Integrated Security Solutions In Critical Infrastructure In India

Introduction: The electronic security market in India has grown phenomenally over past 2
yrs, propelled majorly by the various terror attacks. The industries can me broadly divided
into two segments – Critical Infrastructure (majorly government and PSUs) and the
Commercial Segment. Historically, CI has been major consumer of electronic security
systems. The commercial segment also uses such devices for their employees and
infrastructure and even for critical data. Nowadays, we can even see their implementation
in areas like household security and commercial centers such as shopping malls, retail
outlets and multiplexes.

Lately, leading industries such as Aviation, Power, Transport and Oil & Gas sectors have
flooded the security market with enquires about security equipments. Surveillance systems
attract the maximum enquiries, followed by the access control systems. But the concept of
intelligent and integrated security systems has still not sunk in the Indian markets.

The scope of this note is to understand the areas and sectors of Critical Infrastructure in
India and the specific demand of security systems in these sectors

Major Market Areas:

While North India (Delhi, NCR, Haryana, Punjab, part Uttranchal & West UP, Rajasthan),
have the largest proportion on security installations, the Southern India (Hyderabad,
Bangalore, Chennai) are a close second. Western parts of the country (Gujarat, Mumbai,
Goa, and Maharashtra) follow next with the Eastern part of the country rapidly catching
up with its security needs.

Major Players:
While the unorganized sector forms almost 75% of the electronic security market, the
organized sector forms the rest, with only a handful of strong players in the industry. The
major players include Godrej Security Solutions, Wipro, Tyco, Honeywell, HCL Security,
Schnider electric, Johnson controls and a few more.
Sectors:
The critical infrastructure can be further subdivided into these sub categories:

Transportation:
For the ease of understanding the Indian Markets, this sector has been further
divided into Aviation and Ground Transportation. With aviation industry growing
exponentially, and because of the high levels of threat it faces, the security of
airports are the best as per the industry standards. With privatization of the
airports being encouraged, the requirement packages are some of the biggest in the
industry. (One terminal spends approx 50-60 crs for its security, apart from inline
baggage scanning for the terminal that is of equally big value)

Ground transportation includes various modes like Railways, Metros, Mono Rails and
Highways. Railways has huge budgets for its security needs and almost all the zones
(out of 16 zones) are planning/have planned to implement integrated security
systems for all their major stations. The budget for each zone ranges from 15 crs
to 35 crs. Metros and Mono Rails follow in size of operation, but they being built
and operated by private players, they are not expected to spend similar money for
their security, though the budgets allocated are high. Roadways, traditionally, have
not been investing much on their security, though the new concept of modernization
of Border Out Posts is catching in many states and has some budgets (about 20-30
crs out of the total package of approx 1000crs). And other packages like the
modernization of Octroi Nakas in Mumbai also have sizeable packages (approx
500crs of cargo scanners)

POG (Petroleum, Oil and Gas)

The major players in the POG industry have a similar kind of setup, consisting of
their divisions like Refinery, Pipeline, LPG bottling plants etc. Some specialize in
other products like lubes and aviation fuel. The key divisions that spend money on
security are Refinery, LPG bottling plants and Pipeline divisions. The individual
requirements are relatively small, but the requirement package is published for
multi location and finally concludes as a significant one. Presently, they are majorly
concentrating only on surveillance systems, apart from other small requirements
like access control measures for their Tank Terminals etc. The potential for
perimeter fencing and integrated systems is also huge, if explored appropriately.
 Power
There are broadly three major divisions of any power company. The Generating unit,
the Transmitting unit and the Distributing unit. The Generating unit has
considerable requirements for security systems (though mainly limited surveillance
systems), and the rest of the two keep coming up with some or the other
requirement. Though, there are many companies in this sector as of now (apart
from state owned power companies), many more are expected to enter this sector
due to some needs of the market still remain unaddressed. Some business is
expected in the coming times.

Other Sectors
Some of the other sectors that are expected to generate some business are City
Surveillances, Defense requirements including Costal and Border security and
special events (currently like Common Wealth Games). The requirements are
equally big from these sectors and also give good clientele and references to the
company.

Conclusion
CI is still waking up to its security needs and CI has started asking for security systems.
The market for electronic security equipment in India is largely untapped and under-
served. The business is slow moving due to large volumes and high value. Mixed with the
price sensitivity of Indian consumers, it is a challenging market. It holds immense potential
for the players who are able to find the right mix of price, technology, awareness and
patience.