Canbank Venture Capital Fund has invested Rs 11 crore to pick up a minority equity stake in Surat-based Shiva Industrial Security Agency. With an annual turnover of Rs 55 crore, the security firm has over 4,000 guards and 150 cash vans with a nationwide presence, providing security services to leading corporates, airports, metro stations, banks, malls/shopping complexes, apartments and hospitals.
S Thiruvadi, Managing Director, Canbank Venture Capital Fund, said the private security services sector is expected to grow at 20 per cent annually till 2019, with 90 per cent of the growth coming from manned guarding and secure cash movement.
The private security services industry is estimated at Rs 30,000 crore and has registered an annual growth of 15-20 per cent consistently. FICCI has forecast the industry to cross Rs 60,000 crore by 2020. However, the organised sector accounts for only 60 per cent of the industry with the business of providing guards contributing to the bulk of the revenue. The private security services industry employs about 6.5 million personnel across India.
Sameer Sharma, Managing Director, SISA, said the fresh funds raised would be used to open new branches to boost the existing guarding strength and add 100 cash vans by the end of this fiscal. “Our aim is to be one of the top ten Security Services Providers and reach a turnover of Rs 150 crore in the next two fiscals,” he said.