The Rs 3,590-crore SIS (Security and Intelligence Services) group, which is into providing security guards and cash management services, is eyeing acquisition opportunities in the security business in New Zealand and in the cash management business in India. The home-grown group, which bought out the business of Australian security firm Chubb in 2008 and acquired the Indian cash management business of Danish company ISS last year, is sitting on a Rs 750-crore acquisition war chest. The cash hoard includes senior debt raised from National Australian Bank.
The group is also looking at an initial public offering (IPO) to maintain the compounded annual growth rate of 43% that it has recorded over the last five years. “SIS is working on a two-pronged growth strategy — to be the largest business support services company in India and emerge as the largest manned guarding business in the Asia-Pacific region,” said Rituraj Sinha, promoter, SIS group.
To meet the first goal, SIS has, over the last five years, diversified from being a manned guarding and security enterprise to an end-to-end business services major, Sinha said. The strategy included developing new service lines by partnering large service multinationals like Prosegur (a $5-billion cash management leader) for cash logistics segment, Servicmaster (a $2.5-billion global cleaning services leader) for mechanized cleaning, and Terminix — the world’s largest pest management services company.
SIS Group’s ambition for global acquisitions grew after it tasted success in its maiden cross-border takeover. In 2008, when SIS was only a Rs 150-crore company, Sinha made a bid for Australia’s largest security company Chubb, which was almost seven times bigger in revenue. The bid was supported by DE Shaw, which picked up a stake.