Presentation: Organised events industry to grow to Rs. 5, 779 cr by 2016-17

A report titled 'Making experiences in India: The events and activations industry', released by EY – EEMA (Event and Entertainment Management Association), states that the events and activations industry has grown at 15 per cent annually, from Rs. 2,800 crore in 2011-12 to Rs 4,258 crore in 2014-15.

While managed events remain the largest service offering, IP (Intellectual Property) and digital events are growing at a faster rate than managed events. The report highlights a dire need for the industry to work on acquiring the right talent, managing costs, demonstrating ROI to marketers and increasing transparency in operations.

According to the report, the events and activations industry is expected to grow to Rs 5,779 crore by 2016-17. This growth will be on the back of marketers increasing their below-the-line (including digital) spends to 21 per cent of their total marketing spends. The growth will also be led by personal events, MICE (meetings, incentives, conferences and exhibitions), activations and sports.

Non-metro markets are expected to increase in importance as marketers look to tier II and tier III cities for incremental growth, states the report. Digital events and activation is also expected to grow significantly on the back of smartphone penetration, internet availability and the cost efficiency of such campaigns for marketers.

While the industry has reported very few M&A transactions over the last few years, there exists scope for consolidation. Valuations are driven by IPs owned, advertising agencies' interest in activations, and digital events and sports leagues. On the taxation front, double taxation, taxation across multiple states, and varying and inconsistent application of different taxes are some of the challenges faced by the industry. Also, the introduction of Goods and Services tax could have a significant impact on the industry in terms of rates and implementation across multi-state activities.

The report also states that the introduction of the new Companies Act 2013 will result in some key changes in internal financial controls, compliance with more than 60 acts and regulations, and implementing a vigil mechanism to identify undesirable activities.

The report is based on the findings of a survey conducted via extensive discussions with over 60 respondents, including the heads of events and activation companies across the country, along with inputs from advertisers and sponsors.

Read the entire report below: