Mumbai: SIS Ltd, India’s largest business services company, is set to buy APS Group for Rs 600-650 crore in what would be the largest buyout in the private security industry in the country till date, said people in the know. APS is ranked sixth in the segment. The signing of binding agreements followed by a formal announcement is likely this weekend.
The transaction, expected to be completed in parts, will have SIS acquire 51% in the first step. Over the next three years, depending on certain performance-linked milestones, SIS will buy the residual 49%, resulting in market consolidation.
Private security alone is a Rs 1 lakh crore industry as per a Ficci Grant Thornton report, employing over 5 million personnel.
Once completed, the SIS headcount is likely to touch 350,000, making it one of the largest private employers in India.
Besides security solutions, SIS also provides facilities management and cash logistics services. Facilities management solutions include cleaning, technical and soft services, pest control and business support under brands such as DTSS, SMC, Rare Hospitality and PestX. It offers cash management services through joint venture SIS Cash Services and its subsidiary SIS Prosegur Holdings. They handle cash in transit services, retail cash management services, and ATM cash replenishment. AP Securitas (APS) is a private company owned by Anil Puri and his family. The company clocked Rs 1,100 crore in revenue in FY25. Acquiring it will help SIS leverage technology, capital and expertise, especially in key segments such as BFSI and logistics. APS has a headcount of 40,000 employees.
After the consolidation, SIS’ revenue is set to touch Rs 15,000 crore in FY26, as per industry estimates. For the latest quarter, SIS posted profit after tax of Rs 93 crore on Rs 3,549 crore revenue. The two companies are being valued at 8-10x Ebitda or 0.5-0.7x revenue, comparable with the industry range. The transaction is expected to be funded purely by internal accruals.
SIS managing director Rituraj Sinha and APS Group couldn’t be reached for comment.
Large headroom for growth
Established in 1974 by Ravindra Kishore Sinha, SIS operates in Australia (through MSS, after the acquisition of Chubbs Security in 2008), New Zealand (through P4G) and Singapore (through Henderson), apart from India. It’s among the top 10 globally in terms of revenue and employees. SIS has a pan-India presence through 293 branch offices, 50 regional offices and 29 training academies.
The promoters, led by chairman RK Sinha and his son Rituraj, owned 72.14% of SIS at the end of June. The rest is held by institutional and retail shareholders, including sovereign fund Abu Dhabi Investment Authority (ADIA), which owns 1.67%. Its current market value is Rs 5,147 crore. Over the six months to early September, its share price rose 20% on the BSE in anticipation of growth stabilising after Covid-led market disruptions.
SIS has attracted institutional capital to fuel its expansion. It raised Rs 50 crore from DE Shaw in 2007, selling a 14% stake. DE Shaw exited in 2013, selling to CX Partners at a sevenfold return. CX Partners exited after SIS was listed in 2017.
SIS sees significant headroom for growth in India, where it has only a 5% market share versus global peers who are at 10–15%. The security services industry comprises 20,000 small to mid-sized unorganised companies with only 8-10 operating pan-India. Intense competition constrains scalability, pricing power and profitability, said a Crisil report.
Unorganised players hold around 65% of the domestic market and organised companies may see their share increase over the medium term, with additional focus on compliance and stricter enforcement of the minimum wage bill, besides the implementation of legislation pertaining to the industry.
The transaction, expected to be completed in parts, will have SIS acquire 51% in the first step. Over the next three years, depending on certain performance-linked milestones, SIS will buy the residual 49%, resulting in market consolidation.
Private security alone is a Rs 1 lakh crore industry as per a Ficci Grant Thornton report, employing over 5 million personnel.
Once completed, the SIS headcount is likely to touch 350,000, making it one of the largest private employers in India.
Besides security solutions, SIS also provides facilities management and cash logistics services. Facilities management solutions include cleaning, technical and soft services, pest control and business support under brands such as DTSS, SMC, Rare Hospitality and PestX. It offers cash management services through joint venture SIS Cash Services and its subsidiary SIS Prosegur Holdings. They handle cash in transit services, retail cash management services, and ATM cash replenishment. AP Securitas (APS) is a private company owned by Anil Puri and his family. The company clocked Rs 1,100 crore in revenue in FY25. Acquiring it will help SIS leverage technology, capital and expertise, especially in key segments such as BFSI and logistics. APS has a headcount of 40,000 employees.
After the consolidation, SIS’ revenue is set to touch Rs 15,000 crore in FY26, as per industry estimates. For the latest quarter, SIS posted profit after tax of Rs 93 crore on Rs 3,549 crore revenue. The two companies are being valued at 8-10x Ebitda or 0.5-0.7x revenue, comparable with the industry range. The transaction is expected to be funded purely by internal accruals.
SIS managing director Rituraj Sinha and APS Group couldn’t be reached for comment.
Large headroom for growth
Established in 1974 by Ravindra Kishore Sinha, SIS operates in Australia (through MSS, after the acquisition of Chubbs Security in 2008), New Zealand (through P4G) and Singapore (through Henderson), apart from India. It’s among the top 10 globally in terms of revenue and employees. SIS has a pan-India presence through 293 branch offices, 50 regional offices and 29 training academies.
The promoters, led by chairman RK Sinha and his son Rituraj, owned 72.14% of SIS at the end of June. The rest is held by institutional and retail shareholders, including sovereign fund Abu Dhabi Investment Authority (ADIA), which owns 1.67%. Its current market value is Rs 5,147 crore. Over the six months to early September, its share price rose 20% on the BSE in anticipation of growth stabilising after Covid-led market disruptions.
SIS has attracted institutional capital to fuel its expansion. It raised Rs 50 crore from DE Shaw in 2007, selling a 14% stake. DE Shaw exited in 2013, selling to CX Partners at a sevenfold return. CX Partners exited after SIS was listed in 2017.
SIS sees significant headroom for growth in India, where it has only a 5% market share versus global peers who are at 10–15%. The security services industry comprises 20,000 small to mid-sized unorganised companies with only 8-10 operating pan-India. Intense competition constrains scalability, pricing power and profitability, said a Crisil report.
Unorganised players hold around 65% of the domestic market and organised companies may see their share increase over the medium term, with additional focus on compliance and stricter enforcement of the minimum wage bill, besides the implementation of legislation pertaining to the industry.
You may also like
'Valsala Club' brings a bizarre village tradition to the big screen
Fees of more than 1 crore and royal style, this is the world's most expensive school.
MBBS doctor shoots himself in head in Muzaffarpur
"Mamata Banerjee's party will be finished after next elections": BJP's Dilip Ghosh
PM Modi will not address General Debate at high-level UNGA session
