Event industry in India

1. CIMGLOBAL Welcomes You To The Orientation Programme on MICE (Meetings, Incentives, Conferences & Exhibitions) BY Bangalore Chamber of Industry and Commerce Meeting Overview

2. An MBA from West Minister College, London, he specialized in international marketing and then went on to do a special project on Tourism Law & Development of Tourism in Asia from the London School of Economics (LSE). During his stay at DTI (Department of Trade & Industries) London; with their international division, he was handling conferences & exhibitions for trade and industries. Spear heading a dynamic team of professionals drawn from varied industries, CIMGLOBAL evolved to be India’s Brand Ambassador promoting India as a knowledge hub and a fine host to science and technology events. Prasant Saha – Chairman & Managing Director Founder Director

3. Jeremy Garbett 27 years experience SVP, MD of Jack Morton Worldwide 1993 - 2007 JMW Board Director 2005 - 2007 JMW MD Europe 2008 - 2009 Action Impact MD, UAE Relationships: Automotive: Vauxhall, Opel , Chevrolet, Saab, VW, Volvo Telecoms: Nokia, du Telecoms (UAE) Electronics: Samsung, Tom Tom , Fujitsu FMCG: Mars Europe, Stella Artois , Innocent Pharma : Pfizer Government: Lord Mayor’s Office, GLA, COI, 2012 Olympics, TDIC (UAE), Dept of Health Financial: Zurich, COLT, Eversheds Jeremy has been responsible for leading a number of the largest sustained account relationships in the communications industry - personally producing some of the most creative, integrated projects for many differing audiences Relationships: Automotive: Opel , Lexus, BMW, Porsche, Hyundai Healthcare: Pfizer, Johnson & Johnson, GSK Financial: Citi , Lloyds TSB, UBS Government: Department of Health, Olympics, PM’s Office, Masdar (UAE) Telecoms: Verizon , Cable & Wireless FMCG: Mars Inc, Subway Media: ITV, SRMG Worked extensively on every Continent, and has been responsible for some of the most innovative and results driven communication programmes for world leading brands and Governments. Laurence Croneen 24 years experience EVP, MD of Jack Morton Worldwide 1993 - 2000 JMW Board Director 2000 - 2005 JMW MD Europe 2006 - 2009 JMW MD New York Founding Directors

4. A Micro Biologist from Bangalore University . 13 Years experienced in WizCraft and delieverd about 1000 events . Girish K J Founding Director, Kolot Media Founder Director

5. Industry Overview The Event Industry is one of the fastest growing industries in the country The Event Industry is expected to touch the $768 million mark by 2013-14 Event Industry in India is poised to grow by at least by 25% annually and is estimated to reach $966 million by 2014-15.

6. Event Industry Management fees of a 17.65% the service charge that the event companies earn The clients are charged an additional 12.36% service tax on the total billing Pay scale in the industry is anywhere between 10,000 to 1,00,000 per month and beyond

7. Indian Economy Ranking at No. 3, surpassed Japan 1.159 billion handsets Vehicle sales is projected to hit 4 million by 2015

8. Indian Market 1.25 billion population > 57% in the age group of 18-25. About 500 million work force – 2 nd largest Scope for new ideas and technology to be implemented. Disposable income has increased to over $15 million annually Things can’t be better for the events industry

9. "With a compounded annual growth of 14 per cent, it (event management industry) is projected to be Rs 5,000 crore by 2015 in the country," Director of Rachnoutsav Events Academy Sanjay Kankaria told

10. Market Segmentation Social Events Wedding Planning (Wedding Management)  Birthday Parties Anniversaries Get Together Social Gathering Fund raising for Large Clubs, Charitable Trusts etc

11. Contd … Educational Events Education Fairs College Events Picnics & Holidays Annual Sports Corporate Events Meetings Seminars Conferences Training Programs Annual Picnics Award Functions Political events Rallies Party Meetings

12. Contd … Entertainment Events Movie Promotions Celebrity Nights Music Video Release Award Nights Sports Fashion Shows Beauty Pageant Contest Stage Shows Dramas etc. Exhibitions & Fairs Property Exhibitions Export Exhibitions Electronic Fairs Jobs Fair Finance & Banking Fairs etc.

13. Contd … Marketing & Promotions Ad Campaigns Product Launches Road Shows Promotion Activities Shopping Festivals etc. Special Events (For special needs of clients.) Association Events

14. Association Events What is an association? Managed by Volunteers Professional, Industry, sports…etc India hosts more than 10000 associations Vibrant association culture Association events – increasing by the day Driven by knowledge and business not creativity Professional associations not very evolved with successful revenue models Professional Organization support provided by Association Management companies and Professional Conference Organisers

15. The difference b/n Corporate & Association Event Management Lead time – from bidding to conference delivery Bidding success rate – 1/10 Budget starts at 0, revenue to be generated by the event Higher Risk In Corporate events it is part of the budget A committee takes decision whereas in corporate 1 or 2 people take decision Partners and Vendor management – billing to client IT Tools Business model – professional fee, vendor margins, hotel and venue commissions City approach is very required, media has a key role Government support – Industry& Commerce, IT and Tourism

16. Stake Holders Professional Conference Organizers Hoteliers Venue owners Tours Travel agents Transportation providers Event managers Airlines Govt. of India State Govt. Audio Visual Vendors

17. Transportation Ideal Stake Holding Venue Hotels Tours Govt. Event managers/ PCOs Airlines Travel agents Vendors Client

18. Factors affecting the segments Social Events Rich culture and social setup Traditions/ Rituals – many and more Educational Events More awareness about education and its importance Literacy rate improving More institutions coming up Corporate Events Huge target audience which is growing by the day. Communication is ongoing

19. Contd … Entertainment Events Audience and varied audience Rich in art, architecture, heritage and culture Exhibitions & Fairs Newer technology coming to India User friendly technology Marketing & Promotions More products to market Wider target audience Association Events More number of industries coming to India Manufacturing sector growing People’s Awareness increasing

20. The phenomenal double digit growth of the event management industry coupled with the transition of this sunrise sector from a highly unorganized to organized niche and competitive sector is expected to see a manifold demand for talent pool. The market for event management in India is expected to witness a growth of 25 per cent and exceed to $567 million by 2015.

21. Key Players Percept D Mark Wizcraft International Entertainment Pvt Ltd DNA Networks Pvt Ltd. Cineyug Entertainment Cox and Kings E-Factor TCI Consultancy Services and 'e' Events Fountainhead

22. PCOs in India CIMGLOBAL K W Conferences Kuoni ICE MCI Aplcord Planit India Vama Events Kenes India

23. "The proliferation of TV channels and newspapers mean that advertisers have begun to opt for experiential marketing (event management) instead. You connect with the consumer through an event, and you're likely to get better and quicker results through events than through traditional advertising," said Sabbas Joseph, co-founder of Wizcraft , currently India's largest event management industry.

24. India lacks good infrastructure to promote this industry. Though the growth is phenomenal, the lack of venues pose as a huge obstacle. The first and only international convention centre that India has is the Hyderabad International Convention Centre.

25. Hyderabad International Convention Centre (HICC) is managed by Accor and jointly owned by Emaar Properties PJSC Dubai and Andhra Pradesh Industrial Infrastructure Corp Ltd.  HICC is the first purpose-built and state-of-the-art convention facility, the first of its kind in South Asia. Novotel Hyderabad Convention Centre adjacent to HICC is a 5-star 287 rooms hotel, built to suit the requirements of the discerning business traveller. Pillar-free internal hall of net 6,480 sq. metres that can hold an 5,000-delegate plenary and can be portioned into 6 smaller halls. A spacious Pre-function foyer area of over 6,000 sq.meters of lobby space. 37 breakout rooms, including specialized meeting rooms, speaker preparatory rooms, boardrooms, 12.5 metre high ceiling, roof catwalks and truss to withhold heavy suspension. In-house 5-star banqueting service. Hyderabad International Convention Centre

26. Other venues include exhibition centers and hotel convention centers. Bangalore International Exhibition Centre, Bombay exhibition centre, Pragathi Maidan , India Expo Mart, Chennai Trade Centre and large hotel convention centers are among the tops venues.

27. Strengths: Reputed players High in Creativity Industry Knowledge Easy access to talent pool Growing market Varied Products Threats: International Players coming into the market Low supplier loyalty Lower margins due to competition Opportunities: Newer ideas International brands coming into the market Associations getting organized New technologies New venues Weakness: No formal education Lack of Infrastructure Taxation is high Unorganized players Clarity in licenses Must have Event Insurance Formalised Training

28. Strengths • Growing economy, everybody wants to be part of the India economic story • Strong industry base for IT, telecom, pharmaceutical, automobiles • Active industry associations • World – class hotels & service apartments, alternative accommodation options • Variety of restaurants, shopping haven, cultural activities, etc • Allied activities: heritage walks, golf, amusement centres, wine tours, ayurveda & spa centres, • Multiple pre and post tour program options for events • World class medical care • Presence of large academia and research institutions • Excellent flight connectivity • Presence of quality ground handlers, professional conference organizers ( pcos ), professional event managers and entertainment consultants • One of the fastest growing outbound MICE markets in Asia – Pacific

29. Weakness Absence of quality Convention and Exhibition centres in most cities China as a state policy has made it mandatory for cities with a population of 5 million to have a world class Convention and Exhibition Centre. Investment to be done by the State. Hotels overpriced for MICE movements into India due to mismatched demand – supply ratios. We lose out to Thailand, Malaysia, Hong Kong, Macau. Limited Night life No focused body to promote ‘MICE India’ in markets: both within India and abroad. Indian Convention Promotion Bureau only promotes MICE outside India, while the MICE industry in India is still 90% domestic. Lack of Data / Market Information on MICE related activity. No formal education, hence no trained staff Unorganized players Lack of cohesive working relationship among stake holders Corruption Complicated tax and legal structure Integrated transport systems

30. Opportunities Boom in investments across sectors. Over 25000 Hotel rooms / Service Apartments being added in the next 3 – 5 years in Mumbai, Bangalore, Delhi and Chennai Brand New International Airports in Mumbai, Delhi, Bangalore Access to modern technology Growing interest in India. Newer ideas International brands coming into the market Associations getting organized New technologies

31. Threats Competition from Neighboring countries and Asia Pacific, who have readymade infrastructure to handle big conferences and exhibitions. Even Sri Lanka has better Convention facilities than India, other than Thailand, Malaysia, Singapore, Hong Kong and Macau. Conference Visas issued by Indian missions abroad very cumbersome. Slowing down of economies in the west. India being a traditionally long haul inbound market, recessions in Europe and US, will effect inbound MICE. Low supplier loyalty Lower margins due to competition

32. Positive Case Study

33. PR valuation of over 85 million USD and close to 30,000 audience(2011) 600 million viewers over 120 countries across the globe IIFA

34. SUNBURN Electronic dance music festival held in Candolim Beach, Goa, India. Valued at $100 million to $150 million Future plans for brand Sunburn include taking the festival across Asia, including Thailand, Malaysia, Vietnam, Singapore and Bali.

35. Just Advertisement revenues more than Rs 800 cr Valued at ~ 3 billion USD

36. Global INDIA USA ASIA Growth (in %) 6.2 13.1 6 20 Projected Growth (in %) 5.5 25 4.2 21 Growth of the Industry Source: Industry Estimates, Rohit Hangal ; Voyagers World & PwC Analysis

37. Conclusion Rebrand bangalore Vision bangalore - reinstate bangalore convention bureau Leveraging the present infrastructure – map data Representation to the government – relentless efforts – BICEB vehicle- reallocate budget Vision 2- without government – quick wins - strategize