Security is a very sensitive thing. For the normal person, it might not seem like a lot simply because incidents so not happen to a single individual regularly. We tend to take it in a very lax manner. However, for the security guard, it can be a very tough job. Although they don’t have to handle security breaches often, they do have to stay in constant vigilance, looking for threats.
Security businesses and the industry as a whole maybe considered something not a lot of people know about in great detail. Security businesses are very different from the businesses we’re familiar with here at SD Asia.
We recently had the opportunity to meet Farhan Quddus, Managing Director at Securex and ask him questions about his company, the service provided and the industry in general.
1. Tell us about Securex in General and the service you offer to your clients.
Securex is the first company to operate in Bangladesh. It started off in 1988. We were also a startup providing security guard services. Our first client was an advertising agency, AdCom. At the time, very few people heard of the idea or the mindset that you could commercialize the traditional ‘darowan’ (guard) concept. We took the plunge and provided services. Then, it spread rapidly. The moment we got into banks: Citi Bank, Standard Chartered bank, AB Bank and so on, we exploded. The growth was phenomenal.
We started with 3 guards, and in 1991, three years after business, we had a couple hundred guards. We marketed and made cold calls as much as possible. A few years after we started, other security companies joined in. At that time, I think it was more of a fad. A lot of people were thinking having a security guard was like a fashion statement. But they soon realized it was actually a need. Every business has its own focus, has its own manpower for what they’re supposed to be doing. Companies Outsourcing security helped us a lot.
In 1991, we got into Cash in Transit. This was something that came out of chance. We noticed that in the west, banks used vehicles and crew to carry cash. The first bank we went to laughed us off. They said “Why should we give you the money to carry when we can do it ourselves?”. We found out, incidentally, that the very same bank had a break in at one of their cars and they lost between 60,000- 100,000 taka (Which was a lot of money in 1991). Immediately, they called us back and said “the concept you talked about, let us go through it and see the terms and conditions’. We started offering that service and whatever we did, with the security guard service and the cash in transit, we catered to what this country requires and modified it according to the infrastructure. We questioned ‘What if we bring in those huge, modified cash carrying vehicles?’ We looked at the situation and thought “Look, those huge cars that you see that look like tanks, we could easily get them from Hong Kong or China. But they don’t fit into the roads and highways here.” Anything goes wrong, we can’t fix it. So what we did is that we modified the vehicles already running on roads, and modifying it according to others’ judgement, putting sheet metal on the bottom, putting sheet metal and plywood on the sides. This is sufficient for the threat we face nowadays.
When the concept stayed, the cash carrying business also expanded. Banks felt a huge sense of relief letting trusted outside vendors handle cash carrying. The money is already insured. So there was no risk of losing the money. Bank personnel were free to do their actual job, which is banking. Other banks joined in soon afterwards.
Now we see that its not just the banks and the financial institutions that need security services. Factories, normal businesses, anybody who has any sort of cash lying around and needs it to be moved from one place to another, they started approaching. So now we have a couple hundred clients who are doing this on a regular basis. We have about a 120 cars all over Bangladesh now. These cars are carrying huge amounts of cash.
2. Tell us the clients you offer services to.
The first question any interviewer or lay person would normally ask is ‘How many guards do you have?’ But what we do here is we don’t gauge the strength of the company by security guards alone. And that’s one of the reasons why we have not expanded our security guard service that much. Other companies have Ten-Fifteen thousand guards. We have kept the number at five thousand. Our philosophy is that we have to combine human resources with electronic and physical products. So what we are doing now is that we are focusing more on Cash in Transit. We have been focusing on cash management. We carry parcels and bank notes. We do ATM cash management.
What we tried to do is diversify from the human resources part as much as possible. The cost of the guard is so little, we felt that it would be very hard to provide proper service unless their income goes up. So, the best thing to do is instead of providing a hundred guards, we provide fourty guards and augment that with electronic equipment. The electronic products help minimize the human resources factor. If I could have a room guarded, I could do it with ten guards, or I can do it with one guard and electronics. If you look at a bigger picture, the same thing can be done with factories and other places. We’re focusing a lot on equipment.
3. So would you say that augmenting human-guards with technology is more cost-effective?
It is definitely more cost effective. It is also going to be more efficient in the long run. One of the things we’re trying to do is sit with the authorities and hike up the price of the security guard. This has to be done. Just as the government is pushing to increase the minimum wage of garmets’ workers, we feel that it is important to increase salaries of security guards. People forget that a security guard’s job is a very sensitive aspect, even though it does not look like it.
Think about it, if you have one guard or seven guards outside a building and god knows what inventory you have inside. You’re paying 25,000 taka for those three guards, you cannot expect them to properly safeguard things. That’s even cheaper than insurance. An insurance policy can cost, let’s say, three lakhs.
4. Tell us about your own journey at Securex.
I was in America, working in insurance, when my father started this business in 88. I came back and joined. Since then, it has been one big ride. It has been a terrific journey because the industry is growing. There are about 450 security companies in Bangladesh. There are six major players in the industry. the security services business is easy to get into. Suppose you’re a seargent in the army and you retire, and you say “Okay, this is my neighborhood. There are 200 houses. Let me pool together 50 lakhs taka in money. I’ll pay x amount of money to people to police the area and I will collect a service charge’.
5. I believe your hiring process prioritizes former military officers.
Not really. Retired military personnel are very costly nowadays. With the UN missions and everything, by the time a soldier or an officer retires, he already receives a big lump sum as pension. They are absolutely set. He can go back to his village and set up a shop and doesn’t need work.
What we do offer in our services are several tiers. The premium tier is a very expensive service that comes with a high-end security guard. The guard takes a huge salary, has many responsiblities and has a high stature. He looks forbidding. For that kind of service, we do hire ex-military people.
We also provide close proximity officers. They give protection and use intelligence for the movement of VIPs.
6. What are some of the challenges you face while running a security services business?
It is a thankless job. Because we’re performing and serving 365 days a year, 4 weeks a month, 7 days a week and 24 hours a day. If we do something good, we get a pat in the back. If we do something wrong, or if the client is not satisfied…. it is after all, a service and things can go wrong. It is continuous, so there is always a problem. One of the major challenges is firearms. The security situation in the country has gone to the level where it seems that security guards should have firearms.
7. So would you say that all guards shouldn’t carry around firearms but they do have to?
We can’t. We cannot use firearms anywhere except on our cash carrying vehicles and on bank security duty. We provide the man power, they (the banks) provide the gun license
8. How is business going these days and what plans do you have for Securex in the future?
What we have done in the last 7-8 years is that we have diversified into a complete security solutions provider. We come to you and say the measures that will need to be implemented.
9. Can you tell us about competition such as Elite Force?
If you look at Elite Force, which is a very good company, it is constituted and run mostly on manpower. They provide security services. In the market, we are number one as far as cash carrying and cash management is concerned. Our guard services may not be on the top and we choose to leave it that way, as our focus is on electronics.
10. Would you like to add anything else?
For customers, when you’re choosing a security company, looking at what the company is giving you in a whole package. It is not just about the number of cars and guards. You have to look at the experience, you have to look at the management and the offices. We have four offices in Dhaka.
And security does not come cheap. If it comes cheap, then there’s something not worht protecting, in my view. If you want good security, you must be prepared to pay the price for it.
11. What advice would you give to any entrepreneur or person coming into the security business?
One thing I give priority over is verification. We check the background of the people we consider hiring. You’ll be shocked to know that many people who work in large corporate houses don’t have the real background they put on their CVs. We have a separate department that does a thorough background check on all our guards and ensure their backgrounds. We check with their union parshad chairmen. We check with the local polic station to see whether they have any previous crime record.
So, for anyone coming into the business, if you’re going to do it, do it right. Get your registration and your papers done correctly. Because a lot of the things I have talked about, such as factories, have benchmarks. And what you’ll be dealing with is a very sensitive thing. If not done right, it could result in loss of property.