Sparsh CCTV aims to offer end-to-end security surveillance solutions to customers.
With the Indian government’s renewed push for local manufacturing, more and more security companies are setting up factories in India. Indian companies who have already been making their products locally, are expanding to take advantage of the market demand as well.
The latest such initiative has been from Sparsh CCTV, which signed an agreement to set up an Electronics Manufacturing Cluster (EMC) in Kashipur, Uttarakhand. Sparsh will be the anchor unit across eight acres of land in the EMC with an aim to set up global-level manufacturing facilities for CCTV production in India.
The company already has two manufacturing units in Noida and Haridwar and an in-house research and development center. The 1 million sq. ft. covered area of the EMC is targeted to produce 1 million cameras per month.
What to expect from the new factory
The company is already into almost every area of physical security, from the basic analog dome, bullet, and PTZ cameras to a range of IP devices. Last year, Sparsh also began selling WiFi cameras for residential, DIY customers. The company now has elaborate manufacturing plans for the new factory, suggesting its amplified interest in bringing end-to-end solutions.
“We are also offering several customized solutions for verticals like railways, which are seeing an increase in demand for camera-based solutions,” said Sanjeev Sehgal, Founder and MD of Sparsh CCTV. “In short, we aim to offer customers a complete portfolio of CCTV solutions.”
The production will begin in 18 months, and the work is expected to be completed within three years, with a state of art manufacturing facility integrated with 8 SMT lines for electronic board assembly. The ecosystem will include a molding facility, diecast facility for aluminum and steel, sheet metal fabrication with CNC and laser cutting, powder coating, a paint shop, and a 3D printing facility.
Additionally, it will include a state of art test lab facility with the latest equipment for all parameters for video, audio, cyber security, environment, MTBF, and performance standards. Sparsh aims to invest Rs 175 Crores (USD 22M) in the next three years.
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A strategic location
For Sparsh, the location of the new factory is strategic for several reasons. The company already has plants in the same state, and proximity to them is important. Incidentally, the industrial area where the new factory is coming up is opposite IIM Kashipur.
“This is an electronic manufacturing cluster coming up under the EMC 2.0 scheme of the ministry of electronics,” Sehgal said. “While looking for the space, we wanted something where we didn't need to spend more money on land. We were already present in Uttarakhand and asked the government to give us some more land in Haridwar, but no land was available there. So, when the EMC plan came up, they approached us, and we saw an opportunity to come up as an anchor unit there.”
Where the demand comes from
The Indian security market is growing fast, offering several opportunities for manufacturers. Over the years, we have seen demand across verticals, but Sehgal suggests that safe city projects are leading market requirements at the moment.
“Safe city is a concept that’s gaining traction alongside smart cities,” Sehgal said. “Bangalore was one of the first cities to come up with this concept. We have already bagged this order with Honeywell as a systems integrator. More than 12,000 cameras are being installed across Bangalore city to make it safer. Besides this, we also see demand from verticals like railways.”
Sehgal pointed to an EY study conducted along with FICCI that has shown that CCTV penetration in India is just about 5 percent, whereas it is over 100 percent in countries like the US and China. This indicates the kind of opportunity that the Indian market presents.
Training for a skilled labor
Finding the right employees is a struggle for physical security companies worldwide. Sparsh intends to provide its employees with more training and education opportunities, working closely with the electronic skill sector council. This is besides a Sparsh Center of Excellence for physical security training and regular apprenticeships.
The development of the physical security manufacturing sector in the country could pave the way for more talented people to enter this industry. Companies like Sparsh, which are keen to expand locally, would have a major role to play in this.