Skip to main content

The Rise of Cash Logistics Firms

From a Businessworld article:

The big four in the business — CMS, Brinks, SIS-Prosegur and Writers — share 80 per cent of the market between them and, on an average, cart Rs 20,000 crore in cash daily. Which means, in a year, it is a whopping Rs 73 lakh crore. Add all cash logistics firms (CLF) and it is Rs 91.25 lakh crore. A caveat: it does not mean that goods and services of equivalent value were sold or paid for; just that so much of cash moves about in vans.
- See more at: http://www.businessworld.in/news/business/corporate/cash-movers/1065291/page-1.html#sthash.vhRuidoI.dpuf
The big four in the business — CMS, Brinks, SIS-Prosegur and Writers — share 80 per cent of the market between them and, on an average, cart Rs 20,000 crore in cash daily. Which means, in a year, it is a whopping Rs 73 lakh crore. Add all cash logistics firms (CLF) and it is Rs 91.25 lakh crore. A caveat: it does not mean that goods and services of equivalent value were sold or paid for; just that so much of cash moves about in vans.
- See more at: http://www.businessworld.in/news/business/corporate/cash-movers/1065291/page-1.html#sthash.vhRuidoI.dpuf
Cash logistics gained speed in mid-1990s when foreign banks set up ATMs and pioneered doorstep cash service. It was to tip-toe over RBI’s strict licensing norms. The boom in retail (banking and sundry retailing) since means you have much more cash to sort, reple­ni­­­sh and carry around. It is estimated to be a Rs 1,500-crore industry: 8,500 cash vans ply on roads; employs 45,000 and expected to grow at 50 per cent annually.

The big four in the business — CMS, Brinks, SIS-Prosegur and Writers — share 80 per cent of the market between them and, on an average, cart Rs 20,000 crore in cash daily. Which means, in a year, it is a whopping Rs 73 lakh crore. Add all cash logistics firms (CLF) and it is Rs 91.25 lakh crore. A caveat: it does not mean that goods and services of equivalent value were sold or paid for; just that so much of cash moves about in vans.

...CLFs and security firms may be conjoined twins, but have distinct personalities. Explains Neil Prasad, regional managing director of G4S (South Asia): “It may seem a CLF is a logical extension for a security company. But a CLF requires extensive investment to mitigate threats. It requires a different set of technical know-how. Many ­local security firms neither have that financial bandwidth nor the technical know-how to operate as a CLF.”

Adds Aiyer: “It’s not to mean that cash logistics players will foray into the security business. Just that for security firms, cash logistics is an evolution. In the sense, you move up from protecting people and establishments to cash and valuables.” Adds Sinha: “Cash logistics is a sub-set of the private security industry. It accounts for 7.5 per cent of the industry, which is worth Rs 20,000 crore.” He seconds Aiyer on the link between the two: “Brinks, CMS and Writers have always remained CLFs and never ventured into the security business.” 

CLFs and security firms may be conjoined twins, but have distinct personalities. Explains Neil Prasad, regional managing director of G4S (South Asia): “It may seem a CLF is a logical extension for a security company. But a CLF requires extensive investment to mitigate threats. It requires a different set of technical know-how. Many ­local security firms neither have that financial bandwidth nor the technical know-how to operate as a CLF.”

Adds Aiyer: “It’s not to mean that cash logistics players will foray into the security business. Just that for security firms, cash logistics is an evolution. In the sense, you move up from protecting people and establishments to cash and valuables.” Adds Sinha: “Cash logistics is a sub-set of the private security industry. It accounts for 7.5 per cent of the industry, which is worth Rs 20,000 crore.” He seconds Aiyer on the link between the two: “Brinks, CMS and Writers have always remained CLFs and never ventured into the security business.”  But what you cannot get away is: no guns, no roses. - See more at: http://www.businessworld.in/news/corporate/cash-movers/1065291/page-2.html#sthash.z91H1Mfn.dpuf
The big four in the business — CMS, Brinks, SIS-Prosegur and Writers — share 80 per cent of the market between them and, on an average, cart Rs 20,000 crore in cash daily. Which means, in a year, it is a whopping Rs 73 lakh crore. Add all cash logistics firms (CLF) and it is Rs 91.25 lakh crore. A caveat: it does not mean that goods and services of equivalent value were sold or paid for; just that so much of cash moves about in vans.
- See more at: http://www.businessworld.in/news/business/corporate/cash-movers/1065291/page-1.html#sthash.vhRuidoI.dpuf
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Popular posts from this blog

VC Interview: Shailendra Singh of Sequoia Capital India

In a recent interview to Venture Intelligence, Shailendra Singh discussed some of the firm’s newer investments in the early stage segment including in the online payments space, the progress at a few existing portfolio companies and the active role the firm is playing in helping its portfolio companies scale and succeed in India and globally. Prior to joining the firm in 2006, Singh was a strategy consultant at Bain & Company in New York and before that, an entrepreneur in the digital media industry.

Venture Intelligence: How does Sequoia go about identifying potential early stage investments in India? Is there anything different you are doing today than, say, a couple of years back?

Shailendra Singh: There is a lot more focus on technology investing and early stage investing. In general, as you might remember a few years ago, we were doing primarily growth investing but in the past 18-odd months, we have had a very strong focus on early stage and that’s continuing. In terms of how…

KPMG Tops League Table for Financial Advisor to Private Equity Transactions in H1 2018

The transaction advisory unit of KPMG claimed the top position in the Venture Intelligence League Table for Transaction Advisor to Private Equity deals in the first half of 2018, advising deals worth $1.7 Billion. KPMG acted as the financial advisor to NHAI in the $1.5 Billion investment by Macquarie to operate 9 highway projects under the toll-operate-transfer (TOT) model. Ernst &  Young (which advised the $730 million asset sale by Indiabulls Real Estate to Blackstone) and Kotak (which advised the Vishal Megamart - Partners Group deal) accounted for the second and third spots respectively.
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
Arpwood Capital (which advised the $760 million investment by Temasek in the $2.1 Billion Schneider Electric buyout of L&;T Electrical and Automation business) …

SAIF, Kedaara Capital bag 2 awards each at Venture Intelligence APEX’18 PE-VC Awards

Mumbai, India, March 6, 2013: Kedaara Capital and SAIF Partners bagged two awards each as part of the Venture Intelligence “Awards for Private Equity Excellence” (APEX)event organized by Venture Intelligence. SAIF Partners bagged the VC Exit of the Year – 2017 Award (for the part exit from Paytm/One97 Communications) and the New Fund Raise of the Year – Venture Capital - 2017 Award. Kedaara Capital won the Best Private Equity Firm – Special Situations – 2017 the New Fund Raise of the Year – Private Equity - 2017.
The event opened with a Fireside Chat with V Vaidyanathan, Founder & Executive Chairman, Capital First interviewed by Sesh A.V, Managing Director, Basiz Fund Services

Snapshots of the awards ceremony:

Sesh AV, Managing Director, Basiz Fund Services presents the Venture Capital Investment of the Year award to Ramesh Radhakrishnan, Partner, Artiman Ventures.

Nagaraja Prakasam, Board Member, Sattva Consulting presents the Impact Investor of the Year award to Varun Saini, Progr…