Press Room
Prosegur and SIS agree to provide Value Logistics and Cash Management in India
Prosegur and SIS, head of a major security groups in Asia, agree to set up a company based in India, subject to certain conditions precedent by the local authorities, where they intend to develop the business of Value Logistics and Cash Management.
Madrid, May 26, 2011. - Prosegur and SIS have formalised an agreement for a Joint Venture- through which each will have a share of 49% and 51% respectively in the company based in India, where they will provide Value Logistics and Cash Management.
As part of the agreement reached, subject to certain conditions precedent by the local authorities, among which is the approval by the local authorities, SIS will provide the new company its Valuables Logistics and Cash Management division and Prosegur will conduct a capital increase to the amount of approximately Euro 11 Mn.
With this operation, Prosegur continues to develop its policy of business development in geographical areas where it does not yet operate.
The Indian security market is one of greatest in the world, although it is very fragmented at the moment. It is characterised by its great dynamism, showing growth rates of over 20%.
The Values Logistic and Cash Management market in this country offers great opportunities for expansion. This is due to the level of development in this market, the growth of the banking among the population and also the increase of ATM’s. On the other hand, the banking sector is undergoing a process of externalisation with the aim of improving the efficiency of its operations.