Global TIC leader SGS unveils ambitious plans to expand its presence in Peru, leveraging acquisitions and a sustainability-driven strategy to achieve over US$135 million in revenue and double-digit growth by 2027.
Joaquín Aramburú, managing director of SGS for Peru and Ecuador, has outlined ambitious growth and expansion plans for the company in Peru following its recent acquisition of Walsh Perú. SGS, a global leader in testing, inspection, and certification (TIC) services, is bolstering its foothold in the Peruvian market with over 40 offices and 3,700 employees spread across multiple sectors including mining, oil and gas, fishing, agriculture, environment, and food.
The acquisition of Walsh Perú, which specializes in environmental consultancy, aligns with SGS’s global strategy “Impact Now.” This initiative, launched at the start of the year, prioritises sustainability, technological innovation, and adaptation to new international trade regulations. Aramburú explained that Impact Now represents around 30% of SGS Peru’s sales currently, with expectations to exceed 50% by 2027 as sustainability becomes a more dominant growth driver. The integration of Walsh strengthens SGS’s environmental services portfolio, particularly in monitoring and specialised consulting, enhancing its multi-sector presence.
Despite challenging market conditions, SGS Peru’s first half of 2024 saw positive results, with double-digit growth that surpassed expectations and margins projected to outperform those planned for the following year. The company aims to exceed US$135 million in revenue this year, leveraging a dual strategy of organic growth and targeted acquisitions. Investments in capital expenditure include a US$3 million commitment to modernising a geo-metallurgy laboratory in Callao, intended to double operational capacity and incorporate cutting-edge global technologies. Total CAPEX for the next two years is projected between US$8 million and US$10 million, covering laboratory upgrades, office expansions, and new service development.
Looking beyond mining, SGS Peru is expanding its presence significantly in the energy sector, with a focus on renewables, gas, and oil, integrating sustainability into traditional services for fishing and agro-industrial sectors, where it has established expertise spanning over two decades. The company is also targeting technological innovation through strategic acquisitions in cybersecurity, drones, and satellite remote sensing, aiming to add value and robustness to its service offerings rather than simply increasing market share. Aramburú indicated that these acquisitions are anticipated before mid-2025, though discussions remain at an early stage.
On a global scale, SGS has announced ambitious strategic goals under “Strategy 27,” aiming for 5–7% annual organic growth by 2027 alongside margin improvements and significant expansion in sustainability revenues. This strategy includes acquisitions in ESG compliance, industrial internet-of-things (IIoT) solutions, and industrial safety, providing comprehensive services to industries under increasing regulatory and operational pressure. Market analysts like Berenberg have recently upgraded SGS’s stock rating, reflecting confidence in operational restructuring, margin expansion, and acquisition-driven growth.
The Peruvian market context supports SGS’s optimism, with growth propelled by reactivations in mining and fishing and heightened demand for sustainability management services. Economic forecasts for Peru predict a 3% GDP growth for 2024, complementing the approximately 5% annual growth rate in the TIC sector. Additionally, Peru’s smart factory market is expected to grow by 8.3% annually through 2030, driven by extensive investments in mining and automotive sectors and government innovation initiatives, which align well with SGS’s expanding technology-driven service portfolio.
In sum, SGS is positioning itself as a key regional leader in Peru by leveraging its global expertise, consolidating its traditionally strong sectors while intensifying focus on sustainability and technological innovation. The company’s strategic mix of organic growth, capital investments, and carefully targeted acquisitions is designed to deliver sustained double-digit growth in Peru through 2027, reinforcing its adaptability and competitiveness in evolving market landscapes.
Source: Noah Wire Services
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