Apart from Indian Inc., demand for security gadgets has suddenly increased manifold not only in hospitality and manufacturing hubs but also in schools, colleges, hospitals, shopping malls and business centres after Mumbai became the worst victim of series of terrorist attacks, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
As per estimates made by the ASSOCHAM, the private security business size which currently hovers around Rs 22,000 crore would now go up at least five times in next four years and touch
Rs 50,000 crore volume as security all of a sudden has become the top priority of Indian Inc.
The security industry which has been growing @25 per cent in the past five to seven years, showing the significance of security installations in most of manufacturing hubs in sectors like petroleum and petrochemicals, power including nuclear power, steel, cement, real estate, railways, airport and seaport security including maritime security will grow over 125 per cent by 2012 and touch a size of Rs 50,000 crore.
It may be mentioned that security industry which has been growing @25 per cent in the past as the issue of security remained most compromised one. Now it becoming a top priority, 125 per cent growth rate in private security in next four years should not spring a surprise, says the Secretary General ASSOCHAM, D S Rawat.
The ASSOCHAM estimates are based on
direct feedback from its members, especially in sectors like power, petroleum, petrochemicals, refining, mining, steel, ports, seaports and shipping, in which security would acquire a new dimension, besides hospitality industry, which has suffered
the worst terrorist attack of recent times in Mumbai.
Not only would the security gadgets manufacturing receive voluminous growth but security personnel will be on higher demand and it is expected that over two lakhs security professionals of higher caliber would be required to be recruited at various industrial installations in next few years as no industrial house henceforth can afford to take security even little lighter.
ASSOCHAM constituents said that they would enhance their security budgets by at least 35-40 per cent in a bid to plug security loopholes. The budget would be utilised not only in procurement of sensitive security gadgets with latest technologies but also in hiring professionally qualified security staff.
Indian Inc. has not only learnt a great lesson with a recent security attacks in number of places including Mumbai in the sense that foreign security companies have started assessing domestic markets for sale of their security gadgets.
Since, lots of industrial expansion would be happening during the 11th plan period, especially in its infrastructure sector, the security gadgets that would need to be installed through imports would amount to an extent of Rs 20,000 crore in next two years only.
Currently, import duties on security gadgets ranges around 35 per cent and as their demand would multiply in future because of anticipated economic expansion, the security market as per projections made by ASSOCHAM would grow by over 125 per cent would create huge demand.
Among the most sought after security gadgets required by Indian Inc. would be high-tech CCTV surveillance, access control and intruder alarm equipment, video surveillance, electronic security, wireless equipment/technology, installation tools, supplies and accessories, fire extinguishers, rescue device, security bodes and doors and entry/exit screening systems etc.
Although domestic security market in India is quite advanced but India’s imports dependence for security items would mainly stay with countries like the US, European firms and security related companies in countries like Korea, China, Taiwan and Japan, pointed out the ASSOCHAM assessment.
The survey also pointed out that the ongoing expansion of the country’s high-end housing projects, hotels and top quality commercial property is stimulating a greater demand for safety and security equipment, Indian market is developing towards quality consciousness. Although the first class hotels are buying products from local suppliers with ISI, standardisation as far as safety is
concerned, they still believe that Indian market cannot take over the world in terms of security products.
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