Retail is gaining momentum in India and so is the threat to security. While companies already operate under wafer-thin margins, pilferages would further eat into their bottomlines. Tyco Security Solutions, the US-based, $17-billion corporation focusing on electronic security solutions, has been bringing out solutions to keep pace with the changing times. ADT Security, a segment of Tyco Security Solutions, has been working with most Indian retail chains, including Shoppers Stop, Lifestyle, PVR and Muthoot Fin Corp, in an effort to stem their losses. In an interview to Raghuvir Badrinath, ADT Security Managing Director Ramesh Jayaraman talks about the company's plans and the challenges it faces. Edited excerpts:
Security is a growing menace for retailers. How is ADT trying to address these issues?
With the mushrooming of malls and large-format retail stores, the retail landscape in India has changed over the last decade. Awareness of thefts — internal, external or organised — has increased over the years. Retailers in India are seeing about one-and-a-half to two times more thefts than their global counterparts. This is driving retailers to try and protect their profits from erosion. There is also an increasing interest in store performance solutions and business intelligence, including tracking people, their movements in the store and the pattern of spending their time inside. It is in this segment that we step in. Our solutions span across the entire retail supply chain. Retailers have been focusing on operational improvements on the retail selling floor, and we constantly enhance our offerings to ensure retailers adopt current technologies to better manage their stores.
The electronic security market is still in its early stages in India. What challenges do electronic security companies face in this growing market?
The basic issue is of awareness. The 26/11 Mumbai terror attacks clearly brought awareness about security in India. This has led to businesses showing interest and creating outlays for advanced electronic security solutions. The domestic market for electronic security products and services is currently estimated at $400-450 million. However, it is deeply fragmented and growing at around 18– 20 per cent year-on-year. With global players coming into India and domestic players exposed to global standards, the market would see a nice offtake for electronic security products.
With many players trying to gain a foothold in this lucrative market, the competition must be intense? How are you tackling this?
Our strategic approach can be summed up as 'Inch wide, mile deep'. We have identified areas in which we want to focus as a company. We try to ensure that we offer the best in these chosen areas. We also intend to add more workforce and expand our efforts on 'India for India' solutions and explore the potential in manufacturing and inorganic growth in the years ahead. Our focus is pretty much sharp and there is a lot of potential in India’s growing sectors --- aviation & aerospace, transportation like metros and airports, power and oil & gas. Our experience with over 300 global airports, including New Delhi's Indira Gandhi International Airport Terminal 3, various ports, power plants and refineries makes us an experienced player in the critical infrastructure arena.
You have a centre of excellence in Bangalore. How has it contributed in developing India-centric products?
Approximately 100 engineers are working to develop 'India for India' products at the centre of excellence in Bangalore. We are making significant strides in customising our global technology platforms to suit Indian conditions and requirements. In the retail industry, we have developed tags for sarees, salwar kameez and jewellery, since conventional tags developed for other markets do not suit these product categories. Source tagging at factories is also gaining immense popularity with our retail customers, the solutions for which are being shaped in Bangalore.
