EY Making Experiences in India

Making experiences
in India
The Indian events and
activation industry
Foreword
Sabbas Joseph
President
=n]flYf\=fl]jlYafe]fl
Management Association
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]âfAf\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]jgÂf\aYf[af]eY&
New age technologies are transforming music, movies and
]n]flkafYfYeYraf_oYq&>jge=<E[gf[]jlklg[mllaf_]\_]
animation for Hollywood, India is reimagining experiences,
j]\]faf_h]j[]hlagfk&
As is always known, when a country does well economically,
across the world, there is interest in its culture and people. As
India grows, this opportunity will grow for every facet of the
Indian entertainment and culture-showcase industry. The events
Yf\Y[lanYlagfkaf\mkljqakZ]klhgak]\lg[YhalYdar]gflàk
emerging opportunity.
But India is no longer enough as the market place. Theres a
need for a new world order. One in which event companies work
along with government to create an events calendar that drives
tourism and related industries such as airlines, ground transport,
hotels, tourist retail outlets, etc.
It is time to create experiences that inspire global opportunities,
international collaborations and new ways of doing global
business.
Today, the World is our Stage! And one day we hope we can say,
L`]Ogjd\akFgl=fgm_Àafnal]qgmlg[j]Yl]]ph]ja]f[]kl`Yl
inspire you, inspire India and inspire the world.
2 | Making experiences in India: The Indian events and activation industry
Farokh Balsara
Media & Entertainment
Industry Leader
=jfklQgmf_DDH
It gives us great pleasure to present the second report on the

events and activation industry in India.
The industry has evolved over the years and has grown
[gfka\]jYZdqZglàfkar]Yf\klYlmj]&L`jgm_`làkhYh]jo]
attempt to capture the industrys status as of today and the
key trends that it could experience in future. The dynamism of
the industry has been captured through extensive discussions
with the heads of events and activation companies across the
country, along with inputs from advertisers and sponsors. The
report provides insights around key strengths of the industry
and the challenges it faces. We also look into the opportunities
for M&A transactions and implications around taxation and
corporate governance have also been covered in the report.
O]`gh]l`Ylqgmf\làkj]hgjl`]dh^mdafmf\]jklYf\af_l`]
key drivers and challenges facing the events and activation
industry. We are grateful to all stakeholders and industry players
who have provided their valuable time and input in compiling
our report.
Contents
4
6
16
24
30
Executive summary
Current state of the industry
Future trends
Mergers and acquisitions
Tax implications
32
35
38
44
48
56
58
59
Direct tax
Indirect tax
Governance, risk and control

EEMA wish list
Vision 20:20
Acknowledgements
Glossary
About us
Making experiences in India: The Indian events and activation industry | 3
=p][mlan]kmeeYjq

L`]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*(),)-$
oà[``Ykj]kmdl]\afhYqjgdd[gklkaf[j]Ykaf_^jge)+lg)0g^lglYd[gklk&=:A<L9eYj_afkYj]afl`])()-jYf_]&
L`]c]qklj]f_l`kg^l`]af\mkljqj]eYafl`]YZadalqlg_]llàf_k\gf]$a\]YlagfYf\]^[a]f[q$oàd]l`]j]akYf]]\^gjl`]af\mkljq
lgogjcgfY[imajaf_l`]ja_`llYd]fl$eYfY_af_[gklk$\]egfkljYlaf_JGAlgeYjc]l]jkYf\af[j]Ykaf_ljYfkhYj]f[qafgh]jYlagfk&
Future trends
L`]af\mkljqak]ph][l]\lg_jgoYl).)/lgj]Y[ÀFJ-$//1[jgj]af*().)/$gfl`]ZY[cgêYjc]l]jkaf[j]Ykaf_l`]ajZ]dgo
l`]daf] af[dm\af_\a_alYd!kh]f\klg*)g^l`]ajlglYdeYjc]laf_kh]f\k&L`]_jgolòaddZ]d]\Zqh]jkgfYd]n]flk$EA;= e]]laf_k$
incentives, conferences and exhibitions), activations and sports. Most survey respondents are expected to develop one to three IPs
over the next few years.
Fgf%e]ljgeYjc]lkYj]]ph][l]\lgaf[j]Yk]afaehgjlYf[]YkeYjc]l]jkdggclgla]jAAYf\la]jAAA[ala]k^gjaf[j]e]flYd_jgol`&<a_alYd
]n]flkYf\Y[lanYlagfakYdkg]ph][l]\lg_jgoka_fa[Yfldqgfl`]ZY[cg^keYjlh`gf]h]f]ljYlagf$afl]jf]lYnYadYZadalqYf\l`][gkl
]^[a]f[qg^km[`[YehYa_fk^gjeYjc]l]jk&
EYj_afkYj]]ph][l]\lg\][daf]^jgeYfYn]jY_]g^).lg)+gn]jl`]f]pllogq]Yjk$eYafdq\m]lgY_jgolàfgn]jYdd[gklk
Zq)*$Yf\egj]hYjla[mdYjdqafhYqjgdd[gklkZq)-$Yk[gehYfa]k]ph][llgaf[j]Yk]l`]ajYn]jY_]`]Y\[gmfl^jge0,lg)(,
employees.

While the industry has reported very few M&A transactions over the last few years, there exists scope for consolidation. More than
-(g^\]YdY[lanalqgn]jl`]dYkl^]oq]Yjk`YkZ]]fafZgmf\ ^gj]a_f[gehYfa]kZmqaf_aflgAf\aY!&@go]n]j$\]YdnYdm]kYj]mkmYddq
sub-US$10 million. Valuations are driven by IPs owned, advertising agencies interest in activations and digital events and sports
leagues.
Tax implications
Taxes 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 control

The 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[]oalègj]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]\[geemfala]kgâfl]j]kllgeYjc]l]jk$Yf\]eZjY[]l`]
opportunity provided by marketers increasing spends on digital media.
Current state of
the industry
In 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]kk
heads of 35 Indian event management
[gehYfa]k$k][gf\Yjqj]k]Yj[`Yf\=Qk
analysis of the same.
1.1 The industry continues its

robust growth trajectory
L`]kar]g^l`]gj_Yfar]\]n]flkaf\mkljqak]klaeYl]\Yl
Yjgmf\AFJ,$*-0[jgj]1. This value represents the revenue
g^gj_Yfar]\]n]flkYf\Y[lanYlagfY_]f[a]kYf\\g]kfgl
af[dm\]l`]emdlalm\]g^mfgj_Yfar]\]n]flk[gehYfa]k
khj]Y\Y[jgkkl`][gmfljq&L`]kar]]klaeYl]Ydkg\g]kfgl
include 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.
L`]]n]flkk]_e]fl`Yk_jgof^Ykl]jYlYjgmf\)-h]j
annum 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]flk
and 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]k
Yf\`Yn]lmjfgn]jg^d]kkl`YfAFJ*[jgj]&L`]j]khgf\]flk
]klaeYl]l`Yll`]gj_Yfar]\af\mkljq^gjekYjgmf\-+g^l`]
total industry.
Organized events industry (INR Crore)

4,500
4,258
4,000
3,703
3,500
3,000
3,248
2,800
2,500
2,000
1,840
1,500
1,000
1,290
1,987
1,420
2,206
1,576
2,426
1,828
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`]q
provide services largely in India, they also conduct operations
gmlka\]Af\aY&Gfdq)1g^l`]j]khgf\]flk`Yn]YfAf\aY%gfdq
presence.
Geographic presence (percentage of respondents)
500
0
1.2 Majority of Indian event

companies have built an
international presence
Largely in
India
2011-12
2012-13
Organized events
2013-14
OOH
2014-15
73%
Only in India
19%
Radio
Source: EY analysis; secondary research
Largely
international
8%
Source: EY survey
) =QYfYdqkak3k][gf\Yjqj]k]Yj[`
Egklj]khgf\]flk -.!`Y\loglgn]g^[]kafAf\aYgf
Yn]jY_]$oàd]bmkl+)`Y\gf]g^[]afAf\aY&;gehYfa]k
are 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\&
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]\gml
at 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.
Services offered (percentage of respondents)

94%
93%
Managed events
71%
66%
Activations
47%
55%
Intellectual property
Digital events
5%
35%
2014-15
2011-12
Source: EY survey
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/)làkq]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.
,/g^Y_]f[a]kkmjn]q]\$gof]\o`gddqgjafhYjl$l`]
Intellectual property (IP) in the events they conducted.
LàkakY\][daf]^jge--afl`]*()))*kmjn]q$[d]Yjdq
k`goaf_l`Ylafn]klaf_afAHak\a^[mdl$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-akaf
tune 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$oà[òYkYld]kkl`Yf)(ak]ph][l]\lg
Z]Yjgmf\*(ZqEYj[`*()-2$a&]&$Yjgmf\)0(eaddagf
`Yf\k]lk[YhYZd]g^\a_alYdafl]jY[lagfk&<ak[mkkagfkoal`dYj_]
advertisers indicate that their spend on digital advertising
`Yk_jgof^jge+af*()))*lg)-af*(),)-$Yf\ak
]ph][l]\lgj]Y[`*(afYq]Yj&3
* `llh2''\Yr]af^g&[ge'*(),'(/'))'egZad]%afl]jf]l%af\aY%*(),%+,1%
eaddagf%mfaim]%egZad]%h`gf]%mk]jk%/(%ljY^[%egZad]%af\aY%kàfaf_%
infographic/
+ =Qj]hgjl2>mlmj]g^LNafAf\aY
4 Census 2011
The Kaan Khajura Tesan Initiative

Hindustan Unilever Limiteds (HULs) mobile-based digital
marketing initiative Kaan Khajura Tesan (KKT) has been
gaining increasing popularity in rural areas of India. It is an
on-demand entertainment channel on the mobile platform,
interspersed with advertisements for HULs brands. KKTs
objective was to reach and provide entertainment to people
living in relatively media dark states such as Bihar, Uttar
Pradesh, Jharkhand, etc. TV penetration in Bihar stood at
just 14.2%4.
KKT has been successful in penetrating these rural markets
the number of subscribers has touched 30 million. Any
egZad][mklge]j[Yf_an]Yeakk]\[YddlgYkh][a]\CCL
number. The subscriber is then given free access to music,
de\aYdg_m]k$[ge]\q$]l[&Làk\a_alYdY[lanYlagfafalaYlan]
provides end consumer engagement at a fraction of the
cost of traditional media or live events.
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
Filmfare
Indian Idol auditions
Axe Boat Party
Bandra Festival
TOIFA
India Bike Week
AHD
Zumbala
Standard Chartered
Marathon
BYahmjDal]jYjq
Festival
QgmlÀ[gf
=flj]hj]f]mjg^l`]
Q]Yj
Sports and wellness
=\m[YlagfYd
Achievement
Ghante Ki Tuning
Jamegi
<`YacadgcY`YYl`
Star Sports
#wontgiveitback
=\m[Ylagf9oYj\k
Genius scholarship
=KHFd]Yjfaf__jgmf\
Conferences &
seminars
Spelling Bee
Af\aY:mkaf]kkD]Y\]j
Awards
=L;gjhgjYl]
=p[]dd]f[]9oYj\k
Social good
=[gnglan]9oYj\k
NASSCOM Social
Innovation Honours
Oàl]KYflYDgn]k
J]\
=\]d?an]@gfgmjk
Miss India
Pageants/Talent shows
Af\aYk<a_alYd
Superstars
India Fashion Week

Brand promotion
:*:Af\mkljq]n]flk
n/a
Miscellaneous brand
launches
Mall activations
KBC play along
The Blue Train
CYYfC`YbmjY
==E9_af]
Abby Awards
India Bridal Week
<a_alYdAf\aYKmeeal
Budget Connect+
webinars
:*:;`Yff]d
management
Microsoft Corporate
Challenge
<]Yd]je]]lk
<]Yd]je]]lk
Vendor meets
Vendor meets
Personal events
n/a
Weddings
n/a
>adel][JYbY
n/a
Parties
Note: The above is a random list of events based on our industry interactions, and does not aim to provide a comprehensive list, nor does it indicate
quality, success, etc. It is for illustrative purposes only.
1.4 Number of events conducted

continues to grow
1.5 IPs provide a disproportionate

revenue share
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*()-).$YlYf
gn]jYdd_jgol`jYl]g^*(&
Oàd]AHk[gehjak]bmkl*g^lglYd]n]flk[gf\m[l]\$l`]q
hjgna\]*)g^l`]lglYdj]n]fm]k&
Growth rate number of events 2013-14 to 2015-16

(estimated)
Overall
20%
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]Yjklg
be under pressure.
Number of events vs. revenue (2014-15)
Digital events
78%
61%
No. of events
Revenue
46%
33%
34%
Activations
18%
Managed events
18%
31%
21%
3% 2%
Source: EY survey
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]f
by Hindustan Unilever, is a case in point.
Digital
events
2%
Activations
Intellectual
property
Managed
events
Source: EY survey
<a_alYd]n]flk$Yl+g^l`]lglYdfmeZ]jg^]n]flk$_]f]jYl]
*g^lglYdj]n]fm]k$eYafdq$kaf[]l`]k]Yj]g^l]fdgo%[gkl
additions to managed events or IPs. The key to increase the
revenue potential of digital events is to use the information
_Yaf]\gfl`]lYj_]lYm\a]f[]lgZmad\Yf\egf]lar]
databases and continue engagement with the target audience
post the event and through the year if possible.
1.6 Companies have recruited

more employees
1.7 Operating performance of

most respondents is healthy
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$l`]Yn]jY_]
growth in number of employees is higher than the average
growth in revenues, showing there is a case to re-look at per]ehdgq]]]^[a]f[q&
L`]fYf[aYdj]kmdlkg^[gehYfa]k[gn]j]\afl`]kmjn]q
hj]k]fl]\Y`]Ydl`qh]j^gjeYf[]af*()+),&Oàd]YdegklYdd
[gehYfa]kkmjn]q]\o]j]hjglYZd]$,.g^l`]j]khgf\]flk
hgkl]\YhjglY^l]jlYp H9L!af]p[]kkgÂFJ)[jgj]&
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_YfarYlagfYd
policies 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])(gj
lower. The average attrition rate has remained relatively the
kYe]kaf[]l`]kmjn]qaf*()))*&Egklg^l`]j]khgf\]flk
believe the attrition rate is likely to remain at this level for the
next two to three years.
Kmjn]qj]khgf\]flk`Y\Yf=:ALg^)()-Yf\YH9L
eYj_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&
Cost break-up 2014-15

9%
12%
18%
13%
73%
75%
2015
2012
Admin
Payroll
Variable
Kgmj[]2;gehYfqdaf_kYf\=Qkmjn]q
The cost break-up, as indicated in the chart above is computed

^jgedaf_kg^kYehd]]n]fl[gehYfa]kYf\\YlYhjgna\]\Zq
survey 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[gklk
as 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
It is the niche creativity that empowers brands.
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\gj
base, etc.
Key strengths (weighted responses)
24%
Ability to
"get things done"
21%
Ideation and
creativity
17%
Efcient cost
base/efciency
9%
6%
Inability to demonstrate
ROI to clients
15%
11%
14%
13%
14%
13%
10%
12%
13%
12%
Onerous regulations
17%
12%
2014-15
9%
17%
Lack of
trained manpower
Inadequate
infrastrucuture
11%
11%
Ability to create
IP and monetise it
Key challenges (weighted responses)
Procurement
efciency/rising costs
13%
14%
Availability of talent
1.9 Lack of trained manpower

remains a key challenge
Obtaining sponsorships
17%
16%
Strong vendor
base for production
Reputation for
transparency and
credibiity
20%
Rajeev Jain
Rashi Entertainment
Quality control
over large events
10%
10%
Safety
9%
10%
2011-12
Source: EY survey
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^JGAlg
marketers.
2014-15
2011-12
Source: EY survey
Lack of trained manpower: This issue ranked second in our

*()))*kmjn]q$Yf\al_jgoklgZ][ge]l`]egklk]jagmk
akkm]afl`]*(),)-kmjn]q&/,g^kmjn]qj]khgf\]flk
o]j]fglkYlak]\oal`l`]imYdalqg^lYd]fl[geaf_aflgl`]
af\mkljq&<]Yjlàf\]kaj]\kcaddk]lkYf\ja_`limYda[Ylagfk
is a factor that often limits the growth of the industry.
=n]fl[gehYfa]k`Yn]g^l]f^Y[]\\a^[mdlqaflYj_]laf_l`]
right people. Moreover, event companies face considerable
competition from other segments in the entertainment
af\mkljqkm[`Ykl]d]nakagf$hjafl$deYf\jY\ago`]fal[ge]k
to attracting talent.
Inability to demonstrate ROI: This challenge, ranked 5th in
the previous survey, has risen to be the second-most critical
[`Ydd]f_]làkq]Yj&L`]af\mkljq`YkfglZ]]fYZd]lg\]f]
YklYf\Yj\e]Ykmj]e]fle]lja[lg\]egfkljYl]JGAlgalk
[da]flk&==E9akogjcaf_gfl`]kYe]$Zml[`Ydd]f_]kj]eYaf
\m]lgaf`]j]fldqfgf%klYf\Yj\fYlmj]g^]n]flk&Gf]ima[cp
could be the integration of some digital engagement, which is
]Ykadqe]Ykmj]YZd]Yf\[Yf\]egfkljYl]kge]d]n]dg^JGA&
Hjg[mj]e]fl]^[a]f[q2L`]f]]\^gj]^[a]flhjg[mj]e]fl
has 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_khgfkgjkàhk&
?an]fafYlagfYjqhj]kkmj]k$af[j]Yk]afYn]jY_]]n]flkar]
and quality expectations, and increase in the number of
events managed by each respondent, the need to manage
procurement and execution costs has never been more
aehgjlYfl&EYfq[gehYfa]k`Yn][]fljYdar]\hjg[mj]e]fl
and have also begun to use specialist buyers for performers,
venues, travel, stay and other high value cost items.
Egklh]ghd]Yj]ljYaf]\gfl`]bgZYf\l`]gfdq
oYqlgf\lYd]flaklg[j]Yl]al&:mll`]dYj_]j
challenge that we face and will continue to
face is retaining the talent in whom we invest
our time and efforts training. This is going to
Z]Yfg[[mhYlagfYd`YrYj\Yf\l`]gfdqoYqlg
address this in the long run would be to share
equity with people who make a difference.
Jai Mundra
:]]h=ph]ja]f[]EYfY_]e]fl
Regulatory approvals:=n]fleYfY_]e]fl[gehYfa]k`Y\
indicated regulatory approvals as the leading challenge
hdY_maf_l`]af\mkljq\mjaf_l`]hj]nagmkkmjn]qaf*()))*&
This seems to have improved to some extent, with the
reduction in entertainment taxes and implementation of single
window clearances in certain states. Or else, event companies
are getting used to managing the onerous approvals required
for each event. The recent budget, which was announced
after our survey was conducted, increased the ambit of taxes
on events. Taxation has been covered in a separate section of
this report.
Client speak
=Qh]j^gje]\Ykmjn]qgêYjc]l]jk$Yf\kmeeYjar]\Z]dgo
Yj]l`]f\af_kg^`gol`]qjYl]\l`]aj]n]flkYf\Y[lanYlagf
agencies 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`]qYdkg
appreciated 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.
Execution efciency/
cost optimization
Event execution/quality
Developing
innovative concepts
National reach
Managing event risk
Providing strategic
brand inputs
Enabling results
for brands (ROI)
Digital integration
Best
Second best
Third best
Source: EY marketer survey 2014
Future trends
In 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`];=GkgÂf\aYf]n]fleYfY_]e]fl
[gehYfa]kYf\=QkYfYdqkakg^l`]kYe]&
Future trends
2.1 The industry continues its

robust growth trajectory
9[[gj\af_lgYeYbgjalqg^j]khgf\]flkafl]jna]o]\afgmj
kmjn]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*().)/&
Expected size of the events industry (INR Crore)
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.
Plans to offer new services (percentage of respondents)
>3
5,779
3%
13%
4,939
3,703
2013-14
4,258
2014-15
2015-16 (E)
2016-17 (E)
Source: EY analysis and industry sources
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:LDk
share of the advertising spend will increase in the range of
)()-gn]jl`]f]pl^]oq]Yjk&GmjYfYdqkakgêYjc]l]j
kh]f\kaf\a[Yl]kl`Yl:LDkh]f\ af[dm\af_\a_alYd!`Yk
af[j]Yk]\lg*)af*(),)-&
Marketers will spend more below-the-line (percentage of

respondents)
17.8%
18.5%
19.6%
82.2%
81.5%
80.4%
78.6%
2011-12
2012-13
2013-14
2014-15
BTL
21.4%
ATL
Source: EY EEMA report 2011-12; EY marketer survey 2014
Gn]jYddafYlagfYjq_jgolàfhjg\m[lagf[gklk$j]_agfYd
growth in activations, and increasing IPs are also expected to
contribute to the growth.
58%
No. of new 2
services
proposed 1
13%
13%
Source: EY survey
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*.$*,+afmjZYfAf\aY6.
- L][`fghYcJ]hgjl*(),2L`]Q]YjL`YlAf\aYk]LYad9ffgmf[]\Alk
Arrival
. ;EA=;gfkme]jHqjYea\kJ]hgjl$EYj[`*(),
The events industry is likely to see an increased focus by

eYjc]l]jklgoYj\kfgf%e]ljgeYjc]lklg[YhalYdar]gf
this 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$hYjla[mdYjdqafh`Yk]AAA
and phase IV markets, the impending Phase III of FM radio
license auctions and roll-out of pan-India ISP businesses by
[gehYfa]kkm[`Yk@YlòYq$<]f$Bag$]l[&$egklZjgY\[Ykl]jk
and media companies now have marketing plans that reach
out to 300 to 500 cities.
2.3 Personal events, activation

campaigns, MICE and sports
will fuel growth
9eYbgjalqg^j]khgf\]flk[gn]j]\afgmjkmjn]q$Z]da]n]l`Yl
h]jkgfYd]n]flk$khgjlk$Y[lanYlagf[YehYa_fkYf\EA;=Yj]
the four categories that will register the fastest growth rates
afl`]jYf_]g^)0lg*-afl`]f]plloglgl`j]]q]Yjk&
Personal events are expected to register the fastest growth
rates during the next two to three years. High disposable
incomes and willingness to spend on large scale weddings,
anniversaries, parties and family get-togethers is expected to
increase the growth rate in the personal event space. As the
willingness to spend has been increasing, so is the expectation
from customers for excellence and precision in delivery of
events. This leads to increased professionalism and enhanced
revenues.
Personal events are emerging as a big

ghhgjlmfalqafgmj[gmfljq$Ykl`]qj]][l
clients social standing in the community and so
have big budgets.
Dr. Jaydeep Mehta
True Innovation
Average growth expectation in different event categories
Personal
events
25%
14%
20%
19%
Sports
Activation
campaigns
20%
17%
18%
17%
MICE
Exhibitions and
conferences
17%
16%
Field
marketing
17%
16%
Corporate
events
15%
14%
Brand
launches
14%
14%
Awards and
concerts
13%
14%
TV game
shows
11%
13%
2014-15
2011-12
Source: EY survey
Khgjlaf_]n]flk`Yn]YdkgZ]]foalf]kkaf_Yj]nanYd&/(
of marketers state that sports is either a key focus area for
l`]egjY\]fal]hYjlg^l`]ajlglYdeYjc]laf_kh]f\k/. What
used to be a single sport market, dominated by cricket, is now
k`goaf_ka_fkg^\an]jka[Ylagf$YkeYjc]l]jkYj]oaddaf_lg
invest across different sports.
Games favored by brands for their brand marketing campaigns
86%
45%
28%
Cricket
Football
Hockey
27%
Golf
26%
Marathons
21%
Tennis
5%
9%
9%
Badminton
Indigenous
sport
Polo
17%
Others
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]jq
important 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]j
l`]dYkl^]oq]Yjk&L`]\ge]kla[EA;=eYjc]lak_jY\mYddq
picking 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.
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]ljYlagf
g^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+$-/-[jgj]Zq
EYj[`*()-$Y+(_jgol`^jgel`]hj]nagmkq]Yj10.
Companies are still linear in their approach...

use of digital integration will see a spurt.
Siddharth Ganeriwala
9mjYAfl]_jYl]\Kgdmlagfk
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&<a_alYdfglgfdq
reaches young customer segments, but can also be used to
lYj_]laddal]jYl][gfkme]jkl`jgm_ÀNJ%ZYk]\kgdmlagfkYf\
niche customer segments, which could be too expensive for
mass media.
In this direction, building communities is critical in forging
relationship with target audiences, even after the event is
over. The model is effective for both B2B and B2C events
/ =QEYjc]l]jkmjn]q$Bmf*(),
0 Afl]jfYlagfYd;gf_j]kkYf\;gfn]flagf9kkg[aYlagf$L`]?dgZYd
9kkg[aYlagfg^l`]=pàZalagfAf\mkljq
1 =Qk>mlmj]g^L]d]nakagfafAf\aYj]hgjl$*(),
)( Af\aY:jYf\=imalq>gmf\Ylagfo]Z%kal]
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]lkafY
big way.
J]khgf\]flkZ]da]n]\l`Yl[gklkogmd\af[j]Yk]ZqYfYn]jY_]
g^)*gn]jl`]f]plloglgl`j]]q]Yjk$d]\ZqhYqjgdd[gklk
j]imaj]\lgYlljY[lYf\j]lYafimYdalqlYd]fl&J]khgf\]flk
]ph][l]\lgaf[j]Yk]]ehdgq]]klj]f_l`^jge0,lg\Yqlg)(,
employees, on average, within two to three years.
Expected growth rate in costs
2.5 Margins continue to stay

positive, but cost control is
imperative
Overall
Payroll
Kmjn]qj]khgf\]flk]ph][l]\=:A<LeYj_afklgZ]$gf
Yn]jY_]$)+gn]jl`]f]plloglgl`j]]q]Yjk$oà[àkY
j]\m[lagf^jgel`]).l`]q`Y\]klaeYl]\afl`]*()))*
survey.
30%
21%
27%
25%
Expected margin
10-20%
29%
>30%
Source: EY survey
Admin
10%
9%
=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_Yddf]oàjaf_akYhhjgn]\Zq;=G'\aj][lgjk
Better management of procurement costs
18%
0-5%
Direct
variable
=fkmjaf_Yddj]hdY[]e]flàjaf_ak\gf]Yll`]kYe]gj
reduced cost
21%
20-30%
15%
Source: EY survey
Gn]jYddhjgleYj_afk h]j[]flY_]g^j]khgf\]flk!
5-10%
12%
Aehd]e]flaf_Y[]fljYdar]\hjg[mj]e]fl^mf[lagf
14%
=fkmjaf_hmj[`Yk]gj\]jkYj]akkm]\^gjc]qal]ekhjagj
to event date, to prevent subsequent buffering
3%
11%
2014-15
=fYZdaf_ngdme]\ak[gmflkY[jgkkZmkaf]kk\anakagfk
2011-12
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
<Yadqegfalgjaf_g^[gfkmehlagfg^^gg\Yf\Z]n]jY_]
stocks to identify wastage and unbilled/missing items.
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]jagj
position 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$oà[`[gmd\Z]-(g^
the total investment. Today, marketing costs can be reduced
l`jgm_`l`]\a_alYde]\amelg*-+(g^lglYdAH[gklk$
as well as enable a focussed approach towards a targeted
community. Hence, event companies reliance on mass media
can reduce.
IPs expected to be launched in next 2-3 years

(percentage of respondents)
Proposed new IPs
4-6
6%
2-3
55%
1
0
27%
12%
Source: EY survey
Ticketed events
An 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]jak
Yjgmf\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[]koà[``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^jge
damaging 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
Majority 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&
Growth
Growth is expected to be driven by personal
]n]flk$Y[lanYlagfk$khgjlkYf\EA;=&
Jakaf_\akhgkYZd]af[ge]k$af[j]Yk]\km[[]kkg^
khgjlkd]Y_m]kYf\aehgjlYf[]g^l`]jmjYd
eYjc]l^gjY\n]jlak]jkoaddkmhhgjll`]k]
k]_e]flkg^l`]af\mkljq&
Service outside India

Af[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&
Challenges
DY[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_jYhà[Ydkhj]Y\g^
events and activation activity.
HjglYZadalq]ph][lYlagfk
Activations
9[lanYlagfkYj]gâf[j]Yk]\aehgjlYf[]
to advertisers.L`]q[gehjak]+)g^lglYd
j]n]fm]klg\YqYk[gehYj]\lg),\mjaf_gmj
*())%)*kmjn]q&
Payroll costs
HYqjgdd[gklk`Yn]af[j]Yk]\ka_fa[Yfldq
^jge)+g^lglYd[gklklg)0g^lglYd[gklk&L`]q
Yj]fgoloa[]l`]Y\eaf[gklkYf\p]\gn]j`]Y\k
g^]n]fl[gehYfa]k&
Performer availability
H]j^gje]jYnYadYZadalq`Ykaehjgn]\.
L]d]nakagfk`gokYf\lYd]flY_]f[a]k`Yn]
\]n]dgh]\Yf][gkqkl]el`YleYc]kal]Yka]j
lgk`go[Yk]Yf\j][jmalh]j^gje]jkY[jgkk
the country.
HjglYZadalq]ph][lYlagfk`Yn]j]\m[]\
^jge).lg)+gfl`]ZY[cg^[gklafYlagf
and advertiser cost consciousness. Managing

[gkl`Ykf]n]jZ]]fegj]aehgjlYflY[jgkk
p]\gn]j`]Y\k$h]ghd][gklYf\j]\m[af_
d]YcY_]kafnYjaYZd]]n]fl[gklk&
35%
Digital integration
+-g^j]khgf\]flkYj]fgohjgna\af_
kge]d]n]dg^digital integration in their
]n]flk&<a_alYdakZ]af_mk]\lgeYjc]l]n]flk$
k]ddla[c]lk$]fYZd]j]_akljYlagfk$gZlYaf
^]]\ZY[cYf\[gflafm]lg]f_Y_]l`]
[geemfalqY^l]jl`]]n]fl&Egj]aehgjlYfldq$al
akZ]af_mk]\lg\]egfkljYl]JGAlg[da]flk$Y
lYkcoà[``YkZ][ge]Yfaf[j]Yk]\[`Ydd]f_]
over the past few years.
Mergers and
acquisitions
In 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.
Mergers and aquisitions
3.1 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`Yl
some 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\[gjhgjYl]
governance in the smaller companies
Mf[]jlYaflqaf[Yk`gok\m]lgà_`[mklge]j
concentration
High employee turnover resulting in instability in operations
<]khal]l`]k][`Ydd]f_]k$o]`Yn]gZk]jn]\kge]afZgmf\
interest in event management companies that have a focus
on activation. There are several large advertising agencies
including JWT, Publicis and McCann Worldgroup, which have
acquired companies to strengthen their activation solutions
to brands and we expect this trend to continue. A few notable
transactions in the activations space over the last decade
af[dm\]l`]=f[gehYkk=n]flkZ]af_Y[imaj]\ZqBOLYf\
HmZda[akY[imajaf_Kgdmlagf<a_alYk&
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
<ge]kla[
October 2014
9\dYZk=fl]jlYafe]fl
FQDAEBY[gZ:YddYkAf\aY
Holdings
=n]flk'9[lanYlagf
Private equity
July 2014
Milestone Brandcom
<]flkm9]_akF]logjc
Activation
Inbound
April 2014
E]\aYDgmf_]
Origin BeanstalkCreatives
;gfkmdlYflkHnl&Dl\&
=n]flk
<ge]kla[
April 2013
=f\Lg=f\EYjc]laf_Kgdmlagfk
HnlDl\
McCann Worldgroup India
=n]flk'9[lanYlagf
<ge]kla[
November 2012
;j]Ye=n]flk
=\]deYfAf\aY
Activation
<ge]kla[
October 2012
CO9F=fl]jlYafe]fl
Marketing Solutions
CAA
Talent management
Inbound
April 2012
GfdqEm[`Dgm\]j GED!
CA Media
=n]flk
Inbound
July 2011
<aj]pagfk?dgZYd
DgqYdlqGf]
<YlYZYk]EYjc]laf_
Inbound
October 2010
9kaYf:mkaf]kk=pàZalagfYf\
Conferences
IAfn]klDD;
=n]flk
Private equity
March 2010
AE?J]daYf[] BgaflN]flmj]!
J]daYf[]
=n]flk
<ge]kla[
EYj[`*((1
Candid Marketing
AEK?klYc]g^..!
Candid Marketing management
Activation
Buy-back
Bmf]*((0
Megaron
MCI group
Activation
Inbound
9hjad*((0
J9EK
Grey (G2,WPP)
Activation
Inbound
9hjad*((0
Percept Holdings
=n]jklgf]$BHE$HYkkhgjl;YhalYd
=n]flk'9[lanYlagf
Private equity
BYfmYjq*((0
=f[gehYkk=n]flk
JWT
=n]flk'9[lanYlagf
Inbound
July 2006
Goto Customer Services
Omnicom Group
=n]flk'9[lanYlagf
Inbound
June 2006
Candid Marketing
IMSG Plc
Activation
Inbound
<][]eZ]j*((.
Sercon India
Bates Asia
=n]flk'9[lanYlagf
Inbound
November 2005
Solutions
Publicis Groupe
=n]flk'9[lanYlagf
Inbound
January 2005
Ca\klm^^Hjgegk=n]flk
<<:Em\jY
=n]flk'9[lanYlagf
<ge]kla[
Source: EY research and industry sources

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^md
AH]n]flkafAf\aYaf[dm\]KmfZmjfZqH]j[]hl$AA>9ZqOar;jY^l
Yf\F@/O]]c]f\ZqGED&L`]Yffmalq[Yk`goYf\l`]
tertiary business opportunity that these events provide make
them attractive for domestic and international investors. CA
E]\aYkafn]kle]flafGED$oà[àk^g[mk]\gfAH%d]\]n]flk$ak
l`]jklafn]kle]fllgoYj\k^g[mk]\AH]n]flk&O]]ph][l\]Yd
activity 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]fl
eYfY_]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.
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
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&Làk
consolidation is also expected to improve the bargaining
power of companies with vendors and suppliers thereby
aehjgnaf_[Yk`gok$oà[òaddeYc]l`]eYlljY[lan]lYj_]lk
for 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.
Fund options (percentage of respondents)
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.
48%
Retained
earnings
52%
25%
Equity
Venture
capital
Debt
19%
15%
14%
13%
14%
2014-15
2011-12
Source: EY survey
Tax implications
This section discusses the direct and indirect
tax implications on the industry.
Direct tax
Among 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][lk
g^\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]oàd]gj_Yfaraf_Yf
event 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!gj
management 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.
In this regard, the event management company/event owner

is required to maintain the prescribed documentation and
mf\]jlYc]l`]hj]k[jaZ]\daf_koal`J]n]fm]9ml`gjala]k&
This will enable it to demonstrate that the transactions with
related parties, during the year, are at arms length price.
4.2 Tax issues relevant to event

industry
Taxability of revenues from sale of live telecast rights
The event owners typically own the rights to telecast a live
event, which they may grant to broadcast companies. The issue
that arises is whether revenues earned by non-resident event
owners from grant of rights to telecast a live event in India are
taxable in India. Generally, the taxpayers take a position that
there is no copyright in the rights to telecast a live event in
India and, therefore, the grant of such rights is not in the nature
g^jgqYdlq&@go]n]j$l`]J]n]fm]9ml`gjala]klqha[Yddq[gfka\]j
the payment towards acquisition of rights to telecast a live event
in India is in the nature of royalty for transfer of copyright,
and, therefore, taxable in India. In view of the same, there exists
a controversy on the taxability of income earned from transfer
of rights to telecast a live event in India. A recent decision of
l`]<]dà@a_`;gmjlgfl`]eYll]j`]d\l`YlhYqe]fl^gjdan]
l]d][Ykl^Yddkgmlka\]l`]YeZalg^jgqYdlqYk\]f]\afl`]9[l&
Where the persons income accrues or arises in India; or,
ii. Where the income deems to accrue or arise in India; or,
Taxability of event management fee
iii. Where the income is received or is deemed to be received

in India.
According to the provisions of the Act, payment to a resident

event management company i.e., event management fee, is
considered to be in the nature of professional fees and is
kmZb][llgoal``gd\af_lYp&Afl`][Yk]g^Yfgf%j]ka\]fl]n]fl
management company, the event management fee may be
considered to be in the nature of business income (unless the
provisions of Independent Personal Services under Tax Treaty
are attracted). Hence, such fee is taxable in India where the
event management company is considered to have a business
presence in India (i.e., a permanent establishment) in India.
@go]n]j$l`]J]n]fm]9ml`gjala]keYqlYc]Yhgkalagfl`Yll`]
event management fee is taxable on gross basis in India as
fees for technical services (which includes technical services
A non-resident event management company/event owner

can choose to be governed by the provisions of the Act or
l`]Yhhda[YZd]<gmZd]LYpYlagf9nga\Yf[]9_j]]e]fl LYp
Lj]Ylq!$hjgna\]\alak]da_aZd]lg[dYaeLYpLj]YlqZ]f]lkYf\
has the prescribed documentation in place.
Where an event management company/event owner has
]fl]j]\kh][a]\ljYfkY[lagfk afl]jfYlagfYdljYfkY[lagf$
\]]e]\afl]jfYlagfYdljYfkY[lagf$gjYkh][a]\\ge]kla[
ljYfkY[lagf!oalàlkj]dYl]\hYjla]k$Yk\]f]\mf\]jl`]9[l$
such transactions are required to be at a price such as that
between two unrelated parties (known as arms length price).
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)( hdmk
applicable surcharge and cess).
Taxability of sponsorship fee

An event owner receives sponsorship fee from various
[gjhgjYl]gj_YfarYlagfk a&]&$khgfkgjk!$oà[`mk]l`]]n]flk
for 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$khgfkgjkàh
agreements 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`]ZYkak
that 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
<]khal]dg_akla[Yd[`Ydd]f_]kkm[`Ykemdla%[alq]n]flkYf\
nYja]\lYj_]lYm\a]f[]hjgd]k$l`]Y[lanYlagfkZmkaf]kk
continues to grow with the prominent source of revenue
arising from sponsors of the brand/products. As regards the
payment of fee to the companies undertaking activations,
the issue arises regarding applicability of withholding tax
provisions in respect of payment to resident contractors
vis--vis fees for professional or technical services to
residents.
Since the purpose of activations is advertising or brand
promotion, the taxpayers take a position that the payment
ak^gjY\n]jlakaf_ogjcYf\kmZb][llgoal``gd\af_Yll`]jYl]
g^*&@go]n]j$l`]J]n]fm]9ml`gjala]keYqlYc]Yhgkalagf
that the activations are in the nature of professional services
Yf\kmZb][llgoal``gd\af_Yll`]jYl]g^)(&9[[gj\af_dq$
the taxability of payments for activations will depend on the
terms of the contract and the facts of each case supported by
appropriate documentation.
4.4 Withholding tax implications

on key payments
L`]eYbgjhYqe]flkYkkg[aYl]\oal`]n]fleYfY_]e]flYj]
payments to event management companies, artists fees,
infrastructure at the venue and production expenses (unless
broadcasting rights are transferred). Such payments may be
liable to deduction of tax at source under various provisions
of the Act. In the case of residents, the applicability of the
withholding provisions in respect of payment to resident
contractors fees for professional or technical services to
residents and, in addition, in the case of non-residents, the
applicability of the provisions in respect of payment to nonresident sportsmen or sports association and payments of
other sums to non-residents should be examined.
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_$\g]kfgl`Yn]YlYpj]_akljYlagfaf
India (i.e., Permanent Account Number), the tax is required to
Z]oal``]d\Yll`]jYl]kh][a]\afj]d]nYflhjgnakagfkgjl`]
jYl]kaf^gj[]gj*($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[]k
provided 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`][gmfljq
of 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][l
to 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]^jge
personal 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`];:<L![gfka\]jYlagfhYa\lgYfgf%j]ka\]flYjlakllg
acquire the copyrights of performance in India for subsequent
kYd]afAf\aY Ykj][gj\k$;<k$]l[!gjl`][gfka\]jYlagfhYa\lg
the artist for acquiring the license for broadcast or telecast in

India is taxable in India as royalty under the Act as well as
the applicable Tax Treaty.
In some contractual arrangements, it is possible that the
non-resident artist receives separate consideration for grant
of image rights (including, but not restricted to, right to
use name, images, videos, quotations, signature, likeness,
personal attributes etc., of the non-resident artist). Most of
the elements of image rights granted by the non-resident
artist are likely to qualify for protection under the intellectual
property law and, hence, are considered as royalty.
However, few components of image rights granted may not
]fbgqhjgl][lagfYf\l`]lYpaehda[Ylagfkl`]j]gfoaddf]]\
to be evaluated based on the factual matrix. Accordingly, it is
imperative to undertake a careful assessment of the image
rights granted according to the agreement to determine
withholding tax implications.
AloaddZ]j]d]nYfllgfgl]l`Yll`]Gj_YfakYlagf^gj=[gfgea[
;g%gh]jYlagfYf\<]n]dghe]fl G=;<!`Ykj][]fldqmh\Yl]\
its Model Tax Convention guidance on the article pertaining
to artists and sportsperson wherein, India has provided
alkj]k]jnYlagfklgG=;<kna]ogfl`]Yhhda[YZadalqg^l`]
aforesaid article to the following:
Hjar]egf]qj][]an]\Zql`][Yj'`gjk]gof]j^jgejY[]k
Income of models from fashion shows performances
Any consideration received by an entertainer or
sportsperson for any personal activity, including
appearance
Income from reporting or commenting activities during the
broadcasting of an entertainment or sports event
9[[gj\af_dq$l`]J]n]fm]9ml`gjala]keYq[gfl]f\l`Yll`]
above streams of income earned by a non-resident entertainer
gjkhgjlkh]jkgfYj]lYpYZd]afAf\aYmf\]jl`]kmZb][lYjla[d]g^
the relevant Tax Treaty.
In view of the above, it is imperative to understand the nature
of activities to be undertaken by the non-resident in India to
determine the appropriate income-tax implications.
Payments to resident event managers

L`];:<L`Yk[dYja]\l`Yll`]k]jna[]khjgna\]\Zqj]ka\]fl
event managers are in the nature of professional services, as
\]f]\mf\]jl`]9[l$Yf\Yj]kmZb][llgoal``gd\af_Yll`]jYl]
g^)(&
Indirect tax
With 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!$KlYeh<mlq$]l[&>mjl`]jegj]$oal`l`]dac]dqafljg\m[lagf
of a Goods and Services Tax (GST) in the near future, the
importance of Indirect taxes in the overall decision making is
likely to increase.
Given that the legislations governing the entertainment tax

law are different in all states, the applicability of entertainment
tax on events conducted in the states also differ, leading to
\a^[mdla]kaf[gehdqaf_oal`l`]YhhjghjaYl]dYok&
=fl]jlYafe]fllYpakYklYl]d]nqgfnYjagmkY[lanala]kkm[`Yk
de]pàZalagf$]fl]jlYafe]fl]n]flk$khgjlkY[lanala]k$[YZd]'
<L@gh]jYlagfk$]l[&?]f]jYddq$]fl]jlYafe]fllYpakd]na]\gf
amounts charged for allowing entry into the place where the
entertainment event is held.
=fl]jlYafe]fllYpjYl]kgf]n]flkYdkg\a^^]j^jgeklYl]%lgklYl]$
which adds to the degree of complexity in ensuring compliance
and pricing for events with a multi-state spread. Furthermore,
certain legislations provide for different rate of taxes on the
same event within the state but within different municipal limits.
In addition to this, certain state legislations provide for different
rate of taxes on the nature of events. For instance, different rate
of entertainment tax has been prescribed under the Maharashtra
=fl]jlYafe]flLYpdYo^gjYoYj\^mf[lagfkYf\gl`]j]n]flk&
This leads to considerable confusion on the appropriate rate of
entertainment tax levied on the events.
High and diverse entertainment tax rates and laws
Applicability of entertainment tax on business

exhibition
La[c]l[gdd][lagf^gj]n]flkakYeYbgjj]n]fm][gfljaZmlgj^gj
gj_Yfar]jkYf\]n]flgof]jk&;]jlYafklYl]_gn]jfe]flk[`Yj_]
]fl]jlYafe]fllYpYlYjYl]Ykà_`Yk-(g^l`]nYdm][`Yj_]\
for entry into an event, while some state governments also grant
exemption from payment of entertainment tax depending on
kh][a[fYlmj]g^]n]flk&
While entertainment tax is applicable on entertainment,

certain legislators intend to extend the applicability of such tax
to business exhibitions and fairs carried out in those states.
LàkYkh][ldY[ck[dYjalqYf\l`]]n]flgj_Yfar]jk'gof]jkg^
such business exhibitions shall be under risk of demand of
entertainment tax on the collections from these events.
9_]f]ja[[gehYjakgfg^=fl]jlYafe]fllYpjYl]kYhhda[YZd]lg
]n]flk`]d\afkge]eYbgjklYl]k`YkZ]]fhjgna\]\Z]dgo2
Entertainment tax, in addition to other taxes
5.1 Entertainment tax
State
Entertainment tax rate (%)
Bihar
50
Uttar Pradesh
25
Maharashtra
25
Andhra Pradesh
20
Goa
15
While entertainment tax is levied on entertainment events,

certain revenues from events are also made liable to service
tax. For e.g., event sponsorship amounts earned are liable to
entertainment tax under certain entertainment tax legislations,
afY\\alagflgl`]k]jna[]lYpYl)*&+. lgZ]af[j]Yk]\lg),
in 2015) already levied by the Central Government.
5.2 Service tax
5.3 Customs duty
Service Tax is currently applicable on the value of all services

hjgna\]\$mfd]kke]flagf]\afl`]F]_Ylan]daklgj=p]ehlagfdakl
of 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.
;mklgek\mlqakd]na]\gfaehgjlg^_gg\kaflgAf\aY&=n]flk
such 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\k
gfl`]\]k[jahlagfg^l`]hjg\m[lYf\alk[dYkka[Ylagfmf\]j
l`]afl]jfYlagfYddqY[[]hl]\[dYkka[Ylagffge]f[dYlmj]k&
>mjl`]jegj]$[]jlYafZ]f]lkkm[`Yk]p]ehlagfk$\mlq
drawback, 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.
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_afYf
entertainment event in India is likely to increase.
5.4 Value added tax

VAT 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 tax
5.6 Stamp duty
A 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$K]jna[]lYp$N9L
and 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_]^^][lgf
account of non-transferability of credit should be settled.
Stamp duty is payable to the state government on the execution

g^kh][a]\afkljme]flk&;]jlYafklYl]klYeh\mlqd]_akdYlagfk
provide for payment of stamp duty on instruments granting
]p[dmkan]l]d][Ykl'ZjgY\[Yklja_`lk$afkljme]flk^gjkh][a]\
performances, etc.
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[Yd
bodies) 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.
5.7 Other key indirect tax

considerations
Other key indirect tax considerations
Afl]jfYlagfYddq$9L9;Yjf]lZ]f]l^gj\mlq^j]]l]ehgjYjq
import 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.
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.
Governance,
risk and control
The New Companies Act, 2013 has far reaching
implications on corporate governance and risk
management. This section highlights some key changes
for event companies.
The New Companies Act, 2013
J]_mdYlgjq[`][ck$Y[[gmflYZadalqYf\_gn]jfYf[]klYf\Yj\k
have received a serious boost with the introduction of the
New Companies Act, 2013. The changes in law are aimed at
ensuring higher standards of transparency and accountability,
and seek to align the corporate governance practices in India
with global best practices. While standards are more stringent
for public companies, most compliance and governance
j]imaj]e]flkYhhdqlghjanYl]k][lgj[gehYfa]kYko]dd&=n]fl
companies which can demonstrate good governance will have
Yka_fa[YflY\nYflY_]gn]jmfgj_Yfar]\Yf\qZqfa_`l
operators.
In this section we have covered three critical governance
j]imaj]e]flkg^l`]F]o;gehYfa]k9[l$*()+nar$afl]jfYd
fYf[aYd[gfljgdk$[gehdaYf[]eYfY_]e]flYf\na_ad
mechanism. 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.
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`Yf
AFJ-($((('%Zmloà[èYq]pl]f\lgAFJ-(($((($gjoal`Zgl`&
Additionally, over and above

l`][gfljgdkgn]jfYf[aYd
reporting, public companies
will have to ensure adequacy
of effectiveness of operating
controls as well.
9[[gj\af_lgk][lagf* -1!g^l`]F]o;gehYfa]k9[lg^[]j
includes 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.
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
Phase
Phase
Assess and plan
Phase
Documentation
Testing
AfklalmlagfYdar]Y[mdlmj]g^Zmad\af_
a robust control enviorement across
l`]gj_YfrYlagf
Dakll`]]paklaf_hgda[a]kYf\hjg[]\mj]k
applicable to the accounts and processes in
socpe
<]f]l`]l]klaf_kljYl]_qa&]&$
self assessment, independent
testing, etc.
<]f]Y[[]hlYZd]eYl]jaYdalqdaealk
for assessing IFC
<g[me]fll`]eakkaf_hjg[]\mj]kYf\hgda[a]k
afl`]\]f]\l]ehdYl]
<]n]dghYl]klhdYf$l]klaf_
frequency and testing samples
:Yk]\gfeYl]jaYdalqdaealk$\]f]
relevant account captions and
underlying processess
Identify the risks/what can go wrong (WCGW)

in each of the processes
Test the controls
<g[me]fll`]]paklaf_[gfljgdklgY\\j]kkl`]
WCGW
<]n]dghklYf\Yj\k'l]ehdYl]k'^gjeYlk
for documentation and testing
For risks which are not mitigated by existing
<]n]dghj]e]\aYlagfhdYflg
address any control failures
noted
controls, develop remediation plans

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&
6.2 Compliance management

More than 50 central, state and local regulations and acts apply to companies in the Indian events industry. The Companies Act
requires that every company comply with all the acts which are applicable to it.
Applicability
Requirement
Applicable to
all companies
L`]<aj][lgjkJ]khgfkaZadalqKlYl]e]fl$YkklYl]\afl`]9[l$
shall state that a companys directors had:
=n]jqg^[]jg^l`][gehYfqo`gakaf\]^Ymdl
shall be punishable with imprisonment for a
term which may extend to three years or with
f]oà[`k`YddfglZ]d]kkl`YfAFJ-($(((Zml
oà[èYq]pl]f\lgAFJ-(($(((gjoal`Zgl`&
<]nak]\hjgh]jkqkl]eklg]fkmj][gehdaYf[]oal`hjgnakagfk
of all applicable laws, and
=fkmj]\km[`kqkl]eko]j]Y\]imYl]Yf\gh]jYlaf_]^^][lan]dq
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[]
<]n]dghYkqkl]egêYc]j%Yf\%[`][c]j[gfljgdlgegfalgj[gehdaYf[]
On a monthly/quarterly basis, obtain a compliance status report from each function. The compliance status report should clearly
highlight non compliances if any and the corrective action plan. This report can be used to demonstrate to the Board of directors
and auditors the compliance status.
With the large number of regulations, growth in the number and types of events and geographical spread of most event companies,
the compliance function can be cumbersome and time consuming. Companies could consider implementing an automated
[gehdaYf[]eYfY_]e]flogjcgo$oà[`[YfY[lYkYj]eaf\]je][`YfakeYf\Yklgj]g^\g[me]flYlagf&L`]j]Yj]k]n]jYdlggdk
available for the same.
6.3 Vigil mechanism

<aj][lgjk$]ehdgq]]kg^Yfgj_YfarYlagfYf\Zmkaf]kkhYjlf]jk c]qn]f\gjk$\akljaZmlgjk$]l[&!eYq`Yn][jm[aYdaf^gjeYlagfYZgml
fraud, misconduct, violation of policies, etc. A vigil mechanism (also known as a whistle blowing system) enables them to convey
akkm]klgYhhjghjaYl]d]n]dkg^Yml`gjalqoalàfl`]gj_YfarYlagf&
Applicability
Requirement
Applicable to:
Companies are required to establish a vigil

mechanism for directors and employees to
report genuine concerns.
L`][gehYfqk`YddZ]hmfak`YZd]oal`f]
oà[`k`YddfglZ]d]kkl`YfAFJ)(($(((Zml
oà[èYq]pl]f\lgAFJ-(($(((Yf\]n]jq
g^[]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`&
all listed companies

companies which accept
deposits from the public
The audit committee is required to oversee

the operation of the whistle blowing
companies which have
mechanism. For companies that do not
borrowed money from banks
need an audit committee, a director to be
Yf\hmZda[fYf[aYdafklalmlagfk
nominated by the Board for this purpose.
af]p[]kkgÂFJ-([jgj]
Companies should develop a whistle blowing policy and mechanism which address incidents covered, reporting channels, guidance
on reporting, protection to whistle blowers and management of frivolous complaints.
It is sometimes felt that such systems are expensive and lead to frivolous complaints. To this effect, several vendors exist who provide
km[`Yk]jna[]^gjYfgeafYd^]]$Yf\]fYZd]dl]jaf_g^[gehdYaflkYko]dd&L`]Af\aYf]n]flkYf\Y[lanYlagfaf\mkljq[gmd\[gfka\]j
implementing such a system at an industry level.
Illustrative list of regulations applicable to an events company

Corporate laws
1. L`];gehYfa]k9[l$*()+j]Y\oal`l`])1-.9[l
2. ;gehYfa]k;]fljYd?gn]jfe]flk?]f]jYdJmd]kYf\>gjek$)1-.
3. ;gehYfa]k<ak[dgkmj]g^HYjla[mdYjkafl`]j]hgjlg^:gYj\g^<aj][lgjkJmd]k$
)100
4. ;gehYfa]k<akimYda[Ylagfg^<aj][lgjkmf\]jK][lagf*/,)_g^l`]
;gehYfa]k9[l$)1-.Jmd]k$*((+
5. ;gehYfa]k9[l$)1-.Yf\;gehYfa]k <aj][lgjA\]fla[YlagfFmeZ]j!Jmd]k$
2006
6. ;gehYfa]k9[l$)1-.Yf\<aj][lgjkJ]dYlan]k G^[]gjHdY[]g^Hjgl!Jmd]k$
2003
/& ;gehYfa]kHj]k]jnYlagfYf\<akhgkYdg^J][gj\kJmd]k$)1..
0& L`];gehYfa]k ;gkl9[[gmflaf_J][gj\k!Jmd]k$*())
1& HjanYl]Daeal]\;gehYfqYf\Mfdakl]\HmZda[Daeal]\;gehYfq :mq%ZY[cg^
K][mjala]k!Jmd]k$)111
10. ;gehYfa]kLjYfk^]jg^HjglklgJ]k]jn]kJmd]k$)1/11. ;gehYfa]k <][dYjYlagfg^<ana\]f\Gmlg^J]k]jn]k!Jmd]k$)1/12. ;gehYfa]k HYjla[mdYjkg^=ehdgq]]k!Jmd]k$)1/-
Foreign exchange laws

1. >gj]a_f=p[`Yf_]EYfY_]e]fl9[l$)111
2. L`]>gj]a_fLjY\]<]n]dghe]flYf\J]_mdYlagf9[l$)11*Yf\>gj]a_fLjY\]
J]_mdYlagfJmd]k$)11+
3. >gj]a_f=p[`Yf_]EYfY_]e]fl9[imakalagfLjYfk^]jgÂeegnYZd]Hjgh]jlq
gmlka\]Af\aYJ]_mdYlagfk$*(((
4. >gj]a_f]p[`Yf_]eYfY_]e]fl:gjjgoaf_Yf\D]f\af_af>gj]a_f=p[`Yf_]
J]_mdYlagfk$*(((
5. >gj]a_f=p[`Yf_]EYfY_]e]fl:gjjgoaf_Yf\D]f\af_afJmh]]kJ]_mdYlagfk$
2000
6. >gj]a_f=p[`Yf_]EYfY_]e]fl;mjj]fl9[[gmflLjYfkY[lagfkJmd]k$*(((
/& >gj]a_f=p[`Yf_]EYfY_]e]fl=phgjlg^?gg\kYf\K]jna[]kJ]_mdYlagfk$
2000
0& >gj]a_f=p[`Yf_]EYfY_]e]fl>gj]a_f;mjj]f[q9[[gmflkZqYH]jkgf
J]ka\]flafAf\aYJ]_mdYlagfk$*(((
1& >gj]a_f=p[`Yf_]EYfY_]e]flEYff]jg^J][]ahl9f\HYqe]flJ]_mdYlagfk$
2000
10. >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 laws
1.
2.
3.
4.
5.
6.
/&
0&
Af[ge]LYp9[l$)1.)Yf\Af[ge]LYpJmd]k$)1.*
O]Ydl`LYp9[l)1-/Yf\O]Ydl`LYpJmd]k$)1-/
>afYf[]9[lYf\K]jna[]LYpJmd]k
L`]EY`YjYk`ljYKlYl]LYpgfHjg^]kkagfk$LjY\]k$[Yddaf_kYf\=ehdgqe]flk
9[l$)1/-L`]EY`YjYk`ljYKlYl]LYpgfHjg^]kkagf$LjY\]k$;Yddaf_kYf\
=ehdgqe]flkJmd]k$)1/Maharashtra Value Added Tax Act, 2002 and Maharashtra Value Added Tax
Jmd]k$*((-
;]fljYdKYd]kLYp9[l)1-.;]fljYdKYd]kLYpJ]_akljYlagfLmjfgn]jJmd]k
)1-/;]fljYdKYd]kLYp EY`YjYk`ljY!Jmd]k$)1/(
:geZYqEglgjN]à[d]kLYpYlagf9[l$)1-0Yf\:geZYqEglgjN]à[d]k
LYpYlagfJmd]k$)1-1
L`]EY`YjYk`ljYLYpgfl`]=fljqg^?gg\kaflgDg[Yd9j]Yk9[l$*((*L`]
EY`YjYk`ljYLYpgfl`]=fljqg^?gg\kaflgDg[Yd9j]YkJmd]k$*((*
Environmental, health and safety

1. 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$*((.Yf\L`]
EY`YjYk`ljY>aj]Hj]n]flagfYf\Da^]kY^]lqE]Ykmj]kJmd]k$*((1
3. 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$)1//Yf\OYl]j
Hj]n]flagfYf\;gfljgdg^Hgddmlagf;]kkJmd]k$)1/0
5. L`]=fnajgfe]flHjgl][lagf9[l$)10.Yf\L`]=fnajgfe]flHjgl][lagfJmd]k$
)10.
6.
/&
0&
1&
L`]Fgak]HgddmlagfJ]_mdYlagfYf\;gfljgdJmd]k$*(((
:Yll]ja]kEYfY_]e]flYf\@Yf\daf_Jmd]k*(()
Food Safety and Standards Act 2006
Indian Standard Code of Practice Selection and Maintenance of First Aid Fire
=plaf_mak`]jk
10. =fnajgfe]flHjgl][lagf9[l)10.$]%oYkl] EYfY_]e]flYf\@Yf\daf_!Jmd]k$
2011
11. @YrYj\gmkOYkl]kEYfY_]e]fl$@Yf\daf_Yf\LjYfk%Zgmf\YjqEgn]e]fl
Jmd]k$*((0
12. =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\mkljaYd<akhml]k9[l$)1,/L`]Af\mkljaYd<akhml]k :geZYq!Jmd]k$
)1-/
4. L`]EYl]jfalq:]f]l9[l$)1.)Yf\L`]EY`YjYk`ljYEYl]jfalq:]f]ljmd]k$
)1.5. L`]EafaemeOY_]k9[l$)1,0L`]EY`YjYk`ljYEafaemeOY_]kJmd]k$)1.+
6. L`]HYqe]flgÔY_]k9[l$)1+.L`]EY`YjYk`ljYHYqe]flgÔY_]kJmd]k
$)1.+
/& L`]HYqe]flg^?jYlmalq9[l$)1/*L`]HYqe]flg^?jYlmalq EY`YjYk`ljY!
Jmd]k$)1/*
0& Supreme Court Guidelines on Prohibition of Sexual Harassment of Women at
Work Place
1& O]]cdq@gda\Yqk9[l$)1,*
10. =ehdgqe]fl=p[`Yf_]k;gehmdkgjqFgla[Ylagfg^NY[Yf[a]k9[l$)1-1Yf\
l`]=ehdgqe]fl=p[`Yf_]k;gehmdkgjqFgla[Ylagfg^NY[Yf[a]kJmd]k$)1.(
11. =ehdgq]]kHjgna\]fl>mf\Yf\Eak[]ddYf]gmkHjgnakagfk9[l$)1-*$L`]
=ehdgq]]kHjgna\]fl>mf\kK[`]e]$)1-*$L`]=ehdgq]]k<]hgkal%Dafc]\
AfkmjYf[]K[`]e]$)1/.L`]=ehdgq]]kH]fkagf>mf\K[`]e]$)1112. 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
Af\mkljaYd=ehdgqe]fl KlYf\af_Gj\]jk!9[l$)1-1
16. L`]=ehdgq]]k;geh]fkYlagf9[l$)1*+L`]:geZYqOgjce]fk
;geh]fkYlagfJmd]k$)1+,
)/&L`]HYqe]flg^:gfmk9[l$)1.-L`]HYqe]flg^:gfmkJmd]k$)1/)0&L`]:geZYqDYZgmjO]d^Yj]>mf\9[l$)1-+Yf\L`]:geZYqDYZgmjO]d^Yj]
>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`]
EY`YjYk`ljYOgjce]fkEafaeme@gmk]%J]fl9ddgoYf[]Jmd]k$)11(
21. Afl]j%KlYl]Ea_jYflOgjce]f J]_mdYlagfg^=ehdgqe]flYf\;gf\alagfkg^
K]jna[]!9[l$)1/1Yf\EY`YjYk`ljYAfl]j%KlYl]Ea_jYflOgjce]f J]_mdYlagf
g^=ehdgqe]flYf\;gf\alagfkg^K]jna[]!Jmd]k
Others
1. ;ghqja_`l9[lYf\Jmd]k&
2. Af^gjeYlagfL][`fgdg_q9[l$*(((Yf\Af^gjeYlagfL][`fgdg_q J]YkgfYZd]
K][mjalqHjY[la[]kHjg[]\mj]kK]fkalan]H]jkgfYd<YlYgjAf^gjeYlagf!
Jmd]k$*())
3. LjY\]eYjc9[l$)111Yf\Jmd]k&
4. L`]:geZYqDa^lk9[l$)1+1L`]:geZYqDa^lkJmd]$)1-0
5. :geZYq=d][lja[alq<mlq9[l$)1-0:geZYq=d][lja[alq<mlqJmd]k$)1.*
6. =d][lja[alq9[l$*((+j]Y\oal`L`]=d][lja[alqJmd]k$*((/& L`]D]_YdE]ljgdg_q9[l$*((1L`]EY`YjYk`ljYD]_YdE]ljgdg_q
=f^gj[]e]fl!Jmd]k$*()(
0& L`]EglgjN]à[d]k9[l$)100L`]EY`YjYk`ljYEglgjN]à[d]Jmd]k$)101
1& :geZYqHjgàZalagf9[l$)1,1
10. NOCs from Police, Fire Brigade, electrical, health dept, etc.
Note: This list is representative and applicability will depend upon a case to case basis.
EEMA wish list

==E9oak`]klgà_`da_`l[]jlYafc]q[`Ydd]f_]k
faced by its members, and possible solutions for the
government to consider.
EEMA wish list
The 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&Af
gmjghafagf$l`]jklYf\egklhjaeYjqf]]\ak$l`]j]^gj]2
Area
Description
Request
J][g_falagfg^l`]
events & activation
Industry
Làkoadd^Y[adalYl]YZYka[YZadalqlg_YafY[[]kklgafklalmlagfYdfYf[]Yf\$
l`]j]^gj]$]fYZd]Y[gehd]l]j]gja]flYlagfg^[Yk`goeYfY_]e]fll`Yl
akgl`]joak]l]f\af_lgl`jglld]af\mkljq_jgol`&9degkl1(g^l`]af\mkljq
today 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]dYlagfkàhkl`Ylj][g_far]alk[gfklalm]flkYkhYjlf]jkjYl`]j
than vendors.
Grant industry status to

the events and activation
industry
Withholding taxes
L<K!
=n]fleYfY_]e]flk]jna[]kYj]hmj]dq[gfljY[lmYdk]jna[]kYf\Yj][gn]j]\
oalàfl`]YeZalg^YfqogjcYk\]f]\mf\]jk][lagf)1,;g^l`]9[l
Yf\Yj]fglgfdq[gff]\lgogjck[gfljY[l&>mjl`]j$al`YkZ]]f[dYja]\
Zq;:<Lna\];aj[mdYjFg&.0)$\Yl]\0EYj[`)11,l`Ylhjgnakagfkg^
k][lagf)1,;g^l`]9[lk`YddYdkgYhhdqlgk]jna[]k[gfljY[l&L`mk$]n]fl
eYfY_]e]flk]jna[]k^mdddYddl`][gf\alagfk]fme]jYl]\mf\]jk][lagf
)1,;g^l`]9[l$o`]j]Zq$L<KjYl]g^*akYhhda[YZd]lg]n]fleYfY_]e]fl
companies in respect of services rendered by them. However, against the
above services rendered by event management companies, while making
hYqe]flk^gjl`]kYe]$[da]flkYj]oal``gd\af_lYp]kmf\]jk][lagf)1,B
g^l`]9[l$afkl]Y\g^)1,;g^l`]9[lYll`]lae]gêYcaf_hYqe]flk$af
da]mg^l`];:<Lfgla[Ylagffg&*(0-=$\Yl]\*)9m_mkl*((0$akkm]\lg
cover services rendered by event managers in relation to sports activities.
Accordingly, against the above services rendered by event management
[gehYfa]k$lYp]kYj]Z]af_oal``]d\Yl)1,Bg^l`]9[lafkl]Y\g^)1,;g^l`]
Act.
Single window
clearance
There is an urgent need for single window clearance to avoid the multiple
hurdles and government red tape that hinders every event, irrespective of
kar]&Hgda[]h]jeakkagfkYf\gl`]jYhhjgnYdkYj]`]d\ZY[claddl`]dYkleafml]
and can also be withdrawn because they were never given!
The industry seeks a

[gfjeYlagf^jgel`]
;:<Lgfl`][gjj][l
withholding tax rate of
*Yhhda[YZd]gf]n]fl
management companies,
in lieu of the aforesaid
services rendered to its
clients to bring clarity
on the controversy
surrounding the applicable
withholding tax rate. The
;:<L`gd\kl`Yl[gehYfa]k
`Yn]j][gmjk]lgK][)1/
which does allow for a
lower deduction of tax but
làkak[da]fl%kh][a[Yf\
;mjj]fldq$l`]]n]fleYfY_]e]flaf\mkljqakjmffaf_gfkeYddeYj_afYdhjglk
h]jag\%kh][a[Yf\akY
nYjqaf_^jge/lg)($o`]j]Yk$lYp]kYj]Z]af_oal``]d\Zql`]aj[da]flk
time-consuming, laborious
Yll`]jYl]g^)(gfl`]_jgkkYegmfl af[dm\af_j]aeZmjk]e]flk!gfl`]
process the need for which
hj]kmehlagfl`Ylhjgnakagfkg^k][lagf)1,Bg^l`]9[lYhhda]k&L`]YZgn]
can be obviated by a clear
situation is leading to shortage of funds required for working capital purposes,
ruling.
impacting the overall sustainability of the industry.
To set up single window

clearance process for each
state
Area
Description
Request
Dan]]fl]jlYafe]fl
spaces and
segregation of
=fl]jlYafe]fl
tax on live
entertainment as
\aklaf[l^jgedek
J][g_falagfg^dan]
There is a need to invest in the various art forms of our country, live
events and activation as
entertainment being the key area for consideration. Government, through
an independent industry
alkmjZYf\]n]dghe]flhjg_jYek$f]]\klgZmad\kmklYafYZd]hjgb][lkoà[`
include theaters, museums, rehearsal spaces, experimental studios, galleries, A complete waiver on
digital labs, amphitheaters, and do this in a spirit of public partnership. The
=fl]jlYafe]fllYpY[jgkk
[YhalYd[alqg^<]dà`Ykfglgf]f]ohmZda[khY[]$oal`Yk]fk]g^Y]kl`]la[kgj
states
hja\]fgjj]][laf_l`]fYlagfYd[mdlmj]&9ll`]kYe]lae]$<]dàYf\k]n]jYd
other cities that have a plethora of monuments that can serve as great spaces
and backdrops for live entertainment and corporate events. The Government
and Archeological Society of India need to radically change policy on this
kmZb][lbmklYkl`]Khgjlk9ml`gjalq`Ykfgo\gf]afl`][Yk]g^KlY\amek&
=fl]jlYafe]fl\aklja[lkljY\alagfYddq[gfljaZml]lgY[alqk][gfgeq&:jgY\oYq
g^^]jkmhMK1))ZaddagfYf\O]kl=f\-/Zaddagfl`jgm_àlkj]klYmjYflk$
fa_`l[dmZk$l`]Yl]jk$ZYjkYf\[gf[]jlk&L`]=\afZmj_`^]klanYd[gfljaZml]k
*--eaddagfg^Y\\alagfYdkh]f\\mjaf_l`]/o]]ckg^^]klanYd$YlljY[laf_)&-
million tourists, artists and art lovers who congregate at this Mecca of the Arts
world.
9ll`]YffmYdBYahmjDal]jYlmj]>]klanYd$oà[`Zjaf_klg_]l`]j+((kh]Yc]jk
gn]j-\YqkYf\YlljY[lkegj]l`YfY*/($(((nakalgjk$l`]Y\\alagfYd
contribution to the citys economy has been estimated at approximately
AFJ).*([jgj]&;alq`gl]dkk]][YhY[alq[jgo\k$b]o]d]jk$j]lYad]jkYf\[jY^l
outlets do brisk business and airlines and transport companies cash in on the
YffmYdZgge&F@/Hmf]Yf\KmfZmjf?gY$[gfljaZml]egj]l`YfMK)(
million to the local economy.
IIFA, which is considered to be a world renowned brand, brings in millions of
dollars of additional revenue to the city states that bid for the event, often
j]nanaf_Yg__af_dg[Yd][gfgeq&
@Ynaf_klYl]\l`]aehY[lDan]=fl]jlYafe]fl`YkgfYf][gfgeqo]ogmd\dac]
to highlight the anomaly that the industry is currently facing.
Dan]]n]flkYj][mjj]fldq[dmZZ]\oal`l`]>adeaf\mkljqYf\Yj][`Yj_]\
l`]kYe]d]n]dkg^=fl]jlYafe]fllYpYkl`]e&Dan]]fl]jlYafe]flak
totally different in character and the economics are totally different from a
k[j]]faf_g^YdeafYl`]Ylj]&
=Y[`klYl]`YkY\a^^]j]fl=fl]jlYafe]fllYpkljm[lmj]jYf_af_^jge(af
JYbYkl`Yflg.(afMllYjHjY\]k`&
Corporate social
responsibility
L`];KJY[l[mjj]fldqklYl]kl`Yl*g^hjglkg^[gehYfa]koal`lmjfgn]j
gêgj]l`YfAFJ-(([jgj]`Yn]lgZ]kh]flgf;KJafalaYlan]k&Làkak
currently 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<]n]dghe]fl
Skill development is today an avowed mission of our new Government, and

could go a long way in helping this industry overcome basic challenges due
to paucity of knowledge and technical skills that are critical for growth and
achieving global standards.
Build skill development

curriculum in consonance
with technical institutes
and architectural and
engineering institutions to
help develop a talent base
that could take this industry
to the next level.
Disclaimer: All information included in this section was provided by EEMA. The views and opinions expressed herein are those of its members.
Vision 20:20
What will it take to create the event industry of the
^mlmj]7Làkk][lagf\]f]kl`]af\mkljqkdgf_l]je
vision and is based on a round table discussion with
af\mkljq;=Gk&
Vision 20:20
8.1 Framework for the future

L`]Ykh][lk$oà[`Yj]egkl[jala[Yd^gjl`]af\mkljqk]ngdmlagf`Yn]Z]]fZjgY\dq[dYkka]\Ykafl]jfYd$]pl]jfYdYf\kljYl]_a[&
Human resources
Processes
Technology
Internal
Customer dynamics
Vendor/Supply chain
J]_mdYlgjq][gkqkl]e
External
Strategic
<a_alYdghhgjlmfalq
Fund raising readiness
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$hjg[]kk]kYf\l][`fgdg_q&Aehjgnaf_l`]k]l`j]]Yj]Ykoadd`]dhl`]hdYq]jkafY[à]naf_Z]ll]j]^[a]f[q$
gmlhmlimYdalqYf\hjglYZadalq&
8.2.1 Human resources

Training and development
<]Yjlàf\]kaj]\kcaddk]lkYf\imYda[YlagfkakY^Y[lgjl`Yl
g^l]fdaealkl`]_jgol`g^Yfaf\mkljq&=n]fl[gehYfa]k`Yn]
g^l]f^Y[]\\a^[mdlqaflYj_]laf_l`]ja_`lh]ghd]&Egj]gn]j$
]n]fl[gehYfa]k^Y[]ka_fa[Yfl[geh]lalagf^jgegl`]j
segments in the entertainment industry such as television, print,
deYf\jY\ago`]fal[ge]klgYlljY[laf_lYd]fl&
Skilled manpower is one of the biggest

challenges being faced by the events industry
and needs to be addressed urgently for growth
of the industry.
PVN Vidyasagar
Catpro Events & Entertainment
9kg^fgo$]ehdgq]]\]n]dghe]flhjg[]kkafl`]af\mkljqak]al`]jYZk]flgjYlYn]jqfYk[]flklY_]&=n]fl[gehYfa]kf]]\lg2
Invest in improving skill sets of employees and improving the overall quality of the workforce through development of industry
kh][a[[mjja[mdme^gj\a^^]j]fllqh]kg^jgd]klàkoadd]fYZd]Y[]jlYafZYka[d]n]dgîmYda[Ylagf^gjh]ghd]bgafaf_l`]af\mkljq
=fYZd]Ykqkl]eg^Y[[j]\alYlagf^gj\a^^]j]fld]n]dkg^]ehdgq]]kYf\jgd]k$oà[òadd]fYZd]hjgh]j]nYdmYlagfYll`]lae]g^
recruitment, and can be used as a basis for promotions.
Vision 20:20 workshop participants
Sabbas Joseph$Oar[jY^lAfl]jfYlagfYd=fl]jlYafe]fl
Brian Tellis$>gmflYaf`]Y\Hjgeglagfk=n]flk
Atul S. Nath, Candid Marketing
Mandeep Malhotra, Mudra Max
Mohomed Morani$;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
Job security
8.2.2 Processes
9kegklg^l`]ogjcafl`]]n]flaf\mkljqakhjgb][lZYk]\$
bgZk][mjalqakYfakkm]l`]af\mkljq`Yklg_jYhhd]oal`&=n]fl
management 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.
Policies
Compensation and pride

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

have policies covering:
Procurement
Vendor management
Use of prohibited substances
J]emf]jYlagfYf\Z]f]lk
Code of conduct/sexual harassment
=ngdnaf_j]_mdYlgjqklYf\Yj\kafAf\aYeYc]al]n]fegj]
imperative to have adequate policies in place to comply with the
new Companies Act, which entails the proper management of:
J]emf]jYlagf
;gfljgdkgn]jfYf[aYdj]hgjlaf_
Fraud prevention and detection given the relatively small
kar]g^l`]af\mkljq$Yoàkld]Zdgo]je][`YfakeYll`]
industry level could be implemented.
Compliance with all regulations (there are more than 50
different acts, which apply to an Indian events company)
Controls over operations
Health and safety
Management Information System (MIS)
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:
=^^][lan]EAK`]dhkafhjgna\af_Zmkaf]kkafl]dda_]f[]lg
top management and proactively identifying issues. While
such systems are found lacking in many event companies,
they are prevalent in the more developed part of the Indian
entertainment industry such as TV, print, etc. Given the current
and expected growth the Indian events industry is experiencing,
and the width of solutions it offers, companies as they cross
l`]AFJ)(([jgj]lmjfgn]jeYjcf]]\lg]eZjY[]l`]ja_`l
business and event-level MIS and incorporate central analytics to
j]eYaf[geh]lalan]$_jgoj]n]fm]kYf\jYlagfYdar][gklk&
<]falagfYf\aehd]e]flYlagfg^kY^]lqklYf\Yj\kZgl`^gj
themselves and for their vendors
Vendor accreditation can be linked to compliance with safety
standards and their safety record
An initiative around creating awareness on work safety is
required to educate vendors and their employees
Additional support through insurance coverage could also
help in limiting the loss to employees in case of unforeseen
events.
8.2.3 Technology
9ll`]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_q
can enable:
Given the rate at which our industry is growing,

it is imperative to have a central body to lay
down our preamble and the dos & donts for the
entire ecosystem including clients.
Siddhartha Chaturvedi
Event Crafter
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
How do advertisers view their event agencies?

(percentage of respondents)
Using data analytics to detect fraud, and

Business level and event level real-time generated MIS
Vendor
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<ZYf\k!$
production monitoring (cameras, motion sensors), food &
beverage sales (swipe cards, bands), safety & security (turnstiles,
ZYjja[Y\]k$klj]kkl]klaf_$dgY\l]klaf_$j]hj]n]flagf!$kg[aYd
integration (apps), and database management. Feedback could
be managed effectively at event venues through technology as
well.
8.3 External aspects

=pl]jfYd^Y[lgjkYj]l`gk]l`YlYj]dYj_]dqgmlg^l`][gfljgdg^
an event management company.
30%
70%
Partner
Ja_`lhgkalagfaf_Zq]n]fl[gehYfa]kakafkljme]flYdaf[j]Ylaf_
value for customers and ensuring better margins at the same
time. Some initiatives which event companies could undertake to
position themselves as business partners are developing industry
kh][aYdarYlagf$\a_alYdkh][aYdarYlagfYf\]f\%lg%]f\eYfY_]e]fl
g^l`]:LD^mf[lagf af[dm\af_\]egfkljYlagfg^JGA!&
Account focus
Key external factors

Customer
dynamics
Vendor/
Supply chain
Regulatory
ecosystem
Positioning
<]n]dghe]fl
Tax
Account focus
Accreditation
Infrastructure
JGA
JakceYfY_]e]fl
Approvals
Copyrights
8.3.1 Customer dynamics

Positioning
As event management companies create value for their
customers, positioning plays a critical role in determining
the value event companies are creating in the minds of their
customers. This is especially important for event companies
managing big corporate accounts and involved in brand
launches and other corporate events. Companies should position
themselves as vendors or as partners in business.
As the event management industry matures and increases in

kar]$^g[mkgfc]qY[[gmflkYf\af\mkljqkh][aYdarYlagfZ][ge]k
aehgjlYfl&=n]fl[gehYfa]kf]]\lgjYlagfYdar]gh]jYlagfk
l`jgm_`c]qY[[gmfl^g[mkYf\af\mkljqkh][aYdarYlagf&C]qkl]hk
that event companies need to take include:
Build relationships at the CMO and other relevant CXOs at
clients
EYh[da]flj]dYlagfkàhklgegj]l`Yfbmklgf]]n]fl[gehYfq
person, to guard against attrition
Track the event companys share of wallet from the client
=fYZd]\ak[mkkagfkYjgmf\af\mkljqlj]f\kYf\d]Y\af_
hjY[la[]kgfl`]\a_alYdYf\:LDka\]Yf\[gf\m[la\]Ylagf
workshops with key stakeholders to assist them meet their
Zmkaf]kkgZb][lan]k
These initiatives could help improve positioning, hence event
companies could build better relationship with customers and
have higher revenue visibility.
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]\&
9j]Y\n]jlak]jkkYlak]\ZqJGAe]Ykmj]e]fll`]qj][]an]
^gjl`]aj:LDkh]f\k7
Yes, very much
10%
30%
So so its a very
weak linkage
No, not at all
60%
In the absence of a generally acceptable measurement platform,

]n]fl[gehYfa]kk`gmd\\]n]dghYJGAe][`Yfakeoà[`[da]flk
can relate to. This will be centred around the following:
Mf\]jklYf\[da]flgZb][lan]k^gjl`]]n]fl$oà[`[YfnYjq^gj
a particular type of event for different clients
>gj]Y[`gZb][lan]$mk]Y[geegfe]Ykmj]e]fll][`faim]$
oà[àkkge]làf_l`Yl[YfZ][]fljYddq\]f]\Zql`]
industry body
9ll`]]f\g^l`]]n]fl$\]egfkljYl]JGAlg[da]flZYk]\gf
Y_j]]\gZb][lan]k
;da]flko`goak`lg`Yn]l`]JGAe]Ykmj]e]flnYda\Yl]\[Yf
appoint their employees or independent agencies for the
same
8.3.2 Vendors/Supply chain

Vendor development
N]f\gj\]n]dghe]flhjg[]kkakafkljme]flYdaf]^[a]fl
afl]_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]k
and failures (as updated by event management companies)
need to be captured on an events industry intranet, to enable
The industry needs to become more inclusive,

k]lY[geegfZYk]$Yf\]fYZd]klYf\Yj\arYlagf
in quality of delivery!
Anushree Agarwal
Theme Weavers
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<]n]dghaf_klYf\Yj\ar]\j]imaj]e]flk
and costing for often used items such as sound, lights,
barricades, etc., can go a long way in improving the industry
standards and quickly determining costs
;gfljY[laf_2==E9[YfhdYqYjgd]Zqhj]k[jaZaf_l`]a\]Yd
event contracts that should be signed with consultants,
artistes, vendors and the supply chain to enable responsibility
and accountability.
Accreditation
Vendor management is critical in the event industry as choosing
wrong suppliers could lead to multiple problems. Vendors need
to be benchmarked on the basis of their capabilities, service
standards and experience. Certain industries like the hotels and
restaurant business have a fairly robust accreditation system and
Y[]jla[Ylagfhjg_jYe[gmd\ogjcafl`]]n]flaf\mkljqYko]dd3
this could prevent frauds, reduce instances of non-delivery or
non-compliances, and also ensure safety at the venue.
Oàd]]n]fl[gehYfa]k`Yn]]eh`Ykar]\gfkY^]lqklYf\Yj\k
of vendors there is no industry policy or tracking on compliance
oal`kY^]lqklYf\Yj\k&9kl`]af\mkljqZ][ge]kegj]_dgZYdar]\$
accreditation would become imperative to meet the expectations
of more demanding clients. The industry must work towards the
following initiatives:
<]n]dghY^gjeYdY[[j]\alYlagfkqkl]e^gjn]f\gjkYf\
partners. This will enable event agencies to quickly determine
the quality and dependability of the vendors they are dealing
with
Periodically, vendors can be provided with an accreditation
a rating that enables event agencies to quickly evaluate a
vendors capabilities which can be renewed annually based
on industry feedback
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\[Yklaf_Ykkg[aYlagfko`]j]af
a defaulting vendor gets black listed across association
members
Risk Management
In the event management industry, a lot is at risk till the point
]Y[`]n]flfYddq[gf[dm\]k&@]f[]$YfYhhjghjaYl]jakc
management 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:
<]faf_klYf\Yj\jakceYfY_]e]fl[dYmk]kafn]f\gj
agreements to detail the responsibility for risk management,
or the required risk management procedures required to be
undertaken by vendors and partners
Building awareness among vendors and other service
providers regarding risk management through workshops
Dafcaf_jakceYfY_]e]fllgl`]n]f\gjY[[j]\alYlagfjYlaf_
mentioned above
8.3.3 Regulatory ecosystem

Tax
L`]]n]fleYfY_]e]flaf\mkljqakkmZb][l]\lgemdlahd]lYp]k
and taxes which vary by state. Taxes in some states go up to
)((11, which discourages event activity in those states. In
^Y[l$l`]j]ak\akhYjalqaflYpYlagfo`]f[gehYj]\oal`de
production, television and print. In order to promote increased
activity, the industry should lobby for tax rates to be made
common across states and be aligned to the tax incentives
and schemes available to other segments of the Indian media
af\mkljqdac]dehjg\m[lagf$]pàZalagf$]l[&L`]k]Yj][gn]j]\
in detail in another section of this report.
Infrastructure
The regulatory ecosystem should support infrastructure growth
in the event management industry; wherein event venues
could be promoted through public private partnership modes.
Additionally, government incentives such as tax holidays
could additionally help in promoting infrastructure in event
management industry.
Approvals
The event management industry has often been plagued by
delays in regulatory approvals wherein the time consumed in
permissions and licenses has limited the growth of the industry.
J]_mdYlgjqZglld]f][ckafl`]kqkl]e\][j]Yk]gn]jYddaf\mkljq
attractiveness. Online approvals and single window clearance
could help in accelerating growth of the industry.
Copyrights
It is currently possible to protect only a name, logo, design,
but not an event concept or process. The industry should work
towards obtaining legal advice to enable protection of its original
concepts and processes. These can then be exported to other
countries as well.
8.4 Strategic aspects

Factors such as development of intellectual property, digital
offerings, future solutions and funding for growth are important
to ensure that the industry makes the most of the business
environment in which it operates.
8.4.1 Intellectual property

L`]Z]f]lg^\]n]dghaf_AHkakl`Yll`]nYdm]g^YfAHaf[j]Yk]k
gn]jYh]jag\g^lae]Yf\l`]j]^gj]l`]Z]f]lkg^gofaf_AHk
increases dramatically during the later years. Moreover, over
the past few years, investments in IP have also become common
with private equity investors and ad agencies taking stakes in
event companies owning IP12.
Given the increase in digital media consumption, led by
smartphone penetration and improved broadband connectivity,
it is now possible for event companies to build their own
communities of like-minded individuals, and cater to their needs
through events, activations, digital etc., at far lower costs than
before. More importantly, there is a lesser need to rely on
expensive mass media, as these communities can be reached
l`jgm_`l`]\a_alYde]\ameafYn]jq[gkl]^[a]fleYff]j&AHk
also have the added advantage that sponsors are willing to
sign long-term deals for IPs, and they can be easily televised
broadcasters are facing increasing costs for acquiring satellite
ja_`lkg^dek$Yf\f]]\]n]flklg]f_Y_]Ym\a]f[]k&
)) `llh2''ooo&deln_mad\af\aY&gj_']fl]jlYafe]flWlYpWafWnYjagmkW
states.html
)* Af\mkljqKgmj[]kYf\=QJ]k]Yj[`
8.4.2 Digital opportunity

<a_alYd]n]flkYf\Y[lanYlagfkoadd]fYZd]l`]f]plh`Yk]g^
_jgol`^gjl`]af\mkljq$_jgoaf_^jge*g^lglYdY\kh]f\kaf
*()))*lg1Zq*()1*(&
Percentage of total ad spends by marketers
69%
During event:<a_alYdhdYl^gjek[Yf`]dhaf[gflafmgmk
feedback during the course of the event. For instance,
audience opinions, voting, bidding, merchandising and awards
could be enabled through digital platforms. This would help in
saving time, money and effort while organising events.
21%
Post event: Post event activities such as feedback and

database development could be managed better through
\a_alakYlagf&<a_alYd[YfYdkg]fYZd]]f_Y_]e]flhgkl]n]fl$
be it marketing, information dissemination or preparation for
the next event.
81%
18%
9%
2%
2011-12 2012-13 2013-14 2014-15 2015-16
(E)
ATL (net)
BTL
2019-20
(E)
Digital
Source: EY analysis
L`]Z]f]lkYj]eYfq2
On the customer front, digital will help in improving the
customer experience before, during and after the event.
<a_alarYlagfYdkgeYc]k[gfl]fl\akljaZmlagfYf\afl]jY[lanalq
affordable for smaller, yet advertiser friendly, customer
segments.
Advertisers prefer digital events due to the lower cost of
j]Y[àf_Ym\a]f[]k$dgo]jd]n]dkg^gn]jgo$YZadalqlg
\]egfkljYl]JGAafYj]Ydlae]ZYkakYf\YZadalqlgj]Y[`
media-dark but telecom-lit consumers.
On the administrative front, digital platforms can support
decision making requirement of event companies through
analytics wherein number of clicks, social media activity,
purchase cycle, visits and content viewed could be captured
through increasing usage of digital.
Value chain of digital convergence in events

Pre-event
During event
Post event
Marketing
Feedback
Feedback
Contests/
interaction
Opinions
Targeted
marketing
=ph][lYlagfk
Bidding
Ticket sales
Awards
Voting/elimination
Pre event: Pre event activities including marketing campaigns

Yf\la[c]laf_[gmd\Z]\a_alar]\&Gfdaf]la[c]laf_Yf\
eYjc]laf_[gmd\kYn]lae]Yf\[gklafgj_Yfaraf_]n]flk&>gj
instance, a large portion of tickets at events like Sunburn and
Vadfest are being purchased online. Moreover, events can get
Z]ll]jnakaZadalqYf\Yehda[Ylagfl`jgm_`\a_alYdhdYl^gjekYlY
fraction of cost of traditional media.
8.4.3 Fund raising readiness

So far, access to different forms of equity investments,
\]Z]flmj]k$Yf\gl`]j^gjekg^fYf[af_`YkZ]]fimal]daeal]\
afl`]af\mkljq&@go]n]j$fgoafn]klgjkYj]c]]fgf[YhalYdaraf_
the increasing growth opportunities which the event industry
holds. For instance, private equity investors and leading Ad
agencies are increasingly looking at event companies having
their own IPs. Media houses are also willing to do equity for
media space deals. More inbound investments are being made
afj][]flq]Yjk&=n]fl[gehYfa]kf]]\lghj]hYj]l`]ek]dn]k
for onboarding investors. This will include better reporting,
implementing accounting and business policies, accounting
technology and restructuring of contracts.
Type of deals 2005-2015
Inbound
11
Domestic
Private-equity
Buy-back
3
1
Source: EY survey
<YlYZYk]
development
Personna
development
Note: EY analysis and industry sources
Acknowledgements
==E9Yf\=Qogmd\dac]lgl`Yfcl`]^gddgoaf_j]khgf\]flk^gjhYjla[ahYlaf_afl`]kmjn]q&
Tarsame Mittal
9JL=fl]jlYafe]fl
Services
Siddharth Ganeriwala
Aura Integrated Solutions
Jai Mundra
:]]h=ph]ja]f[]
Management
K.J. Singh Gurna

:]ddk]l=fl]jlYafe]fl
Girish Bobby Talwar

BookMyShow
Sunil Kutty Menon

Brand Promotions
Sanjeev Pasricha
;K<aj]cl=n]flk
=pàZalagfk
Atul S. Nath
Candid Marketing
PVN Vidyasagar
;Ylhjg=n]flk
=fl]jlYafe]fl
Mohomed Morani
Cineyug Media &
=fl]jlYafe]fl
Mandeep Singh
CPM India Sales &
Marketing
Rajesh Varma
;JA=n]flk
Samit Garg
=>Y[lgj=fl]jlYafe]fl
Sharad Mathur
=E?=fl]jlYafe]fl
Roshan Abbas
=f[gehYkk=n]flk
Atul Chabra
=fl`mk]9fko]jk
Communication
Siddhartha Chaturvedi
=n]fl;jY^l]j
Humayoon Zaidi
=n]flF]logjc
=fl]jlYafe]fl
Brian Tellis
Fountainhead
Hjgeglagfk=n]flk
Khantil Mehta
Gobananas
Pramod Gaikwad
Ice Global
Sanjay Kaul
Impact Communications
Harish Babu
Aehj]kYjag=n]fl
Management
Deepak Pawar
Midas Next Media
Vijay Bokadia
Egck`=n]flk
Raj Batra
EgkYa[=n]flk
Mandeep Malhotra
Mudra Max
Rahul Gomes
Oaks Management
Consultancy
Manuj Agarwal
H]j[]hlDan]
Rajeev Jain
JYkà=fl]jlYafe]fl
Harshal Kothari
Jakaf_=n]flk
Sameer Tobaccowala
K`gZar=ph]ja]flaYd
Communications
Michael Menezes
K`golae]=n]flk
Harjinder Singh
K`googjck=n]flr
Himanshu Shah
KGADan]EYjc]laf_
=n]flk
Amit Gupta
Klgjq=fl]jhjak]k
Sanjoy Roy
Teamwork Arts
Amanveer Singh
L]f=n]flkYf\
=fl]jlYafe]fl
Anushree Agarwal
Theme Weavers
Dr. Jaydeep Mehta

True Innovation
Ankur Kalra
Vibgyor Brand Services
Sabbas Joseph
Oar[jY^lAfl]jfYlagfYd
=fl]jlYafe]fl
Sachin Talwar
Ogo=n]flk
Jojoe Jacob
Plj]e]Eaf\r
Rajesh Ravani
Zion Unlimited
The average age of all survey respondents is 43 years.
Glossary
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
;:<L
;]fljYd:gYj\g^<aj][lLYp]k
;=Gk
;à]^]p][mlan]g^[]jk
CFOs
;à]^fYf[aYdg^[]jk
CMOs
;à]ÊYjc]laf_G^[]jk
Crore
Ten million
;KJ
;gjhgjYl]Kg[aYdJ]khgfkaZadalq
<9K
<a_alYdY\\j]kkYZd]kqkl]ek
=:A<L
=Yjfaf_kZ]^gj]afl]j]klYf\lYp
=Q
=jfklQgmf_DDH$Af\aY
Great Britain Pound
GST
Goods and Services Tax
IFC
Afl]jfYdfYf[aYd[gfljgdk
AFJ
Af\aYfJmh]]k
IP
ISP
Internet service providers
ITCC
Af[ge]LYp;d]YjYf[];]jla[Yl]
DYc`
A hundred thousand
M&A
EA;=
Meetings, incentives, conferences and

exhibitions
MIS
Management information systems
NOC
FgGZb][lagf;]jla[Yl]
PAT
HjglY^l]jlYp
JGA
J]lmjfgfafn]kle]fl
L<K
Tax deducted at source
TV
Television
US$
Mfal]\KlYl]k<gddYj
WCGW
What could go wrong
About us
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]f
q]Yjk==E9`Yk_jgofaflgl`]\]%^Y[lgnga[]^gj]n]flk&
==E9akl`]jklYf\gfdqZg\qgâlkcaf\$oà[`k]]cklg
Zjaf_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$=fl]jlYafe]fl
Professionals, Artist Management Companies and International
[gmfl]jhYjlkgfl`]kYe]hdYl^gje&==E9lg\Yqakl`]gfdq
fYlagfYdYkkg[aYlagfoal`Ymfa]\nga[]l`Yld]Y\k\aYdg_m]
within its members and with government, Statutory Bodies,
LYpYlagf9ml`gjala]k$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.
EY
=Qakl`]dYj_]klhjgna\]jg^hjg^]kkagfYdk]jna[]klgl`]e]\aY
and 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: Ashish.Pherwani@in.ey.com
JY\àcYHjY\`Yf2JY\àcY&HjY\`Yf8af&]q&[ge
Jay Sampat: Jay1.Sampat@in.ey.com
9[[]kk=Qk_dgZYdYf\Af\aYfe]\aYYf\]fl]jlYafe]flaf\mkljq
reports at
ey.com/IN/en/Industries/Media---Entertainment
Kaf[]alkaf[gjhgjYlagfaf*((0$==E9`YkjYha\dq_jgofaf
e]eZ]jkàhlgaf[dm\]Yddka_fa[Yflgj_Yfar]\hdYq]jkY[jgkk
the length and breadth of the country, and it is estimated
l`Yl[dgk]lg0(g^l`]gj_Yfar]\j]n]fm]aflàkkhY[]$ak
j]hj]k]fl]\l`jgm_`==E9e]eZ]jk&
<ak[dYae]j2Làkj]hgjl`YkZ]]f\]n]dgh]\Zq[gf\m[laf_hjaeYjqYf\k][gf\Yjqj]k]Yj[`$\ak[mkkagfkoal`k]n]jYd]n]flkYf\
activation companies and other event industry stakeholders, and cross referencing of available data points. To the extent possible,
l`]\YlY`YkZ]]fn]ja]\Yf\nYda\Yl]\&Mk]g^làkj]hgjlakYll`]\ak[j]lagfg^l`]j]Y\]j$Yf\f]al`]j==E9fgj=QlYc]Yfq
responsibility for the same. Please obtain professional guidance prior to using the information provided in this report for any
decision making. There is no tax or other business advice provided in this report.
Ernst & Young LLP

EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction and
advisory services. The insights and quality services we
deliver help build trust and confidence in the capital
markets and in economies the world over. We develop
outstanding leaders who team to deliver on our promises
to all of our stakeholders. In so doing, we play a critical
role in building a better working world for our people, for
our clients and for our communities.
EY refers to the global organization, and may refer to
one or more, of the member firms of Ernst & Young
Global Limited, each of which is a separate legal entity.
Ernst & Young Global Limited, a UK company limited by
guarantee, does not provide services to clients. For more
information about our organization, please visit ey.com.
Ernst & Young LLP is one of the Indian client serving member firms of
EYGM Limited. For more information about our organization, please visit
www.ey.com/in.
Ernst & Young LLP is a Limited Liability Partnership, registered under the
Limited Liability Partnership Act, 2008 in India, having its registered office
at 22 Camac Street, 3rd Floor, Block C, Kolkata - 700016
2015 Ernst & Young LLP. Published in India.
All Rights Reserved.
EYIN1504-034
ED None
This publication contains information in summary form and is therefore
intended for general guidance only. It is not intended to be a substitute
for detailed research or the exercise of professional judgment. Neither
Ernst & Young LLP nor any other member of the global Ernst & Young
organization can accept any responsibility for loss occasioned to any
person acting or refraining from action as a result of any material in this
publication. On any specific matter, reference should be made to the
appropriate advisor.
PP
EY refers to the global organization, and/or one or more of the

independent member firms of Ernst & Young Global Limited

EY Making Experiences in India

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

EY Making Experiences in India

Uploaded by

Copyright:

Available Formats

Making experiences

2014-15 What an eventful period it has been! From an inspired

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

It gives us great pleasure to present the second report on the

Governance, risk and control

Current state of the industry

Mergers and acquisitions

Governance, risk and control

EEMA wish list

Making experiences in India: The Indian events and activation industry | 5

Making experiences in India: The Indian events and activation industry | 7

Current state of the industry

1.1 The industry continues its

Organized events industry (INR Crore)

Geographic presence (percentage of respondents)

1.2 Majority of Indian event

Source: EY analysis; secondary research

The Global Markets offer huge opportunities for

1.3 Managed events continue to be the largest service offering

Services offered (percentage of respondents)

Managed events stand out as the most common service

Making experiences in India: The Indian events and activation industry | 9

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

The Kaan Khajura Tesan Initiative

Table 1: Types of event categories with illustrative examples

Indian Idol auditions

Axe Boat Party

India Bike Week

Sports and wellness

India Fashion Week

KBC play along

The Blue Train

India Bridal Week

Making experiences in India: The Indian events and activation industry | 11

1.4 Number of events conducted

1.5 IPs provide a disproportionate

According to respondents, the total number of events

Growth rate number of events 2013-14 to 2015-16

Activations, too, given their growing value to advertisers,

Number of events vs. revenue (2014-15)

Managed events are expected to continue to be the mainstay

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

1.6 Companies have recruited

1.7 Operating performance of

The average employee strength of survey respondents was

Most event companies have a young employee base. While

Cost break-up 2014-15

The cost break-up, as indicated in the chart above is computed

Making experiences in India: The Indian events and activation industry | 13

1.8 Key strength remains the

It is the niche creativity that empowers brands.

Ability to get things done:EYbgjalqg^j]khgf\]flkZ]da]n]

Key challenges (weighted responses)

1.9 Lack of trained manpower

Ideation and creativity:=n]fl[gehYfa]k`Yn]Z]]fYZd]

Lack of trained manpower: This issue ranked second in our

Marketers most appreciated the execution quality and cost

Source: EY marketer survey 2014

Making experiences in India: The Indian events and activation industry | 15

Making experiences in India: The Indian events and activation industry | 17

2.1 The industry continues its

Expected size of the events industry (INR Crore)

Source: EY analysis and industry sources

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