ey making experiences in india

Making experiences in IndiaThe Indian events and activation industry

2 | Making experiences in India: The Indian events and activation industry

2014-15 What an eventful period it has been! From an inspired PM taking over the mantle to the Mangalyaan spacecraft afkladdaf_Yf]oZ]da]^afAf\aYkk[a]fla[[geemfalqYf\lggf]more Grammy Award for an Indian. It is an opportune time to be in India.After Indias information technology success, our soft power is gaining global acceptance. US President Obama quotes from our dekYf\j][g_far]kl`]hgo]jg^Af\aYf[af]eY&New age technologies are transforming music, movies and ]n]flkafYfYeYraf_oYq&>jge=

Making experiences in India: The Indian events and activation industry | 3

Contents

16 Future trends24 Mergers and acquisitions30 Tax implications

3235

Direct tax

Indirect tax

38 Governance, risk and control44 EEMA wish list48 Vision 20:20

Current state of the industry6Executive summary4

Acknowledgements56Glossary58About us59


Current state of the industryL`]gj_Yfar]\]n]flkaf\mkljq`Yk_jgofYl)-YffmYddq^jgeAFJ*$0(([jgj]af*()))*lgAFJ,$*-0[jgj]af*(),)-&Managed events remain the largest service offering, but, IPs (Intellectual Property) and digital events are growing at a faster rate than managed events. IPs continue to provide a disproportionately high share of revenues to their owners and activations are af[j]Ykaf_afaehgjlYf[]3`go]n]j$eYfY_]\]n]flkYj]Z]_affaf_lg_]l[geeg\alar]\&Kmjn]qj]khgf\]flk`Yn]af[j]Yk]\l`]ajklY^^klj]f_l`^jgeYfYn]jY_]g^--]ehdgq]]kaf*()))*lg0,]ehdgq]]kaf*(),)-$o`a[``Ykj]kmdl]\afhYqjgdd[gklkaf[j]Ykaf_^jge)+lg)0g^lglYd[gklk&=:A


Tax implicationsTaxes continue to be a large cost for event companies in India. There are several challenges such as double taxation, taxation across multiple states and varying and inconsistent application of different taxes. The introduction of Goods and Services tax could have a ka_fa[YflaehY[lgfl`]af\mkljqafl]jekg^jYl]kYf\aehd]e]flYlagfY[jgkkemdla%klYl]Y[lanala]k&Governance, risk and controlThe introduction of the new Companies Act, 2013 will result in a more comprehensive approach to governance, risk and control ^gj]n]flkYf\Y[lanYlagf[gehYfa]k&C]q[`Yf_]koaddZ]afafl]jfYdfYf[aYd[gfljgdk$[gehdaYf[]oal`egj]l`Yf.(Y[lkYf\regulations, and implementing a vigil mechanism to identify undesirable activities.

EEMA wish list There is a need to grant industry status to the events and activation industry, enable single window clearances, manage withholding and other tax issues and enable skill development for the industry.

Vision 20:20 In order to succeed in the future, the industry needs to work towards the following initiatives:

Internal aspects:Aehjgn]l`]imYdalqg^lYd]fll`jgm_`kcadd\]falagf^gjnYjagmkbgZk$kcadd\]n]dghe]fl$bgZk][mjalq$compensation benchmarking and implementation of health and safety standards. The industry must build robust policies, hjg[]kk]kYf\af^gjeYlagfkqkl]eklgeYfY_]Zmkaf]kk]^[a]fldqYf\kY^]dq$Yf\aehd]e]fll][`fgdg_qYf\YmlgeYlagf&

External aspects: The industry needs to work on its positioning to marketers, build an account focus and demonstrate returns more effectively. There is a need to improve the supply chain by developing quality vendors, implementing a system of vendor accreditation and improving overall risk management. The regulatory ecosystem needs to be made more conducive by simplifying taxation, permissions and copyright issues.

Strategic aspects:L`]af\mkljqemklZmad\egj]AHk^g[mk]\gf\]f]\[geemfala]kg^afl]j]kllgeYjc]l]jk$Yf\]eZjY[]l`]opportunity provided by marketers increasing spends on digital media.


Current state of the industryIn this section, we cover the present state of the Indian events and activation industry and the key trends. This section is based on the f\af_kg^Ykmjn]qg^l`];=GkYf\Zmkaf]kkheads of 35 Indian event management [gehYfa]k$k][gf\Yjqj]k]Yj[`Yf\=Qkanalysis of the same.


11.1 The industry continues its

robust growth trajectory L`]kar]g^l`]gj_Yfar]\]n]flkaf\mkljqak]klaeYl]\YlYjgmf\AFJ,$*-0[jgj]1. This value represents the revenue g^gj_Yfar]\]n]flkYf\Y[lanYlagfY_]f[a]kYf\\g]kfglaf[dm\]l`]emdlalm\]g^mfgj_Yfar]\]n]flk[gehYfa]kkhj]Y\Y[jgkkl`][gmfljq&L`]kar]]klaeYl]Ydkg\g]kfglinclude the value of telecasts rights of events (unless owned by an events and activation management company), the value gê]]laf_k$af[]flan]k$[gf^]j]f[af_Yf\]pàZalagfk EA;=!conducted by pure travel companies, value of IP not owned by event companies and properties managed by in-house Y[lanYlagfl]Yekg^Y\n]jlak]jk$Yf\l`]mfgj_Yfar]\ events segment.

Source: EY analysis; secondary research

Organized events industry (INR Crore)

2,800

3,248

3,703

4,258

1,840 1,987

2,206 2,426

1,290 1,420 1,576

1,828

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2011-12 2012-13 2013-14 2014-15

Organized events OOH Radio

L`]]n]flkk]_e]fl`Yk_jgof^Ykl]jYlYjgmf\)-h]jannum over the last three years than the other local media such as radio and out of home (OOH) segments. This can be YlljaZml]\jkldqlgl`]egj]affgnYlan]fYlmj]g^l`]]n]flkand activation industry, which enables concept selling as compared to space selling. Secondly, the last few years have witnessed an explosion in ticket sales revenues opening up a stream of subscription income for the events industry and digital activation.

L`]mfgj_Yfar]\k]_e]flg^l`]af\mkljqakYdkg]klaeYl]\to be large. The main reason behind this is that there is practically no entry barrier to commencing operations as an event management service provider. These service providers Yj]af\ana\mYdkoal`fg\]f]\Zmkaf]kkhjg[]kk]kgjhgda[a]kYf\`Yn]lmjfgn]jg^d]kkl`YfAFJ*[jgj]&L`]j]khgf\]flk]klaeYl]l`Yll`]gj_Yfar]\af\mkljq^gjekYjgmf\-+g^l`]total industry.

1.2 Majority of Indian event companies have built an international presence

9faf[j]Yk]\fmeZ]jg^gj_Yfar]\]n]fl[gehYfa]k`Yn]started conducting events in countries outside India. A large eYbgjalq /+!g^l`]j]khgf\]flkaf\a[Yl]\l`Yloàd]l`]qprovide services largely in India, they also conduct operations gmlka\]Af\aY&Gfdq)1g^l`]j]khgf\]flk`Yn]YfAf\aY%gfdqpresence.

Source: EY survey

Geographic presence (percentage of respondents)

8%

19%

73%

Largelyinternational

Only in India

Largely inIndia

Current state of the industry

) =QYfYdqkak3k][gf\Yjqj]k]Yj[`


The Global Markets offer huge opportunities for us Indians who have the necessary experience and the required guts. What we can do in a blink, the world takes months to decide upon.

Samit Garg E Factor Entertainment

1.3 Managed events continue to be the largest service offering:jgY\dq$l`]k]jna[]khjgna\]\Zql`]af\mkljq[YfZ][dYkka]\aflgAfl]dd][lmYdHjgh]jlq AH!$eYfY_]\]n]flk$Y[lanYlagfk$Yf\digital events.

Intellectual Property (IP): IP refers to any event or activation whose intellectual property (i.e., the concept, logo, name, format, etc.) is wholly or partly owned by the event management company. Some examples of IPs are India Afl]jfYlagfYd>ade9oYj\k$Af\aY:ac]O]]c$=N;$ Sunburn, etc.

Managed events: Managed events refer to corporate or personal events managed by an event management company on behalf of a third party, who owns the IP of the event (if any). These comprise brand launches, dealer meets, weddings, birthday parties, concerts, auditions management for TV shows such as Indias Got Talent, Indian Idol, etc.

Activations: Activations refer to event activities, usually keYdd]jafkar]l`YfeYfY_]\]n]flk&L`]k]Yj][Yjja]\gmlat multiple locations for the promotion/sales of a product or service.

Digital events: A digital event brings an audience together where some or all of the attendees are not physically present in the same location but are connected in a common digital environment. Advertisers are increasingly looking at such events, since one can easily target communities at a fraction of the cost as opposed to traditional events.

/1g^l`]kmjn]qj]khgf\]flkhjgna\]\emdlahd]k]jna[]offerings.

Source: EY survey

Services offered (percentage of respondents)

5%

55%

66%

93%

35%

47%

71%

94%

Digital events

Intellectual property

Activations

Managed events

2014-15

2011-12

Managed events stand out as the most common service g^^]jaf_afl`]]n]fleYfY_]e]flaf\mkljq1,g^respondents provide it. This is in line with the survey [gf\m[l]\af*()))*o`]j]eYfY_]\]n]flko]j]Ydkgl`]most common service provided.

The number of agencies offering activations has grown ^jge..g^j]khgf\]flkdYklq]Yjlg/)l`akq]Yj&Egj]advertisers are focussing on growth from non-metro markets, and are using lower cost activations to build their brands in tier-II and tier-III markets. Perhaps, this could be an adaptation of the FMCG sachet model for the events industry.

Egklj]khgf\]flk -.!`Y\loglgn]g^[]kafAf\aYgfYn]jY_]$o`ad]bmkl+)`Y\gf]g^[]afAf\aY&;gehYfa]kare also increasingly expanding in non-metro markets in India as they try to serve the growing rural/semi urban audience in tier-II and tier-III cities. Just eight event companies covered in our survey had an international presence, and it was generally daeal]\lggf]lgn]g^[]kYZjgY\&


,/g^Y_]f[a]kkmjn]q]\$gof]\o`gddqgjafhYjl$l`]Intellectual property (IP) in the events they conducted. LàkakY\][daf]^jge--afl`]*()))*kmjn]q$[d]Yjdqk`goaf_l`Ylafn]klaf_afAHak\a^[mdl$Yf\f]]\kkmklYaf]\belief and deep pockets. In addition, digital events are a cost effective method to build IP, and have gained popularity with advertisers. TV, print and radio companies too, are creating their own event IPs and then sub-contracting the same to event companies.

L`]_jgolàf\a_alYd]n]flklg+-^jged]kkl`Yf-akaftune with the ever increasing penetration of internet users afAf\aY&Afl]jf]lh]f]ljYlagf`Ykaf[j]Yk]\^jge)*&.af*()))*lg)1&*af*()+),&EgZad]keYjlh`gf]h]f]ljYlagf$oà[òYkYld]kkl`Yf)(ak]ph][l]\lgZ]Yjgmf\*(ZqEYj[`*()-2$a&]&$Yjgmf\)0(eaddagf`Yf\k]lk[YhYZd]g^\a_alYdafl]jY[lagfk&mlmj]g^LNafAf\aY 4 Census 2011


Table 1: Types of event categories with illustrative examples

Type of service offering

Genre of events IP Managed events Activations Digital

=fl]jlYafe]fl IIFA Bandra Festival

Filmfare

TOIFA

Indian Idol auditions Axe Boat Party

Ghante Ki Tuning Jamegi

Sports and wellness India Bike Week

Zumbala

AHD Standard Chartered

Marathon


1.4 Number of events conducted continues to grow

According to respondents, the total number of events gj_Yfar]\Zql`]e_j]o^jge+$.+)af*()+),lg,$*++af*(),)-$Yf\oYk]ph][l]\lgj]Y[`-$+*1af*()-).$YlYfgn]jYdd_jgol`jYl]g^*(&

Managed events are expected to continue to be the mainstay of Indian events and activation industry. Managed events ^gje]\Yjgmf\.)g^l`]lglYd]n]flkaf*(),&

Intellectual Property (IP), which currently has a miniscule contribution to the total event space is expected to improve over time as companies envisage the importance of building Yf\gofaf_AHk&J]khgf\]flkafl`]kmjn]qYj]]ph][laf_Yfaf[j]Yk]afk`Yj]gÂH%j]dYl]\]n]flk^jge)&/g^lglYd]n]flkaf*()+),lg*&*af*()-).&

L`]Y[lanYlagfkk]_e]flak]ph][l]\lg_jgoYl)0&Oàd]brands continue to target local audiences through activations, they are now beginning to experiment increasingly with digital eYjc]laf_Yf\]n]flk$oà[`k`gokY_jgol`jYl]g^/0&L`]j][]flkm[[]kkg^CYYfC`YbmjYL]kYf$YfafalaYlan]mf\]jlYc]fby Hindustan Unilever, is a case in point.

1.5 IPs provide a disproportionate revenue share

Oàd]AHk[gehjak]bmkl*g^lglYd]n]flk[gf\m[l]\$l`]qhjgna\]*)g^l`]lglYdj]n]fm]k&

Activations, too, given their growing value to advertisers, Yj]fgok`goaf_Yfaf[j]Yk]afj]n]fm]klg+)af*(),%)-^jge),af*())%)*&9keYfY_]\]n]flk_]laf[j]Ykaf_dq[geeg\alar]\$l`]ajYZadalqlg_]f]jYl]j]n]fm]kYhh]Yjklgbe under pressure.

Source: EY survey

Growth rate number of events 2013-14 to 2015-16 (estimated)

18%

18%

33%

78%

20%

Managed events

Activations


Digital events

Overall

Source: EY survey

Number of events vs. revenue (2014-15)

3%

34%

2%

61%

2%

31%

21%

46%

Digitalevents

Activations Intellectualproperty

Managedevents

RevenueNo. of events


1.6 Companies have recruited more employees

The average employee strength of survey respondents was 0,$oàd]egkl`Y\Z]lo]]f*)-(]ehdgq]]k$]p[dm\af_[gfljY[lmYd']n]fl%kh][a[àj]k&Afl]j]klaf_dq$l`]Yn]jY_]growth in number of employees is higher than the average growth in revenues, showing there is a case to re-look at per-]ehdgq]]]^[a]f[q&

Most event companies have a young employee base. While youth lends an increased degree of passion and enthusiasm, alYdkgg^l]fj]kmdlkafYdgo]jY\`]j]f[]lggj_YfarYlagfYdpolicies and processes. The predominant young employee base also often results in attrition as talent looks out for better avenues outside the industry.

.+g^j]khgf\]flk`Yn]af\a[Yl]\YlljalagfjYl]klgZ])(gjlower. The average attrition rate has remained relatively the kYe]kaf[]l`]kmjn]qaf*()))*&Egklg^l`]j]khgf\]flkbelieve the attrition rate is likely to remain at this level for the next two to three years.

1.7 Operating performance of most respondents is healthy

L`]fYf[aYdj]kmdlkg^[gehYfa]k[gn]j]\afl`]kmjn]qhj]k]fl]\Y`]Ydl`qh]j^gjeYf[]af*()+),&Oàd]YdegklYdd[gehYfa]kkmjn]q]\o]j]hjglYZd]$,.g^l`]j]khgf\]flkhgkl]\YhjglY^l]jlYp H9L!af]p[]kkgÂFJ)[jgj]&

Kmjn]qj]khgf\]flk`Y\Yf=:ALg^)()-Yf\YH9LeYj_afg^-)(gfYn]jY_]&9eYbgjalqg^j]khgf\]flk[gn]j]\afgmjkmjn]q`Yn]af\a[Yl]\hjglYZadalqlg[gflafm]for the next two to three years with PAT expectation to be in l`]jYf_]g^-)(gjà_`]j&

Kgmj[]2;gehYfqdaf_kYf\=Qkmjn]q

Cost break-up 2014-15

PayrollAdmin Variable

73% 75%

18% 13%

9% 12%

2015 2012

The cost break-up, as indicated in the chart above is computed ^jgedaf_kg^kYehd]]n]fl[gehYfa]kYf\\YlYhjgna\]\Zqsurvey respondents. However, this break-up varies depending mhgfl`]kar]Yf\hgjl^gdagg^k]jna[]g^^]jaf_&GfYfYn]jY_]the variable cost constitutes the largest portion of the cost in l`]]n]flaf\mkljqYf\ak[gehYjYZd]lg_mj]kg^*()))*&

HYqjgdd[gklk`Yn]af[j]Yk]\^jge)+lg)0g^lglYd[gklkas companies have hired more personnel (average employee strength of survey respondents has increased from 55 people af*()*lg0,af*()-!&

Admin costs have proportionately reduced, aided by cost control initiatives and reduced leakages in procurement due to []fljYdarYlagf&

On average, payroll costs were twice the total admin costs of respondents.


1.8 Key strength remains the ability to get things done

Ability to get things done:EYbgjalqg^j]khgf\]flkZ]da]n]that the ability to get things done remains the key strength, oà[Àf\aYf]n]fl[gehYfa]khgkk]kk&=n]fl[gehYfa]k`Yn]eYfY_]\lg]p][ml]hjgb][lk\]khal]c]q[`Ydd]f_]kaf[dm\af_regulatory bottlenecks, limited infrastructure, dearth of imYdalqlYd]fl$afY\]imYl]kmhhdq[`Yaf$mfgj_Yfar]\n]f\gjbase, etc.

It is the niche creativity that empowers brands.

Rajeev Jain Rashi Entertainment

Ideation and creativity:=n]fl[gehYfa]k`Yn]Z]]fYZd]to attract sponsorships, draw increased audiences, and build Intellectual Properties (IPs) based on their creativity and ideation capabilities. Clients, advertisers and sponsors will continue to value ideation and creativity when it comes to making a choice between different event companies. Creativity is imperative for both growth and retention of business in the industry.

=^[a]fl[gklZYk]2 A core strength of the events industry, and one which sponsors and advertisers value the most, is its ability to manage costs despite the not so conducive environment in which events and activations are required to be conducted.

Ability to create IPs: This years survey clearly shows the af[j]Ykaf_\a^[mdlq^Y[]\Zq]n]fl[gehYfa]kaf\]n]dghaf_IPs many tried, but few succeeded.

Reputation for transparency: The event segments reputation for transparency still remains an issue. There is a clear need to share budgets and invoices with advertisers and integrate \a_alYdaflg]n]flk$oà[`]fYZd]k\]egfkljYlagfg^JGAlgmarketers.

Key strengths (weighted responses)

9%

12%

11%

14%

16%

17%

21%

6%

9%

11%

13%

17%

20%

24%

Reputation fortransparency and

credibiity

Ability to createIP and monetise it

Availability of talent

Strong vendorbase for production

Efcient costbase/efciency

Ideation andcreativity

Ability to"get things done"

2014-15

2011-12

Source: EY survey

1.9 Lack of trained manpower remains a key challenge

Lack of trained manpower: This issue ranked second in our *()))*kmjn]q$Yf\al_jgoklgZ][ge]l`]egklk]jagmkakkm]afl`]*(),)-kmjn]q&/,g^kmjn]qj]khgf\]flko]j]fglkYlak]\oal`l`]imYdalqg^lYd]fl[geaf_aflgl`]af\mkljq&


Egklh]ghd]Yj]ljYaf]\gfl`]bgZYf\l`]gfdqoYqlgf\lYd]flaklg[j]Yl]al&:mll`]dYj_]jchallenge that we face and will continue to face is retaining the talent in whom we invest our time and efforts training. This is going to Z]Yfg[[mhYlagfYd`YrYj\Yf\l`]gfdqoYqlgaddress this in the long run would be to share equity with people who make a difference.

Jai Mundra :]]h=ph]ja]f[]EYfY_]e]fl

Hjg[mj]e]fl]^[a]f[q2L`]f]]\^gj]^[a]flhjg[mj]e]flhas shown an increased importance in the minds of respondents (moving up two places in importance from the sixth to the fourth-most critical challenge), particularly gfl`]ZY[cg^[gflafm]\\a^[mdlqafjYakaf_khgfkgjk`ahk&?an]fafYlagfYjqhj]kkmj]k$af[j]Yk]afYn]jY_]]n]flkar]and quality expectations, and increase in the number of events managed by each respondent, the need to manage procurement and execution costs has never been more aehgjlYfl&EYfq[gehYfa]k`Yn][]fljYdar]\hjg[mj]e]fland have also begun to use specialist buyers for performers, venues, travel, stay and other high value cost items.

Regulatory approvals:=n]fleYfY_]e]fl[gehYfa]k`Y\indicated regulatory approvals as the leading challenge hdY_maf_l`]af\mkljq\mjaf_l`]hj]nagmkkmjn]qaf*()))*&This seems to have improved to some extent, with the reduction in entertainment taxes and implementation of single window clearances in certain states. Or else, event companies are getting used to managing the onerous approvals required for each event. The recent budget, which was announced after our survey was conducted, increased the ambit of taxes on events. Taxation has been covered in a separate section of this report.

Source: EY marketer survey 2014

Digital integration

Enabling resultsfor brands (ROI)

Providing strategicbrand inputs

Managing event risk

National reach

Developinginnovative concepts

Event execution/quality

Execution efciency/cost optimization

Best Second best Third best

Client speak=Qh]j^gje]\Ykmjn]qg^eYjc]l]jk$Yf\kmeeYjar]\Z]dgoYj]l`]f\af_kg^`gol`]qjYl]\l`]aj]n]flkYf\Y[lanYlagfagencies across various functions (the graph indicates number of responses):

Marketers most appreciated the execution quality and cost ]^[a]f[qg^l`]aj]n]flkYf\Y[lanYlagfn]f\gjk&L`]qYdkgappreciated the innovation brought to the table by them, and their ability to manage event risks.

They are looking to get more strategic inputs from agencies on their brands, and would like to see initiatives where their Y_]f[a]k]fYZd]j]kmdlk^gjZjYf\k gfdq)(Z]da]n]\l`Yll`]JGAoYkY\]imYl]dq\]egfkljYl]\!&EgkleYjc]l]jkmf\]jklgg\the importance of digital integration and were looking for ideas from their agencies to implement more digital activations to reduce their cost per contact.


Future trendsIn this section we cover the key opportunities, issues and trends which the events and activation industry is likely to witness in coming years. This section is based on survey g^l`];=Gkg^Af\aYf]n]fleYfY_]e]fl[gehYfa]kYf\=QkYfYdqkakg^l`]kYe]&


Future trends22.1 The industry continues its

robust growth trajectory 9[[gj\af_lgYeYbgjalqg^j]khgf\]flkafl]jna]o]\afgmjkmjn]q$l`]gj_Yfar]\k]_e]flg^l`]]n]flaf\mkljqak]ph][l]\lg_jgoYlY`]Ydl`qhY[]g^Yjgmf\).)/^gjl`]f]plloglgl`j]]q]Yjk$lglgm[ÀFJ-$//1[jgj]Zq*().)/&

EYjc]l]jk`Yn]Z]]faf[j]Ykaf_l`]aj:LDkh]f\kgn]jl`]last few years, primarily due to events, activations and digital Y[lanYlagf&EYbgjalqg^kmjn]qj]khgf\]flkZ]da]n]l`Yl:LDkshare of the advertising spend will increase in the range of )()-gn]jl`]f]pl^]oq]Yjk&GmjYfYdqkakgêYjc]l]jkh]f\kaf\a[Yl]kl`Yl:LDkh]f\ af[dm\af_\a_alYd!`Ykaf[j]Yk]\lg*)af*(),)-&

Source: EY analysis and industry sources

Expected size of the events industry (INR Crore)

3,7034,258

4,9395,779

2013-14 2014-15 2015-16 (E) 2016-17 (E)

Gn]jYddafYlagfYjq_jgolàfhjg\m[lagf[gklk$j]_agfYdgrowth in activations, and increasing IPs are also expected to contribute to the growth.

Source: EY EEMA report 2011-12; EY marketer survey 2014

Marketers will spend more below-the-line (percentage of respondents)

BTL ATL

82.2% 81.5% 80.4% 78.6%

17.8% 18.5% 19.6% 21.4%

2011-12 2012-13 2013-14 2014-15

0/g^kmjn]qj]khgf\]flk`Yn]hdYfklgg^^]jgf]gjegj]new service (e.g., sports, weddings, retail, hospitality, digital, ]l[&!gn]jl`]f]pl^]oq]Yjk$Yf\0,`Yn]hdYfklg]phYf\into new geographies either nationally or internationally, mainly for the purposes of building an expanded presence.

Source: EY survey

Plans to offer new services (percentage of respondents)

13%

13%

58%

13%

3%

0

1

2

3

>3

No. of newservices

proposed

Kmjn]qj]khgf\]flk`Yn]af\a[Yl]\l`Yll`]gj_Yfar]\k]_e]flak[mjj]fldq-+g^l`]lglYdaf\mkljq&Oal`l`]propensity to spend increasing, growing importance of regional markets and increase in demand for large events, l`]q]ph][ll`]k`Yj]g^l`]gj_Yfar]\k]_e]fllg_jgoafl`]f]plloglgl`j]]q]Yjklg-1&

2.2 Non-metro markets will increase in importance

JmjYdAf\aYY[[gmfl]\^gjYjgmf\-*g^lglYdj]lYadkh]f\af_af*(),&JmjYdj]lYadak]ph][l]\lg_jgo^jgeAFJ).&,dYc`[jgj]af*(),lgAFJ*1&/dYc`[jgj]af*(*($Yf\AFJ-+&*lakh crore in 20255. This spend, however, is spread over 6.5 lakh villages and towns, which will therefore need activations kmhhgjlh`qka[YdYf\\a_alYd&Af*()*)+$l`]Yn]jY_]h]j[YhalY[gfkmehlagf]ph]f\almj]afjmjYdAf\aYoYkAFJ)+$).,$Yf\oYkAFJ*.$*,+afmjZYfAf\aY6.

- L][`fghYcJ]hgjl*(),2L`]Q]YjL`YlAf\aYk]LYad9ffgmf[]\AlkArrival . ;EA=;gfkme]jHqjYea\kJ]hgjl$EYj[`*(),


The events industry is likely to see an increased focus by eYjc]l]jklgoYj\kfgf%e]ljgeYjc]lklg[YhalYdar]gfthis growth. Moreover, the rise in disposable income and willingness to spend has created demand for events in tier II and tier III cities.

Oal`l`]\a_alarYlagfg^l]d]nakagf$hYjla[mdYjdqafh`Yk]AAAand phase IV markets, the impending Phase III of FM radio license auctions and roll-out of pan-India ISP businesses by [gehYfa]kkm[`Yk@Yl`oYq$


Companies are still linear in their approach... use of digital integration will see a spurt.

Siddharth Ganeriwala 9mjYAfl]_jYl]\Kgdmlagfk

1(g^kmjn]qj]khgf\]flkZ]da]n]\l`YlY[lanYlagfkogmd\have increased importance going forward, or will be a ka_fa[Yfl\jan]jg^_jgol`&9[lanYlagf[YehYa_fkYj]k`goaf_growth as more and more marketers use activations to promote their brands and products in tier II and tier III towns. In particular, FMCG, telecom, banking, insurance, durables, education and automobile industries are using activations to grow beyond the metros, where their sales are beginning lgklY_fYl]&Gmjkmjn]qgêYjc]l]jkaf\a[Yl]\l`Yl)((g^respondents wanted to use digital integration in some form, oàd]-(g^j]khgf\]flkZ]da]n]\aloaddZ][ge]Yn]jqimportant element of their marketing spend budgets.

Af\aYjYfck*/thafl`]_dgZYdEA;=eYjc]l0. Survey j]khgf\]flk]ph][ll`]EA;=k]_e]fllg_jgoYlYjgmf\)0&GmlZgmf\EA;=`YkYdkgk]]fka_fa[Yfl_jgol`gn]jl`]dYkl^]oq]Yjk&L`]\ge]kla[EA;=eYjc]lak_jY\mYddqpicking up with support from the Ministry of Tourism. Though the current state of infrastructure limits the true potential for _jgol`g^\ge]kla[EA;=$l`]af[j]Ykaf_fmeZ]jg^`gl]dkYf\conference venues of international standards is helping grow this segment.


Games favored by brands for their brand marketing campaigns

86%

45%

28% 27% 26%21%

9% 9%5% 17%

Cricket Football Hockey Golf Marathons Tennis Badminton Indigenoussport

Polo Others

2.4 Digital. Digital. Digital. Oal`l`]af[j]Ykaf_h]f]ljYlagfgâfl]jf]lmk]jk^jge)*&.af*()))*lg)1&*af*()+),Yf\_jgoaf_h]f]ljYlagfg^keYjlegZad]h`gf]k^jge),af*()+lgegj]l`Yf-(g^Yddh`gf]kZq*()/1, the digital advertising segment is ]ph][l]\lg_jgo&Alak]ph][l]\lgj]Y[ÀFJ+$-/-[jgj]ZqEYj[`*()-$Y+(_jgol`^jgel`]hj]nagmkq]Yj10.

/ =QEYjc]l]jkmjn]q$Bmf*(), 0 Afl]jfYlagfYd;gf_j]kkYf\;gfn]flagf9kkg[aYlagf$L`]?dgZYd9kkg[aYlagfg^l`]=pàZalagfAf\mkljq 1 =Qk>mlmj]g^L]d]nakagfafAf\aYj]hgjl$*(), )( Af\aY:jYf\=imalq>gmf\Ylagfo]Z%kal]

The events space has also begun to integrate digital initiatives and activities into its traditional events portfolio, mainly for:

Building awareness for an event

Ongoing interaction with audiences to get feedback during and after the event

Build communities using social media networks

The increased opportunity, however, lies in offering digital activation led campaigns for advertisers, to target audiences, oà[`dan]afdYj_]dqe]\aY\YjceYjc]lk&


and results in improved brand recall and better engagement on an ongoing basis. Hence, evolving strategies on building communities through ongoing interaction with audiences aided by digital integration will gain importance in the future Yf\]n]fl[gehYfa]k]pàZalaf_làkkcaddoaddj]YhZ]f]lkafYbig way.

2.5 Margins continue to stay positive, but cost control is imperative

Kmjn]qj]khgf\]flk]ph][l]\=:A30%

14%18%

0-5%

29%21%

20-30%

25%27%

10-20%

21%30%

5-10%

Expe

cted

mar

gin

Source: EY survey

Expected growth rate in costs

9%

10%

12%

15%

Admin

Directvariable

Overall

Payroll

=n]fl[gehYfa]kf]]\lgZ]eaf\^mdgâf[j]Ykaf_gn]j`]Y\expenditures in the business, as well managing margins on a j]Ydlae]ZYkak&J]khgf\]flkZ]da]n]\eYj_afk[gmd\aehjgn]if cost leakages and wastages were reduced. A few factors, oà[`Yj][jala[YdlgeYaflYafhjglYZadalqYj]2 People cost

=^[a]fleYfY_]e]flg^Ylljalagf =fkmjaf_Yddj]hdY[]e]flàjaf_ak\gf]Yll`]kYe]gj

reduced cost

=fkmjaf_Yddf]oàjaf_akYhhjgn]\Zq;=G'\aj][lgjk Better management of procurement costs

Aehd]e]flaf_Y[]fljYdar]\hjg[mj]e]fl^mf[lagf =fkmjaf_hmj[`Yk]gj\]jkYj]akkm]\^gjc]qal]ekhjagj

to event date, to prevent subsequent buffering

=fYZdaf_ngdme]\ak[gmflkY[jgkkZmkaf]kk\anakagfk Increasing use of barter transactions

Variable event costs

Hj]hYjYlagfg^Yhj]HDklYl]e]fl Dan]egfalgjaf_g^[gklkYf\j]n]fm]kY_YafklZm\_]lk J]Yd%lae]egfalgjaf_g^la[c]lkYd]k$ZYf\kYf\[Yk`

collections


2.6 Event companies will continue to create IP

00g^kmjn]qj]khgf\]flkafl]f\lgZmad\AHkgn]jl`]f]plloglgl`j]]q]Yjk&=n]fl[gehYfa]kYj]af[j]Ykaf_dq^g[mkkaf_gfZmad\af_AHkaf%gj\]jlg[YhalYdar]gfl`]_jgoaf_demand for quality events. IPs command a premium over other services, add more quality revenue to the companys kitty, get signed on for long-term deals , demonstrate measureable results and are more resilient to economic kdgo\gofk&=n]fl[gehYfa]kafl]f\af_lg_YafYkmh]jagjposition in the industry are building IP capabilities as it improves the companies perception in the market and in the minds of customers and investors.

The entry barriers to creating IPs are reducing. In the past, a fYlagfYdAHoaddf]]\eYjc]laf_[gklk$o`a[`[gmd\Z]-(g^the total investment. Today, marketing costs can be reduced l`jgm_`l`]\a_alYde]\amelg*-+(g^lglYdAH[gklk$as well as enable a focussed approach towards a targeted community. Hence, event companies reliance on mass media can reduce.

Source: EY survey

IPs expected to be launched in next 2-3 years(percentage of respondents)

Prop

osed

new

IPs

12%

27%

55%

6%

0

1

2-3

4-6

Ticketed eventsAn interview with Girish Bobby Talwar, VP Events BookMyShow & Co-Founder OML/NH7

Q. What is the size of the ticketed events industry and what share does BookMyShow have?

The ticketed events industry universe two years ago would be Yjgmf\AFJ)-([jgj]lgAFJ*(([gj]&Lg\Yql`YlfmeZ]jakYjgmf\AFJ,-(-(([jgj]Yf\kdYl]\lg_jgoYll`]kYe]jYl]&9k:ggcEqK`goo]k]jna[]egj]l`Yf-(g^l`YleYjc]l&Q. How has this industry grown in the past two years, and where do you expect to see it in the next two years?

In the past two years I have seen a surge in the number of events that are taking place annually. The average ticket prices `Yn]jak]f^jgeYjgmf\AFJ.((lgAFJ)$(((3fglaf[dm\af_l`]hj]eame[Yl]_gjqhja[]ko`a[``Yn]Ydkgk]]fY,(-(jak]&B towns are seeing an immense appetite for all kinds of ticketed events. This trend is expected to grow across more B and C town cities with the introduction of new genres of ticketed events, entertainment and sports.

Q. What are the key areas of opportunity and growth?

As segments, music-based events, comedy and sports will continue to be the key areas of growth. Opportunities like small and large venue management seem to be a new sunrise market.

Q. Any concerns youd like to see addressed?

The introduction of a service tax in addition to an entertainment tax on tickets is a serious concern. This will raise the taxes gfla[c]lklg+(Yf\]n]fegj]afkge][Yk]k&9hYjl^jgedamaging the margins of events promoters and substantially raising prices of tickets, this may result in the serious slowdown and even shutdown of some event and sports promoters. I would really like to see the speedy implementation of GST (goods and services tax) that hopefully addresses this issue at reasonable rates for all stakeholders. Also, more permanent, quick turnaround infrastructure venues, for events to be hosted across the country would be the need of the hour.


What changed?Key changes that were observed in survey responses between 2011-12 and 2014-15

Intellectual propertyMajority of survey respondents are planning to build between 1 and 3 IPs in the next two to three years, to help generate stable [Yk`gok$_Yafk[Yd]ima[cdqYf\aehjgn]Zmkaf]kknYdmYlagfk&@go]n]j$[gehYfa]k`Yn]Ydkgj]Ydar]\alak\a^[mdllgZmad\imYdalqAHk&

ChallengesDY[cg^ljYaf]\eYfhgo]jYf\afYZadalqlg\]egfkljYl]JGAlg[da]flk`Yn]Z][ge]l`]c]q[`Ydd]f_]kfaced by the industry, given the increase in fmeZ]jg^]n]flk$jak]afimYdalq]ph][lYlagfkYf\af[j]Yk]\_]g_jYh`a[Ydkhj]Y\g^events and activation activity.

HYqjgdd[gklk`Yn]af[j]Yk]\ka_fa[Yfldq^jge)+g^lglYd[gklklg)0g^lglYd[gklk&L`]qYj]fgoloa[]l`]Y\eaf[gklkYf\p]\gn]j`]Y\kg^]n]fl[gehYfa]k&

Payroll costs

Performer availabilityH]j^gje]jYnYadYZadalq`Ykaehjgn]\. L]d]nakagfk`gokYf\lYd]flY_]f[a]k`Yn]\]n]dgh]\Yf][gkqkl]el`YleYc]kal]Yka]jlgk`go[Yk]Yf\j][jmalh]j^gje]jkY[jgkkthe country.

Service outside IndiaAf[j]Yk]\fmeZ]jg^j]khgf\]flkegj]l`Yf/(`Yn]klYjl]\lghjgna\]k]jna[]gmlka\]Af\aY, Y[jgkkh]jkgfYd]n]flk$EA;=Yf\AH&

HjglYZadalq]ph][lYlagfkHjglYZadalq]ph][lYlagfk`Yn]j]\m[]\^jge).lg)+gfl`]ZY[cg^[gklafYlagfand advertiser cost consciousness. Managing [gkl`Ykf]n]jZ]]fegj]aehgjlYflY[jgkkp]\gn]j`]Y\k$h]ghd][gklYf\j]\m[af_d]YcY_]kafnYjaYZd]]n]fl[gklk&

Digital integration+-g^j]khgf\]flkYj]fgohjgna\af_kge]d]n]dg^digital integration in their ]n]flk&


Mergers and acquisitionsIn this section we discuss the mergers and acquisitions (M&A) deals which have taken place. We also cover the M&A opportunity that exists in the future.


3 Mergers and aquisitions3.1 Overview of the M&A

landscape The event management industry witnessed very few ljYfkY[lagfkafl`]dYkl^gmjlgn]q]Yjk&Egklg^these transactions have been below the US$10 million YhhjgpaeYl]dqAFJ.*[jgj]k!jYf_]&

Given the highly fragmented industry structure (more than 10,000 event companies) there is scope for consolidation afl`]af\mkljq&AfY\\alagf$keYddhdYq]jk\geafYl]kh][a[sectors and regions and attract large national players looking lg]phYf\gh]jYlagfk&9dl`gm_`l`]j]Yj]k]n]jYdZ]f]lkl`Ylsome of the niche companies can provide to large national players, deal activity has been slow due to:

Akkm]kj]_Yj\af_fYf[aYdljYfkhYj]f[qYf\[gjhgjYl]governance in the smaller companies

Mf[]jlYaflqaf[Yk`gok\m]lg`a_`[mklge]jconcentration

High employee turnover resulting in instability in operations


Table 2: The table gives details of some of the deals in the events and activation industry

Date Target Investor Industry Deal type

February 2015 =n]fla]j BookMyShow =n]flk


3.2 Evolving M&A opportunities

Industry focus on IP-led events

The trend of event companies focusing on building IP-events `YkZ]]fYjgmf\^gjegj]l`Yfloglgl`j]]q]Yjk&=n]flkYj][gf[]hlmYdar]\Yf\]p][ml]\afgj\]jlgeYc]l`]eaflgZa_brands. Such events provide increased margins and strong fan-following and the brand can be extended into bars, cafes, merchandise, music records, video labels, etc. IPs enable the [j]Ylagfg^YklYZd]klj]Yeg^[Yk`gok&9^]og^l`]km[[]kk^mdAH]n]flkafAf\aYaf[dm\]KmfZmjfZqH]j[]hl$AA>9ZqOar;jY^lYf\F@/O]]c]f\ZqGED&L`]Yffmalq[Yk`goYf\l`]tertiary business opportunity that these events provide make them attractive for domestic and international investors. CA E]\aYkafn]kle]flafGED$o`a[`ak^g[mk]\gfAH%d]\]n]flk$akl`]jklafn]kle]fllgoYj\k^g[mk]\AH]n]flk&O]]ph][l\]Ydactivity in IP-led event management companies to pick up after a few more companies demonstrate ability to create IP-led events and scale them up successfully.

Advertising agencies interest in companies with ability to execute experiential marketing and activation events for their clients

The consumer industry across India has started focusing on af[j]Ykaf_Y[lanYlagfYf\]ph]ja]flaYdeYjc]laf_kh]f\k&=n]fleYfY_]e]fl[gehYfa]k`Yn]l`][YhYZadalqlggj_Yfar]Yf\manage such consumer activities for brands and have been awarded contracts by brands such as Coca Cola for Coke studios and MTV for MTV Unplugged. The increasing trend of consumer companies using event management agencies has resulted in advertising agencies building event management capabilities to win these contracts. Going forward, event management companies that focus on experiential marketing and brand activations could become attractive targets for advertising agencies.


3.3 Consolidation and inbound investments are expected to continue

9kYhYjlgâf\mkljqj]gj_YfarYlagf$dYj_][gehYfa]kYj]expected to acquire other small companies with focus on niche areas such as brand activations, experiential marketing, EA;=$h]jkgfYd]n]flkYf\khgjlk]n]flkeYfY_]e]fl&In addition, we also expect the larger national players to consolidate their presence by acquiring a few regional players, which can enable them to provide pan-India services to l`]aj[da]flkafYfgj_Yfar]\Yf\ljYfkhYj]fleYff]j&Làkconsolidation is also expected to improve the bargaining power of companies with vendors and suppliers thereby aehjgnaf_[Yk`gok$oà[òaddeYc]l`]eYlljY[lan]lYj_]lkfor global strategic investors looking to enter India.

Kmjn]qj]khgf\]flkZ]da]n]\l`Yll`]eYbgjalqgâfgj_Yfa[growth will be funded through internal accruals. However, companies have also indicated that they are increasingly open for equity infusion and venture funding.

Source: EY survey

Fund options (percentage of respondents)

2014-15

2011-1214%

14%

19%

52%

13%

15%

25%

48%

Debt

Venturecapital

Equity

Retainedearnings

I see many mergers and acquisitions, agencies bgafaf_`Yf\kYf\egnaf_Y`]Y\oàd]j]lYafaf_clients and providing better services. Agencies would prune their manpower and have varied services to offer.

Harjinder Singh Showworks Eventz

Sports leagues

With the onset of different sports leagues in India such as, Indian Hj]ea]jD]Y_m]$Af\aYfKg[[]jD]Y_m]$@g[c]qAf\aYD]Y_m]$Kabaddi league, Badminton league etc., event management industry has seen a considerable increase in demand. The contract value for event management companies will increase with popularity of these leagues. Given the advertiser interest in the new sports leagues and the potential for brand activations around these events, niche sports event management companies can be attractive targets for either the large event management companies, broadcasters or for advertising agencies.


Tax implications This section discusses the direct and indirect tax implications on the industry.


4 Direct taxAmong the myriad taxes applicable to the events industry, \aj][llYp]k`Yn]YeYbgjaehY[lgfl`][Yk`gokg^l`]events industry. The increase in the number of events and the high visibility associated with them has drawn the attention g^J]n]fm]9ml`gjala]k&9dl`gm_`l`]klYf\gfeYfqYkh][lkg^\aj][llYp]k`YkYllYaf]\fYdalq$[]jlYafYkh][lkj]eYaf[gfl]flagmk\m]lgYdY[cg^bm\a[aYdhj][]\]f[]&Afda_`lg^l`]unique nature of the industry, the following key issues need to be [gfka\]j]\^jgeYfaf[ge]%lYph]jkh][lan]o`ad]gj_Yfaraf_Yfevent in India:

4.1 Tax revenues from an event in India

The primary source of revenue for an event manager from an event is revenue from sale of live telecast rights (where Yf]n]flakgj_Yfar]\Yf\j][gj\]\ZqYf]n]flgof]j!gjmanagement fee (where an event management company is [geeakkagf]\lggj_Yfar]Yf]n]fl!&L`]gl`]jkgmj[]kg^revenue include income from ticket sales and sponsorship fees.

A resident event management company/event owner in India is taxable in respect of its global income on net basis Y[[gj\af_lgfgjeYdhjgnakagfkg^l`]Af[ge]%lYp9[l$)1.)(Act). However, typically, a non-resident event management company/event owner will be taxable in three cases:-

i. Where the persons income accrues or arises in India; or,

ii. Where the income deems to accrue or arise in India; or,

iii. Where the income is received or is deemed to be received in India.

A non-resident event management company/event owner can choose to be governed by the provisions of the Act or l`]Yhhda[YZd]


such as managerial, technical, professional or consultancy services) according to the Act or applicable Tax Treaty and accordingly, litigation in the matter cannot be ruled out. The Finance Bill, 2015, proposes to reduce the tax rate on fees for l][`fa[Ydk]jna[]kYf\jgqYdlq^jgel`][mjj]fl*-lg)( hdmkapplicable surcharge and cess).

Taxability of sponsorship fee

An event owner receives sponsorship fee from various [gjhgjYl]gj_YfarYlagfk a&]&$khgfkgjk!$oà[`mk]l`]]n]flkfor promotion of their products. Sponsorship generally includes naming an event after the sponsor, displaying the sponsors company logo or trading name, giving the sponsor exclusive or priority booking rights, complimentary tickets, sponsoring hjar]kgjljghà]k^gj[geh]lalagf]l[&Lqha[Yddq$khgfkgjkàhagreements are a mixture of all these rights and the sponsorship fee is a lump sum amount to be paid annually by the sponsors.

As regards payment of sponsorship fee to a resident event owner, the issue arises regarding applicability of withholding tax provisions in respect of royalty (for use of or right to use trademark or similar property) vis--vis advertising contract, depending on the terms of the contract.

The other issue that could arise is whether the sponsorship fee paid to a non-resident event owner by various sponsors, in respect of an event in India, is in the nature of royalty and taxable in India.

Taxpayers take a position that the consideration from grant of sponsorship rights is not in the nature of royalty. However, the J]n]fm]9ml`gjala]kmkmYddqlYc]Y[gfljYjqna]ogfl`]ZYkakthat there is use of trademark or similar property involved.

The taxability of sponsorship income essentially depends on the facts of the case and commercial understanding of parties. Given the stakes involved, it is imperative that appropriate documentation is maintained to mitigate tax exposure of sponsorship income being taxed as royalty.

4.3 Taxability of revenues from activations business


Non-compliance with the withholding tax provisions results in additional interest liability, disallowance of expenses and penalty exposure. Moreover, where a payee, whose income akkmZb][llgoal``gd\af_$\g]kfgl`Yn]YlYpj]_akljYlagfafIndia (i.e., Permanent Account Number), the tax is required to Z]oal``]d\Yll`]jYl]kh][a]\afj]d]nYflhjgnakagfkgjl`]jYl]kaf^gj[]gj*($oà[`]n]jakà_`]j&

We have discussed below the withholding tax implications on some of the key payments in connection with an event:

Payments to resident artists performing in India and outside India

Hjgnakagfkg^l`]9[lkh][a[Yddqhjgna\]kl`Yll`]k]jna[]kprovided by resident artists for performance in India are in the fYlmj]g^hjg^]kkagfYdk]jna[]k \]f]\mf\]jl`]9[l!Yf\Yj]kmZb][llgoal``gd\af_Yll`]jYl]g^)(&

An individual resident in India is taxable on his global income. The income from performance outside India could YdkgZ]kmZb][llgoal``gd\af_lYpafj]kh][llgl`][gmfljqof performance. In case taxes are withheld in the foreign country, then the resident artist may claim the tax credit for lYp]khYa\gmlka\]Af\aYY_Yafkll`]lYpdaYZadalqafAf\aYkmZb][lto certain conditions.

Payments to non-resident artists performing in India

Provisions of the Act cover within their ambit the taxability of income received by non-resident entertainers from h]j^gjeYf[]afAf\aY$Yll`]jYl]g^*( ]p[dm\af_kmj[`Yj_]and education cess) on a gross basis and the consequential withholding tax rate would also be the same. Furthermore, Ykh][a[hjgnakagfg^l`]9[l]p]ehlkfgf%j]ka\]fl]fl]jlYaf]jk^jgedaf_YlYpj]lmjfafAf\aYa^l`]gfdqaf[ge]earned from India is in respect of performance in India and appropriate taxes are withheld from the said income.

Usually under the Tax Treaty, there is a separate Article on Income earned by entertainers and athletes, which provides for taxation in India of the income from the personal activities g^Yjlaklk']fl]jlYaf]jkafAf\aY&=n]fo`]j]l`]af[ge]^jgepersonal activities accrues to another person and not directly to the artists/entertainers, the income is still taxable in India.

Additionally, a non-resident artist, who has come to India in connection with shows or events in India and has earned taxable income in India, should obtain an Income Tax ;d]YjYf[];]jla[Yl] AL;;!hjagjlg\]hYjlmj]^jgeAf\aY&In the absence of procuring the ITCC, there may be practical \a^[mdla]k^gjl`]Yjlakloàd]\]hYjlaf_^jgeAf\aY&

According to guidance by the apex income-tax administration Zg\q l`];:


5 Indirect taxWith various Indirect taxes applicable on an event, the impact of such taxes must be considered in detail while planning any event Y[lanalqafAf\aY&EYbgjAf\aj][llYp]kYhhda[YZd]gf]n]flk`]d\afAf\aYaf[dm\]=fl]jlYafe]fllYp$K]jna[]LYp$NYdm]9\\]\LYp N9L!$KlYehmjl`]jegj]$oal`l`]dac]dqafljg\m[lagfof a Goods and Services Tax (GST) in the near future, the importance of Indirect taxes in the overall decision making is likely to increase.

5.1 Entertainment tax=fl]jlYafe]fllYpakYklYl]d]nqgfnYjagmkY[lanala]kkm[`Ykde]p`aZalagf$]fl]jlYafe]fl]n]flk$khgjlkY[lanala]k$[YZd]'


5.2 Service taxService Tax is currently applicable on the value of all services hjgna\]\$mfd]kke]flagf]\afl`]F]_Ylan]daklgj=p]ehlagfdaklof services. Till recently, entry into all entertainment events and amusement facilities was kept out of the service tax ambit and accordingly entry to events such as music shows, amusement parks, sports events, award functions etc., were not liable to service tax.

With the announcement of Union Budget 2015, some of the events have been bought into the service tax ambit. Thereby, with the implementation of the proposals of the Union Budget 2015, tickets for award functions, concerts, pageant, musical performance, certain sporting events etc., shall be liable to k]jna[]lYpo`]j]l`]la[c]lhja[]]p[]]\kAFJ-((h]jh]jkgf&9[[gj\af_dq$YhYjl^jgel`]eYbgjkgmj[]kg^j]n]fm]j]dYl]\to events such as grant of telecast rights, sponsorship revenue, which were already liable to service tax, revenue pertaining to admission to entertainment events shall also be liable to service tax.

With the introduction of service tax on ticket sales, coupled with af[j]Yk]afk]jna[]lYpjYl]^jge)*&+.lg),af*()-$l`][gklg^gj_Yfaraf_Yf]fl]jlYafe]fl]n]flYf\hYjla[ahYlaf_afYfentertainment event in India is likely to increase.

5.3 Customs duty;mklgek\mlqakd]na]\gfaehgjlg^_gg\kaflgAf\aY&=n]flksuch as exhibitions, musical shows, etc., entail import of various goods into India. While all imports are liable to customs duty Yl_]f]ja[jYl]g^*1&,,$l`]jYl]g^[mklgek\mlq\]h]f\kgfl`]\]k[jahlagfg^l`]hjg\m[lYf\alk[dYkka[Ylagfmf\]jl`]afl]jfYlagfYddqY[[]hl]\[dYkka[Ylagffge]f[dYlmj]k&>mjl`]jegj]$[]jlYafZ]f]lkkm[`Yk]p]ehlagfk$\mlqdrawback, concessional rate of duty, etc., could be explored for temporary import of such goods. Moreover, International Custom arrangements such as ATA carnet allow temporary importation of equipments without the payment of customs duty for use at exhibitions and fairs.

5.4 Value added taxVAT is levied by state governments in India on sale and purchase of goods within a state in India. Furthermore, sales which occasion movement of goods from one state of India to another are leviable to a Central Sales Tax (CST). VAT is levied Yl_]f]ja[jYl]kjYf_af_^jge-lg)-\]h]f\af_gfl`]description of goods sold. VAT legislations are likely to provide for special registration and payment provisions for sales made in exhibitions, trade fairs, etc.


5.5 Goods and services taxA new tax reform in the form of Goods and Service Tax Act (GST) is likely to roll out in 2016, which is intended to subsume l`]]paklaf_Af\aj][llYp]k$a&]&$=p[ak]\mlq$K]jna[]lYp$N9Land other state levies such as Octroi, entertainment tax, etc. Given the fact that GST is aimed to be a uniform tax levy, which oaddYddgo^j]]gog^[j]\alk$l`]Zmj\]fg^[Yk[Y\af_]^^][lgfaccount of non-transferability of credit should be settled.

It is proposed that the state governments exclusive power j]dYlaf_lgd]nqaf_g^KYd]kLYp$=fljqLYp$DmpmjqLYp$:]llaf_9f\?YeZdaf_LYp$=fl]jlYafe]flLYp ]p[]hl^gjdg[Ydbodies) etc., are proposed to be deleted and similarly Central Governments exclusive power relating to levying of service tax, excise duty (except for petroleum products, alcohol and tobacco) etc. are proposed to be deleted. The Constitution of India is proposed to be amended to empower both Centre and State to tax supply of goods and provision of services simultaneously.

While most of the taxes where States have the power are subsumed, entertainment tax levied and collected by the local bodies (such as Panchayats, Municipalities etc.) is kept outside. This could mean that local bodies shall be empowered to levy tax on entertainment in addition to GST. Currently, most entertainment taxes are levied by the states and only a fraction (in the form of show tax etc.), is levied by local bodies. However, if such a power is left outside the GST, local bodies may levy tax on entertainment in addition to high rate of GST. This will make revenues earned by the entertainment industry unpredictable and increase the cost of doing business.

While no decision has yet been taken on the issue, it is expected that the rate of GST on events would be higher l`Yfl`][mjj]fldqhjghgk]\),k]jna[]lYp^gj*()-).$l`]j]Zq[Ymkaf_Yka_fa[Yflaf[j]Yk]afl`][gklg^]n]flkYf\advertisements.

Furthermore, with the introduction of GST, the State Governments shall intend to collect GST on all activities conducted within the state. Going by this intention, for the event industry, the GST might have to be paid to the states where the event is actually held and hence additional complexities may arise on account of multi-state events or activations. This may also result in blockage or loss of GST credits when the vendor charges GST of a state different than the state where the customer is located.

5.6 Stamp dutyStamp duty is payable to the state government on the execution g^kh][a]\afkljme]flk&;]jlYafklYl]klYeh\mlqd]_akdYlagfkprovide for payment of stamp duty on instruments granting ]p[dmkan]l]d][Ykl'ZjgY\[Yklja_`lk$afkljme]flk^gjkh][a]\performances, etc.

5.7 Other key indirect tax considerations

Other key indirect tax considerations

Afl]jfYlagfYddq$9L9;Yjf]lZ]f]l^gj\mlq^j]]l]ehgjYjqimport of goods into India extends to goods imported for exhibition, fair, professional equipment and commercial samples. While India is a member of ATA Carnet, the temporary duty free import is available only in respect of goods imported for exhibitions or fairs. This requires event owners to incur customs duty on such imports and apply for draw back or refund at a later \Yl]j]kmdlaf_af[Yk`goaf]^[a]f[a]k&

Multiple taxation without credit

Multiple indirect taxes are levied by multiple regulators on the various activities in relation to an event. However, credit of the tax paid on any activity is not available as set off against the liability of any other levy which leads to increase in cascading and multiplicity of taxes. With the introduction of GST, issue related to cascading effect of taxes due to non-transferability of credit is likely to be addressed.


Governance, risk and controlThe New Companies Act, 2013 has far reaching implications on corporate governance and risk management. This section highlights some key changes for event companies.


6 The New Companies Act, 2013J]_mdYlgjq[`][ck$Y[[gmflYZadalqYf\_gn]jfYf[]klYf\Yj\khave received a serious boost with the introduction of the New Companies Act, 2013. The changes in law are aimed at ensuring higher standards of transparency and accountability, and seek to align the corporate governance practices in India with global best practices. While standards are more stringent for public companies, most compliance and governance j]imaj]e]flkYhhdqlghjanYl]k][lgj[gehYfa]kYko]dd&=n]flcompanies which can demonstrate good governance will have Yka_fa[YflY\nYflY_]gn]jmfgj_Yfar]\Yf\qZqfa_`loperators.

In this section we have covered three critical governance j]imaj]e]flkg^l`]F]o;gehYfa]k9[l$*()+nar$afl]jfYdfYf[aYd[gfljgdk$[gehdaYf[]eYfY_]e]flYf\na_admechanism. For a complete set of compliance requirements, you can log on to www.ey.com/in/companiesact2013.


6.1 Afl]jfYdfYf[aYd[gfljgdk A>;!9k\]f]\mf\]jk][lagf)+, -! ]!g^l`]F]o;gehYfa]k9[l$A>;e]Yfkl`]hgda[a]kYf\hjg[]\mj]kY\ghl]\ZqY[gehYfq^gj]fkmjaf_l`]gj\]jdqYf\]^[a]fl[gf\m[lgâlkZmkaf]kk$af[dm\af_Y\`]j]f[]lg[gehYfqkhgda[a]k$l`]kY^]_mYj\af_gâlkYkk]lk$prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation g^j]daYZd]fYf[aYdaf^gjeYlagf&L`mk$A>;[gn]jk[gfljgdkgn]jfYf[aYdklYl]e]flkYf\Zmkaf]kkgh]jYlagfk&

Applicability Requirement Impact of non-compliance

Applicable to all public and private companies.

Additionally, over and above l`][gfljgdkgn]jfYf[aYdreporting, public companies will have to ensure adequacy of effectiveness of operating controls as well.

Board of directors, independent directors, audit committee and auditors will have to comment on the adequacy and effectiveness gâfl]jfYdfYf[aYd[gfljgdk&

=n]jqg^[]jg^l`][gehYfq$o`gakaf\]^Ymdl$k`YddZ]punishable with imprisonment for a term, which may extend lgl`j]]q]Yjkgjoal`Yf]$oà[`k`YddfglZ]d]kkl`YfAFJ-($((('%Zmloà[èYq]pl]f\lgAFJ-(($((($gjoal`Zgl`&9[[gj\af_lgk][lagf* -1!g^l`]F]o;gehYfa]k9[lg^[]jincludes any director, manager or key managerial personnel or any person in accordance with whose directions or instructions the board of directors or any one or more of the directors is or are accustomed to act.

Companies need to ensure that adequate amount of documentation is maintained to demonstrate to the board, independent directors, audit committee and auditors that the company has taken adequate and reasonable care in assessing the adequacy and ]^^][lan]f]kkgâlkafl]jfYdfYf[aYd[gfljgdk&

Auditors will be required to comment on the adequacy of the IFC system in place and the operating effectiveness of such controls ^jgefYf[aYdq]Yj*()-).&;gehYfa]kf]]\lg^gddgol`]^gddgoaf_^jYe]ogjclg]fYZd][gehdaYf[]2

AfklalmlagfYdar]Y[mdlmj]g^Zmad\af_a robust control enviorement across l`]gj_YfrYlagf


Applicability Requirement Impact of non-compliance

Applicable to:

all listed companies

companies which accept deposits from the public

companies which have borrowed money from banks Yf\hmZda[fYf[aYdafklalmlagfkaf]p[]kkgÂFJ-([jgj]

Companies are required to establish a vigil mechanism for directors and employees to report genuine concerns.

The audit committee is required to oversee the operation of the whistle blowing mechanism. For companies that do not need an audit committee, a director to be nominated by the Board for this purpose.

L`][gehYfqk`YddZ]hmfak`YZd]oal`f]oà[`k`YddfglZ]d]kkl`YfAFJ)(($(((Zmloà[èYq]pl]f\lgAFJ-(($(((Yf\]n]jqg^[]jg^l`][gehYfqo`gakaf\]^Ymdlk`YddZ]punishable with imprisonment for a term which eYq]pl]f\lggf]q]Yjgjoal`Yf]oà[`k`YddfglZ]d]kkl`YfAFJ*-$(((Zmloà[èYq]pl]f\lgAFJ)(($(((3gjoal`Zgl`&

Companies need to adopt the following methodology to comply with the requirements of the New Companies Act, 2013:

Identify all acts applicable to the organisation - central, state and the local

For each act, identify the list of compliances along with the timelines and frequency of compliance. This should also include the various licenses which are required to conduct different types of events

Classify the compliance requirements into key and non-key compliances. Any compliance requirement which can impact the [gflafmalqg^l`]Zmkaf]kkgj[Yfj]kmdlafka_fa[YflfYf[aYdh]fYdlqgjaehjakgfe]flk`gmd\Z][dYkka]\YkYc]q[gehdaYf[]

=fkmj]l`Yl]Y[`[gehdaYf[]j]imaj]e]flakeYhh]\lgYfaf\ana\mYdoalàfl`]gj_YfakYlagfo`gakj]khgfkaZd]^gjalk[gehdaYf[]


Illustrative list of regulations applicable to an events companyCorporate laws1. L`];gehYfa]k9[l$*()+j]Y\oal`l`])1-.9[l2. ;gehYfa]k;]fljYd?gn]jfe]flk?]f]jYdJmd]kYf\>gjek$)1-.3. ;gehYfa]kgj]a_f=p[`Yf_]EYfY_]e]fl>gj]a_f;mjj]f[q9[[gmflkZqYH]jkgf

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200010. >gj]a_f=p[`Yf_]EYfY_]e]flH]jeakkaZd];YhalYd9[[gmflLjYfkY[lagfk

J]_mdYlagfk$*(((11. >gj]a_f=p[`Yf_]EYfY_]e]flJ]YdakYlagf$J]hYljaYlagfYf\Kmjj]f\]jg^

>gj]a_f=p[`Yf_]J]_mdYlagfk$*(((12. >gj]a_f=p[`Yf_]EYfY_]e]flLjYfk^]jgjAkkm]g^Yfq>gj]a_fK][mjalq

J]_mdYlagfk$*((,Commercial laws1. Af[ge]LYp9[l$)1.)Yf\Af[ge]LYpJmd]k$)1.*2. O]Ydl`LYp9[l)1-/Yf\O]Ydl`LYpJmd]k$)1-/3. >afYf[]9[lYf\K]jna[]LYpJmd]k4. L`]EY`YjYk`ljYKlYl]LYpgfHjg^]kkagfk$LjY\]k$[Yddaf_kYf\=ehdgqe]flk

9[l$)1/-L`]EY`YjYk`ljYKlYl]LYpgfHjg^]kkagf$LjY\]k$;Yddaf_kYf\=ehdgqe]flkJmd]k$)1/-

5. Maharashtra Value Added Tax Act, 2002 and Maharashtra Value Added Tax Jmd]k$*((-

6. ;]fljYdKYd]kLYp9[l)1-.;]fljYdKYd]kLYpJ]_akljYlagfLmjfgn]jJmd]k)1-/;]fljYdKYd]kLYp EY`YjYk`ljY!Jmd]k$)1/(

/& :geZYqEglgjN]à[d]kLYpYlagf9[l$)1-0Yf\:geZYqEglgjN]à[d]kLYpYlagfJmd]k$)1-1

0& L`]EY`YjYk`ljYLYpgfl`]=fljqg^?gg\kaflgDg[Yd9j]Yk9[l$*((*L`]EY`YjYk`ljYLYpgfl`]=fljqg^?gg\kaflgDg[Yd9j]YkJmd]k$*((*

Environmental, health and safety1. L`]9aj Hj]n]flagfYf\;gfljgdg^Hgddmlagf!9[l$)10)Yf\EY`YjYk`ljY9aj

Hj]n]flagfYf\;gfljgdg^9ajHgddmlagfJmd]k$)10+2. L`]EY`YjYk`ljY>aj]Hj]n]flagfYf\Da^]KY^]lqE]Ykmj]k9[l$*((.Yf\L`]

EY`YjYk`ljY>aj]Hj]n]flagfYf\Da^]kY^]lqE]Ykmj]kJmd]k$*((13. L`]OYl]j Hj]n]flagfYf\;gfljgdg^Hgddmlagf!9[l$)1/,Yf\EY`YjYk`ljY

Hj]n]flagfYf\;gfljgdgÔYl]jHgddmlagf!Jmd]k$)1/0&4. OYl]jHj]n]flagfYf\;gfljgdg^Hgddmlagf;]kk9[l$)1//Yf\OYl]j

Hj]n]flagfYf\;gfljgdg^Hgddmlagf;]kkJmd]k$)1/05. L`]=fnajgfe]flHjgl][lagf9[l$)10.Yf\L`]=fnajgfe]flHjgl][lagfJmd]k$

)10.

6. L`]Fgak]HgddmlagfJ]_mdYlagfYf\;gfljgdJmd]k$*(((/& :Yll]ja]kEYfY_]e]flYf\@Yf\daf_Jmd]k*(()0& Food Safety and Standards Act 20061& Indian Standard Code of Practice Selection and Maintenance of First Aid Fire

=plaf_mak`]jk10. =fnajgfe]flHjgl][lagf9[l)10.$]%oYkl] EYfY_]e]flYf\@Yf\daf_!Jmd]k$

201111. @YrYj\gmkOYkl]kEYfY_]e]fl$@Yf\daf_Yf\LjYfk%Zgmf\YjqEgn]e]fl

Jmd]k$*((012. =fnajgfe]flHjgl][lagf9[lYf\:age]\a[YdOYkl] EYfY_]e]flYf\@Yf\daf_!

Jmd]k*())Labour laws 1. L`];gfljY[lDYZgmj J]_mdYlagfYf\9Zgdalagf!9[l$)1/(L`]EY`YjYk`ljY

;gfljY[lDYZgmj J]_mdYlagfYf\9Zgdalagf!Jmd]k$)1/)2. L`]:geZYqK`ghk=klYZdakè]flk9[l$)1,0Yf\L`]EY`YjYk`ljYK`ghk

=klYZdakè]flJmd]k$)1.)3. L`]Af\mkljaYdmf\kK[`]e]$)1-*$L`]=ehdgq]]kmf\K[`]e]$)11-

12. 9hhj]fla[]k9[l$)1.)Yf\9hhj]fla[]kàhJmd]k$)11*13. =imYdJ]emf]jYlagf9[l$)1/.Yf\=imYdJ]emf]jYlagfJmd]k$)1/.14. L`]=ehdgq]]kKlYl]AfkmjYf[]9[l$)1,0Yf\L`]=ehdgq]]kKlYl]AfkmjYf[]

?]f]jYdJ]_mdYlagfk$)1-(15. L`]Af\mkljaYd=ehdgqe]fl KlYf\af_Gj\]jk!9[l$)1,.L`]:geZYq

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>mf\Jmd]k$)1-+)1&L`]EY`YjYk`ljY>Y[lgja]k ;gfljgdgÂf\mkljaYdEYbgj9[[a\]flk@YrYj\k!

Jmd]k$*((+20. L`]EY`YjYk`ljYOgjce]fkEafaeme@gmk]%J]fl9ddgoYf[]9[l$)10+L`]

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Others1. ;ghqja_`l9[lYf\Jmd]k&2. Af^gjeYlagfL][`fgdg_q9[l$*(((Yf\Af^gjeYlagfL][`fgdg_q J]YkgfYZd]

K][mjalqHjY[la[]kHjg[]\mj]kK]fkalan]H]jkgfYd


EEMA wish list==E9oak`]klg`a_`da_`l[]jlYafc]q[`Ydd]f_]kfaced by its members, and possible solutions for the government to consider.


7 EEMA wish listThe events and activation industry seeks to highlight some key problem areas for the consideration of the Central Government and state governments. Most of them stem from a basic lack of knowledge and appreciation of the vital role that this industry can play in ]f]j_araf_][gfgea]kg^]flaj]j]_agfkZ]ka\]kZ]af_Yf]ehdgqe]fl_]f]jYlgj^gjeaddagfkg^qgml`Yf\gl`]jk][lagfkg^kg[a]lq&Afgmjghafagf$l`]jklYf\egklhjaeYjqf]]\ak$l`]j]^gj]2

Area Description Request

J][g_falagfg^l`]events & activation Industry

L`akoadd^Y[adalYl]YZYka[YZadalqlg_YafY[[]kklgafklalmlagfYdfYf[]Yf\$l`]j]^gj]$]fYZd]Y[gehd]l]j]gja]flYlagfg^[Yk`goeYfY_]e]fll`Ylakgl`]joak]l]f\af_lgl`jglld]af\mkljq_jgol`&9degkl1(g^l`]af\mkljqtoday does not manage to achieve a sustainable level of growth that can enable it to attract better talent, institute better management practices and Zmad\[da]flj]dYlagfk`ahkl`Ylj][g_far]alk[gfklalm]flkYkhYjlf]jkjYl`]jthan vendors.

Grant industry status to the events and activation industry

Withholding taxes Lmjl`]j$al`YkZ]]f[dYja]\Zq;:


Area Description Request

Dan]]fl]jlYafe]flspaces and segregation of =fl]jlYafe]fltax on live entertainment as \aklaf[l^jgedek

There is a need to invest in the various art forms of our country, live entertainment being the key area for consideration. Government, through alkmjZYf\]n]dghe]flhjg_jYek$f]]\klgZmad\kmklYafYZd]hjgb][lkoà[ìnclude theaters, museums, rehearsal spaces, experimental studios, galleries, digital labs, amphitheaters, and do this in a spirit of public partnership. The [YhalYd[alqgâdeaf\mkljqYf\Yj][`Yj_]\l`]kYe]d]n]dkg^=fl]jlYafe]fllYpYkl`]e&Dan]]fl]jlYafe]flaktotally different in character and the economics are totally different from a k[j]]faf_g^YdeafYl`]Ylj]&

=Y[`klYl]`YkY\a^^]j]fl=fl]jlYafe]fllYpkljm[lmj]jYf_af_^jge(afJYbYkl`Yflg.(afMllYjHjY\]k`&

J][g_falagfg^dan]events and activation as an independent industry

A complete waiver on =fl]jlYafe]fllYpY[jgkkstates

Corporate social responsibility

L`];KJY[l[mjj]fldqklYl]kl`Yl*g^hjglkg^[gehYfa]koal`lmjfgn]jgêgj]l`YfAFJ-(([jgj]`Yn]lgZ]kh]flgf;KJafalaYlan]k&Làkakcurrently open to a choice of initiatives.

We propose that the Government include the sponsorship for arts and live entertainment as a key hYjlg^;KJlg]f[gmjY_]live entertainment across the country.

=\m[Ylagfl`jgm_`Kcadd


Vision 20:20What will it take to create the event industry of the ^mlmj]7L`akk][lagf\]f]kl`]af\mkljqkdgf_l]jevision and is based on a round table discussion with af\mkljq;=Gk&


8 Vision 20:208.1 Framework for the futureL`]Ykh][lk$o`a[`Yj]egkl[jala[Yd^gjl`]af\mkljqk]ngdmlagf`Yn]Z]]fZjgY\dq[dYkka]\Ykafl]jfYd$]pl]jfYdYf\kljYl]_a[&

These areas are discussed in detail below.

8.2 Internal aspects=n]fl[gehYfa]k`Yn]lggn]j[ge]l`]afl]jfYd[`Ydd]f_]k^Y[]\Zql`]elg\Yqlg^mf[lagfZ]ll]j&L`]c]qafl]jfYd^Y[lgjka\]fla]\o]j]`meYfj]kgmj[]k$hjg[]kk]kYf\l][`fgdg_q&Aehjgnaf_l`]k]l`j]]Yj]Ykoadd`]dhl`]hdYq]jkafY[`a]naf_Z]ll]j]^[a]f[q$gmlhmlimYdalqYf\hjglYZadalq&

Human resources Processes Technology



Job security

9kegklg^l`]ogjcafl`]]n]flaf\mkljqakhjgb][lZYk]\$bgZk][mjalqakYfakkm]l`]af\mkljq`Yklg_jYhhd]oal`&=n]flmanagement companies could overcome this by offering its employees, and those of its contractors/vendors unemployment insurance, disability assistance and life insurance. For instance, the retail industry now has a few players who offer insurance and various schemes at the industry level to retail employees as long as they continue to work in the retail industry.

Compensation and pride

>gjl`]kYe]d]n]d$[geh]fkYlagfnYja]kka_fa[YfldqY[jgkkevent companies. It is observed that benchmarking (which is important for arriving at a uniform salary structure across l`]af\mkljq!k]]eklgZ]YZk]fl&;geh]fkYlagfYf\Z]f]lkoffered in the industry also need to meet the aspirations of the work force in order to attract and retain the right talent, yet be feasible for industry players as well. The industry should consider hiring from leading educational institutions, attract lYd]fll`jgm_`bgZ^Yajk$Yf\\]f]ZYf\kg^[geh]fkYlagf^gjdifferent roles and accreditations, to enable fair play.

In addition, the industry needs to position itself in the right way in order to create a sense of pride in the minds of existing and prospective employees.

Health and safety

Safety is an area of concern for the industry and needs to be managed. Going forward event management companies can limit the number of accidents through:

gmflYaf`]Y\Hjgeglagfk=n]flk Atul S. Nath, Candid Marketing Mandeep Malhotra, Mudra Max Mohomed Morani$;af]qm_E]\aY=fl]jlYafe]fl Sushma Gaikwad, Ice Global

Rahul Gomes, Oaks Management Consultancy Sanjay Kaul, Impact Communications Tarsame Mittal$9JL=fl]jlYafe]flK]jna[]k Xerxes Antia$/(=E? Neelabh Kapoor, Studio Neelabh Neha Seth Arora, Var Vadhu Wedding Management


8.2.3 Technology9ll`]G^[]As the industry progresses towards 2020, the event management industry must leverage the power of technology in gj\]jlg_]f]jYl]]^[a]f[qaf\Yqlg\Yqgh]jYlagfk&L][`fgdg_qcan enable:

Accurate and timely capture of transactions and accounting for them

;]fljYdar]\hjg[mj]e]fl\YlYZYk]k 9hh'ogjcgoZYk]\YhhjgnYdk^gjbgZ[g\]k]l%mh$Zm\_]l

approvals, invoicing and payments

Using data analytics to detect fraud, and

Business level and event level real-time generated MIS

At the event venue

Technology can be a great lever at event venues in bringing kY^]lqYf\]^[a]f[qafnYjagmkhjg[]kk]kkm[`Ykla[c]lkYd]k gfdaf]kYd]kcagkck!$Y[[]kk ZYj[g\]kYf\J>A


The industry needs to become more inclusive, k]lY[geegfZYk]$Yf\]fYZd]klYf\Yj\arYlagfin quality of delivery!

Anushree Agarwal Theme Weavers

Return on Investment (ROI)

=n]jq[da]fl`Yk\a^^]j]fl]ph][lYlagfk^jge]Y[`]n]fl&>mjl`]j$every event is unique as the same concert can be very different in two different cities or event on different days at the same n]fm]Yf\`]f[]$]n]flkYj]af`]j]fldq\a^[mdllge]Ykmj]&Unlike viewership, listenership or readerships, which are largely measuring audiences, events are evaluated by clients based on o`]l`]jl`]qe]]l[]jlYafgZb][lan]k$g^l]fmfklYl]\&

In the absence of a generally acceptable measurement platform, ]n]fl[gehYfa]kk`gmd\\]n]dghYJGAe][`Yfakeoà[`[da]flkcan relate to. This will be centred around the following:

Mf\]jklYf\[da]flgZb][lan]k^gjl`]]n]fl$oà[`[YfnYjq^gja particular type of event for different clients

>gj]Y[`gZb][lan]$mk]Y[geegfe]Ykmj]e]fll][`faim]$oà[àkkge]làf_l`Yl[YfZ][]fljYddq\]f]\Zql`]industry body

9ll`]]f\g^l`]]n]fl$\]egfkljYl]JGAlg[da]flZYk]\gfY_j]]\gZb][lan]k

;da]flko`goak`lg`Yn]l`]JGAe]Ykmj]e]flnYda\Yl]\[Yfappoint their employees or independent agencies for the same

8.3.2 Vendors/Supply chainVendor development

N]f\gj\]n]dghe]flhjg[]kkakafkljme]flYdaf]^[a]flafl]_jYlagfg^l`]kmhhdq[`Yaf^gjgj_Yfaraf_Z]ll]j]n]flk&Global standards around delivery, excellence, innovation, upgrade, training and technology need to be evaluated. The following initiatives can be considered by the industry:

Build a vendor database: Vendor details, their services/goods \]f]\Y[jgkk\a^^]j]flimYdalqk]_e]flk!$l`]ajkm[[]kk]kand failures (as updated by event management companies) need to be captured on an events industry intranet, to enable


9j]Y\n]jlak]jkkYlak]\ZqJGAe]Ykmj]e]fll`]qj][]an]^gjl`]aj:LDkh]f\k7

Yes, very much

No, not at all

So so its a veryweak linkage

10%

60%

30%

dissemination of knowledge relating to vendors and their capabilities

EYfY_]egfghgda]k2=n]fl[gehYfa]kYdkgf]]\lgZ]mindful of potential monopolies while selecting vendors to j]lYafZYj_Yafaf_hgo]jYf\]^[a]fldqf]_glaYl]l]jekoal`kmhhda]jk&@]f[]$a\]fla[Ylagfg^Yj]Yko`]j]l`]j]Yj]supply chain gaps, and nurturing a set of vendors to meet these requirements is important

KlYf\Yj\k\]falagf2


In the course of time, an industry body can be created to take appropriate action against defaulting vendors

The event industry can also take a cue from Indian Y\n]jlakaf_$deYf\ZjgY\[Yklaf_Ykkg[aYlagfko`]j]afa defaulting vendor gets black listed across association members

Risk Management

In the event management industry, a lot is at risk till the point ]Y[`]n]flfYddq[gf[dm\]k&@]f[]$YfYhhjghjaYl]jakcmanagement system is essential to limit loss to event companies in case of unforeseen events. Currently, the responsibility for jakceYfY_]e]flakg^l]ffgl[d]Yjdq\]f]\&L`]af\mkljq[gmd\consider the following initiatives in this area:


Source: EY analysis

Percentage of total ad spends by marketers

2%9%

81%

69%

18%21%

2011-12 2012-13 2013-14 2014-15 2015-16(E)

2019-20(E)

ATL (net) BTL Digital

8.4.2 Digital opportunity


Rajesh Varma ;JA=n]flk

Mandeep Singh CPM India Sales & Marketing

Samit Garg =>Y[lgj=fl]jlYafe]fl

Roshan Abbas =f[gehYkk=n]flk

Sharad Mathur =E?=fl]jlYafe]fl

Atul Chabra =fl`mk]9fko]jk Communication

Siddhartha Chaturvedi =n]fl;jY^l]j

Khantil Mehta Gobananas

Brian Tellis FountainheadHjgeglagfk=n]flk

Humayoon Zaidi =n]flF]logjc =fl]jlYafe]fl

Tarsame Mittal 9JL=fl]jlYafe]fl Services

K.J. Singh Gurna :]ddk]l=fl]jlYafe]fl

Jai Mundra :]]h=ph]ja]f[] Management

Siddharth Ganeriwala Aura Integrated Solutions

Girish Bobby Talwar BookMyShow

PVN Vidyasagar ;Ylhjg=n]flk =fl]jlYafe]fl

Mohomed Morani Cineyug Media & =fl]jlYafe]fl

Atul S. Nath Candid Marketing

Sanjeev Pasricha ;K


Harshal Kothari Jakaf_=n]flk

Rahul Gomes Oaks Management Consultancy

Mandeep Malhotra Mudra Max

Raj Batra EgkYa[=n]flk

Rajeev Jain JYk`a=fl]jlYafe]fl

Manuj Agarwal H]j[]hlDan]

Jojoe Jacob Plj]e]Eaf\r

Rajesh Ravani Zion Unlimited

Sabbas Joseph Oar[jY^lAfl]jfYlagfYd=fl]jlYafe]fl

Sachin Talwar Ogo=n]flk

Amit Gupta Klgjq=fl]jhjak]k

Harjinder Singh K`googjck=n]flr

Himanshu Shah KGADan]EYjc]laf_=n]flk

Michael Menezes K`golae]=n]flk

Sameer Tobaccowala K`gZar=ph]ja]flaYdCommunications

Amanveer Singh L]f=n]flkYf\ =fl]jlYafe]fl

Anushree Agarwal Theme Weavers

Dr. Jaydeep Mehta True Innovation

Ankur Kalra Vibgyor Brand Services

Sanjoy Roy Teamwork Arts

The average age of all survey respondents is 43 years.


9LD Above the line, or media spends by marketers :LD Below the line, or non-media spends by

marketers

;9?J Cumulative accumulated growth rate;:


Event and Entertainment Management Association (EEMA)L`]=n]flYf\=fl]jlYafe]flEYfY_]e]fl9kkg[aYlagf ==E9!akYfYmlgfgegmkYf\fgf%hjglj]_akl]j]\Zg\qg^[gehYfa]k$afklalmlagfkYf\hjg^]kkagfYdkgh]jYlaf_oalàfl`]=n]flkYf\=ph]ja]flaYdEYjc]laf_af\mkljqgÂf\aY&Gn]jl`]hYklk]n]fq]Yjk==E9`Yk_jgofaflgl`]\]%^Y[lgnga[]^gj]n]flk&==E9akl`]jklYf\gfdqZg\qgâlkcaf\$oà[`k]]cklgZjaf_lg_]l`]jl`][gmfljqkd]Y\af_=n]flEYfY_]e]fl$KhgjlkEYfY_]e]flYf\:jYf\9[lanYlagf[gehYfa]k$EA;=Yf\O]\\af_HdYff]jk$=ph]ja]flaYdEYjc]l]jk$=fl]jlYafe]flProfessionals, Artist Management Companies and International [gmfl]jhYjlkgfl`]kYe]hdYl^gje&==E9lg\Yqakl`]gfdqfYlagfYdYkkg[aYlagfoal`Ymfa]\nga[]l`Yld]Y\k\aYdg_m]within its members and with government, Statutory Bodies, LYpYlagf9ml`gjala]k$HjanYl]Yf\Emfa[ahYdDa[]fkaf_:g\a]k$;gjhgjYl]Af\mkljq$N]f\gjkYf\9jlaklk&==E9akk]llaf_Industry Standards that guide its members and has prescribed a Code of Conduct for its members and their employees.

Kaf[]alkaf[gjhgjYlagfaf*((0$==E9`YkjYha\dq_jgofafe]eZ]jkàhlgaf[dm\]Yddka_fa[Yflgj_Yfar]\hdYq]jkY[jgkkthe length and breadth of the country, and it is estimated l`Yl[dgk]lg0(g^l`]gj_Yfar]\j]n]fm]aflàkkhY[]$akj]hj]k]fl]\l`jgm_`==E9e]eZ]jk&

EY=Qakl`]dYj_]klhjgna\]jg^hjg^]kkagfYdk]jna[]klgl`]e]\aYand entertainment industry in India. With a dedicated events l]Yekaf[])111$=Q`YkZ]]fYkkg[aYl]\oal`gn]j)-(different events, awards, contests, game shows, talent hunts, etc. It provides various events services including IP development and valuation, event risk management, voting/scoring process automation, event process documentation and validation of participant selection or winners.

Qgm[Yfk]f\afqgmj^]]\ZY[cYf\km__]klagfklg2 Ashish Pherwani: [email protected] JY\àcYHjY\`Yf2JY\àcY&HjY\`Yf8af&]q&[ge Jay Sampat: [email protected]

9[[]kk=Qk_dgZYdYf\Af\aYfe]\aYYf\]fl]jlYafe]flaf\mkljqreports at ey.com/IN/en/Industries/Media---Entertainment

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