SIS Ltd.

Security Solutions India

SIS Confluence 2023
6th April 2023
 Certain words and statements in this communication concerning SIS Limited (“the Company”) and its prospects, and
other statements relating to the Company’s expected financial position, business strategy, the future development
of the Company’s operations and the general economy of India & global markets, are forward looking statements.
Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results,
performance or achievements of the Company, or industry results, to differ materially from those expressed or
implied by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future
business strategies and the environment in which the Company will operate in the future.
Factors that are crucial and have the potential to cause a significant difference between the actual results,
performance, or achievements and the forward-looking statements may include various factors such as changes in
Government policies or regulations of India, particularly in relation to the administration of the Company’s industry,
as well as changes in the overall economic, business, and credit conditions in India.
The information contained in this presentation is only current as of its date and has not been independently verified.
No express or implied representation or warranty is made as to, and no reliance should be placed on, the accuracy,
Disclaimer fairness or completeness of the information presented or contained in this presentation. The Company, its affiliates,
advisers, or representatives do not assume any responsibility or liability for any loss, in any way, caused by any
information presented or included in this presentation. Please note that the past performance of the Company is
not, and should not be considered as, indicative of future results. Furthermore, no person is authorized to give any
information or make any representation which is not contained in, or is inconsistent with, this presentation. Any such
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The Company reserves the right to revise or modify the contents of this presentation without any obligation to
inform anyone of such changes. Persons should consult their own financial or tax adviser if in doubt about the
treatment of the transaction for themselves.
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themselves about and observe any such restrictions.

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Outsourced Business Services

Route based solutions

Solutions
Services Layer 4:
Staffing Layer 3:
Layer 2: ▪ Value proposition: All elements of
services + route based, economics
Base Layer: ▪ Value proposition: All elements based on cost / stop, route break-
of services + tech, lesser even and route density linked profits,
▪ Value proposition: SLA based manpower component, non-linear business (e.g. doorstep
▪ Value proposition: Payrolling, contracts, responsible for hardware/software leasing, banking services in cash logistics)
recruit as per requirements, performance / outcomes, electronic security (e.g. E- ▪ Pricing model: Cost is not exposed
mostly staff is rolled over, no recruit, train, supervise, payroll, surveillance solution for banking → Greater pricing power & route
training, no supervision, no pay first - collect later sector), 24*7 monitoring, productivity gains
responsibility for performance / ▪ Pricing model: Cost + service manpower for emergency ▪ EBITDA margin: 20%+
outcomes fee response, value added services ▪ Customer stickiness: High
▪ Pricing model: Fixed fee basis ▪ EBITDA margin: 5%-7% ▪ Pricing model: Cost is not
▪ EBITDA margin: 2%-4% ▪ Customer stickiness: High exposed → Greater pricing
▪ Customer stickiness: Poor power
▪ EBITDA margin: 11%-15%
▪ Customer stickiness: High,
long-term contracts

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 Mr. Tapash Chaudhuri, an industry veteran with over 3 decades of
experience across manufacturing and business services, joined SIS
Group in 2013 and oversees the security business in India. He worked
with Murugappa Group and Hindustan Motors before joining G4S as
the CEO heading the manned guarding and electronic security
Today’s Speaker businesses. He is an accomplished leader with a proven track record
in the fields of profit center management, customer relations, sales
Tapash Chaudhuri and business development, human resource and industrial relations.
He brings rich experience in developing manned guarding
CEO, operations and is a key contributor towards the sustainable growth
Security Solutions of SIS Group Enterprises. He is a mechanical engineer from B. E.
College, Shibpore.

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5
 Market Opportunity: Security Solutions
Growth levers: GDP, Minimum wage & Market share growth Sector specific growth

▪ India’s infrastructure sector is expected to grow at a CAGR of

▪ GDP Growth: India is expected to be the fastest growing 8.2%+ to US$ 1,008 Bn by 2027 from US$ 680 Bn in 2022
economy globally with GDP growth at 6.1% for 2023 and 6.8% for
1,008
2024. Economic growth boosts demand for security services
Infra sector
680 growth %
leading to volume growth for SIS

▪ Minimum wage: Typically revised in April and October every

year, growth in minimum wage leads to topline growth for SIS
2022 US$ Bn. 2027
▪ Market share: Security services industry’s formalization ▪ India’s manufacturing sector is poised to reach $1 Tn by 2025
augments market share for organized players like SIS ▪ Infra and manufacturing sector growth to enhance demand
for security and allied services

Evolving security market → Electronic security SIS’s processes and technology systems

US$ Bn.
4.9

1.3
▪ SIS has significantly invested in proprietary solutions for
enhancing internal efficiencies and external customer processes,
2021 2027 which aids margin growth
▪ Rapid urbanization, smart city projects and large infrastructure ▪ SIS is at the forefront of offering “ManTech” solutions leading the
developments are increasingly adopting e-security solutions e-security evolution
driving the growth of the electronic security market 6
Source: IMF, Mordor Intelligence, E-Security
 Fastest growing security solutions brand in India
#1 in India
Solutions Offered Entities / Brands Key Statistics*

Security and allied

Provider of security services
pan India
₹3,412 Cr
services REVENUE

1,81,198
Security services provider in
north India
Electronic security
solutions EMPLOYEES

South India based security

and FM services provider 17,190
Our USP SITES

94%
Pan India presence: Across 630+
districts Electronic security solutions

Customer retention
Largest and skilled salesforce

Strong market position with

the help of tech led solutions
Alarm monitoring
response services
and
6,496
CUSTOMERS
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*9M FY23 Revenue, Employees, Sites and Customers; customer retention data from FY22 Annual report
SIS offers unparalleled pan India reach

Covers

182 36
Branches STATEs / UTs

25 Presence across

Regional Offices 630+

Districts

SIS follows a proven branch

creation and expansion strategy

22 SIS sells more per branch per

month pan India

Training Academies
SIS offers economies of scale

Consistently increasing penetration 8

Services and solutions offerings

Security and Allied Services Technology / Electronic Security Solutions

Fire Safety,
Access control/ AI-enabled video
Armed Guards Escorting and detection and
Static Guarding Entry automation surveillance
and Gunman Patrol Services suppression

Fire Safety Front Office Saas based Intrusion alarm

Bouncers
Services Management software solutions Vehicle tracking monitoring and
solution response

Event Quick Reaction Scanning and Control room and Drone based
Dog Handler frisking solutions integrated command surveillance and
Management Team
centre solution business solutions

Comprehensive range of services and solutions offered

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Leveraging technology to improve productivity and operational
efficiency

MySIS: Facial recognition-based Service Quality Assurance and Operations

attendance mobile app Productivity Platform

1.3 Lakhs+ average daily attendance reports 17,000+ sites covered in a month (avg.) and
generated. 2.28 Lakhs+ active employees 67,000+ quality checks done on these site (avg.)
have downloaded the MySIS app

Automated Recruitment Kiosk Digital Training Platform

5,900+ security professionals recruited monthly 7,400+ trainings/month (avg.) imparted

on average through ARK

Quality and Compliance Overview

Tablet-based sales CRM tool
Dashboard

800+/month quotations generated Customer accessible dashboard

providing details on training, compliance
documents, operations report

SIS has consistently invested in best-in-class systems to accelerate technology adoption 10

 Recruitment and Training (R&T): SIS’s competitive edge

SIS Security undertakes various Fresh recruits receive a 28-

training interventions for its day in-house training
security personnel program
22*
Fully residential
training academies
SIS trains security guards, rapid After successfully completing
response team, security training, all security personnel
supervisors, GTO etc. through are posted in different units of
training academies across India SIS Group

Largest training infrastructure and 200+ professional trainers

manpower supply chain in the industry 25,000+ recruits trained annually

Rigorous training program: Ensures 100% Smart Classes: 1,000+ audio / video training
assessment and certification content, online classes at all centres

Mobile training van: Centralized dog training: Dog breeding,

Offers 1,000+ trainings / month training and placement

Customized content development based on sector specific training

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* Includes 1 dog training academy
Conventional Security Services → ManTech Solutions

CONVENTIONAL SECURITY SERVICES MANTECH

COST COST
TECHNOLOGY TECHNOLOGY
SATISFACTION SATISFACTION

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ManTech Solutions: Future growth segment
Technology Solutions
Backed by system Experience in system
Electronic security and integration in
solutions process innovation high risk segments CCTV Surveillance Solutions

Integrated security Customized solutions Expertise in

cover - ManTech / Upgradations / designing and Entry Automation Solutions
concept AMCs implementation

Strong technical team Metal Detectors and Guard

for integration, Monitoring
maintenance and
support
Fire and Public Address Solutions

Leading Equipment Partnerships

Access Control Solutions

Scanners / Explosive Detection

Perimeter and Building Intrusion

Detection

Other Security Solutions

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Revenue / Pricing Model
Security Services ManTech Solutions

Cost plus model Opex model

Minimum Wage (Mandatory) SIS buys the equipment and
(Incl. Basic + D.A., HRA, conveyance
allowance among others)
charges a rental fee (incl. AMC)
100% pass through Recurring pay-out to SIS

Capex model
Statutory Charges (Mandatory)
(Incl. PF, ESIC, Bonus among others) Customers buy the equipment
100% pass through Initial set up cost + AMC

Supervisory Charge / Service SaaS based software solutions

Charge / Management Charge
(Incl. Training cost, accommodation Productivity and business solutions
charges, uniform cost among others) on SaaS Model
Pay out to SIS
Manual → Digital solutions

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Customer Case Study: Solutions For Oil and Gas Sector
Long standing client: Since 2018 and still ongoing…

Problems: Solutions:
Damage to Incident
pipeline Quick
Customer resolution reporting and
Encroachment and reporting management
markers

Unauthorized
Fire digging Patrolling CCTV feeds GPS tracking
across pipeline tracking monitored: SIS on each bike
control room

Pipeline
Incident Leakage health 450 Bike
check patrollers

Quick response 1,000 Trained

Benefits of SIS ManTech team static guards

▪ Optimized mix of manpower and technology

▪ Realtime reporting by mobile app
▪ 24X7 control room
▪ Opex model: Client incurs no capital expense
▪ ~95% errors/issues rectified through SIS’s pro-active approach
▪ Detect → Identify → Address 15
Own Your Customer (OYC) and Customer Satisfaction (CSAT)

Own Your Customer Customer Satisfaction

Shifting from reactive to proactive Shows operations summary and evaluates
approach client satisfaction

475 2,300+
Customers mapped Customers mapped
to 52 senior leaders to all branch heads

Monthly meetings to take

Monthly meetings to
feedback and improve
build client relations
quality

35,000+
Meetings done since
1.2 Lakhs+
Meetings done since
inception inception

Average Feedback Rating: 8.6 / 10.0 (Based on customer feedback survey)

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Customer Segments
Steel / Metals, Power, IT / BPO, BFSI, Auto, Manufacturing, Construction, Cement,
Mining, Oil & Gas, PSUs Telecom, Education Logistics, Transportation Infrastructure, Fertilizer

23% 22% 19% 15%

Offering our solutions to diversified set of clients across India

Healthcare & Pharma FMCG, Food & Beverage, Hospitality & Retail Others
Paper

9% 4% 4% 4%
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Humble beginnings → Indian Multinational
1974-1996 1997-2010 2011-Till Date
A humble Decades of
beginning innovation Journey of growth

1974 1998 2013-15

Commences operations with 14 1st Security Company in India Launched industry’s first -
Guards in Ramgarh, Jharkhand to receive ISO certification automated recruitment (ARK)
quality control kiosk

1982 2004 2017

1st residential
training facility in 1st security company to develop - SIS IPO in Aug., ’17
Garhwa, Jharkhand integrated, end-to-end ERP platform - Vprotect launched, India’s first
wireless alarm, monitoring and
response service provider

1985 2008
Incorporated as ‘Security and
1st successful overseas acquisition 2018-20
Intelligence Services Pvt. Ltd.’ Acquired SLV and UniQ: Security
services providers

1986 2010 2021-22

Awarded Business Super
Initiated Graduate Trainee Officer
Launched electronic security Brands India 2021 Award
(GTO) program to build a cadre of
arm of SIS group: TechSIS Ranked #4 amongst the Best
security officers and managers
Companies to Work for in India
by GPTW

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 COVID resilient revenue growth with improving EBITDA margins
Revenue (₹ Cr.) and Growth % EBITDA (₹ Cr.) and EBITDA Margin %
Annual Quarterly Annual Quarterly

211.3
6.9%
190.0
30.4% 3,856.9 5.6% 6.0% 165.7
25.4% 3,515.1 3,487.9 149.1 151.4 5.4% 4.9%
4.5%
4.3% 3.9%
2,696.3
2,150.0
10.6%
1,203.2 58.4
1,058.8 1,149.1 51.3
41.7

-0.8%

FY18 FY19 FY20 FY21 FY22 Q1FY23 Q2FY23 Q3 FY23 FY18 FY19 FY20 FY21 FY22 Q1FY23 Q2FY23 Q3 FY23

Employee Headcount
1,81,198
1,57,922 1,62,237
1,51,062
1,34,832

Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 19

Source: SIS Annual Reports
Peer Positioning: Significant Leadership
Revenues (₹ Cr.)

3,857

3,528

2,853
2,599

1,175
951 924 873 985 791

SIS Security India Peer 1 Peer 2 Peer 3 Peer 4

FY20 FY22

Market Leader

COVID Resilient

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Source: SIS: FY22 & FY21 AR, Peer 1 – 4: MCA Filings
Key competitive strengths

No. 1 in the Focus on digital Trained security Stickiness of the

National reach
industry transformation professionals customers

SIS is the largest Serving 6400+ SIS has been at Largest training Consistent
by revenue and customers the forefront of infrastructure service delivery
the fastest across 630+ innovating and and manpower leading to 94%
growing security districts with 182 adapting supply chain in customer
solutions brand branches in technology the industry retention
in India India initiatives to
drive excellence
in service
delivery to
customers

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Thank You
Bharat Bakhshi (President - M&A, IR and Ventures) Mayank Vaswani / Devrishi Singh
Shweta Jain (Associate Vice President – M&A & IR) CDR India
SIS Ltd. Tel: + 91 98205 30918
Email: investorrelations@sisindia.com Email: mayank@cdr-india.com
devrishi@cdr-india.com
Annexure
Corporate hierarchy: Security Solutions India
North Zone
South Zone
East Zone
Project
Tapash Chaudhuri, West Zone Hiranya Mohanty,
CEO
TechSIS President
Recruitment and AMC
Training
National Quality
SIS Security Center
B2B
Shankar Subramanian,
National Accounts VProtect COO
Group B2C
Vinod Advani,
President Regional & Sales SM

National Tender Cell

Support functions*

Finance,
Delhi
Accounts and Payroll
Col. Sukumar
SLV Sales and Operations Haryana
Sudhakar, President Human
ROI (Hyderabad, Resources
Bangalore, Mumbai)

Admin

North Bangalore
Lt. Col. Darshan Bal, IT
UniQ COO
Sales and Operations
South Bangalore
* All entities have individual support functions

Able senior and middle management support SIS’s diverse 25

operations
Private Security Agencies Regulation Act, 2005 (PSARA)
Requirements

• To regulate the functioning of private security agencies, the Ministry of

Home Affairs enacted PSARA on 15th Mar., ’06
• PSARA license is issued state wise, and is issued for 3 – 5 years,
depending on state regulations Jammu & Kashmir SIS – 32,
Himachal
SLV – 15, UniQ - 2
Pradesh
Chandigarh
Punjab PSARA license across states
Uttarakhan

Application Process Haryana

Delhi
d

Arunacha
l Pradesh
Uttar Sikkim
Rajasthan Pradesh
Application for Controlling authority Assam
Affidavit submitted PSARA license Bihar Nagaland
license made to obtains no objection Meghalay
with application fee granted
controlling authority certificate a Manipur
Gujarat Madhya Jharkhan Tripura
West
Pradesh d Mizoram
Bengal
Daman &
Diu
Chhattisgar
Dadra & h

PSARA Fee structure: Nagar

Haveli
Orissa

Maharashtr
a

Operating in Fresh License / Renewal Fees (₹)

Telangan
a
Goa Andhra
Pradesh
1 District 5,000
Karnataka

Up to 5 Districts 10,000 Pondicherr

y
KeralaTamil Nadu
Entire state 25,000
* Application for license renewal shall be made not less than 45 days before expiry
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