eBizwire_ August 2012_Final (Edited)

7/30/2019 eBizwire_ August 2012_Final (Edited)

1/10

F o r m o r e i n f o o n B u s i n e s s s e t u p v i s i t w w w . s t a r t b i z i n d i a . i n

P a g e | 1 For Business setup queries email [email protected] or call at 011 4062223

Insight

Biz India News 2

Biz Policy Updates 3

The Indian Security Industry 4

Business Idea of the Month 7

StartBizIndia Discussion Platform 8

Upcoming Business Summit 9

Contact us 10

eBizWireVol . I Issue. VII, August 2012

Industry of the Month

Security Industry in

India
http://www.startbizindia.in/http://www.startbizindia.in/http://www.startbizindia.in/mailto:[email protected]:[email protected]:[email protected]://www.startbizindia.in/


2/10



Biz India News

Public sector miner Coal India Ltd has lined up an investment of Rs 7,500crore to develop railway tracks and related infrastructure to evacuate coalfrom Chhattisgarh, Jharkhand and Odisha. These would help the company to

evacuate around 100 million Tonnes (mt) of additional coal from each of theStates on 16th July 2012.

The Central Board of Secondary Education (CBSE) is likely to take the leadin introducing financial education in its post primary level curriculum aftertaking a leaf out of Reserve Bank of India's financial literacy goal on 17

th

July2012 RBI recognises that basic knowledge about monetary aspects play akey role in financial inclusion and inclusive growth. Imparting financialeducation among the masses at the early stage of a life cycle can make areal difference in a country where many do not get the opportunity to studybeyond school level.

On 18th

July 2012, Ford India has expanded the diesel engine production

capacity at its plant in Maraimalainagar, near Chennai. This, the companyhopes, will help address the supply constraint it faced early this year. In thefirst quarter of the year, Ford Indias Chennai plant was unable to meet thedemand for diesel power-trains. Customers had to wait for three months tohave their cars delivered.

On 19th

July, 2012, Mankind Pharma planned for a major turnaround over thenext two to three years. The Rs 2,000-crore Company, best known for itsconsumer brands like Prega News, Manforce, Unwanted-72 and Kaloree-1,is now eyeing the market for diabetes and cardiovascular drugs to recordgrowth in both turnover and profit.

On 20th

On 22

July 2012, Onco Therapies, a wholly owned subsidiary of pharma

company Strides Arcolab, has received two US FDA (Food and DrugAdministration) approvals for Fluorouracil Injection USP. Fluorouracil is partof the oncology portfolio licensed to Pfizer for the US market and expected tobe launched shortly, a press statement said.Fluorouracil is a chemotherapydrug which interferes with cells making DNA and RNA, and stops the growthof cancer cells. It is used to treat several types of cancer including colon,rectum, and head and neck cancers.

nd

July, 2012, Pranab Mukherjee was elected the 13th President ofIndia, capping the long innings of the veteran Congress leader and theparty's chief troubleshooter over the past eight years. The former financeminister and the candidate of the ruling UPA, who garnered 69.3% votes,defeated his rival PA Sangma, the candidate backed by AIADMK, BJD and

NDA (minus Shiv Sena and JD-U), by a bigger than expected margin.

The Diamond business in India is growing at 20 % year on year. Globally thediamond market is seeing a single digit growth of 3-5 percent. Forevermarkis growing at 50 percent worldwide well above the global growth. But ourbase is small since we launched only in 2009, said Mr. Lussier, De BeersED, External and Corporate Affairs on 23

rd

Headlines

July, 2012.

Coal India to invest Rs 7,5cr on rail infrastructure inStates

CBSE agrees to introdufinancial education in schocurriculum

Ford expands diesel engi

capacity at Chennai plant

Mankind Pharma set to tcore drugs market

Strides Arcolab unit ge

USFDA nod for anti-cancinjection

Pranab Mukherjee elect13th President of India

India to contribute 20% Dee Beers diamond sales5 years


3/10



Biz Policy Updates

New Investment Scheme for QFIs

With a view to promoting further investment in India by Qualified ForeignInvestors (QFIs), Reserve Bank of India has come out with a Scheme forInvestment for QFIs in Indian corporate debt Securities vide its A. P. (DIRSeries) Circular No. 7 dated 16.07.2012. The Indian Corporate Debtsecurities means listed Non-Convertible Debentures(NCDs), listed bondsof Indian companies, listed units of Mutual Fund debt Schemes and to belisted corporate bonds.

QFIs can invest in these securities subject to certain terms and conditions

enumerated below:

QFIs are required to open a single non-interest bearing Rupee Account

for routing the receipt and payment for transactions relating to purchase

and sale of securities.

The funds in this account shall be utilized for purchase of eligible

securities for QFIs or for remittance (net of taxes) outside India.

Sale of eligible debt securities can also be done through a registered

stock broker on a recognized stock exchange in India.

QFIs would be allowed to open a single DEMAT account with a QDP in

India for investment in all eligible debt securities

Total overall ceiling of investment is USD 1 billion. This limit shall be

over and above USD 20 billion for FII investment in corporate debt.

Foreign inward remittance shall be through normal banking channel in

any permitted currency (freely convertible) directly into the single non-

interest bearing Rupee account.

QDPs will ensure KYC of the QFIs as per the norms prescribed bySEBI. AD Category-I banks will also ensure KYC of the QFIs for

opening and maintenance of the single non- interest bearing Rupee

accounts as per the extant norms.

The pricing of all eligible transactions and investment in all eligible

securities by QFIs under this scheme shall be in accordance with the

relevant and applicable guidelines issued from time to time

In addition to the reporting to SEBI as may be prescribed by them,

QDPs and AD Category-I banks (maintaining QFI accounts) will also

ensure reporting to the Reserve Bank of India in a manner and format

as prescribed by the Reserve Bank of India from time to time.

Relaxation:-

No more requirements for opening and maintenance of a single rupee

pool bank account by the QDP and QFIs can henceforth invest in all

eligible securities for QFIs through a single non- interest bearing

Rupee Account.

Legal Headlines

New Investment Schemfor QFIs


4/10



TheIndian Security Industry

With 28 states, 7 union territories and a population of 1.22 Billion; India

sure is a huge country. With the huge size comes a huge list of needs.

You would say Food security, Education, Infrastructure, Transport, Good

Sanitary conditions, Social welfare et al. Did you say Security?

Maslow, a world famous psychologist known for his hierarchy of needs;

brought to paper the thought which people generally fail to realize. The

second most important need after food & shelter is the need for protection

& security. That comes even before the need for love, social esteem and

self-growth. Believe it or not; ask yourself and youll know its true.

Though we hardly notice it, security finds a place in the country as a full-blown security industry which is growing steadily year after year. In fact,its true that there are more security guards than the number ofpolicemen.

The private security industry is growing rapidly around the globe andemploys twice as many people as governments have police officers

REUTERS

The security Industry can broadly be categorized into 2 parts;

Particulars Services Sector Systems Sector

Classification Private manned

guarding (i.e. security

guards) & Investigation

Services

Security through

devices (i.e. Bank

alarms, system

integrators, CCTV,

Access Controls)

Major Players

G4S, SIS, Tops, SDB,

Cisco, Peregrine,

Checkmate, Premier,

GI Security among

others

Honeywell, GE,

Bosch, Tyco,

Siemens, HID, etc

Services Sector:-

This sector by and large comprises of the manned guarding services and

it dominates the Security industry in India. It has some giant players whichoperate nationwide through their regional and city offices.

They even provide in-house training facilities and job orientation

programmes. There are smaller companies as well but owing to the less

funds available; the quality of their services cannot be compared.

Indian Security Market

Statistics Globally, US$1

billion industry, whiis quite huge

Growth rate of 20over past 10 years awould achieve a rate 25% annually in futur

1/3rd

Number of SecurCompanies: 15000

spend on airposecurity

Number of PrivaGuards: 5.5 millioapprox.

(Source: Security Report ASSOCHAM in 2011)

Investigation

Services

Manned Securit

Security System

SecurityAssessment

Fire Detection

Security

Industry

Services Systems


5/10



The Indian Security Industry

Around 15000 security companies employing about 55 Lakh security

guards, the Indian security services industry is touted to grow at a very

high rate as per the report on Security Industry by Assocham. Not onlythis, the industry happens to be the countrys largest corporate tax payer

as per the Central Association of Private Security Industry (CAPSI). The

change in the growth rate is a substantial development because just

before the barbarian terrorist attacks in Mumbai that shook the whole

country; the security sector was witnessing a growth of 20% per year.

The government is the major player in ensuring security. A number of

innovative projects like Crime and Criminal Tracking Network and

Systems (CCTNS), Immigration, Visa and Foreigners Registration &

Tracking (IVFRT), National Intelligence Grid (NATGRID, etc. are being

implemented where tremendous opportunities exists for the private sector.

Systems Sector: -

Started with very basic devices like bank alarms, this sector has rapidly

grown to include devices made with the state-of-art technology like

CCTVs, Access Controls, Intrusion Detectors, Door intercoms, etc. It is

majorly an import based sector with more and more foreign players

coming to India and collaborating with the domestic businesses,

appointing distributors and offering sales & after sales support.

The security equipment is largely imported from USA, UK, Germany,

Singapore, Italy, Hong Kong, Israel, Japan, Korea, China and Taiwan.

The framework regulating the Security Agencies:-

To improve the benchmarks for private security in the country and

regulating the industry through a licensing process, Private Security

Agencies Regulation Act was enacted in 2005. The act therefore sets

forth various standards and requirements which need to be fulfilled if a

Private security agency wishes to get licensed. Some of them are:

160 hours of training before deployment.

Owners and major shareholders of the agency to be citizens of

India. (Foreign firms are however allowed to enter into a

relationship with domestic ones) Verification of antecedents of the person wishing to start a

business in private security.

Maintenance of registers containing details of security officials,

managers, supervisors, clients and other such particulars as may

be prescribed.

Security Equipments Mark

Gadgets used:

CCTVs

Access Contr

Systems

Metal Detectors

Security Doors

Door Intercoms

Gadgets imported from differe

countries like Israel, Chin

Korea, UK and US

Steps to start Secur

Business in India:

Register Business Ent

(Company/LLP)

Obtain Basic T

Numbers PAN & TAN

Register under Labo

laws

Register under Shops

Establishment Act

Get PSRA license


6/10




How to get registered as a Private Security Agency:-

The following simple steps need to be followed to get registered as a

Private Security Agency:

Registering your business venture after checking the availability of the

desired name.

Registering for Income Tax and other Statutory Authorities i.e. applying

for basic tax numbers;

i. PAN

ii. TAN

iii. Service Tax

Registering your Domain Name

Opening a Current Account with the Bank

Obtain License under Private Security Agencies (Regulations) Act,

2005 (PSRA)

Registration under various Labour Laws

Registration under Shops & Establishments Act, 1948

Arranging for guards and security equipments

Challenges faced by the Security Services Sector:

Though the industry is flourishing, some bottlenecks which are mentionedbelow continue to plague the sector.

A typical security guard in the country generally lacks proper training;

is often under-screened, not properly supervised and not paid

satisfactorily.

The industry still hasnt bloomed properly. The quality of officers is

improving but only gradually; and hence that difference in the quality of

services offered is not very prominent in spite of the increasing

investments in this sector.

Though guards are trained in areas like firefighting, fitness, reading &

writing in English, the training needs to be more rigorous.

Lack of uniformity in adoption of the Private Security Agencies

(Regulations) Act 2005 has caused inconsistency in the security of one

state and the other. Only 10 states out of the 28 have adopted the Act

so far. Soon, 3 more states are expected to follow the suit.

Some business groups are at loggerheads with the State Governments

which is a cause for delayed implementation of the law in those states.

Some states have their own regulations as far as the security isconcerned which makes it unclear as to which law is given precedenceover the other. Especially after the Mumbai attacks, the government isfacing a lot of pressure to grant license to security guards to carryweapons

Companies in SecuriIndustry in India

Security Servic

Business in India:

Guarding Service

ATM Security

Background Screenin

Manpower Consultanc

Event Security


7/10




Foreign Direct Investment

The FDI in the private security sector is limited to 49%. It seems to be the

perfect proportion which this industry can expect because of the following

advantages:

It allows the indigenous security firms like SIS to gain a strong

foot-hold in this fast growing sector.

Foreign players bring along expertise through their tie-ups; whichis genuinely important for the security of our country.

Source: FDI policy

Business IDEA OF THE Month

The Foreign Comrades

A big positive for the sector

that players in the forei

market are coming forward

collaborate with the domes

agencies. Such partnershican do a world of good for t

Indian security indust

Interest has been shown

foreign entities in the followi

way:

Joint venture betweARES Group (Israand APS Group (Indiwith the Israel fiproviding consultan

and training to the Indipartner.

Israel Military Instituoffers training coursfor Indian SecurExecutives.

American consultancAFI International hoffered to provitraining to third-paprivate security officiaof its clients. It ficonducts an audit figure out the weareas in the trainiprotocols of the clieand then works addressing tproblems.

Events Security Service

India is a land of entertainment and Indians are obsessed with

noise. Thanks to that, abundant concerts, programmes, showsand other public gatherings are organized throughout thecountry. But along with that, we also quite frequently hear aboutsuch events being cancelled. No prizes for guessing! Security ofsuch huge mass of people is always an issue, sometimessolved and sometimes not. Terror threats, lack of security andsubsequent chaos; is all it takes to turn a well planned eventinto a disaster.

So much chaos and you expect a business opportunity here?No kidding! If you are a person who likes to network and has animpressive list of contacts, then this is the avenue for you.

If you happen to know people in the entertainment industry, areon good terms with the police officials and are familiar with aslew of event organizers, then there you go! Relevantregistrations and license is all you need and you can take itfrom there. What more? There are enticing prospects to expandto security guards services as well!


8/10



StartBizIndia Discussion Platform

NRI wants to open a Garment Manufacturing Unit in Free Zone in India.

He wants to manufacture or import the raw materials from outside

India and export the finished goods back. Please advice for suitable

location. What is the minimum investment required to set up theproject? Can he apply for PAN Card in the capacity of NRI?

Free Zone covers SEZ (Special Economic Zone) and EOU (Export

Oriented Unit). Since, you want to manufacture garments in India and

export it to outside India, so, it is recommended to choose setting up of

EOU (Export Oriented Unit). The biggest advantage of setting up EOU is

that the unit can import capital goods, raw materials, consumables,

packing material, spares etc. without payment of customs duty. Similarly,

these can be procured indigenously without payment of excise duty.

Second hand capital goods can also be imported.

The incentives are as follows:-

a. Exemption from customs/excise duties.b. Income Tax exemption on income derived from the business of

development of the EOU in a block of 10 years in 15 years under Section80-IAB of the Income Tax Act.

c. Exemption from minimum alternate tax under Section 115 JB of theIncome Tax Act.

d. Exemption from dividend distribution tax under Section 115O of theIncome Tax Act.

e. Exemption from Central Sales Tax (CST)f. Exemption from Service Tax

100% FDI investment is permitted through Automatic Route. The suitablelocation is Noida, Uttar Pradesh in North India.

Minimum investment in plant and machinery and building is Rs 100 lakhs

(INR) for EOU. This should be before commencement of commercial

production. In case of SEZ, there is no minimum requirement in terms of

investment. The minimum capital requirements of forming a Private Limited

Company are Rs. 1 Lakh (INR). In addition to this, the other costs will

depend upon number of factors such as size of the business, location, land

cost, etc.

As far as applying for PAN card is concerned, NRI can apply for PAN inIndia by submitting certain documents to Income Tax Department


9/10



Upcoming Business Summit

Positioning Bengal Partnering for Growth, Development and

Sustainable Security

The tremendous growth potential of West Bengal has drawn ASSOCHAMs

attention towards it and has given us a sturdy reason to come up with this

Seminar. The prime objective of the seminar is to review current policies of

the State Government for promoting investment in diversified sectors,

besides exploring new investment opportunities in various booming sectors

of the State.

Date: 22th

Venue: Hotel ITC Sonar, KolkataAugust, 2012

Social Entrepreneurship: Sustaining Business for Society

Indian School of Business is organising Social Entrepreneurship: SustainingBusiness for Society programme. In this programme, cases of socialventures at different stages of development will be studied.

Date: 27th

August 2012 to 29th

Venue: Indian School of Business, Gachibowli, HyderabadAugust 2012

SME ICT SUMMIT

The Summit aims to equip SMEs with the tools, resources and informationthey need for business readiness and staying ahead of market trends withthe use of different ICT solutions.The Summit will bring together thedistinguished speakers from information technology sector to exchangelatest information on various IT solutions available for SMEs, various ITstrategies SMEs can use in order to enhance their growth, challenges facedby SMEs for IT implementation.

Date: 7th

Venue: Hotel Sofitel BKC, MumbaiSeptember 2012

National

Positioning Beng

Partnering for GrowDevelopment aSustainable Security

Social Entrepreneurship:

Sustaining Business for

Society

SME ICT SUMMIT


10/10


P a g e | 10 For Business setup queries email ath @i di ll t 011 40622239

Contact Us

Disclaimer:

This paper is a copyright of Corporate Professionals (India) Private Limited. The entire content of this paper havbeen developed for the new startups. The author and the Company expressly disclaim all and any liability to aperson who has read this paper, or otherwise, in respect of anything, and of consequences of anything done, omitted to be done by any such person in reliance upon the contents of this paper.

Neha Seth

E: [email protected]

D: +91.11.40622239

Visit us at

A Venture of

D- 38, Ist Floor, South Extn. Part I New Delhi

110049

T: 40622200 F: 91.40622201


Shipra Paul


D: +91.11.40622246

eBizwire_ August 2012_Final (Edited)

Documents

Transcript of eBizwire_ August 2012_Final (Edited)