Cognitive heritage of technology excellence
Gunnebo India, a subsidiary of the Swedish-based Gunnebo Security Group, has emerged as a dominant player in the security business in India. The parent company incorporated in 1764, is today a global security group with 5,800 employees in 33 countries and an annual turnover of EUR 580 million. Gunnebo’s portfolio today encompasses the entire gamut of security & safety systems and solutions, having brought the top-of -the-line international brands under its umbrella through acquisitions. Mr. P.K. Balasubramanian converses with Mr. Sandeep Deshpande, Managing Director& Country Manager – Gunnebo IndiaPrivate Limited to get a ringside view of the company’s products & services spectrum which is all-pervading, reliable and the best- in -class to help the customer maximize his ROI and ultimately get the much needed peace of mind. Excerpts:
Q. Gunnebo is a name to reckon with in the security solutions industry worldwide. What’s your standing today and how could you achieve this position?
We are a leading global supplier within safety & security products, systems & solutions, striving round the clock and all 365 days of the year to make the world safer – literally. We are not just a niche leader. Our solutions are unique, cutting across even competitive brands which are maintained and serviced by us. Being a system integrator, we at Gunnebo India partner with all OEMs for implementing different turnkey projects.
Besides our own broad portfolio of solutions, products and services we also partner up with world renowned brands in every category. We do so in order to provide the best solution for our customer’s needs, today and tomorrow. For our fast organic growth, we believe in leveraging upon existing brands of repute. This is how the brands trusted the world overlike Fichet-Bauche, Chubbsafes, Steelage and Minimax are under our umbrella. Minimax, for instance, is around since 1932.
Q. You have been operational worldwide. Could you throw some light on your gamut of activities and affiliations?
As for Gunnebo India, whose operations started within Steelage in 1932, many of our 32 sister companies around the globe has a long heritage. Being part of a global group among others means to take advantage of concepts and solutions already developed and implemented with customers in other parts of the world and bring them to India. For some parts of our portfolio we are self-sufficient through our well-equipped manufacturing facility at Halol in Gujarat. The plant also houses our centralized R & D whose onus is to innovate existing products, develop new products demanded by emerging applications and markets, and help in the industrialization process. For other ranges, we use our global supply chain, being a mix of own production in 11 global factories and partnerships.
When we talk about our global operations and spread, we have our presence in 33 countries. Our presence is prominent in Asia Pacific, Europe, Africa, Australia and North America. We are the global leading supplier of entrance control solutions for pedestrians, and in the US market, we are the second largest supplier of physical security equipment to the banking and governmental sector.
Q. What’s your market penetration – sector-wise?
We are there in all the domains, be it security solutions for banks, retail, CIT, airports, mass transit, offices and large institutions. Our portfolio includes cash handling solutions, safes and vaults, entrance security, electronic security, fire protection systems and security services
Q. What ‘s your product range and what are their applications?
As I said earlier, we have a basketfulof products representing virtually every domain. Our portfolio includes cash handling solutions, safes and vaults, entrance security, electronic security, fire protection systems, system integration and security services
Q. Frankly, there is no dearth of products in your class. That being the case, what is your differentiated offer to the discerning customer?
We differentiate from many of our competitors through our deep knowledge of the security business, together with our broad in-house portfolio of products, solutions and services. Unlike most competitors, security is all we do – this is our core focus and competence! To answer your question, our ‘Life cycle approach to service’ is something unparalleled. We are in constant touch with the customer who is using our products. When there are upgrades in technology/products, we share the benefits with the customers and help them go in for retrofitting so as to make the system contemporary. We also offer remote monitoring services to check intrusion and surveillance of customer premises.
Q. What’s your manufacturing set-up?
In India, our manufacturing facilities are in Halol, Gujarat. We have a workforce of 800 people. Here we manufacture all Physical security products plus our exhaustive range of Fire Extinguishers. We also have our full-fledged R&D set up here. Globally, we have additional 11 manufacturing facilities and an R&D-team of close to 100 people.
Q. Reliability is of paramount importance in safety products. How do you infuse quality and reliability in your range of manufacture?
We infuse quality and reliability in our design stage itself. Subsequently, the products are all manufactured to conform to our own stringent QC regimen. Our fire extinguishers, for instance, are designed to conform to the latest IS:15683-2006 which is in line with the latest internationally accepted standards in force in all developed countries. We have a fire test facility at Halol where these extinguishers are subjected to fire test as per this standard. The products coming out of our crucibles are of impeccable quality and rugged enough to fight the hazard of fire.
Q. What are the strategies you adopt to market these products at home and abroad?
While our HO is in Thane, we have a network of regional offices and branch offices strategically located to stay closer to the markets and the customers. Our regional offices are in Kolkata, Bangalore, Chennai and Noida, while the branches are in Chandigarh, Jaipur, Ahmedabad and Hyderabad. To secure full coverage of the Indian marketplace, we also have over a hundred channel partners with thorough product knowledge to sell and provide after-sales support. Also we have a dedicated team to handle key accounts. Our strategy is to serve our customer better, gain his satisfaction and be his dependable partner in progress.
Q. Could you give some insight into your operating philosophy and corporate governance?
Being part of a global group, we naturally have global, corporate governance procedures, starting with the code of conduct and our core values, and additional policies and guidelines within the field. For India, the main plank of our operating philosophy is high ethical standards in our diverse businesses. Our HR Head also acts as the Corporate Ethical Officer. All our communication channels are open to educate our own people on our beliefs and values.
Q. Do you foresee India as a potential and burgeoning market?
India is undoubtedly a burgeoning market and it is one of the top three growth markets in the world. Our global CEO often visits India and discusses global trends with key customers. We attach so much importance to India and its potential.
Q. What ‘s the status of the global security solutions industry?
In general, the security market is known to grow at 3-5 per cent more than average GDP. With this being said, there are of course wide differences around the Globe. In Asia -India in particular, we have seen an amazing growth within the sector over the past years, and our business is still growing with double percentages year-on-year. For Gunnebo, we can also see the same trends in many other Asian markets like Malaysia, China and Korea. Our sister companies in Americas also see a strong growth pace, right now especially in Brazil and Mexico. In Europe, the market situation in general is a bit different with many developed economies currently experiencing a financial slowdown. However security investment is something that normally is quite flat also in a recession. Especially for a company like Gunnebo with a well-developed service offering.
Q. What are the measures you take to maintain your leadership position?
Our success builds on long-term relationships with our customers. Together with them, we are striving to innovate all the time, to find solutions that will help our customer develop as well. We want to remain customer focused, giving more value and retaining the customer. We want to continue to be their selected partner in progress in the security domain.
Q. What are the technology trends that drive the security business?
If you visit a security fair today, the average exhibitor is in electronic security, especially CCTV and surveillance. For Gunnebo, the focus is more on how to integrate different applications into one solution, making life easy for our customers. There is also a trend where also more traditional security equipment like safes and vaults become intelligent and are connected online through locking systems and other security related equipment. We anticipate a big technological leap in physical electronic security and cash- related products. Convergence is possible on common platforms. So we must take cognizance of these developments and come out with solutions. If we have to make a dent in the market, we have to have a 360 degree approach.
Q. What are the extraneous factors that affect this business and what are the challenges ahead for a front runner like you?
The upheavals in the political and economic scenes will make an impact. Right now there is a slowdown in infrastructure. It is a matter of concern. The perception of the customer with respect to security also matters quite a lot. Many customers today want to ‘play safe ‘rather than ‘be safe’. This is a dilemma to be addressed. Customer awareness and education are to be stepped up.
Q. What are your inherent strengths?
Long and strong customer relations, strong brands, innovative products, purely focused on security, life cycle approach to security solutions, customer focus and a dedicated workforce yearning and trained for excellence make up our inherent strengths.
Q. What’s your roadmap for Gunnebo?
We want to grow faster than the market, doubling our turnover every three years. We want to maintain our leadership position and we want the industry to recognize us as the ‘thought leader’
Q. How do you look at the future?
The safety and security business in India is still at the nascent stage. We have a long way to go, giving clear-cut directions. The business is growing and will continue to grow at a rate of 12-15% for the next 5-10 years. Innovation and technology will change the landscape. Our estimation is that the market size in India is in the vicinity of a billion US dollar. Gunnebo India will continue to grow at 30-35% in the coming years. Overall, the future is quite bright both for the industry and for us.
