MPG enters high-tech security business

The Muthoot Pappachan Group, with its flagship gold financing arm Muthoot Fincorp, has floated a new entity – MPG Security Group to take its “technologically advanced security services through emergency response teams (ERTs)” nationwide.
The Kochi-based diversified group has also roped in Mr. Raman Srivastava, the ex-Kerala top police officer and also the former director general of the BSF, as its chief security advisor, the company said.
“MPG Security Group and its emergency response teams are the first of their kind initiatives in the country’s Rs 20,000 crore private security market, “Muthoot Pappachan Group chairman and managing director Mr. Thomas John Muthoot said.
“While we see large potential for every company that employs private security and needs technologically advanced security solutions, we see an immediate potential from the banking sector, especially for their ATM security,” he said.
Mr. Muthoot said the company is in discussions with a leading ATM security provider to offer ERT services to the around 2-lakh-odd ATMs deployed across the country. Stating that banks lose heavily in their ATM business, primarily due to the huge cost involved in deploying security personnel, Mr. Muthoot described manned security as a sheer waste of resources as technology like the one his company offers can take care of such needs. He also said ERT-based security services are in vogue in the Western markets.
He said banks on an average spend around Rs 50,000 a month to protect an ATM alone. This works out to be around Rs 1,000 crore for the sector a month that has around 2 lakh cash vending machines deployed.
“If banks adopt our technology tool, they can save hundreds of crores in security cost alone,” Mr. Muthoot said, adding, “Muthoot Fincorp alone had spent Rs 70 crore last year on security cost, my objective is to bring it down to around Rs 10 crore a year.”

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