Private security firms employ 100k guardsThe number of private security companies has jumped along with a rise in investment and crime rates.
The number of private security companies has jumped along with a rise in investment and crime rates. These firms employ nearly 100,000 registered security officers who guard business premises across Nepal. This figure is almost equal to the number of Armed Police and Nepal Police personnel.
Demand for security services has been growing with an increase in safety and security awareness among clients, particularly business houses, industries and private and public offices, said Mahesh Shrestha, managing director of G4S, a multinational
security guard outsourcing agency. Demand has been swelling mostly in the banking sector.
Similarly, demand for security services in diplomatic missions, industries, hotels, schools and colleges, residences, cinema halls and shopping malls have surged in recent years. “The industry has been making a big contribution to the country by providing employment,” said Shrestha.
Apart from G4S, domestically well known companies such as Garud Securities and Kalinchowk Securities provide services as per demand. According to the Office of the Company Registrar, 1,090 companies are registered under the security service category.
According to Shrestha, revenue has been growing at the rate of 20 percent annually at G4S. “The company posted a turnover of Rs970 million in the last fiscal year 2016-17. Transactions are expected to reach Rs1.2 billion by this fiscal year,” said Shrestha. Currently, G4S has 5,700 employees.
G4S plans to provide specialized security services especially for hospitals and hydropower projects. Beside manned and electronic security services, G4S offers earthquake, fire and natural disaster evacuation services. The company is also providing dedicated 24-hour distance surveillance security and standby response.
The security business is booming with the country’s business environment improving, said Sabal Shah, managing director of Garud Securities.
“As the business and industrial sectors grow, the security sector is also expected to expand,” he said.Garud Securities has recorded an annual business growth of more than 25 percent for the last four years. “The company saw a turnover of around Rs850 million in the last fiscal year while it is expected to reach Rs1.05 billion this fiscal year,” said Shah.
Beside manned guard services, Garud Securities provides VIP, event and cash value in transit (CVIT) security services. The company also has a dog section for search related work. It recently started a disaster unit.
Garud Surveillance and a sister organization under Garud Securities offer electronic security services. Garud has a total of 5,000 employees. The company has nine branches outside the Kathmandu Valley.
Madhusudan Rayamajhi, general manager of Kalinchowk Security Service, said that the company posted a growth of 20 percent in the last fiscal year. Business is expected to increase at a healthy rate this fiscal year, he added. The company recorded a turnover of Rs190 million in the last fiscal year and expects revenues to reach Rs200 million this year, he said.
According to Raymajhi, 1,200 among its 1,600 security guards provide security services in the banking sector. The remaining 400 are provide security services in other sectors. The company offers different types of physical and electronic security services.
Even though the security business has been expanding rapidly, the sector faces various challenges due to lack of legislation. In the absence of a governing body and specific laws, unhealthy competition has grown, said security companies.
If the government introduces a quality rating system for security service companies, it will help business to grow, Shrestha said. In addition, a manpower shortage is a major challenge, according to Shah. He said that people prefer to work as security guards in the Gulf as the salaries are higher.