Security & Intelligence Services (India) Limited has recently entered into a strategic partnership with SLV Security Services Private Limited whereby it acquires a stake of 51% in SLV.
Headquartered in Gurugram, SLV was founded by Vishal Swara and Shyam Swara and was incorporated in 1986. The company provides physical security, electronic surveillance, event security/ management, and security consulting services. The business currently generates annual revenues of over Rs.240 crores with the majority of them coming from the National Capital Region (NCR). The company has over 650 customers and operates in 1,575 sites.
“SLV is a well-recognized brand with a strong franchise in the NCR region and several blue-chip clienteles. We are glad to have SLV in SIS Group and we look forward to leveraging our partnership to become a much more dominant player in the region which will take us closer to our goal of being the No. 1 security services company in India. Our M&A strategy is focussed on becoming the leader in key micro markets and NCR market is one of them.”
Group Managing Director, SIS Group
As per the understanding, Vishal Swara will continue as the Managing Director of SLV to drive the growth of the company further. He will be responsible for the day to day management, and will also determine the strategic directions of the business together with the SLV Board. Over the next few years, SIS will increase its shareholding in SLV in the mutually agreed manner.
This is the first strategic transaction for SIS since its IPO. Last year, the company had notified the stock market about its Rs.1000 crore acquisition/ investment corpus.
Mr. Swara said, “SLV has been a well-recognized name in the security services space with several marquee clients being served over the last many years. With this strategic partnership with SIS, we will enhance our ability to service existing clients through new solutions, as well as increase our presence with new customers and in new geographies. Together, we believe that we can achieve a higher growth rate and capture a larger share of the huge security market in India.”
Rituraj Sinha, Group Managing Director, SIS Group commented on the acquisition, “SLV is a well-recognized brand with a strong franchise in the NCR region and several blue-chip clienteles. We are glad to have SLV in SIS Group and we look forward to leveraging our partnership to become a much more dominant player in the region which will take us closer to our goal of being the No. 1 security services company in India. Our M&A strategy is focussed on becoming the leader in key micro markets and NCR market is one of them.”
The Indian security market is estimated to be of the worth of Rs.70, 000 crores, and it is growing at a rate of 20% per annum, as per a Frost & Sullivan Report. The NCR market is growing at a faster clip with the concentration of economic activities, residential developments and infrastructure spend by the Central and State governments. SIS has been looking to consolidate its market share in key geographies like these with an objective to emerge as India’s largest security services provider.
Through this strategic partnership, the SIS-SLV combine shall secure the highest market share in the Gurugram- NCR market.
Earlier, SIS had launched its first B2C service in Gurugram in 2017, under the brand name vProtect which is a home alarm, monitoring and response solution. The SIS-SLV partnership is also expected to offer valuable synergies in targeting the residential market in Gurugram.
KPMG acted as the transaction advisor to SLV for this strategic partnership.