TOPSGRUP - Key Family Members

TOPSGRUP^©SM Acquires 51% in Shield UK

TOPSGRUP ACQUIRES 51% Shield, U.K. MAJORITY STAKE IN A US$ 140 MILLION BRITISH SECURITY COMPANY - ‘THE SHIELD GUARDING COMPANY LIMITED’

In the first ever overseas acquisition by an Indian security company, TOPSGRUP with a market capitalization of Rs 1000 crores (07-08) has acquired a 51% majority stake in UK’s leading security service provider ‘The Shield Guarding Company Ltd’ for an all cash deal of Rs 125 crores.

Dr. Diwan Rahul Nanda,
Global Chairman & Managing Director, TOPSGRUP and Gerald Paxton, Executive Chairman, Shield raising a toast to the glorious partnership.

According to Dr. Diwan Rahul Nanda, Global Chairman & Managing Director, TOPSGRUP, “Shield’s acquisition in the United Kingdom will act as a strategic gateway for our global growth plans in the coming years. Shield with its great business ethics coupled with a strong management team and a loyal customer base has great synergies with TOPSGRUP. We envisage a lot of cost and experience sharing benefits across both companies that will benefit the Indian and the British customers and employees as well. This is a proud moment not only for TOPSGRUP but for the entire Indian security industry”

Currently, TOPSGRUP is India’s preferred security solutions provider with a human capital base of 65,000 employees partnering with over 6,000 customers through its pan India network of 110 offices.

TOPSGRUP through its aggressive organic and inorganic growth drive is poised to achieve revenues in excess of Rs 1000 crores by the end of the current fiscal. Very recently, TOPSGRUP also acquired a Rs 35 crore South Indian security company called Guardwell Detective Services Private Limited. Some of TOPSGRUP’s key partners include Tatas, Birlas, Reliance, Airtel, Oracle, HSBC, Stanchart, ICICI, Future group amongst others

The Shield Guarding Company Ltd, one of the top 10 market leaders in United Kingdom was established in 1987 and has an esteemed clientele spanning from Walt Disney, Fujitsu, Nokia / Vertu, Master Foods, Broadgate Estates, Ove Arup, Halliburton KBR,

Porsche amongst many others. The British firm offers specialized security services in the areas of manned guarding, door supervision,CCTV public space surveillance,

The Shield Board of Directors – all set to rule the world.

Dr. Diwan Rahul Nanda and Gerald Paxton with the key London operational team.

vehicle immobilization and cash in transit. Shield currently partners with over 350 customers, employs over 2500 human capital assets and operates out of 04 offices in the United Kingdom.
According to Gerry Paxton, Executive Chairman of Shield, “the strategic partnership of two nationally leading security brands augurs well for the rapidly growing global security industry which is estimated to cross the US $230 billion mark by 2015.

Shield is known for its business values, its focus on quality of service and commitment to the customersand its employees and we are delighted that we have found a perfect match in TOPSGRUP”. Shield promoted by Gerald Paxton recorded a turnover of US$ 121 million (Rs 484 crores) and a profit before taxation of US$ 4.5 million (Rs 18 crores) for the year 2007-2008. It is poised to achieve revenues in excess of US $140 million (Rs 560 crores) in 2008-2009.

TOPSGRUP, the first Indian MNC security provider offers tailor-made security solutions including manned guarding, electronic security systems, investigation, facility management, cash management, consultancy, advanced training and emergency response service called TOPSLINE 1252. Tops Security Limited, the flagship company of Topsgrup, holds the distinction of being the first security firm in India to land private equity funding in 2007. Last year, ICICI Venture invested Rs 115 crore ($28 million) for 13.69 per cent equity stake, while Indivision (the investment arm of Future Group) increased its existing stake in the company from 4.94 per cent to 7.08 per cent with an additional investment of Rs 25 crore ($6 million) taking its total exposure in TOPSGRUP at Rs 57 crore. Well known stock investor Rakesh Jhunjhunwala also owns 10.8 per cent stake in Tops and is a director on the prestigious board.

Closer home, the security industry, which is being termed as the ‘sunrise industry’ in the corporate sector; is estimated to be Rs 2,500 crores, fragmented by the unorganized sector at Rs 1500 crore. It is growing at a staggering compound annual growth rate (CAGR) of 25 per cent, and is expected to be a dominating sector in the coming years. The security industry worldwide is currently pegged at $141 billion that includes guarding, investigation and electronic security.