'Security equipment industry will cross Rs 10000cr by 2011'

Q&A/ DE Byramjee, V-P & business head, Godrej Security Equipment Division

With the threat to life and property an ever-growing concern for individuals and institutions, the security equipment industry is beginning to see large growth. Be it petty pilferage or criminal activity, the worry just keeps getting bigger.

DE Byramjee, vice-president and business head, Godrej Security Equipment Division, discusses the scenario, the prospects for the industry and his company's plans.

What is the size of the security equipment market in the country?

It is around Rs 7,800 crore. This comprises physical (Rs 400 cr) and electronic (Rs 1,500 cr) security solutions, solutions on premises (still in a nascent stage in India), guards, currency handling, fire doors and biometrics.

What kind of market share does Godrej's security equipment division have?

We dominate the banking segment for physical security solutions with 75 per cent of the market. Our market share in premises security solutions is 40-50 per cent and that for electronic solutions about 25 per cent.

Who are the other major players in the sector?

The other players are Honeywell, Gunnebo, Zicom, Bosch and some unorganised players.

The awareness about security equipment is very low among people. What are you doing in this regard?

Security is still a low involvement category in our country. People are more reactive than pro-active. There is low awareness among the people.

However, with threats and concerns increasing, the need for personal security and the security of loved ones is increasing. We've initiated aggressive campaigns on home security (home safes and video door phones).

We have also carried out effective roadshows and mall activities and our drives to educate the masses in this respect have been very effective.

The banking sector will certainly be your main target. What is the proportion with regard to utilisation of security equipment by the banks in India?

With new international certifications achieved in physical security solutions, the penetration level in the banking sector has risen considerably. The Reserve Bank of India, many nationalised banks and several multinational banks are in our client list for physical solutions.

Which are the new areas you are targeting?

We are now focusing on new foreign banks entering India. We are looking at the retail sector for our range in the home security segment and are also looking at airports, defence establishments and such high security areas.

Is there any new segment you may be planning for?

Apart from human guards, Godrej Secure is present in all categories of the security industry. We are already present in the home security segment, which is growing at 35-40 per cent.

In this fast moving world, with technology changing fast, security technology is also moving forward. We now have electronic safes, which can be opened with your debit/credit card and a password to ensure double protection. We have biometric safes, which can be opened only with your finger impression.

Godrej Secure is the first company to enter the home safes segment with high-end technology. We are also present in alarm systems, surveillance systems and offer video door phones for home security.

We are looking forward to introducing new products in premises security solutions that have never been used before in the country.

Are you planning any joint venture, or strategic alliance?

We are in talks with a few companies for strategic tie-ups for our international business and electronic security business.

What growth do you see in the security equipment industry in the next three to four years?

The security equipment industry is expected to grow by 25-30 per cent to about Rs 10,000 crore by 2010-11.