues.Company also provides a comprehensive range of security services ranging from providing trained security personnel for general guarding to specialised security roles in India and Australia. In Australia they also provide paramedic and allied health, fire rescue services, mobile patrol, loss prevention and other related services.

Cash logistics Business:

Company is the second largest cash logistics service provider in India, in terms of market share by revenue, number of employees, ATMs served and cash vans utilized. Company’s cash logistics business in India includes services such as cash in transit including transportation of bank notes and other valuables, doorstep banking as well as cash processing, ATM related services including ATM replenishment, first line maintenance and safekeeping, and vault related services for bullion and cash.

Electronic security services and home alarm monitoring and response services:

In India, company provides electronic security services, including integrated and turnkey electronic security and surveillance solutions combining electronic security with trained manpower and have recently entered into a joint venture in order to provide home alarm monitoring and response services.

 

Facility Management Business:

Company’s facilities management services in India include cleaning, janitorial services, disaster restoration and clean-up of damage, as well as facility operation and management such as deployment of receptionists, lift operators, electricians and plumbers, and also pest and termite control.

Company’s wholly owned subsidiary Dusters is the fourth largest facility management services provider in India. They cater to diverse consumer segments, including, business entities, Government organizations and households, and to leverage the growth and potential of such customer segments in India.

Company has entered into strategic relationships in India with several multinational companies. For our cash logistics and alarm monitoring and response businesses, they have entered into joint ventures with affiliates of Prosegur Compañía de Seguridad, S.A (“Prosegur”), a global player in cash management and alarm monitoring.

Company has also entered into a joint venture with an affiliate of Terminix International Company, L.P. (“Terminix”), a multi-national provider of termite and pest control services.

In addition, company has licensed the ‘ServiceMaster Clean’ brand, and associated proprietary processes, operating materials and knowhow for our facility management business in India from The ServiceMaster Company, LLC (“ServiceMaster”) group, a commercial and residential cleaning service provider.

Company has a widespread branch network consisting of 251 branches in 124 cities and towns in India, which cover 630 districts.They employ around 148,678 personnel in India and rendered security and facility management services at 11,869 customer premises across India.

In Australia, they operate in each of the eight states and employs around 5,754 personnel servicing 245 customers.They have a widespread branch network enables them to service a large number of customer premises and render customised services across India and Australia.

Company has set up an extensive employee platform which spans recruitment, customised training and development, deployment, and management of personnel.They have a deep geographical reach for manpower sourcing and training and currently operate 18 training academies across India and 4 training academies across Australia.

TOP 10 Shareholders of the Company:

Sr.No. Shareholder Name Number of Equity Shares held  % of Equity Share Capital
1. Ravindra Kishore Sinha 28,564,888 41.58
2. Rita Kishore Sinha 12,111,055 17.63
3. Theano 10,439,770 15.20
4. Rituraj Kishore Sinha 7,159,724 10.42
5. Vocational Skills Council India Private Ltd 2,540,626 3.70
6. Rivoli Sinha Aggarwal 2,408,780 3.51
7. Hakan Winberg 1,446,500 2.11
8. Thomas Berglund 1,446,500 2.11
9. Uday Singh 612,447 0.89
10. Piyush Goyal 493,735 0.72
Total 67,224,025 97.87%

 

Strengths of the Company:

  • Experienced management and operational team.
  • Diverse portfolio of private security and facility management services.
  • Leader in providing security services in India and Australia.
  • Second largest cash logistics service provider in India.
  • Leading position in facility management services in India.
  • Widespread and integrated branch network in India.
  • Diverse customer base.
  • Established systems and processes leading to a scalable business model.

 

Company’s Future Growth Strategy:

  • To Grow company’s businesses across customer segments.
  • Use and upgrade technology to improve productivity and customer satisfaction.
  • Leverage company’s existing branch infrastructure to achieve operational synergies.
  • Inorganic growth through strategic acquisitions.

 

Objectives of the Company:

  1. Repayment and pre-payment of a portion of certain outstanding indebtedness availed by our Company
  2. Funding working capital requirements of our Company
  3. General corporate purposes.

 

 

Subsidiaries of the Company:

Direct Subsidiaries in India.

  1. Tech SIS Limited
  2. Terminix SIS India Private Limited
  3. Service Master Clean Limited
  4. SIS Business Support Services and Solutions Private Limited
  5. Dusters Total Solutions Services Private Limited
  6. SISCO Security Services Private Limited

 

Indirect Subsidiaries in India.

  1. Sunrays Overseas Private Limited
  2. Vardan Overseas Private Limited
  3. Lotus Learning Private Limited

 

Overseas Subsidiaries:

Direct Overseas Subsidiaries:

  1. SIS International Holdings Limited

 

Indirect Overseas Subsidiaries.

  1. SIS Asia Pacific Holdings Limited
  2. SIS Australia Holdings Pty. Ltd.
  3. SIS Group International Holdings Pty. Ltd.
  4. SIS Australia Group Pty. Ltd.
  5. MSS Strategic Medical & Rescue Pty. Ltd.
  6. SIS MSS Security Holdings Pty. Ltd.
  7. MSS Security Pty. Ltd.
  8. Australian Security Connections Pty. Ltd.
  9. Andwills Pty. Limited
  10. SX Protective Services Pty. Ltd.
  11. Southern Cross Protection Pty. Ltd.
  12. Southern Cross FLM Pty Ltd

 

Management Team of the Company:

  1. Mr.Ravindra Kishore Sinha (Designation: Chairman (Executive Director))
  2. Mr.Rituraj Kishore Sinha (Designation: Managing Director)

 

Positives for the Company:

  • Experienced management and operational team.
  • Diverse portfolio of private security and facility management services.
  • Huge business growth businesses across segments.
  • Leader in providing security services in India and Australia.
  • Second largest cash logistics service provider in India.
  • Leading position in facility management services in India.
  • Widespread and integrated branch network in India.
  • Diversified customer base.(Across various segments).
  • Consistent Dividend paying company.

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