Consider this: there are about 700 private security-providing companies registered in the country. And they are not just popular in the Kathmandu Valley. [break]
"Of the total known companies, some 200 companies operate in the Valley, while others are doing good business in cities outside the Valley," says Sabal Chandra Shah, managing director of Garud Security Service, one of the leading security service providers.
Company operators even estimate that the business has presently been providing direct employment to over 200,000 people. The beneficiaries are mostly ex-servicemen in army and police.
The recent innovation, they said, is all set to grow absorbing substantial workforce in the days to come.
Officials of security service companies attributed the growth of the business to growing insecurity and deteriorating law and order situation, both in the Valley and outside. They also held rapid expansion of banking and other service industries as giving rise to the demand for security services.
"Discipline and quality of service offered and the credibility earned by the companies too have supported in the expansion of the business," said Shah of Garud Security Service.
Citing employment data, perks offered to staff, tax contribution and profit margin earned over the last few years, service providers say the security business enjoys annual turnover of well over a billion rupees.
Of them, G4 Security, Lahure Security Service and Garud Security Service are the most trusted and popular names in the market. Their clients are not just limited to domestic business firms, but have also expanded to multinational companies and international missions.
For instance, G4S provides security services to the diplomatic missions, UN agencies like UNDP and UNMIN, delegations, residents of Very Important Persons (VIPs), projects, banks and financial institutions, and even governmental agencies.
"We are also providing additional security related services like VIP-escorting, facility service like providing drivers, sweepers, installing security system such as CC camera, alarm bell, smoke detector and drop and pick up of valuable goods," said Bhupendra Ghimire, Operation Supervisor of the company.
Apart from embassies and bilateral and multilateral agencies, Lahure and Garud are currently providing security services to hospitals, shopping complex, schools and colleges, and private residences.
Officials of these companies say that they together earn more than half of the total turnover in the business. Together, their transactions stand more than Rs 800 million and contribute well over Rs 100 million in value added tax (VAT) alone.
Despite huge turnover, the company promotes say they operate in small profit margin. They did not disclose the margin though.
Officials of Lahure said they hire staff mostly on the basis of strong recommendations from credible sources and assign them jobs based on their capacity, training exposure and discipline.
The remuneration of the staff too varies by a wide margin. For instance, G4S pays a maximum of Rs 15,000 to a guard deployed at UN agencies for 12 hours, salary paid by other companies ranges from Rs 5,000 to Rs 10,000 a month. It also depends on the job they are offered to and duty hours assigned.
The guards are also offered the benefits like 10 percent increase in annual salary, insurance and part-time jobs, among others.
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