Topsgrup Acquires 51% Majority Stake in a Usd 140 Million British Security Company - 'the Shield Guarding Company Limited'

In the first ever overseas acquisition by an IndianAccording to GerryPaxton, Executive Chairman of
securitycompany, TOPSGRUP with a marketShield, “thestrategic partnership of two nationally
capitalization of Rs 1000 crores (07-08) hasacquired aleading security brands augurs well forthe rapidly
51% majority stake in UK’s leading securitygrowing global security industry which is estimated to
service provider ‘TheShield Guarding Companycross the US $230 billion mark by2015. Shield is
Ltd’ for an all cash deal of Rs 125 crores.known for its business values, its focus on quality of
According to Dr.Diwan Rahul Nanda, Global Chairmanserviceand commitment to the customers and its
& Managing Director, TOPSGRUP, “Shield’semployees and we are delighted that wehave found
acquisition in the United Kingdomwill act as a strategica perfect match in TOPSGRUP”.Shield promoted
gateway for our global growth plans in theby Gerald Paxton recorded a turnover of US$ 121
comingyears. Shield with its great business ethicsmillion (Rs484 crores) and a profit before taxation of
coupled with a strong managementteam and a loyalUS$ 4.5 million (Rs 18 crores) forthe year 2007-2008.
customer base has great synergies with TOPSGRUP.It is poised to achieve revenues in excess of US
We envisage alot of cost and experience sharing$140 million(Rs 560 crores) in 2008-2009.
benefits across both companies that willbenefit theTOPSGRUP, the first Indian MNC security provider
Indian and the British customers and employees asofferstailor-made security solutions including manned
well. This is a proudmoment not only for TOPSGRUPguarding, electronic securitysystems, investigation,
but for the entire Indian security industry”facility management, cash management,
Currently, TOPSGRUP is India’spreferred securityconsultancy,advanced training and emergency
solutions provider with a human capital base ofresponse service called TOPSLINE 1252. TopsSecurity
65,000employees partnering with over 6,000Limited, the flagship company of Topsgrup, holds the
customers through its pan India networkof 110distinction ofbeing the first security firm in India to
offices. TOPSGRUP through its aggressive organicland private equityfunding in 2007. Last year, ICICI
and inorganic growthdrive is poised to achieveVenture invested Rs 115 crore ($28 million)for 13.69
revenues in excess of Rs 1000 crores by the end ofper cent equity stake, while Indivision (the
thecurrent fiscal. Very recently, TOPSGRUP alsoinvestment arm of FutureGroup) increased its existing
acquired a Rs 35 crore SouthIndian security companystake in the company from 4.94 per cent to 7.08per
called Guardwell Detective Services Privatecent with an additional investment of Rs 25 crore ($6
Limited.Some of TOPSGRUP’s key partnersmillion) taking itstotal exposure in TOPSGRUP at Rs
include Tatas,Birlas, Reliance, Airtel, Oracle, HSBC,57 crore. Well known stock investor
Stanchart, ICICI, Future group amongstothersRakeshJhunjhunwala also owns 10.8 per cent stake in
The Shield Guarding Company Ltd, one of the top 10Tops and is a director on the prestigiousboard.
marketleaders in United Kingdomwas established inCloser home, the security industry,which is being
1987 and has an esteemed clientele spanning fromtermed as the ‘sunrise industry’ in the
WaltDisney, Fujitsu, Nokia / Vertu, Master Foods,corporate sector; isestimated to be Rs 2,500 crores,
Broadgate Estates, Ove Arup,Halliburton KBR,fragmented by the unorganized sector at Rs
Porsche amongst many others. The British firm1500crore. It is growing at a staggering compound
offers specializedsecurity services in the areas ofannual growth rate (CAGR) of 25per cent, and is
manned guarding, door supervision, CCTVpublic spaceexpected to be a dominating sector in the coming
surveillance, vehicle immobilization and cash in transit.years. Thesecurity industry worldwide is currently
Shieldcurrently partners with over 350 customers,pegged at $141 billion that includesguarding,
employs over 2500 human capitalassets and operatesinvestigation and electronic security.
out of four offices in the United Kingdom.