EY Making Experiences in India PDF

Making experiences
in India
The Indian events and
activation industry
Foreword
Sabbas Joseph Farokh Balsara
President Media & Entertainment
=n]flYf\=fl]jlYafe]fl Industry Leader
Management Association =jfklQgmf_DDH
2014-15… What an eventful period it has been! From an inspired It gives us great pleasure to present the second report on the
PM taking over the mantle to the Mangalyaan spacecraft events and activation industry in India.
afkladdaf_Yf]oZ]da]âfAf\aYÌkk[a]flaÕ[[geemfalqYf\lggf]
The industry has evolved over the years and has grown
more Grammy Award for an Indian. It is an opportune time to be
[gfka\]jYZdqZglàfkar]Yf\klYlmj]&L`jgm_`làkhYh]jo]
in India.
attempt to capture the industry’s status as of today and the
After India’s information technology success, our “soft power” is key trends that it could experience in future. The dynamism of
gaining global acceptance. US President Obama quotes from our the industry has been captured through extensive discussions
ÕdekYf\j][g_far]kl`]hgo]jgÂf\aYf[af]eY& with the heads of events and activation companies across the
New age technologies are transforming music, movies and country, along with inputs from advertisers and sponsors. The
]n]flkafYfYeYraf_oYq&>jge=<E[gf[]jlklg[mllaf_]\_] report provides insights around key strengths of the industry
animation for Hollywood, India is reimagining experiences, and the challenges it faces. We also look into the opportunities
j]\]Õfaf_h]j[]hlagfk& for M&A transactions and implications around taxation and
As is always known, when a country does well economically, corporate governance have also been covered in the report.
across the world, there is interest in its culture and people. As
O]`gh]l`YlqgmÕf\làkj]hgjl`]dh^mdafmf\]jklYf\af_l`]
India grows, this opportunity will grow for every facet of the
key drivers and challenges facing the events and activation
Indian entertainment and culture-showcase industry. The events
industry. We are grateful to all stakeholders and industry players
Yf\Y[lanYlagfkaf\mkljqakZ]klhgak]\lg[YhalYdar]gflàk
who have provided their valuable time and input in compiling
emerging opportunity.
our report.
But India is no longer enough as the market place. There’s 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

Contents
4 Executive summary
6 Current state of the industry
16 Future trends
24 Mergers and acquisitions
30 Tax implications
32 Direct tax
35 Indirect tax
38 Governance, risk and control
44 EEMA wish list
48 Vision 20:20
56 Acknowledgements
58 Glossary
59 About us
Making experiences in India: The Indian events and activation industry | 3

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Current state of the industry

L`]gj_Yfar]\]n]flkaf\mkljq`Yk_jgofYl)-YffmYddq^jgeAFJ*$0(([jgj]af*())Ç)*lgAFJ,$*-0[jgj]af*(),Ç)-&
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*())Ç)*lg0,]ehdgq]]kaf*(),Ç)-$
oà[``Ykj]kmdl]\afhYqjgdd[gklkaf[j]Ykaf_^jge)+lg)0g^lglYd[gklk&=:A<L9eYj_afkYj]afl`])(Ç)-jYf_]&
L`]c]qklj]f_l`kg^l`]af\mkljqj]eYafl`]YZadalqlg_]llàf_k\gf]$a\]YlagfYf\]^Õ[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).Ç)/lgj]Y[ÀFJ-$//1[jgj]af*().Ç)/$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_faÕ[Yfldqgfl`]ZY[cg^keYjlh`gf]h]f]ljYlagf$afl]jf]lYnYadYZadalqYf\l`][gkl
]^Õ[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.
Mergers and acquisitions

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_faÕ[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]jfYdÕfYf[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\]Õfalagf^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]^Õ[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\]Õf]\[geemfala]kgâfl]j]kllgeYjc]l]jk$Yf\]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
Õf\af_kg^Ykmjn]qg^l`];=GkYf\Zmkaf]kk
heads of 35 Indian event management
[gehYfa]k$k][gf\Yjqj]k]Yj[`Yf\=QÌk
analysis of the same.
1 Current state of the industry
1.1 The industry continues its • L`]]n]flkk]_e]fl`Yk_jgof^Ykl]jYlYjgmf\)-h]j

annum over the last three years — than the other local media
robust growth trajectory such as radio and out of home (OOH) segments. This can be
YlljaZml]\Õjkldqlgl`]egj]affgnYlan]fYlmj]g^l`]]n]flk
• L`]kar]g^l`]gj_Yfar]\]n]flkaf\mkljqak]klaeYl]\Yl and activation industry, which enables concept selling as
Yjgmf\AFJ,$*-0[jgj]1. This value represents the revenue compared to space selling. Secondly, the last few years have
g^Égj_Yfar]\Ê]n]flkYf\Y[lanYlagfY_]f[a]kYf\\g]kfgl witnessed an explosion in ticket sales revenues — opening up
af[dm\]l`]emdlalm\]g^Émfgj_Yfar]\Ê]n]flk[gehYfa]k a stream of subscription income for the events industry — and
khj]Y\Y[jgkkl`][gmfljq&L`]kar]]klaeYl]Ydkg\g]kfgl digital activation.
include the value of telecasts rights of events (unless owned
• L`]mfgj_Yfar]\k]_e]flg^l`]af\mkljqakYdkg]klaeYl]\
by an events and activation management company), the value
to be large. The main reason behind this is that there is
gê]]laf_k$af[]flan]k$[gf^]j]f[af_Yf\]pàZalagfk EA;=!
practically no entry barrier to commencing operations as an
conducted by pure travel companies, value of IP not owned
event management service provider. These service providers
by event companies and properties managed by in-house
Yj]af\ana\mYdkoal`fg\]Õf]\Zmkaf]kkhjg[]kk]kgjhgda[a]k
Y[lanYlagfl]Yekg^Y\n]jlak]jk$Yf\l`]mfgj_Yfar]\
Yf\`Yn]lmjfgn]jg^d]kkl`YfAFJ*[jgj]&L`]j]khgf\]flk
events segment.
]klaeYl]l`Yll`]gj_Yfar]\af\mkljq^gjekYjgmf\-+g^l`]
total industry.
Organized events industry (INR Crore)
4,500
4,258
1.2 Majority of Indian event
4,000
3,703
companies have built an
3,500 3,248
international presence
3,000 • 9faf[j]Yk]\fmeZ]jg^gj_Yfar]\]n]fl[gehYfa]k`Yn]
2,800
started conducting events in countries outside India. A large
2,500 2,426 eYbgjalq /+!g^l`]j]khgf\]flkaf\a[Yl]\l`Yloàd]l`]q
2,206
1,987 provide services largely in India, they also conduct operations
2,000 1,840
gmlka\]Af\aY&Gfdq)1g^l`]j]khgf\]flk`Yn]YfAf\aY%gfdq
1,828 presence.
1,500 1,576
1,420
1,290 Geographic presence (percentage of respondents)
1,000
500 Largely in
73%
India
0
2011-12 2012-13 2013-14 2014-15
Only in India 19%
Organized events OOH Radio
Largely
Source: EY analysis; secondary research 8%
international
Source: EY survey
) =QYfYdqkak3k][gf\Yjqj]k]Yj[`

• Egklj]khgf\]flk -.!`Y\loglgÕn]g^Õ[]kafAf\aYgf
Yn]jY_]$oàd]bmkl+)`Y\gf]g^Õ[]afAf\aY&;gehYfa]k “The Global Markets offer huge opportunities for
are also increasingly expanding in non-metro markets in India us Indians who have the necessary experience
as they try to serve the growing rural/semi urban audience in and the required guts. What we can do in a
tier-II and tier-III cities. Just eight event companies covered in blink, the world takes months to decide upon.”
our survey had an international presence, and it was generally
Samit Garg
daeal]\lggf]lgÕn]g^Õ[]kYZjgY\&
E Factor Entertainment
1.3 Managed events continue to be the largest service offering

:jgY\dq$l`]k]jna[]khjgna\]\Zql`]af\mkljq[YfZ][dYkkaÕ]\aflgAfl]dd][lmYdHjgh]jlq AH!$eYfY_]\]n]flk$Y[lanYlagfk$Yf\
digital events.
• Intellectual Property (IP): IP refers to any event or activation Services offered (percentage of respondents)
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 94%
Managed events 93%
Afl]jfYlagfYd>ade9oYj\k$Af\aY:ac]O]]c$=N;$
Sunburn, etc. 71%
Activations 66%
• Managed events: Managed events refer to corporate or
personal events managed by an event management company 47%
Intellectual property 55%
on behalf of a third party, who owns the IP of the event
(if any). These comprise brand launches, dealer meets, 2014-15
35%
weddings, birthday parties, concerts, auditions management Digital events 5% 2011-12
for TV shows such as India’s Got Talent, Indian Idol, etc.
Source: EY survey
• Activations: Activations refer to event activities, usually
keYdd]jafkar]l`YfeYfY_]\]n]flk&L`]k]Yj][Yjja]\gml • Managed events stand out as the most common service
at multiple locations for the promotion/sales of a product or g^^]jaf_afl`]]n]fleYfY_]e]flaf\mkljqÈ1,g^
service. respondents provide it. This is in line with the survey
• Digital events: A digital event brings an audience together [gf\m[l]\af*())Ç)*o`]j]eYfY_]\]n]flko]j]Ydkgl`]
where some or all of the attendees are not physically present most common service provided.
in the same location but are connected in a common digital • The number of agencies offering activations has grown
environment. Advertisers are increasingly looking at such ^jge..g^j]khgf\]flkdYklq]Yjlg/)làkq]Yj&Egj]
events, since one can easily target communities at a fraction advertisers are focussing on growth from non-metro markets,
of the cost as opposed to traditional events. and are using lower cost activations to build their brands in
• /1g^l`]kmjn]qj]khgf\]flkhjgna\]\emdlahd]k]jna[] tier-II and tier-III markets. Perhaps, this could be an adaptation
offerings. 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. The Kaan Khajura Tesan Initiative
LàkakY\][daf]^jge--afl`]*())Ç)*kmjn]q$[d]Yjdq Hindustan Unilever Limited’s (HUL’s) mobile-based digital
k`goaf_l`Ylafn]klaf_afAHak\a^Õ[mdl$Yf\f]]\kkmklYaf]\ marketing initiative Kaan Khajura Tesan (KKT) has been
belief and deep pockets. In addition, digital events are a cost gaining increasing popularity in rural areas of India. It is an
effective method to build IP, and have gained popularity with on-demand entertainment channel on the mobile platform,
advertisers. TV, print and radio companies too, are creating interspersed with advertisements for HUL’s brands. KKT’s
their own event IPs and then sub-contracting the same to objective was to reach and provide entertainment to people
event companies. living in relatively media dark states such as Bihar, Uttar
• L`]_jgolàf\a_alYd]n]flklg+-^jged]kkl`Yf-akaf Pradesh, Jharkhand, etc. TV penetration in Bihar stood at
tune with the ever increasing penetration of internet users just 14.2%4.
afAf\aY&Afl]jf]lh]f]ljYlagf`Ykaf[j]Yk]\^jge)*&.
KKT has been successful in penetrating these rural markets
af*())Ç)*lg)1&*af*()+Ç),&EgZad]keYjlh`gf]
— the number of subscribers has touched 30 million. Any
h]f]ljYlagf$oà[òYkYld]kkl`Yf)(ak]ph][l]\lg
egZad][mklge]j[Yf_an]Yeakk]\[YddlgYkh][aÕ]\CCL
Z]Yjgmf\*(ZqEYj[`*()-2$a&]&$Yjgmf\)0(eaddagf
number. The subscriber is then given free access to music,
`Yf\k]lk[YhYZd]g^\a_alYdafl]jY[lagfk&<ak[mkkagfkoal`dYj_]
Õde\aYdg_m]k$[ge]\q$]l[&Làk\a_alYdY[lanYlagfafalaYlan]
advertisers indicate that their spend on digital advertising
provides end consumer engagement at a fraction of the
`Yk_jgof^jge+af*())Ç)*lg)-af*(),Ç)-$Yf\ak
cost of traditional media or live events.
]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^Õ[%egZad]%af\aY%kàfaf_%
infographic/
+ =Qj]hgjl2>mlmj]g^LNafAf\aY
4 Census 2011

Table 1: Types of event categories with illustrative examples
Type of service offering
Genre of events IP Managed events Activations Digital
=fl]jlYafe]fl • IIFA • Filmfare • Indian Idol auditions • Axe Boat Party

• Bandra Festival • TOIFA • Ghante Ki Tuning
Jamegi
Sports and wellness • India Bike Week • AHD • <`YacadgcY`YYl` • Star Sports
• Zumbala • Standard Chartered #wontgiveitback
Marathon
=\m[YlagfYd • BYahmjDal]jYjq • =\m[Ylagf9oYj\k • Genius scholarship • =KHFd]Yjfaf__jgmf\
Festival • Conferences & • Spelling Bee
seminars
Achievement • QgmlÀ[gf • =flj]hj]f]mjg^l`] • Af\aY:mkaf]kkD]Y\]j
Q]Yj Awards
• =L;gjhgjYl]
=p[]dd]f[]9oYj\k
Social good • =[gnglan]9oYj\k • NASSCOM Social • Oàl]KYflYDgn]k
Innovation Honours J]\
• =\]d?an]@gfgmjk
Pageants/Talent shows • Miss India • Af\aYÌk<a_alYd
• India Fashion Week Superstars
Brand promotion • n/a • Miscellaneous brand • Mall activations • KBC play along
launches • The Blue Train • CYYfC`YbmjY
:*:ÇAf\mkljq]n]flk • ==E9_af] • Abby Awards • Budget Connect+
• India Bridal Week • <a_alYdAf\aYKmeeal webinars
:*:Ç;`Yff]d • Microsoft Corporate • <]Yd]je]]lk • <]Yd]je]]lk • >adel][JYbY

management Challenge • Vendor meets • Vendor meets
Personal events • n/a • Weddings • n/a • 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 1.5 IPs provide a disproportionate
continues to grow revenue share
• According to respondents, the total number of events • Oàd]AHk[gehjak]bmkl*g^lglYd]n]flk[gf\m[l]\$l`]q
gj_Yfar]\Zql`]e_j]o^jge+$.+)af*()+Ç),lg,$*++af hjgna\]*)g^l`]lglYdj]n]fm]k&
*(),Ç)-$Yf\oYk]ph][l]\lgj]Y[`-$+*1af*()-Ç).$YlYf • Activations, too, given their growing value to advertisers,
gn]jYdd_jgol`jYl]g^*(& Yj]fgok`goaf_Yfaf[j]Yk]afj]n]fm]klg+)af*(),%)-
Growth rate – number of events 2013-14 to 2015-16 ^jge),af*())%)*&9keYfY_]\]n]flk_]laf[j]Ykaf_dq
(estimated) [geeg\alar]\$l`]ajYZadalqlg_]f]jYl]j]n]fm]kYhh]Yjklg
be under pressure.
Overall 20% Number of events vs. revenue (2014-15)
Digital events 78% No. of events 61%

Revenue
46%
Intellectual property 33%
34%
31%
Activations 18%
21%
Managed events 18%

3% 2% 2%
Source: EY survey Digital Activations Intellectual Managed
events property events
• Managed events are expected to continue to be the mainstay Source: EY survey
of Indian events and activation industry. Managed events • <a_alYd]n]flk$Yl+g^l`]lglYdfmeZ]jg^]n]flk$_]f]jYl]
^gje]\Yjgmf\.)g^l`]lglYd]n]flkaf*(),& *g^lglYdj]n]fm]k$eYafdq$kaf[]l`]k]Yj]g^l]fdgo%[gkl
• Intellectual Property (IP), which currently has a miniscule additions to managed events or IPs. The key to increase the
contribution to the total event space is expected to improve revenue potential of digital events is to use the information
over time as companies envisage the importance of building _Yaf]\gfl`]lYj_]lYm\a]f[]lgZmad\Yf\egf]lar]
Yf\gofaf_AHk&J]khgf\]flkafl`]kmjn]qYj]]ph][laf_ databases and continue engagement with the target audience
Yfaf[j]Yk]afk`Yj]gÂH%j]dYl]\]n]flk^jge)&/g^lglYd post the event — and through the year if possible.
]n]flkaf*()+Ç),lg*&*af*()-Ç).&
• 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.

1.6 Companies have recruited 1.7 Operating performance of
more employees most respondents is healthy
• The average employee strength of survey respondents was • L`]ÕfYf[aYdj]kmdlkg^[gehYfa]k[gn]j]\afl`]kmjn]q
0,$oàd]egkl`Y\Z]lo]]f*)Ç-(]ehdgq]]k$]p[dm\af_ hj]k]fl]\Y`]Ydl`qh]j^gjeYf[]af*()+Ç),&Oàd]YdegklYdd
[gfljY[lmYd']n]fl%kh][aÕ[àj]k&Afl]j]klaf_dq$l`]Yn]jY_] [gehYfa]kkmjn]q]\o]j]hjgÕlYZd]$,.g^l`]j]khgf\]flk
growth in number of employees is higher than the average hgkl]\YhjgÕlY^l]jlYp H9L!af]p[]kkgÂFJ)[jgj]&
growth in revenues, showing there is a case to re-look at per- • Kmjn]qj]khgf\]flk`Y\Yf=:ALg^)(Ç)-Yf\YH9L
]ehdgq]]]^Õ[a]f[q& eYj_afg^-Ç)(gfYn]jY_]&9eYbgjalqg^j]khgf\]flk
• Most event companies have a young employee base. While [gn]j]\afgmjkmjn]q`Yn]af\a[Yl]\hjgÕlYZadalqlg[gflafm]
youth lends an increased degree of passion and enthusiasm, for the next two to three years with PAT expectation to be in
alYdkgg^l]fj]kmdlkafYdgo]jY\`]j]f[]lggj_YfarYlagfYd l`]jYf_]g^-Ç)(gjà_`]j&
policies and processes. The predominant young employee
base also often results in attrition as talent looks out for better Cost break-up 2014-15
avenues outside the industry.
• .+g^j]khgf\]flk`Yn]af\a[Yl]\YlljalagfjYl]klgZ])(gj 9% 12%
lower. The average attrition rate has remained relatively the
kYe]kaf[]l`]kmjn]qaf*())Ç)*&Egklg^l`]j]khgf\]flk 18% 13%
believe the attrition rate is likely to remain at this level for the
next two to three years.
73% 75%
2015 2012
Admin Payroll Variable
Kgmj[]2;gehYfqÕdaf_kYf\=Qkmjn]q
• The cost break-up, as indicated in the chart above is computed

^jgeÕdaf_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]lgÕ_mj]kg^*())Ç)*&
• 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 “It is the niche creativity that empowers brands.”
ability to “get things done” Rajeev Jain
Rashi Entertainment
• 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] 1.9 Lack of trained manpower
eYfY_]\lg]p][ml]hjgb][lk\]khal]c]q[`Ydd]f_]kaf[dm\af_ remains a key challenge
regulatory bottlenecks, limited infrastructure, dearth of
imYdalqlYd]fl$afY\]imYl]kmhhdq[`Yaf$mfgj_Yfar]\n]f\gj Key challenges (weighted responses)
base, etc.
Key strengths (weighted responses) Lack of 17%
trained manpower 15%
Ability to 24%
"get things done" 21%
Inability to demonstrate 14%
ROI to clients 11%
Ideation and 20%
creativity 17%
13%
Obtaining sponsorships
14%
EfÕcient cost 17%
base/efÕciency 16%
Procurement 13%
Strong vendor efÕciency/rising costs 10%
13%
base for production 14%
Inadequate 12%
11% infrastrucuture 13%
Availability of talent
11%
12%
Onerous regulations 17%
Ability to create 9%
IP and monetise it 12%
Quality control 10%
Reputation for 2014-15 over large events 10%
6%
transparency and
9% 2011-12
credibiity
9% 2014-15
Source: EY survey Safety
10%
2011-12
• Ideation and creativity:=n]fl[gehYfa]k`Yn]Z]]fYZd]
Source: EY survey
to attract sponsorships, draw increased audiences, and
build Intellectual Properties (IPs) based on their creativity
• Lack of trained manpower: This issue ranked second in our
and ideation capabilities. Clients, advertisers and sponsors
*())Ç)*kmjn]q$Yf\al_jgoklgZ][ge]l`]egklk]jagmk
will continue to value ideation and creativity when it comes
akkm]afl`]*(),Ç)-kmjn]q&/,g^kmjn]qj]khgf\]flk
to making a choice between different event companies.
o]j]fglkYlakÕ]\oal`l`]imYdalqg^lYd]fl[geaf_aflgl`]
Creativity is imperative for both growth and retention of
af\mkljq&<]Yjlàf\]kaj]\kcaddk]lkYf\ja_`limYdaÕ[Ylagfk
business in the industry.
is a factor that often limits the growth of the industry.
• =^Õ[a]fl[gklZYk]2 A core strength of the events industry, =n]fl[gehYfa]k`Yn]g^l]f^Y[]\\a^Õ[mdlqaflYj_]laf_l`]
and one which sponsors and advertisers value the most, right people. Moreover, event companies face considerable
is its ability to manage costs despite the not so conducive competition from other segments in the entertainment
environment in which events and activations are required to af\mkljqkm[`Ykl]d]nakagf$hjafl$ÕdeYf\jY\ago`]fal[ge]k
be conducted. to attracting talent.
• Ability to create IPs: This year’s survey clearly shows the • Inability to demonstrate ROI: This challenge, ranked 5th in
af[j]Ykaf_\a^Õ[mdlq^Y[]\Zq]n]fl[gehYfa]kaf\]n]dghaf_ the previous survey, has risen to be the second-most critical
IPs — many tried, but few succeeded. [`Ydd]f_]làkq]Yj&L`]af\mkljq`YkfglZ]]fYZd]lg\]Õf]
• Reputation for transparency: The event segment’s reputation YklYf\Yj\e]Ykmj]e]fle]lja[lg\]egfkljYl]JGAlgalk
for transparency still remains an issue. There is a clear need [da]flk&==E9akogjcaf_gfl`]kYe]$Zml[`Ydd]f_]kj]eYaf
to share budgets and invoices with advertisers and integrate \m]lgaf`]j]fldqfgf%klYf\Yj\fYlmj]g^]n]flk&Gf]ima[cÕp
\a_alYdaflg]n]flk$oà[`]fYZd]k\]egfkljYlagfg^JGAlg could be the integration of some digital engagement, which is
marketers. ]Ykadqe]Ykmj]YZd]Yf\[Yf\]egfkljYl]kge]d]n]dg^JGA&

• Hjg[mj]e]fl]^Õ[a]f[q2L`]f]]\^gj]^Õ[a]flhjg[mj]e]fl
has shown an increased importance in the minds of ÉEgklh]ghd]Yj]ljYaf]\gfl`]bgZYf\l`]gfdq
respondents (moving up two places in importance from oYqlgÕf\lYd]flaklg[j]Yl]al&:mll`]dYj_]j
the sixth to the fourth-most critical challenge), particularly challenge that we face and will continue to
gfl`]ZY[cg^[gflafm]\\a^Õ[mdlqafjYakaf_khgfkgjkàhk& face is retaining the talent in whom we invest
?an]fafÖYlagfYjqhj]kkmj]k$af[j]Yk]afYn]jY_]]n]flkar] our time and efforts training. This is going to
and quality expectations, and increase in the number of Z]Yfg[[mhYlagfYd`YrYj\Yf\l`]gfdqoYqlg
events managed by each respondent, the need to manage address this in the long run would be to share
procurement and execution costs has never been more
equity with people who make a difference.”
aehgjlYfl&EYfq[gehYfa]k`Yn][]fljYdar]\hjg[mj]e]fl
and have also begun to use specialist buyers for performers, Jai Mundra
venues, travel, stay and other high value cost items. :]]h=ph]ja]f[]EYfY_]e]fl
• Regulatory approvals:=n]fleYfY_]e]fl[gehYfa]k`Y\
indicated regulatory approvals as the leading challenge
hdY_maf_l`]af\mkljq\mjaf_l`]hj]nagmkkmjn]qaf*())Ç)*&
This seems to have improved to some extent, with the
reduction in entertainment taxes and implementation of single
window clearances in certain states. Or else, event companies
are getting used to managing the onerous approvals required
for each event. The recent budget, which was announced
after our survey was conducted, increased the ambit of taxes
on events. Taxation has been covered in a separate section of
this report.
Client speak
=Qh]j^gje]\Ykmjn]qgêYjc]l]jk$Yf\kmeeYjar]\Z]dgo Marketers most appreciated the execution quality and cost
Yj]l`]Õf\af_kg^`gol`]qjYl]\l`]aj]n]flkYf\Y[lanYlagf ]^Õ[a]f[qg^l`]aj]n]flkYf\Y[lanYlagfn]f\gjk&L`]qYdkg
agencies across various functions (the graph indicates number of appreciated the innovation brought to the table by them, and
responses): their ability to manage event risks.
Execution efÕciency/ They are looking to get more strategic inputs from agencies
cost optimization 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`]
Event execution/quality JGAoYkY\]imYl]dq\]egfkljYl]\!&EgkleYjc]l]jkmf\]jklgg\
the importance of digital integration and were looking for ideas
Developing from their agencies to implement more digital activations to
innovative concepts
reduce their cost per contact.
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\=QÌkYfYdqkakg^l`]kYe]&
2 Future trends
2.1 The industry continues its • 0/g^kmjn]qj]khgf\]flk`Yn]hdYfklgg^^]jgf]gjegj]

new service (e.g., sports, weddings, retail, hospitality, digital,
robust growth trajectory ]l[&!gn]jl`]f]pl^]oq]Yjk$Yf\0,`Yn]hdYfklg]phYf\
into new geographies either nationally or internationally,
• 9[[gj\af_lgYeYbgjalqg^j]khgf\]flkafl]jna]o]\afgmj mainly for the purposes of building an expanded presence.
kmjn]q$l`]gj_Yfar]\k]_e]flg^l`]]n]flaf\mkljqak
]ph][l]\lg_jgoYlY`]Ydl`qhY[]g^Yjgmf\).Ç)/^gjl`] Plans to offer new services (percentage of respondents)
f]plloglgl`j]]q]Yjk$lglgm[ÀFJ-$//1[jgj]Zq*().Ç)/&
Expected size of the events industry (INR Crore) >3 3%
5,779 3 13%
4,939
4,258 No. of new 2 58%
3,703 services
proposed 1 13%
2013-14 2014-15 2015-16 (E) 2016-17 (E) 0 13%

Source: EY analysis and industry sources
Source: EY survey
• EYjc]l]jk`Yn]Z]]faf[j]Ykaf_l`]aj:LDkh]f\kgn]jl`]
last few years, primarily due to events, activations and digital • Kmjn]qj]khgf\]flk`Yn]af\a[Yl]\l`Yll`]gj_Yfar]\
Y[lanYlagf&EYbgjalqg^kmjn]qj]khgf\]flkZ]da]n]l`Yl:LDÌk k]_e]flak[mjj]fldq-+g^l`]lglYdaf\mkljq&Oal`l`]
share of the advertising spend will increase in the range of propensity to spend increasing, growing importance of
)(Ç)-gn]jl`]f]pl^]oq]Yjk&GmjYfYdqkakgêYjc]l]j regional markets and increase in demand for large events,
kh]f\kaf\a[Yl]kl`Yl:LDkh]f\ af[dm\af_\a_alYd!`Yk l`]q]ph][ll`]k`Yj]g^l`]gj_Yfar]\k]_e]fllg_jgoafl`]
af[j]Yk]\lg*)af*(),Ç)-& f]plloglgl`j]]q]Yjklg-1&
Marketers will spend more below-the-line (percentage of

respondents) 2.2 Non-metro markets will
17.8% 18.5% 19.6% 21.4% increase in importance
• JmjYdAf\aYY[[gmfl]\^gjYjgmf\-*g^lglYdj]lYadkh]f\af_
82.2% 81.5% 80.4% 78.6% af*(),&JmjYdj]lYadak]ph][l]\lg_jgo^jgeAFJ).&,dYc`
[jgj]af*(),lgAFJ*1&/dYc`[jgj]af*(*($Yf\AFJ-+&*
lakh crore in 20255. This spend, however, is spread over 6.5
lakh villages and towns, which will therefore need activations
2011-12 2012-13 2013-14 2014-15
kmhhgjlÈh`qka[YdYf\\a_alYd&Af*()*Ç)+$l`]Yn]jY_]h]j
BTL ATL
[YhalY[gfkmehlagf]ph]f\almj]afjmjYdAf\aYoYkAFJ)+$).,$
Yf\oYkAFJ*.$*,+afmjZYfAf\aY6.
Source: EY EEMA report 2011-12; EY marketer survey 2014
• Gn]jYddafÖYlagfYjq_jgolàfhjg\m[lagf[gklk$j]_agfYd - L][`fghYcJ]hgjlÉ*(),2L`]Q]YjL`YlAf\aYÌk]LYad9ffgmf[]\Alk
growth in activations, and increasing IPs are also expected to Arrival”
contribute to the growth. . ;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 “Personal events are emerging as a big
this growth. Moreover, the rise in disposable income and ghhgjlmfalqafgmj[gmfljq$Ykl`]qj]Ö][l
willingness to spend has created demand for events in tier II clients’ social standing in the community and so
and tier III cities. have big budgets.”
• Oal`l`]\a_alarYlagfg^l]d]nakagf$hYjla[mdYjdqafh`Yk]AAA Dr. Jaydeep Mehta
and phase IV markets, the impending Phase III of FM radio True Innovation
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 Average growth expectation in different event categories
out to 300 to 500 cities.
Personal 25%
2.3 Personal events, activation events 14%
campaigns, MICE and sports Sports

20%
19%
will fuel growth
Activation 20%
• 9eYbgjalqg^j]khgf\]flk[gn]j]\afgmjkmjn]q$Z]da]n]l`Yl campaigns 17%
h]jkgfYd]n]flk$khgjlk$Y[lanYlagf[YehYa_fkYf\EA;=Yj]
the four categories that will register the fastest growth rates 18%
MICE
17%
afl`]jYf_]g^)0lg*-afl`]f]plloglgl`j]]q]Yjk&
• Personal events are expected to register the fastest growth Exhibitions and 17%
rates during the next two to three years. High disposable conferences 16%
incomes and willingness to spend on large scale weddings,
anniversaries, parties and family get-togethers is expected to Field 17%
marketing 16%
increase the growth rate in the personal event space. As the
willingness to spend has been increasing, so is the expectation
Corporate 15%
from customers for excellence and precision in delivery of events 14%
events. This leads to increased professionalism and enhanced
revenues. Brand 14%
launches 14%
Awards and 13%

concerts 14%
2014-15
TV game 11%
shows 13% 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\]Õfal]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]jkaÕ[Ylagf$YkeYjc]l]jkYj]oaddaf_lg
invest across different sports.
Games favored by brands for their brand marketing campaigns
86%
45%
28% 27% 26%

21%
17%
5%
9% 9%
Cricket Football Hockey Golf Marathons Tennis Badminton Indigenous Polo Others
sport
Source: EY marketer survey 2014
• 1(g^kmjn]qj]khgf\]flkZ]da]n]\l`YlY[lanYlagfkogmd\
have increased importance going forward, or will be a “Companies are still linear in their approach...
ka_faÕ[Yfl\jan]jg^_jgol`&9[lanYlagf[YehYa_fkYj]k`goaf_ use of digital integration will see a spurt.”
growth as more and more marketers use activations to Siddharth Ganeriwala
promote their brands and products in tier II and tier III towns. 9mjYAfl]_jYl]\Kgdmlagfk
In particular, FMCG, telecom, banking, insurance, durables,
education and automobile industries are using activations
to grow beyond the metros, where their sales are beginning • The events space has also begun to integrate digital initiatives
lgklY_fYl]&Gmjkmjn]qgêYjc]l]jkaf\a[Yl]\l`Yl)((g^ and activities into its traditional events portfolio, mainly for:
respondents wanted to use digital integration in some form, • Building awareness for an event
oàd]-(g^j]khgf\]flkZ]da]n]\aloaddZ][ge]Yn]jq • Ongoing interaction with audiences to get feedback during
important element of their marketing spend budgets. and after the event
• Af\aYjYfck*/thafl`]_dgZYdEA;=eYjc]l0. Survey • Build communities using social media networks
j]khgf\]flk]ph][ll`]EA;=k]_e]fllg_jgoYlYjgmf\
• The increased opportunity, however, lies in offering digital
)0&GmlZgmf\EA;=`YkYdkgk]]fka_faÕ[Yfl_jgol`gn]j
activation led campaigns for advertisers, to target audiences,
l`]dYkl^]oq]Yjk&L`]\ge]kla[EA;=eYjc]lak_jY\mYddq
oà[`dan]afdYj_]dqe]\aY\YjceYjc]lk&<a_alYdfglgfdq
picking up with support from the Ministry of Tourism. Though
reaches young customer segments, but can also be used to
the current state of infrastructure limits the true potential for
lYj_]laddal]jYl][gfkme]jkl`jgm_ÀNJ%ZYk]\kgdmlagfkYf\
_jgol`g^\ge]kla[EA;=$l`]af[j]Ykaf_fmeZ]jg^`gl]dkYf\
niche customer segments, which could be too expensive for
conference venues of international standards is helping grow
mass media.
this segment.
• In this direction, building communities is critical in forging
2.4 Digital. Digital. Digital. relationship with target audiences, even after the event is
over. The model is effective for both B2B and B2C events
• Oal`l`]af[j]Ykaf_h]f]ljYlagfgâfl]jf]lmk]jk^jge)*&.
af*())Ç)*lg)1&*af*()+Ç),Yf\_jgoaf_h]f]ljYlagf
g^keYjlegZad]h`gf]k^jge),af*()+lgegj]l`Yf-( / =QEYjc]l]jkmjn]q$Bmf*(),
g^Yddh`gf]kZq*()/1, the digital advertising segment is 0 Afl]jfYlagfYd;gf_j]kkYf\;gfn]flagf9kkg[aYlagf$L`]?dgZYd
]ph][l]\lg_jgo&Alak]ph][l]\lgj]Y[ÀFJ+$-/-[jgj]Zq 9kkg[aYlagfg^l`]=pàZalagfAf\mkljq
1 =QÌk>mlmj]g^L]d]nakagfafAf\aYj]hgjl$*(),
EYj[`*()-$Y+(_jgol`^jgel`]hj]nagmkq]Yj10.
)( Af\aY:jYf\=imalq>gmf\Ylagfo]Z%kal]

and results in improved brand recall and better engagement • J]khgf\]flkZ]da]n]\l`Yl[gklkogmd\af[j]Yk]ZqYfYn]jY_]
on an ongoing basis. Hence, evolving strategies on building g^)*gn]jl`]f]plloglgl`j]]q]Yjk$d]\ZqhYqjgdd[gklk
communities through ongoing interaction with audiences — j]imaj]\lgYlljY[lYf\j]lYafimYdalqlYd]fl&J]khgf\]flk
aided by digital integration — will gain importance in the future ]ph][l]\lgaf[j]Yk]]ehdgq]]klj]f_l`^jge0,lg\Yqlg)(,
Yf\]n]fl[gehYfa]k]pàZalaf_làkkcaddoaddj]YhZ]f]ÕlkafY employees, on average, within two to three years.
big way.
Expected growth rate in costs
2.5 Margins continue to stay
positive, but cost control is Overall 12%
imperative Payroll 15%
• Kmjn]qj]khgf\]flk]ph][l]\=:A<LeYj_afklgZ]$gf Direct
Yn]jY_]$)+gn]jl`]f]plloglgl`j]]q]Yjk$oà[àkY 10%
variable
j]\m[lagf^jgel`]).l`]q`Y\]klaeYl]\afl`]*())Ç)*
survey. Admin 9%
Source: EY survey
Gn]jYddhjgÔleYj_afk h]j[]flY_]g^j]khgf\]flk!
• =n]fl[gehYfa]kf]]\lgZ]eaf\^mdgâf[j]Ykaf_gn]j`]Y\
expenditures in the business, as well managing margins on a
30% j]Ydlae]ZYkak&J]khgf\]flkZ]da]n]\eYj_afk[gmd\aehjgn]
5-10%
21% if cost leakages and wastages were reduced. A few factors,
oà[`Yj][jala[YdlgeYaflYafhjgÕlYZadalqYj]2
27% • People cost
10-20%
25% • =^Õ[a]fleYfY_]e]flg^Ylljalagf
Expected margin
• =fkmjaf_Yddj]hdY[]e]flàjaf_ak\gf]Yll`]kYe]gj
21% reduced cost
20-30%
29% • =fkmjaf_Yddf]oàjaf_akYhhjgn]\Zq;=G'\aj][lgjk
• Better management of procurement costs

18%
0-5%
14% • Aehd]e]flaf_Y[]fljYdar]\hjg[mj]e]fl^mf[lagf
• =fkmjaf_hmj[`Yk]gj\]jkYj]akkm]\^gjc]qal]ekhjagj
to event date, to prevent subsequent buffering
3%
>30% 2014-15
11% • =fYZdaf_ngdme]\ak[gmflkY[jgkkZmkaf]kk\anakagfk
2011-12 • Increasing use of barter transactions
Source: EY survey
• 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 • The entry barriers to creating IPs are reducing. In the past, a
fYlagfYdAHoaddf]]\eYjc]laf_[gklk$oà[`[gmd\Z]-(g^
to create IP the total investment. Today, marketing costs can be reduced
l`jgm_`l`]\a_alYde]\amelg*-Ç+(g^lglYdAH[gklk$
• 00g^kmjn]qj]khgf\]flkafl]f\lgZmad\AHkgn]jl`] as well as enable a focussed approach towards a targeted
f]plloglgl`j]]q]Yjk&=n]fl[gehYfa]kYj]af[j]Ykaf_dq community. Hence, event companies’ reliance on mass media
^g[mkkaf_gfZmad\af_AHkaf%gj\]jlg[YhalYdar]gfl`]_jgoaf_ can reduce.
demand for quality events. IPs command a premium over
other services, add more quality revenue to the company’s
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.
IPs expected to be launched in next 2-3 years

(percentage of respondents)
4-6 6%
Proposed new IPs
2-3 55%
1 27%
0 12%
Source: EY survey
Ticketed events
An interview with Girish ‘Bobby’ Talwar, VP Events BookMyShow Q. What are the key areas of opportunity and growth?
& Co-Founder OML/NH7 As segments, music-based events, comedy and sports will
Q. What is the size of the ticketed events industry and what continue to be the key areas of growth. Opportunities like small
share does BookMyShow have? and large venue management seem to be a new sunrise market.
The ticketed events industry universe two years ago would be Q. Any concerns you’d like to see addressed?
Yjgmf\AFJ)-([jgj]lgAFJ*(([gj]&Lg\Yql`YlfmeZ]jak The introduction of a service tax in addition to an entertainment
Yjgmf\AFJ,-(Ç-(([jgj]Yf\kdYl]\lg_jgoYll`]kYe]jYl]& tax on tickets is a serious concern. This will raise the taxes
9k:ggcEqK`goo]k]jna[]egj]l`Yf-(g^l`YleYjc]l& gfla[c]lklg+(Yf\]n]fegj]afkge][Yk]k&9hYjl^jge
Q. How has this industry grown in the past two years, and damaging the margins of events promoters and substantially
where do you expect to see it in the next two years? raising prices of tickets, this may result in the serious slowdown
and even shutdown of some event and sports promoters. I would
In the past two years I have seen a surge in the number of
really like to see the speedy implementation of GST (goods and
events that are taking place annually. The average ticket prices
services tax) that hopefully addresses this issue at reasonable
`Yn]jak]f^jgeYjgmf\AFJ.((lgAFJ)$(((3fglaf[dm\af_l`]
rates for all stakeholders. Also, more permanent, quick
hj]eame[Yl]_gjqhja[]koà[``Yn]Ydkgk]]fY,(Ç-(jak]&
turnaround infrastructure venues, for events to be hosted across
B towns are seeing an immense appetite for all kinds of ticketed
the country would be the need of the hour.
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.

What changed?
Key changes that were observed in survey responses between 2011-12 and 2014-15
Intellectual property
Majority of survey respondents are planning to
build between 1 and 3 IPs in the next Growth
two to three years, to help generate stable Growth is expected to be driven by personal
[Yk`Ögok$_Yafk[Yd]ima[cdqYf\aehjgn]
Zmkaf]kknYdmYlagfk&@go]n]j$[gehYfa]k`Yn]
]n]flk$Y[lanYlagfk$khgjlkYf\EA;=&
Jakaf_\akhgkYZd]af[ge]k$af[j]Yk]\km[[]kkg^
Ydkgj]Ydar]\alak\a^Õ[mdllgZmad\imYdalqAHk&
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\]flkÈegj]l`Yf/(
È`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$jak]afimYdalq]ph][lYlagfkYf\af[j]Yk]\_]g_jYhà[Ydkhj]Y\g^
events and activation activity.
HjgÕlYZadalq]ph][lYlagfk
HjgÕlYZadalq]ph][lYlagfk`Yn]j]\m[]\
Activations ^jge).lg)+gfl`]ZY[cg^[gklafÖYlagf
and advertiser cost consciousness. Managing
9[lanYlagfkYj]gâf[j]Yk]\aehgjlYf[] [gkl`Ykf]n]jZ]]fegj]aehgjlYflÈY[jgkk
to advertisers.L`]q[gehjak]+)g^lglYd Õp]\gn]j`]Y\k$h]ghd][gklYf\j]\m[af_
j]n]fm]klg\YqYk[gehYj]\lg),\mjaf_gmj d]YcY_]kafnYjaYZd]]n]fl[gklk&
*())%)*kmjn]q&
Payroll costs 35%

HYqjgdd[gklk`Yn]af[j]Yk]\ka_faÕ[Yfldq
^jge)+g^lglYd[gklklg)0g^lglYd[gklk&L`]q Digital integration
Yj]fgoloa[]l`]Y\eaf[gklkYf\Õp]\gn]j`]Y\k
g^]n]fl[gehYfa]k& +-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
Performer availability ^]]\ZY[cYf\[gflafm]lg]f_Y_]l`]
[geemfalqY^l]jl`]]n]fl&Egj]aehgjlYfldq$al
H]j^gje]jYnYadYZadalq`Ykaehjgn]\. akZ]af_mk]\lg\]egfkljYl]JGAlg[da]flk$Y
L]d]nakagfk`gokYf\lYd]flY_]f[a]k`Yn] lYkcoà[``YkZ][ge]Yfaf[j]Yk]\[`Ydd]f_]
\]n]dgh]\Yf][gkqkl]el`YleYc]kal]Yka]j over the past few years.
lgk`go[Yk]Yf\j][jmalh]j^gje]jkY[jgkk
the country. Making experiences in India: The Indian events and activation industry | 23
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.

3 Mergers and aquisitions
3.1 Overview of the M&A • Mf[]jlYaflqaf[Yk`Ögok\m]lgà_`[mklge]j

concentration
landscape • High employee turnover resulting in instability in operations
• The event management industry witnessed very few • <]khal]l`]k][`Ydd]f_]k$o]`Yn]gZk]jn]\kge]afZgmf\
ljYfkY[lagfkafl`]dYkl^gmjlgÕn]q]Yjk&Egklg^ interest in event management companies that have a focus
these transactions have been below the US$10 million on activation. There are several large advertising agencies
YhhjgpaeYl]dqAFJ.*[jgj]k!jYf_]& including JWT, Publicis and McCann Worldgroup, which have
• Given the highly fragmented industry structure (more than acquired companies to strengthen their activation solutions
10,000 event companies) there is scope for consolidation to brands and we expect this trend to continue. A few notable
afl`]af\mkljq&AfY\\alagf$keYddhdYq]jk\geafYl]kh][aÕ[ transactions in the activations space over the last decade
sectors and regions and attract large national players looking af[dm\]l`]=f[gehYkk=n]flkZ]af_Y[imaj]\ZqBOLYf\
lg]phYf\gh]jYlagfk&9dl`gm_`l`]j]Yj]k]n]jYdZ]f]Õlkl`Yl HmZda[akY[imajaf_Kgdmlagf<a_alYk&
some of the niche companies can provide to large national
players, deal activity has been slow due to:
• Akkm]kj]_Yj\af_ÕfYf[aYdljYfkhYj]f[qYf\[gjhgjYl]
governance in the smaller companies

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]flaÕ]j BookMyShow =n]flk <ge]kla[
October 2014 9\dYZk=fl]jlYafe]fl FQDAEBY[gZ:YddYkAf\aY =n]flk'9[lanYlagf Private equity

Holdings
July 2014 Milestone Brandcom <]flkm9]_akF]logjc Activation Inbound
April 2014 E]\aYDgmf_] Origin BeanstalkCreatives =n]flk <ge]kla[

;gfkmdlYflkHnl&Dl\&
April 2013 =f\Lg=f\EYjc]laf_Kgdmlagfk McCann Worldgroup India =n]flk'9[lanYlagf <ge]kla[
HnlDl\
November 2012 ;j]Ye=n]flk =\]deYfAf\aY Activation <ge]kla[
October 2012 CO9F=fl]jlYafe]fl CAA Talent management Inbound

Marketing Solutions
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\ IAfn]klDD; =n]flk Private equity

Conferences
March 2010 AE?J]daYf[] BgaflN]flmj]! J]daYf[] =n]flk <ge]kla[
EYj[`*((1 Candid Marketing Candid Marketing management Activation Buy-back

AEK?klYc]g^..!
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 Advertising agencies’ interest in companies with
ability to execute experiential marketing and activation
events for their clients
Industry focus on IP-led events
The consumer industry across India has started focusing on
The trend of event companies focusing on building IP-events af[j]Ykaf_Y[lanYlagfYf\]ph]ja]flaYdeYjc]laf_kh]f\k&=n]fl
`YkZ]]fYjgmf\^gjegj]l`Yfloglgl`j]]q]Yjk&=n]flkYj] eYfY_]e]fl[gehYfa]k`Yn]l`][YhYZadalqlggj_Yfar]Yf\
[gf[]hlmYdar]\Yf\]p][ml]\afgj\]jlgeYc]l`]eaflgZa_ manage such consumer activities for brands and have been
brands. Such events provide increased margins and strong awarded contracts by brands such as Coca Cola for Coke studios
fan-following and the brand can be extended into bars, cafes, and MTV for MTV Unplugged. The increasing trend of consumer
merchandise, music records, video labels, etc. IPs enable the companies using event management agencies has resulted in
[j]Ylagfg^YklYZd]klj]Yeg^[Yk`Ögok&9^]og^l`]km[[]kk^md advertising agencies building event management capabilities
AH]n]flkafAf\aYaf[dm\]KmfZmjfZqH]j[]hl$AA>9ZqOar;jY^l to win these contracts. Going forward, event management
Yf\F@/O]]c]f\ZqGED&L`]Yffmalq[Yk`ÖgoYf\l`] companies that focus on experiential marketing and brand
tertiary business opportunity that these events provide make activations could become attractive targets for advertising
them attractive for domestic and international investors. CA agencies.
E]\aYÌkafn]kle]flafGED$oà[àk^g[mk]\gfAH%d]\]n]flk$ak
l`]Õjklafn]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.

“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`Ögok$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 Retained 48%
Hj]ea]jD]Y_m]$Af\aYfKg[[]jD]Y_m]$@g[c]qAf\aYD]Y_m]$ earnings 52%
Kabaddi league, Badminton league etc., event management
industry has seen a considerable increase in demand. The
contract value for event management companies will increase 25%
Equity
with popularity of these leagues. Given the advertiser interest in 19%
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 Venture 15%
management companies, broadcasters or for advertising capital 14%
agencies.
13% 2014-15
Debt
14% 2011-12
Source: EY survey

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

4 Direct tax
Among the myriad taxes applicable to the events industry, In this regard, the event management company/event owner
\aj][llYp]k`Yn]YeYbgjaehY[lgfl`][Yk`Ögokg^l`] is required to maintain the prescribed documentation and
events industry. The increase in the number of events and the mf\]jlYc]l`]hj]k[jaZ]\Õdaf_koal`J]n]fm]9ml`gjala]k&
high visibility associated with them has drawn the attention This will enable it to demonstrate that the transactions with
g^J]n]fm]9ml`gjala]k&9dl`gm_`l`]klYf\gfeYfqYkh][lk related parties, during the year, are at arm’s length price.
g^\aj][llYp]k`YkYllYaf]\ÕfYdalq$[]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 4.2 Tax issues relevant to event
[gfka\]j]\^jgeYfaf[ge]%lYph]jkh][lan]oàd]gj_Yfaraf_Yf industry
event in India:
Taxability of revenues from sale of live telecast rights
4.1 Tax revenues from an event in The event owners typically own the rights to telecast a live
India event, which they may grant to broadcast companies. The issue
that arises is whether revenues earned by non-resident event
• The primary source of revenue for an event manager from owners from grant of rights to telecast a live event in India are
an event is revenue from sale of live telecast rights (where taxable in India. Generally, the taxpayers take a position that
Yf]n]flakgj_Yfar]\Yf\j][gj\]\ZqYf]n]flgof]j!gj there is no “copyright” in the rights to telecast a live event in
management fee (where an event management company is India and, therefore, the grant of such rights is not in the nature
[geeakkagf]\lggj_Yfar]Yf]n]fl!&L`]gl`]jkgmj[]kg^ g^ÉjgqYdlqÊ&@go]n]j$l`]J]n]fm]9ml`gjala]klqha[Yddq[gfka\]j
revenue include income from ticket sales and sponsorship the payment towards acquisition of rights to telecast a live event
fees. in India is in the nature of ”royalty” for transfer of ”copyright”,
• A resident event management company/event owner in and, therefore, taxable in India. In view of the same, there exists
India is taxable in respect of its global income on net basis a controversy on the taxability of income earned from transfer
Y[[gj\af_lgfgjeYdhjgnakagfkg^l`]Af[ge]%lYp9[l$)1.) of rights to telecast a live event in India. A recent decision of
(Act). However, typically, a non-resident event management l`]<]dà@a_`;gmjlgfl`]eYll]j`]d\l`YlhYqe]fl^gjÉdan]Ê
company/event owner will be taxable in three cases:- l]d][Ykl^Yddkgmlka\]l`]YeZalg^ÊjgqYdlqÊYk\]Õf]\afl`]9[l&
i. Where the person’s 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 According to the provisions of the Act, payment to a resident
in India. event management company i.e., event management fee, is
A non-resident event management company/event owner considered to be in the nature of “professional fees” and is
can choose to be governed by the provisions of the Act or kmZb][llgoal``gd\af_lYp&Afl`][Yk]g^Yfgf%j]ka\]fl]n]fl
l`]Yhhda[YZd]<gmZd]LYpYlagf9nga\Yf[]9_j]]e]fl LYp management company, the event management fee may be
Lj]Ylq!$hjgna\]\alak]da_aZd]lg[dYaeLYpLj]YlqZ]f]ÕlkYf\ considered to be in the nature of ”business income” (unless the
has the prescribed documentation in place. provisions of Independent Personal Services under Tax Treaty
are attracted). Hence, such fee is taxable in India where the
• Where an event management company/event owner has
event management company is considered to have a business
]fl]j]\kh][aÕ]\ljYfkY[lagfk afl]jfYlagfYdljYfkY[lagf$
presence in India (i.e., a permanent establishment) in India.
\]]e]\afl]jfYlagfYdljYfkY[lagf$gjYkh][aÕ]\\ge]kla[
@go]n]j$l`]J]n]fm]9ml`gjala]keYqlYc]Yhgkalagfl`Yll`]
ljYfkY[lagf!oalàlkj]dYl]\hYjla]k$Yk\]Õf]\mf\]jl`]9[l$
“event management fee” is taxable on gross basis in India as
such transactions are required to be at a price such as that
”fees for technical services” (which includes technical services
between two unrelated parties (known as arm’s length price).

such as managerial, technical, professional or consultancy
services) according to the Act or applicable Tax Treaty and
4.3 Taxability of revenues from
accordingly, litigation in the matter cannot be ruled out. The activations business
Finance Bill, 2015, proposes to reduce the tax rate on fees for
l][`fa[Ydk]jna[]kYf\jgqYdlq^jgel`][mjj]fl*-lg)( hdmk • <]khal]dg_akla[Yd[`Ydd]f_]kkm[`Ykemdla%[alq]n]flkYf\
applicable surcharge and cess). nYja]\lYj_]lYm\a]f[]hjgÕd]k$l`]Y[lanYlagfkZmkaf]kk
continues to grow with the prominent source of revenue
arising from sponsors of the brand/products. As regards the
Taxability of sponsorship fee
payment of fee to the companies undertaking activations,
An event owner receives sponsorship fee from various the issue arises regarding applicability of withholding tax
[gjhgjYl]gj_YfarYlagfk a&]&$khgfkgjk!$oà[`mk]l`]]n]flk provisions in respect of payment to resident contractors
for promotion of their products. Sponsorship generally includes vis-à-vis fees for professional or technical services to
naming an event after the sponsor, displaying the sponsor’s residents.
company logo or trading name, giving the sponsor exclusive • Since the purpose of activations is advertising or brand
or priority booking rights, complimentary tickets, sponsoring promotion, the taxpayers take a position that the payment
hjar]kgjljghà]k^gj[geh]lalagf]l[&Lqha[Yddq$khgfkgjkàh ak^gjY\n]jlakaf_ogjcYf\kmZb][llgoal``gd\af_Yll`]jYl]
agreements are a mixture of all these rights and the sponsorship g^*&@go]n]j$l`]J]n]fm]9ml`gjala]keYqlYc]Yhgkalagf
fee is a lump sum amount to be paid annually by the sponsors. that the activations are in the nature of professional services
As regards payment of sponsorship fee to a resident event Yf\kmZb][llgoal``gd\af_Yll`]jYl]g^)(&9[[gj\af_dq$
owner, the issue arises regarding applicability of withholding the taxability of payments for activations will depend on the
tax provisions in respect of royalty (for use of or right to use terms of the contract and the facts of each case supported by
trademark or similar property) vis-à-vis advertising contract, appropriate documentation.
depending on the terms of the contract.
The other issue that could arise is whether the sponsorship 4.4 Withholding tax implications
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
on key payments
taxable in India. • L`]eYbgjhYqe]flkYkkg[aYl]\oal`]n]fleYfY_]e]flYj]
Taxpayers take a position that the consideration from grant of payments to event management companies, artists’ fees,
sponsorship rights is not in the nature of ”royalty”. However, the infrastructure at the venue and production expenses (unless
J]n]fm]9ml`gjala]kmkmYddqlYc]Y[gfljYjqna]ogfl`]ZYkak broadcasting rights are transferred). Such payments may be
that there is use of trademark or similar property involved. liable to deduction of tax at source under various provisions
of the Act. In the case of residents, the applicability of the
The taxability of sponsorship income essentially depends on withholding provisions in respect of payment to resident
the facts of the case and commercial understanding of parties. contractors’ fees for professional or technical services to
Given the stakes involved, it is imperative that appropriate residents and, in addition, in the case of non-residents, the
documentation is maintained to mitigate tax exposure of applicability of the provisions in respect of payment to non-
sponsorship income being taxed as ’royalty”. resident sportsmen or sports association and payments of
other sums to non-residents should be examined.

• Non-compliance with the withholding tax provisions results the artist for acquiring the license for broadcast or telecast in
in additional interest liability, disallowance of expenses and India is taxable in India as “royalty” under the Act as well as
penalty exposure. Moreover, where a payee, whose income the applicable Tax Treaty.
akkmZb][llgoal``gd\af_$\g]kfgl`Yn]YlYpj]_akljYlagfaf • In some contractual arrangements, it is possible that the
India (i.e., Permanent Account Number), the tax is required to non-resident artist receives separate consideration for grant
Z]oal``]d\Yll`]jYl]kh][aÕ]\afj]d]nYflhjgnakagfkgjl`] of “image rights” (including, but not restricted to, right to
jYl]kaf^gj[]gj*($oà[`]n]jakà_`]j& use name, images, videos, quotations, signature, likeness,
personal attributes etc., of the non-resident artist). Most of
We have discussed below the withholding tax implications on the elements of “image rights” granted by the non-resident
some of the key payments in connection with an event: artist are likely to qualify for protection under the intellectual
property law and, hence, are considered as “royalty”.
Payments to resident artists performing in India and However, few components of “image rights” granted may not
outside India ]fbgqhjgl][lagfYf\l`]lYpaehda[Ylagfkl`]j]gfoaddf]]\
to be evaluated based on the factual matrix. Accordingly, it is
• Hjgnakagfkg^l`]9[lkh][aÕ[Yddqhjgna\]kl`Yll`]k]jna[]k imperative to undertake a careful assessment of the “image
provided by resident artists for performance in India are in the rights” granted according to the agreement to determine
fYlmj]g^Éhjg^]kkagfYdk]jna[]kÊ \]Õf]\mf\]jl`]9[l!Yf\ withholding tax implications.
Yj]kmZb][llgoal``gd\af_Yll`]jYl]g^)(&
• AloaddZ]j]d]nYfllgfgl]l`Yll`]Gj_YfakYlagf^gj=[gfgea[
• An individual resident in India is taxable on his global ;g%gh]jYlagfYf\<]n]dghe]fl G=;<!`Ykj][]fldqmh\Yl]\
income. The income from performance outside India could its Model Tax Convention guidance on the article pertaining
YdkgZ]kmZb][llgoal``gd\af_lYpafj]kh][llgl`][gmfljq to artists and sportsperson wherein, India has provided
of performance. In case taxes are withheld in the foreign alkj]k]jnYlagfklgG=;<Ìkna]ogfl`]Yhhda[YZadalqg^l`]
country, then the resident artist may claim the tax credit for aforesaid article to the following:
lYp]khYa\gmlka\]Af\aYY_Yafkll`]lYpdaYZadalqafAf\aYkmZb][l
• Hjar]egf]qj][]an]\Zql`][Yj'`gjk]gof]j^jgejY[]k
to certain conditions.
• Income of models from fashion shows performances
Payments to non-resident artists performing in India • Any consideration received by an entertainer or

sportsperson for any personal activity, including
• Provisions of the Act cover within their ambit the taxability appearance
of income received by non-resident entertainers from
• Income from reporting or commenting activities during the
h]j^gjeYf[]afAf\aY$Yll`]jYl]g^*( ]p[dm\af_kmj[`Yj_]
broadcasting of an entertainment or sports event
and education cess) on a gross basis and the consequential
withholding tax rate would also be the same. Furthermore, 9[[gj\af_dq$l`]J]n]fm]9ml`gjala]keYq[gfl]f\l`Yll`]
Ykh][aÕ[hjgnakagfg^l`]9[l]p]ehlkfgf%j]ka\]fl above streams of income earned by a non-resident entertainer
]fl]jlYaf]jk^jgeÕdaf_YlYpj]lmjfafAf\aYa^l`]gfdqaf[ge] gjkhgjlkh]jkgfYj]lYpYZd]afAf\aYmf\]jl`]kmZb][lYjla[d]g^
earned from India is in respect of performance in India and the relevant Tax Treaty.
appropriate taxes are withheld from the said income.
In view of the above, it is imperative to understand the nature
• Usually under the Tax Treaty, there is a separate Article on
of activities to be undertaken by the non-resident in India to
”Income earned by entertainers and athletes”, which provides
determine the appropriate income-tax implications.
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 Payments to resident event managers
to the artists/entertainers, the income is still taxable in India. L`];:<L`Yk[dYjaÕ]\l`Yll`]k]jna[]khjgna\]\Zqj]ka\]fl
• Additionally, a non-resident artist, who has come to India event managers are in the nature of “professional services”, as
in connection with shows or events in India and has earned \]Õf]\mf\]jl`]9[l$Yf\Yj]kmZb][llgoal``gd\af_Yll`]jYl]
taxable income in India, should obtain an Income Tax g^)(&
;d]YjYf[];]jlaÕ[Yl] AL;;!hjagjlg\]hYjlmj]^jgeAf\aY&
In the absence of procuring the ITCC, there may be practical
\a^Õ[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

5 Indirect tax
With various Indirect taxes applicable on an event, the impact of Given that the legislations governing the entertainment tax
such taxes must be considered in detail while planning any event law are different in all states, the applicability of entertainment
Y[lanalqafAf\aY&EYbgjAf\aj][llYp]kYhhda[YZd]gf]n]flk`]d\ tax on events conducted in the states also differ, leading to
afAf\aYaf[dm\]=fl]jlYafe]fllYp$K]jna[]LYp$NYdm]9\\]\LYp \a^Õ[mdla]kaf[gehdqaf_oal`l`]YhhjghjaYl]dYok&
N9L!$KlYeh<mlq$]l[&>mjl`]jegj]$oal`l`]dac]dqafljg\m[lagf
=fl]jlYafe]fllYpjYl]kgf]n]flkYdkg\a^^]j^jgeklYl]%lgÇklYl]$
of a Goods and Services Tax (GST) in the near future, the
which adds to the degree of complexity in ensuring compliance
importance of Indirect taxes in the overall decision making is
and pricing for events with a multi-state spread. Furthermore,
likely to increase.
certain legislations provide for different rate of taxes on the
5.1 Entertainment tax same event within the state but within different municipal limits.
In addition to this, certain state legislations provide for different
=fl]jlYafe]fllYpakYklYl]d]nqgfnYjagmkY[lanala]kkm[`Yk rate of taxes on the nature of events. For instance, different rate
Õde]pàZalagf$]fl]jlYafe]fl]n]flk$khgjlkY[lanala]k$[YZd]' of entertainment tax has been prescribed under the Maharashtra
<L@gh]jYlagfk$]l[&?]f]jYddq$]fl]jlYafe]fllYpakd]na]\gf =fl]jlYafe]flLYpdYo^gjYoYj\^mf[lagfkYf\gl`]j]n]flk&
amounts charged for allowing entry into the place where the This leads to considerable confusion on the appropriate rate of
entertainment event is held. entertainment tax levied on the events.
Applicability of entertainment tax on business

High and diverse entertainment tax rates and laws exhibition
La[c]l[gdd][lagf^gj]n]flkakYeYbgjj]n]fm][gfljaZmlgj^gj While entertainment tax is applicable on entertainment,
gj_Yfar]jkYf\]n]flgof]jk&;]jlYafklYl]_gn]jfe]flk[`Yj_] certain legislators intend to extend the applicability of such tax
]fl]jlYafe]fllYpYlYjYl]Ykà_`Yk-(g^l`]nYdm][`Yj_]\ to business exhibitions and fairs carried out in those states.
for entry into an event, while some state governments also grant LàkYkh][ldY[ck[dYjalqYf\l`]]n]flgj_Yfar]jk'gof]jkg^
exemption from payment of entertainment tax depending on such business exhibitions shall be under risk of demand of
kh][aÕ[fYlmj]g^]n]flk& 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
While entertainment tax is levied on entertainment events,
State Entertainment tax rate (%) certain revenues from events are also made liable to service
Bihar 50 tax. For e.g., event sponsorship amounts earned are liable to
entertainment tax under certain entertainment tax legislations,
Uttar Pradesh 25
afY\\alagflgl`]k]jna[]lYpYl)*&+. lgZ]af[j]Yk]\lg),
Maharashtra 25 in 2015) already levied by the Central Government.
Andhra Pradesh 20
Goa 15

5.2 Service tax 5.3 Customs duty
Service Tax is currently applicable on the value of all services ;mklgek\mlqakd]na]\gfaehgjlg^_gg\kaflgAf\aY&=n]flk
hjgna\]\$mfd]kke]flagf]\afl`]F]_Ylan]daklgj=p]ehlagfdakl such as exhibitions, musical shows, etc., entail import of various
of services. Till recently, entry into all entertainment events and goods into India. While all imports are liable to customs duty
amusement facilities was kept out of the service tax ambit and Yl_]f]ja[jYl]g^*1&,,$l`]jYl]g^[mklgek\mlq\]h]f\k
accordingly entry to events such as music shows, amusement gfl`]\]k[jahlagfg^l`]hjg\m[lYf\alk[dYkkaÕ[Ylagfmf\]j
parks, sports events, award functions etc., were not liable to l`]afl]jfYlagfYddqY[[]hl]\[dYkkaÕ[Ylagffge]f[dYlmj]k&
service tax. >mjl`]jegj]$[]jlYafZ]f]Õlkkm[`Yk]p]ehlagfk$\mlq
drawback, concessional rate of duty, etc., could be explored
With the announcement of Union Budget 2015, some of the
for temporary import of such goods. Moreover, International
events have been bought into the service tax ambit. Thereby,
Custom arrangements such as ATA carnet allow temporary
with the implementation of the proposals of the Union Budget
importation of equipment’s without the payment of customs
2015, tickets for award functions, concerts, pageant, musical
duty for use at exhibitions and fairs.
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]\ 5.4 Value added tax

to events such as grant of telecast rights, sponsorship revenue,
VAT is levied by state governments in India on sale and
which were already liable to service tax, revenue pertaining to
purchase of goods within a state in India. Furthermore, sales
admission to entertainment events shall also be liable to service
which occasion movement of goods from one state of India to
tax.
another are leviable to a Central Sales Tax (CST). VAT is levied
With the introduction of service tax on ticket sales, coupled with Yl_]f]ja[jYl]kjYf_af_^jge-lg)-\]h]f\af_gfl`]
af[j]Yk]afk]jna[]lYpjYl]^jge)*&+.lg),af*()-$l`] description of goods sold. VAT legislations are likely to provide
[gklg^gj_Yfaraf_Yf]fl]jlYafe]fl]n]flYf\hYjla[ahYlaf_afYf for special registration and payment provisions for sales made in
entertainment event in India is likely to increase. 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 Stamp duty is payable to the state government on the execution
(GST) is likely to roll out in 2016, which is intended to subsume g^kh][aÕ]\afkljme]flk&;]jlYafklYl]klYeh\mlqd]_akdYlagfk
l`]]paklaf_Af\aj][llYp]k$a&]&$=p[ak]\mlq$K]jna[]lYp$N9L provide for payment of stamp duty on instruments granting
and other state levies such as Octroi, entertainment tax, etc. ]p[dmkan]l]d][Ykl'ZjgY\[Yklja_`lk$afkljme]flk^gjkh][aÕ]\
Given the fact that GST is aimed to be a uniform tax levy, which performances, etc.
oaddYddgo^j]]Ögog^[j]\alk$l`]Zmj\]fg^[Yk[Y\af_]^^][lgf
account of non-transferability of credit should be settled.
5.7 Other key indirect tax
It is proposed that the state government’s exclusive power
j]dYlaf_lgd]nqaf_g^KYd]kLYp$=fljqLYp$DmpmjqLYp$:]llaf_ considerations
9f\?YeZdaf_LYp$=fl]jlYafe]flLYp ]p[]hl^gjdg[Yd
Other key indirect tax considerations
bodies) etc., are proposed to be deleted and similarly Central
Government’s exclusive power relating to levying of service tax, Afl]jfYlagfYddq$9L9;Yjf]lZ]f]Õl^gj\mlq^j]]l]ehgjYjq
excise duty (except for petroleum products, alcohol and tobacco) import of goods into India extends to goods imported for
etc. are proposed to be deleted. The Constitution of India is exhibition, fair, professional equipment and commercial samples.
proposed to be amended to empower both Centre and State to While India is a member of ATA Carnet, the temporary duty
tax supply of goods and provision of services simultaneously. free import is available only in respect of goods imported for
exhibitions or fairs. This requires event owners to incur customs
While most of the taxes where States have the power are
duty on such imports and apply for draw back or refund at a later
subsumed, entertainment tax levied and collected by the local
\Yl]j]kmdlaf_af[Yk`Ögoaf]^Õ[a]f[a]k&
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 Multiple taxation without credit
entertainment taxes are levied by the states and only a fraction Multiple indirect taxes are levied by multiple regulators on the
(in the form of show tax etc.), is levied by local bodies. However, various activities in relation to an event. However, credit of the
if such a power is left outside the GST, local bodies may levy tax tax paid on any activity is not available as set off against the
on entertainment in addition to high rate of GST. This will make liability of any other levy which leads to increase in cascading
revenues earned by the entertainment industry unpredictable and multiplicity of taxes. With the introduction of GST, issue
and increase the cost of doing business. related to cascading effect of taxes due to non-transferability of
While no decision has yet been taken on the issue, it is credit is likely to be addressed.
expected that the rate of GST on events would be higher
l`Yfl`][mjj]fldqhjghgk]\),k]jna[]lYp^gj*()-Ç).$
l`]j]Zq[Ymkaf_Yka_faÕ[Yflaf[j]Yk]afl`][gklg^]n]flkYf\
advertisements.
Furthermore, with the introduction of GST, the State

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

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.

6 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_faÕ[YflY\nYflY_]gn]jmfgj_Yfar]\Yf\ÖqZqfa_`l
operators.
In this section we have covered three critical governance

j]imaj]e]flkg^l`]F]o;gehYfa]k9[l$*()+nar$afl]jfYd
ÕfYf[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]jfYdÕfYf[aYd[gfljgdk A>;!
9k\]Õf]\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\]^Õ[a]fl[gf\m[lgâlkZmkaf]kk$af[dm\af_Y\`]j]f[]lg[gehYfqÌkhgda[a]k$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]ÕfYf[aYdaf^gjeYlagf&L`mk$A>;[gn]jk[gfljgdkgn]jÕfYf[aYdklYl]e]flkYf\Zmkaf]kkgh]jYlagfk&
Applicability Requirement Impact of non-compliance
Applicable to all public and Board of directors, =n]jqg^Õ[]jg^l`][gehYfq$o`gakaf\]^Ymdl$k`YddZ]

private companies. independent directors, audit punishable with imprisonment for a term, which may extend
committee and auditors will lgl`j]]q]Yjkgjoal`YÕf]$oà[`k`YddfglZ]d]kkl`Yf
Additionally, over and above
have to comment on the AFJ-($((('%Zmloà[èYq]pl]f\lgAFJ-(($((($gjoal`Zgl`&
l`][gfljgdkgn]jÕfYf[aYd
adequacy and effectiveness
reporting, public companies 9[[gj\af_lgk][lagf* -1!g^l`]F]o;gehYfa]k9[lÉg^Õ[]jÊ
gâfl]jfYdÕfYf[aYd[gfljgdk&
will have to ensure adequacy includes any director, manager or key managerial personnel or
of effectiveness of operating any person in accordance with whose directions or instructions
controls as well. 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
^jgeÕfYf[aYdq]Yj*()-Ç).&;gehYfa]kf]]\lg^gddgol`]^gddgoaf_^jYe]ogjclg]fYZd][gehdaYf[]2
Phase Phase Phase
1 Assess and plan 2 Documentation 3 Testing
• AfklalmlagfYdar]Y[mdlmj]g^Zmad\af_ • Dakll`]]paklaf_hgda[a]kYf\hjg[]\mj]k • <]Õf]l`]l]klaf_kljYl]_qa&]&$

a robust control enviorement across applicable to the accounts and processes in self assessment, independent
l`]gj_YfrYlagf socpe testing, etc.
• <]Õf]Y[[]hlYZd]eYl]jaYdalqdaealk • <g[me]fll`]eakkaf_hjg[]\mj]kYf\hgda[a]k • <]n]dghYl]klhdYf$l]klaf_
for assessing IFC afl`]\]Õf]\l]ehdYl] frequency and testing samples
• :Yk]\gfeYl]jaYdalqdaealk$\]Õf] • Identify the risks/what can go wrong (WCGW) • Test the controls
relevant account captions and in each of the processes • <]n]dghj]e]\aYlagfhdYflg
underlying processess • <g[me]fll`]]paklaf_[gfljgdklgY\\j]kkl`] address any control failures
• <]n]dghklYf\Yj\k'l]ehdYl]k'^gjeYlk WCGW noted
for documentation and testing • For risks which are not mitigated by existing
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]jfYdÕfYf[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.
Applicable to L`]<aj][lgjkÌJ]khgfkaZadalqKlYl]e]fl$YkklYl]\afl`]9[l$ =n]jqg^Õ[]jg^l`][gehYfqo`gakaf\]^Ymdl

all companies shall state that a company’s directors had: shall be punishable with imprisonment for a
<]nak]\hjgh]jkqkl]eklg]fkmj][gehdaYf[]oal`hjgnakagfk term which may extend to three years or with
of all applicable laws, and Õf]oà[`k`YddfglZ]d]kkl`YfAFJ-($(((Zml
oà[èYq]pl]f\lgAFJ-(($(((gjoal`Zgl`&
=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_faÕ[YflÕfYf[aYdh]fYdlqgjaehjakgfe]flk`gmd\Z][dYkkaÕ]\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]flogjcÖgo$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&
Applicable to: Companies are required to establish a vigil L`][gehYfqk`YddZ]hmfak`YZd]oal`Õf]

mechanism for directors and employees to oà[`k`YddfglZ]d]kkl`YfAFJ)(($(((Zml
• all listed companies
report genuine concerns. oà[èYq]pl]f\lgAFJ-(($(((Yf\]n]jq
• companies which accept g^Õ[]jg^l`][gehYfqo`gakaf\]^Ymdlk`YddZ]
deposits from the public The audit committee is required to oversee
punishable with imprisonment for a term which
the operation of the whistle blowing
• companies which have eYq]pl]f\lggf]q]Yjgjoal`YÕf]oà[`
mechanism. For companies that do not
borrowed money from banks k`YddfglZ]d]kkl`YfAFJ*-$(((Zmloà[èYq
need an audit committee, a director to be
Yf\hmZda[ÕfYf[aYdafklalmlagfk ]pl]f\lgAFJ)(($(((3gjoal`Zgl`&
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]Õdl]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 6. L`]Fgak]HgddmlagfJ]_mdYlagfYf\;gfljgdJmd]k$*(((
1. L`];gehYfa]k9[l$*()+j]Y\oal`l`])1-.9[l /& :Yll]ja]kEYfY_]e]flYf\@Yf\daf_Jmd]k*(()
2. ;gehYfa]k;]fljYd?gn]jfe]flk?]f]jYdJmd]kYf\>gjek$)1-. 0& Food Safety and Standards Act 2006
3. ;gehYfa]k<ak[dgkmj]g^HYjla[mdYjkafl`]j]hgjlg^:gYj\g^<aj][lgjkJmd]k$ 1& Indian Standard Code of Practice Selection and Maintenance of First Aid Fire
)100 =plaf_mak`]jk
4. ;gehYfa]k<akimYdaÕ[Ylagfg^<aj][lgjkmf\]jK][lagf*/,)_g^l`] 10. =fnajgfe]flHjgl][lagf9[l)10.$]%oYkl] EYfY_]e]flYf\@Yf\daf_!Jmd]k$
;gehYfa]k9[l$)1-.Jmd]k$*((+ 2011
5. ;gehYfa]k9[l$)1-.Yf\;gehYfa]k <aj][lgjA\]flaÕ[YlagfFmeZ]j!Jmd]k$ 11. @YrYj\gmkOYkl]kEYfY_]e]fl$@Yf\daf_Yf\LjYfk%Zgmf\YjqEgn]e]fl
2006 Jmd]k$*((0
6. ;gehYfa]k9[l$)1-.Yf\<aj][lgjÌkJ]dYlan]k G^Õ[]gjHdY[]g^HjgÕl!Jmd]k$ 12. =fnajgfe]flHjgl][lagf9[lYf\:age]\a[YdOYkl] EYfY_]e]flYf\@Yf\daf_!
2003 Jmd]k*())
/& ;gehYfa]kHj]k]jnYlagfYf\<akhgkYdg^J][gj\kJmd]k$)1.. Labour laws
0& L`];gehYfa]k ;gkl9[[gmflaf_J][gj\k!Jmd]k$*())
1. L`];gfljY[lDYZgmj J]_mdYlagfYf\9Zgdalagf!9[l$)1/(L`]EY`YjYk`ljY
1& HjanYl]Daeal]\;gehYfqYf\Mfdakl]\HmZda[Daeal]\;gehYfq :mq%ZY[cg^ ;gfljY[lDYZgmj J]_mdYlagfYf\9Zgdalagf!Jmd]k$)1/)
K][mjala]k!Jmd]k$)111
2. L`]:geZYqK`ghk=klYZdakè]flk9[l$)1,0Yf\L`]EY`YjYk`ljYK`ghk
10. ;gehYfa]kLjYfk^]jg^HjgÕlklgJ]k]jn]kJmd]k$)1/- =klYZdakè]flJmd]k$)1.)
11. ;gehYfa]k <][dYjYlagfg^<ana\]f\Gmlg^J]k]jn]k!Jmd]k$)1/- 3. L`]Af\mkljaYd<akhml]k9[l$)1,/L`]Af\mkljaYd<akhml]k :geZYq!Jmd]k$
12. ;gehYfa]k HYjla[mdYjkg^=ehdgq]]k!Jmd]k$)1/- )1-/
4. L`]EYl]jfalq:]f]Õl9[l$)1.)Yf\L`]EY`YjYk`ljYEYl]jfalq:]f]Õljmd]k$
Foreign exchange laws )1.-
1. >gj]a_f=p[`Yf_]EYfY_]e]fl9[l$)111 5. L`]EafaemeOY_]k9[l$)1,0L`]EY`YjYk`ljYEafaemeOY_]kJmd]k$)1.+
2. L`]>gj]a_fLjY\]<]n]dghe]flYf\J]_mdYlagf9[l$)11*Yf\>gj]a_fLjY\] 6. L`]HYqe]flgÔY_]k9[l$)1+.L`]EY`YjYk`ljYHYqe]flgÔY_]kJmd]k
J]_mdYlagfJmd]k$)11+ $)1.+
3. >gj]a_f=p[`Yf_]EYfY_]e]fl9[imakalagfLjYfk^]jgÂeegnYZd]Hjgh]jlq /& L`]HYqe]flg^?jYlmalq9[l$)1/*L`]HYqe]flg^?jYlmalq EY`YjYk`ljY!
gmlka\]Af\aYJ]_mdYlagfk$*((( Jmd]k$)1/*
4. >gj]a_f]p[`Yf_]eYfY_]e]fl:gjjgoaf_Yf\D]f\af_af>gj]a_f=p[`Yf_] 0& Supreme Court Guidelines on Prohibition of Sexual Harassment of Women at
J]_mdYlagfk$*((( Work Place
5. >gj]a_f=p[`Yf_]EYfY_]e]fl:gjjgoaf_Yf\D]f\af_afJmh]]kJ]_mdYlagfk$ 1& O]]cdq@gda\Yqk9[l$)1,*
2000
10. =ehdgqe]fl=p[`Yf_]k;gehmdkgjqFglaÕ[Ylagfg^NY[Yf[a]k9[l$)1-1Yf\
6. >gj]a_f=p[`Yf_]EYfY_]e]fl;mjj]fl9[[gmflLjYfkY[lagfkJmd]k$*((( l`]=ehdgqe]fl=p[`Yf_]k;gehmdkgjqFglaÕ[Ylagfg^NY[Yf[a]kJmd]k$)1.(
/& >gj]a_f=p[`Yf_]EYfY_]e]fl=phgjlg^?gg\kYf\K]jna[]kJ]_mdYlagfk$ 11. =ehdgq]]kHjgna\]fl>mf\Yf\Eak[]ddYf]gmkHjgnakagfk9[l$)1-*$L`]
2000 =ehdgq]]kHjgna\]fl>mf\kK[`]e]$)1-*$L`]=ehdgq]]k<]hgkal%Dafc]\
0& >gj]a_f=p[`Yf_]EYfY_]e]fl>gj]a_f;mjj]f[q9[[gmflkZqYH]jkgf AfkmjYf[]K[`]e]$)1/.L`]=ehdgq]]kH]fkagf>mf\K[`]e]$)11-
J]ka\]flafAf\aYJ]_mdYlagfk$*((( 12. 9hhj]fla[]k9[l$)1.)Yf\9hhj]fla[]kàhJmd]k$)11*
1& >gj]a_f=p[`Yf_]EYfY_]e]flEYff]jg^J][]ahl9f\HYqe]flJ]_mdYlagfk$ 13. =imYdJ]emf]jYlagf9[l$)1/.Yf\=imYdJ]emf]jYlagfJmd]k$)1/.
2000
14. L`]=ehdgq]]kKlYl]AfkmjYf[]9[l$)1,0Yf\L`]=ehdgq]]kKlYl]AfkmjYf[]
10. >gj]a_f=p[`Yf_]EYfY_]e]flH]jeakkaZd];YhalYd9[[gmflLjYfkY[lagfk ?]f]jYdJ]_mdYlagfk$)1-(
J]_mdYlagfk$*(((
15. L`]Af\mkljaYd=ehdgqe]fl KlYf\af_Gj\]jk!9[l$)1,.L`]:geZYq
11. >gj]a_f=p[`Yf_]EYfY_]e]flJ]YdakYlagf$J]hYljaYlagfYf\Kmjj]f\]jg^ Af\mkljaYd=ehdgqe]fl KlYf\af_Gj\]jk!9[l$)1-1
>gj]a_f=p[`Yf_]J]_mdYlagfk$*(((
16. L`]=ehdgq]]kÌ;geh]fkYlagf9[l$)1*+L`]:geZYqOgjce]fÌk
12. >gj]a_f=p[`Yf_]EYfY_]e]flLjYfk^]jgjAkkm]g^Yfq>gj]a_fK][mjalq ;geh]fkYlagfJmd]k$)1+,
J]_mdYlagfk$*((,
)/&L`]HYqe]flg^:gfmk9[l$)1.-L`]HYqe]flg^:gfmkJmd]k$)1/-
Commercial laws )0&L`]:geZYqDYZgmjO]d^Yj]>mf\9[l$)1-+Yf\L`]:geZYqDYZgmjO]d^Yj]
>mf\Jmd]k$)1-+
1. Af[ge]LYp9[l$)1.)Yf\Af[ge]LYpJmd]k$)1.*
)1&L`]EY`YjYk`ljY>Y[lgja]k ;gfljgdgÂf\mkljaYdEYbgj9[[a\]flk@YrYj\k!
2. O]Ydl`LYp9[l)1-/Yf\O]Ydl`LYpJmd]k$)1-/ Jmd]k$*((+
3. >afYf[]9[lYf\K]jna[]LYpJmd]k 20. L`]EY`YjYk`ljYOgjce]fÌkEafaeme@gmk]%J]fl9ddgoYf[]9[l$)10+L`]
4. L`]EY`YjYk`ljYKlYl]LYpgfHjg^]kkagfk$LjY\]k$[Yddaf_kYf\=ehdgqe]flk EY`YjYk`ljYOgjce]fÌkEafaeme@gmk]%J]fl9ddgoYf[]Jmd]k$)11(
9[l$)1/-L`]EY`YjYk`ljYKlYl]LYpgfHjg^]kkagf$LjY\]k$;Yddaf_kYf\ 21. Afl]j%KlYl]Ea_jYflOgjce]f J]_mdYlagfg^=ehdgqe]flYf\;gf\alagfkg^
=ehdgqe]flkJmd]k$)1/- K]jna[]!9[l$)1/1Yf\EY`YjYk`ljYAfl]j%KlYl]Ea_jYflOgjce]f J]_mdYlagf
5. Maharashtra Value Added Tax Act, 2002 and Maharashtra Value Added Tax g^=ehdgqe]flYf\;gf\alagfkg^K]jna[]!Jmd]k
Jmd]k$*((-
6. ;]fljYdKYd]kLYp9[l)1-.;]fljYdKYd]kLYpJ]_akljYlagfLmjfgn]jJmd]k Others
)1-/;]fljYdKYd]kLYp EY`YjYk`ljY!Jmd]k$)1/( 1. ;ghqja_`l9[lYf\Jmd]k&
/& :geZYqEglgjN]à[d]kLYpYlagf9[l$)1-0Yf\:geZYqEglgjN]à[d]k 2. Af^gjeYlagfL][`fgdg_q9[l$*(((Yf\Af^gjeYlagfL][`fgdg_q J]YkgfYZd]
LYpYlagfJmd]k$)1-1 K][mjalqHjY[la[]kHjg[]\mj]kK]fkalan]H]jkgfYd<YlYgjAf^gjeYlagf!
0& L`]EY`YjYk`ljYLYpgfl`]=fljqg^?gg\kaflgDg[Yd9j]Yk9[l$*((*L`] Jmd]k$*())
EY`YjYk`ljYLYpgfl`]=fljqg^?gg\kaflgDg[Yd9j]YkJmd]k$*((* 3. LjY\]eYjc9[l$)111Yf\Jmd]k&
4. L`]:geZYqDa^lk9[l$)1+1L`]:geZYqDa^lkJmd]$)1-0
Environmental, health and safety
5. :geZYq=d][lja[alq<mlq9[l$)1-0:geZYq=d][lja[alq<mlqJmd]k$)1.*
1. L`]9aj Hj]n]flagfYf\;gfljgdg^Hgddmlagf!9[l$)10)Yf\EY`YjYk`ljY9aj
Hj]n]flagfYf\;gfljgdg^9ajHgddmlagfJmd]k$)10+ 6. =d][lja[alq9[l$*((+j]Y\oal`L`]=d][lja[alqJmd]k$*((-
2. L`]EY`YjYk`ljY>aj]Hj]n]flagfYf\Da^]KY^]lqE]Ykmj]k9[l$*((.Yf\L`] /& L`]D]_YdE]ljgdg_q9[l$*((1L`]EY`YjYk`ljYD]_YdE]ljgdg_q
EY`YjYk`ljY>aj]Hj]n]flagfYf\Da^]kY^]lqE]Ykmj]kJmd]k$*((1 =f^gj[]e]fl!Jmd]k$*()(
3. L`]OYl]j Hj]n]flagfYf\;gfljgdg^Hgddmlagf!9[l$)1/,Yf\EY`YjYk`ljY 0& L`]EglgjN]à[d]k9[l$)100L`]EY`YjYk`ljYEglgjN]à[d]Jmd]k$)101
Hj]n]flagfYf\;gfljgdgÔYl]jHgddmlagf!Jmd]k$)1/0& 1& :geZYqHjgàZalagf9[l$)1,1
4. OYl]jHj]n]flagfYf\;gfljgdg^Hgddmlagf;]kk9[l$)1//Yf\OYl]j 10. NOCs from Police, Fire Brigade, electrical, health dept, etc.
Hj]n]flagfYf\;gfljgdg^Hgddmlagf;]kkJmd]k$)1/0
5. L`]=fnajgfe]flHjgl][lagf9[l$)10.Yf\L`]=fnajgfe]flHjgl][lagfJmd]k$
)10.
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.

7 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$l`]ÕjklYf\egklhjaeYjqf]]\ak$l`]j]^gj]2
Area Description Request
J][g_falagfg^l`] Làkoadd^Y[adalYl]YZYka[YZadalqlg_YafY[[]kklgafklalmlagfYdÕfYf[]Yf\$ Grant industry status to

events & activation l`]j]^gj]$]fYZd]Y[gehd]l]j]gja]flYlagfg^[Yk`ÖgoeYfY_]e]fll`Yl the events and activation
Industry akgl`]joak]l]f\af_lgl`jglld]af\mkljq_jgol`&9degkl1(g^l`]af\mkljq industry
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.
Withholding taxes =n]fleYfY_]e]flk]jna[]kYj]hmj]dq[gfljY[lmYdk]jna[]kYf\Yj][gn]j]\ The industry seeks a

L<K! oalàfl`]YeZalg^ÉYfqogjcÊYk\]Õf]\mf\]jk][lagf)1,;g^l`]9[l [gfÕjeYlagf^jgel`]
Yf\Yj]fglgfdq[gfÕf]\lgÉogjck[gfljY[lÊ&>mjl`]j$al`YkZ]]f[dYjaÕ]\ ;:<Lgfl`][gjj][l
Zq;:<Lna\];aj[mdYjFg&.0)$\Yl]\0EYj[`)11,l`Ylhjgnakagfkg^ withholding tax rate of
k][lagf)1,;g^l`]9[lk`YddYdkgYhhdqlgÊk]jna[]k[gfljY[lÊ&L`mk$]n]fl *Yhhda[YZd]gf]n]fl
eYfY_]e]flk]jna[]k^mdÕddYddl`][gf\alagfk]fme]jYl]\mf\]jk][lagf management companies,
)1,;g^l`]9[l$o`]j]Zq$L<KjYl]g^*akYhhda[YZd]lg]n]fleYfY_]e]fl in lieu of the aforesaid
companies in respect of services rendered by them. However, against the services rendered to its
above services rendered by event management companies, while making clients to bring clarity
hYqe]flk^gjl`]kYe]$[da]flkYj]oal``gd\af_lYp]kmf\]jk][lagf)1,B on the controversy
g^l`]9[l$afkl]Y\g^)1,;g^l`]9[lYll`]lae]gêYcaf_hYqe]flk$af surrounding the applicable
da]mg^l`];:<LfglaÕ[Ylagffg&*(0-=$\Yl]\*)9m_mkl*((0$akkm]\lg withholding tax rate. The
cover services rendered by event managers in relation to sports activities. ;:<L`gd\kl`Yl[gehYfa]k
Accordingly, against the above services rendered by event management `Yn]j][gmjk]lgK][)1/
[gehYfa]k$lYp]kYj]Z]af_oal``]d\Yl)1,Bg^l`]9[lafkl]Y\g^)1,;g^l`] which does allow for a
Act. lower deduction of tax but
làkak[da]fl%kh][aÕ[Yf\
;mjj]fldq$l`]]n]fleYfY_]e]flaf\mkljqakjmffaf_gfkeYddeYj_afYdhjgÕlk
h]jag\%kh][aÕ[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.
Single window There is an urgent need for single window clearance to avoid the multiple To set up single window
clearance hurdles and government red tape that hinders every event, irrespective of clearance process for each
kar]&Hgda[]h]jeakkagfkYf\gl`]jYhhjgnYdkYj]`]d\ZY[claddl`]dYkleafml] state
and can also be withdrawn because they were never given!

Area Description Request
Dan]]fl]jlYafe]fl There is a need to invest in the various art forms of our country, live • J][g_falagfg^dan]
spaces and entertainment being the key area for consideration. Government, through events and activation as
segregation of alkmjZYf\]n]dghe]flhjg_jYek$f]]\klgZmad\kmklYafYZd]hjgb][lkoà[` an independent industry
=fl]jlYafe]fl include theaters, museums, rehearsal spaces, experimental studios, galleries, • A complete waiver on
tax on live digital labs, amphitheaters, and do this in a spirit of public partnership. The =fl]jlYafe]fllYpY[jgkk
entertainment as [YhalYd[alqg^<]dà`Ykfglgf]f]ohmZda[khY[]$oal`Yk]fk]g^Y]kl`]la[kgj states
\aklaf[l^jgeÕdek hja\]fgjj]Ö][laf_l`]fYlagfYd[mdlmj]&9ll`]kYe]lae]$<]dàYf\k]n]jYd
other cities that have a plethora of monuments that can serve as great spaces
and backdrops for live entertainment and corporate events. The Government
and Archeological Society of India need to radically change policy on this
kmZb][lbmklYkl`]Khgjlk9ml`gjalq`Ykfgo\gf]afl`][Yk]g^KlY\amek&
=fl]jlYafe]fl\aklja[lkljY\alagfYddq[gfljaZml]lgY[alqÌk][gfgeq&:jgY\oYq
g^^]jkmhMK1Ç))ZaddagfYf\O]kl=f\-Ç/Zaddagfl`jgm_àlkj]klYmjYflk$
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 city’s economy has been estimated at approximately
AFJ).Ç*([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@/ÇHmf]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_YÖg__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^YÕdeafYl`]Ylj]&
• =Y[`klYl]`YkY\a^^]j]fl=fl]jlYafe]fllYpkljm[lmj]jYf_af_^jge(af
JYbYkl`Yflg.(afMllYjHjY\]k`&
Corporate social • L`];KJY[l[mjj]fldqklYl]kl`Yl*g^hjgÕlkg^[gehYfa]koal`lmjfgn]j We propose that the

responsibility gêgj]l`YfAFJ-(([jgj]`Yn]lgZ]kh]flgf;KJafalaYlan]k&Làkak Government include the
currently open to a choice of initiatives. sponsorship for arts and
live entertainment as a key
hYjlg^;KJlg]f[gmjY_]
live entertainment across
the country.
=\m[Ylagfl`jgm_` • Skill development is today an avowed mission of our new Government, and Build skill development
Kcadd<]n]dghe]fl could go a long way in helping this industry overcome basic challenges due curriculum in consonance
to paucity of knowledge and technical skills that are critical for growth and with technical institutes
achieving global standards. 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\]Õf]kl`]af\mkljqÌkdgf_l]je
vision and is based on a round table discussion with
af\mkljq;=Gk&

8 Vision 20:20
8.1 Framework for the future

L`]Ykh][lk$oà[`Yj]egkl[jala[Yd^gjl`]af\mkljqÌk]ngdmlagf`Yn]Z]]fZjgY\dq[dYkkaÕ]\Ykafl]jfYd$]pl]jfYdYf\kljYl]_a[&
• Human resources
• Processes
• Technology
Internal
• Customer dynamics • Intellectual property

• Vendor/Supply chain External Strategic • <a_alYdghhgjlmfalq
• J]_mdYlgjq][gkqkl]e • 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\]flaÕ]\
o]j]`meYfj]kgmj[]k$hjg[]kk]kYf\l][`fgdg_q&Aehjgnaf_l`]k]l`j]]Yj]Ykoadd`]dhl`]hdYq]jkafY[à]naf_Z]ll]j]^Õ[a]f[q$
gmlhmlimYdalqYf\hjgÕlYZadalq&
8.2.1 Human resources

Training and development “Skilled manpower is one of the biggest
<]Yjlàf\]kaj]\kcaddk]lkYf\imYdaÕ[YlagfkakY^Y[lgjl`Yl challenges being faced by the events industry
g^l]fdaealkl`]_jgol`g^Yfaf\mkljq&=n]fl[gehYfa]k`Yn] and needs to be addressed urgently for growth
g^l]f^Y[]\\a^Õ[mdlqaflYj_]laf_l`]ja_`lh]ghd]&Egj]gn]j$ of the industry. ”
]n]fl[gehYfa]k^Y[]ka_faÕ[Yfl[geh]lalagf^jgegl`]j
PVN Vidyasagar
segments in the entertainment industry such as television, print,
Catpro Events & Entertainment
ÕdeYf\jY\ago`]fal[ge]klgYlljY[laf_lYd]fl&
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][aÕ[[mjja[mdme^gj\a^^]j]fllqh]kg^jgd]kÈlàkoadd]fYZd]Y[]jlYafZYka[d]n]dgîmYdaÕ[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 • Rahul Gomes, Oak’s Management Consultancy

• Brian Tellis$>gmflYaf`]Y\Hjgeglagfk=n]flk • Sanjay Kaul, Impact Communications
• Atul S. Nath, Candid Marketing • Tarsame Mittal$9JL=fl]jlYafe]flK]jna[]k
• Mandeep Malhotra, Mudra Max • Xerxes Antia$/(=E?
• Mohomed Morani$;af]qm_E]\aY=fl]jlYafe]fl • Neelabh Kapoor, Studio Neelabh
• Sushma Gaikwad, Ice Global • Neha Seth Arora, Var Vadhu Wedding Management
Job security 8.2.2 Processes

9kegklg^l`]ogjcafl`]]n]flaf\mkljqakhjgb][lZYk]\$ Policies
bgZk][mjalqakYfakkm]l`]af\mkljq`Yklg_jYhhd]oal`&=n]fl
management companies could overcome this by offering its At the very minimum, event management companies need to
employees, and those of its contractors/vendors unemployment have policies covering:
insurance, disability assistance and life insurance. For instance, • Procurement
the retail industry now has a few players who offer insurance and
• Vendor management
various schemes at the industry level to retail employees as long
as they continue to work in the retail industry. • Use of prohibited substances
• J]emf]jYlagfYf\Z]f]Õlk
Compensation and pride
• Code of conduct/sexual harassment
>gjl`]kYe]d]n]d$[geh]fkYlagfnYja]kka_faÕ[YfldqY[jgkk
=ngdnaf_j]_mdYlgjqklYf\Yj\kafAf\aYeYc]al]n]fegj]
event companies. It is observed that benchmarking (which
imperative to have adequate policies in place to comply with the
is important for arriving at a uniform salary structure across
new Companies Act, which entails the proper management of:
l`]af\mkljq!k]]eklgZ]YZk]fl&;geh]fkYlagfYf\Z]f]Õlk
offered in the industry also need to meet the aspirations of the • J]emf]jYlagf
work force in order to attract and retain the right talent, yet • ;gfljgdkgn]jÕfYf[aYdj]hgjlaf_
be feasible for industry players as well. The industry should
• Fraud prevention and detection — given the relatively small
consider hiring from leading educational institutions, attract
kar]g^l`]af\mkljq$Yoàkld]Zdgo]je][`YfakeYll`]
lYd]fll`jgm_`bgZ^Yajk$Yf\\]Õf]ZYf\kg^[geh]fkYlagf^gj
industry level could be implemented.
different roles and accreditations, to enable fair play.
• Compliance with all regulations (there are more than 50
In addition, the industry needs to position itself in the right way different acts, which apply to an Indian events company)
in order to create a sense of pride in the minds of existing and
• Controls over operations
prospective employees.
Health and safety Management Information System (MIS)
Safety is an area of concern for the industry and needs to be =^^][lan]EAK`]dhkafhjgna\af_Zmkaf]kkafl]dda_]f[]lg

managed. Going forward event management companies can top management and proactively identifying issues. While
limit the number of accidents through: such systems are found lacking in many event companies,
they are prevalent in the more developed part of the Indian
• <]ÕfalagfYf\aehd]e]flYlagfg^kY^]lqklYf\Yj\kZgl`^gj entertainment industry such as TV, print, etc. Given the current
themselves and for their vendors and expected growth the Indian events industry is experiencing,
• Vendor accreditation can be linked to compliance with safety and the width of solutions it offers, companies — as they cross
standards and their safety record l`]AFJ)(([jgj]lmjfgn]jeYjcÈf]]\lg]eZjY[]l`]ja_`l
• An initiative around creating awareness on work safety is business and event-level MIS and incorporate central analytics to
required to educate vendors and their employees j]eYaf[geh]lalan]$_jgoj]n]fm]kYf\jYlagfYdar][gklk&
• Additional support through insurance coverage could also

help in limiting the loss to employees in case of unforeseen
events.

8.2.3 Technology “Given the rate at which our industry is growing,
9ll`]G^Ô[] it is imperative to have a central body to lay
As the industry progresses towards 2020, the event down our preamble and the dos & don’ts for the
management industry must leverage the power of technology in entire ecosystem including clients.”
gj\]jlg_]f]jYl]]^Õ[a]f[qaf\Yqlg\Yqgh]jYlagfk&L][`fgdg_q Siddhartha Chaturvedi
can enable: Event Crafter
• Accurate and timely capture of transactions and accounting
for them
• ;]fljYdar]\hjg[mj]e]fl\YlYZYk]k
How do advertisers view their event agencies?
• 9hh'ogjcÖgoZYk]\YhhjgnYdk^gjbgZ[g\]k]l%mh$Zm\_]l (percentage of respondents)
approvals, invoicing and payments
• Using data analytics to detect fraud, and
• Business level and event level real-time generated MIS
At the event venue Vendor 30%
Technology can be a great lever at event venues in bringing

kY^]lqYf\]^Õ[a]f[qafnYjagmkhjg[]kk]kkm[`Ykla[c]lkYd]k
gfdaf]kYd]kcagkck!$Y[[]kk ZYj[g\]kYf\J>A<ZYf\k!$ 70% Partner
production monitoring (cameras, motion sensors), food &
beverage sales (swipe cards, bands), safety & security (turnstiles,
ZYjja[Y\]k$klj]kkl]klaf_$dgY\l]klaf_$Õj]hj]n]flagf!$kg[aYd
integration (apps), and database management. Feedback could Source: EY marketer survey 2014
be managed effectively at event venues through technology as
well. Ja_`lhgkalagfaf_Zq]n]fl[gehYfa]kakafkljme]flYdaf[j]Ylaf_
value for customers and ensuring better margins at the same
8.3 External aspects time. Some initiatives which event companies could undertake to
position themselves as business partners are developing industry
=pl]jfYd^Y[lgjkYj]l`gk]l`YlYj]dYj_]dqgmlg^l`][gfljgdg^ kh][aYdarYlagf$\a_alYdkh][aYdarYlagfYf\]f\%lg%]f\eYfY_]e]fl
an event management company. g^l`]:LD^mf[lagf af[dm\af_\]egfkljYlagfg^JGA!&
Account focus
Key external factors
As the event management industry matures and increases in
Customer Vendor/ Regulatory
kar]$^g[mkgfc]qY[[gmflkYf\af\mkljqkh][aYdarYlagfZ][ge]k
dynamics Supply chain ecosystem
aehgjlYfl&=n]fl[gehYfa]kf]]\lgjYlagfYdar]gh]jYlagfk
• Positioning • <]n]dghe]fl • Tax l`jgm_`c]qY[[gmfl^g[mkYf\af\mkljqkh][aYdarYlagf&C]qkl]hk
• Account focus • Accreditation • Infrastructure that event companies need to take include:
• JGA • JakceYfY_]e]fl • Approvals • Build relationships at the CMO and other relevant CXOs at
• Copyrights clients
• EYh[da]flj]dYlagfkàhklgegj]l`Yfbmklgf]]n]fl[gehYfq
person, to guard against attrition
8.3.1 Customer dynamics
• Track the event company’s share of wallet from the client
Positioning
• =fYZd]\ak[mkkagfkYjgmf\af\mkljqlj]f\kYf\d]Y\af_
As event management companies create value for their hjY[la[]kgfl`]\a_alYdYf\:LDka\]Yf\[gf\m[la\]Ylagf
customers, positioning plays a critical role in determining workshops with key stakeholders to assist them meet their
the value event companies are creating in the minds of their Zmkaf]kkgZb][lan]k
customers. This is especially important for event companies These initiatives could help improve positioning, hence event
managing big corporate accounts and involved in brand companies could build better relationship with customers and
launches and other corporate events. Companies should position have higher revenue visibility.
themselves as vendors or as partners in business.

Return on Investment (ROI)
“The industry needs to become more inclusive,
=n]jq[da]fl`Yk\a^^]j]fl]ph][lYlagfk^jge]Y[`]n]fl&>mjl`]j$ k]lY[geegfZYk]$Yf\]fYZd]klYf\Yj\arYlagf
every event is unique as the same concert can be very different in quality of delivery!”
in two different cities or event on different days at the same
n]fm]Yf\`]f[]$]n]flkYj]af`]j]fldq\a^Õ[mdllge]Ykmj]& Anushree Agarwal
Unlike viewership, listenership or readerships, which are largely Theme Weavers
measuring audiences, events are evaluated by clients based on
o`]l`]jl`]qe]]l[]jlYafgZb][lan]k$g^l]fmfklYl]\&
9j]Y\n]jlak]jkkYlakÔ]\ZqJGAe]Ykmj]e]fll`]qj][]an]
^gjl`]aj:LDkh]f\k7
dissemination of knowledge relating to vendors and their
Yes, very much capabilities
10% • EYfY_]egfghgda]k2=n]fl[gehYfa]kYdkgf]]\lgZ]
No, not at all mindful of potential monopolies while selecting vendors to
30%
j]lYafZYj_Yafaf_hgo]jYf\]^Õ[a]fldqf]_glaYl]l]jekoal`
kmhhda]jk&@]f[]$a\]flaÕ[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\]Õfalagf2<]n]dghaf_klYf\Yj\ar]\j]imaj]e]flk
So so – it’s a very 60% and costing for often used items such as sound, lights,
weak linkage barricades, etc., can go a long way in improving the industry
standards and quickly determining costs
Source: EY marketer survey 2014 • ;gfljY[laf_2==E9[YfhdYqYjgd]Zqhj]k[jaZaf_l`]a\]Yd
event contracts that should be signed with consultants,
In the absence of a generally acceptable measurement platform, artistes, vendors and the supply chain to enable responsibility
]n]fl[gehYfa]kk`gmd\\]n]dghYJGAe][`Yfakeoà[`[da]flk and accountability.
can relate to. This will be centred around the following:
Accreditation
• Mf\]jklYf\[da]flgZb][lan]k^gjl`]]n]fl$oà[`[YfnYjq^gj
a particular type of event for different clients Vendor management is critical in the event industry as choosing
wrong suppliers could lead to multiple problems. Vendors need
• >gj]Y[`gZb][lan]$mk]Y[geegfe]Ykmj]e]fll][`faim]$
to be benchmarked on the basis of their capabilities, service
oà[àkkge]làf_l`Yl[YfZ][]fljYddq\]Õf]\Zql`]
standards and experience. Certain industries like the hotels and
industry body
restaurant business have a fairly robust accreditation system and
• 9ll`]]f\g^l`]]n]fl$\]egfkljYl]JGAlg[da]flZYk]\gf Y[]jlaÕ[Ylagfhjg_jYe[gmd\ogjcafl`]]n]flaf\mkljqYko]dd3
Y_j]]\gZb][lan]k this could prevent frauds, reduce instances of non-delivery or
• ;da]flko`goak`lg`Yn]l`]JGAe]Ykmj]e]flnYda\Yl]\[Yf non-compliances, and also ensure safety at the venue.
appoint their employees or independent agencies for the
Oàd]]n]fl[gehYfa]k`Yn]]eh`Ykar]\gfkY^]lqklYf\Yj\k
same
of vendors there is no industry policy or tracking on compliance
oal`kY^]lqklYf\Yj\k&9kl`]af\mkljqZ][ge]kegj]_dgZYdar]\$
8.3.2 Vendors/Supply chain accreditation would become imperative to meet the expectations
Vendor development of more demanding clients. The industry must work towards the
following initiatives:
N]f\gj\]n]dghe]flhjg[]kkakafkljme]flYdaf]^Õ[a]fl
afl]_jYlagfg^l`]kmhhdq[`Yaf^gjgj_Yfaraf_Z]ll]j]n]flk& • <]n]dghY^gjeYdY[[j]\alYlagfkqkl]e^gjn]f\gjkYf\
Global standards around delivery, excellence, innovation, partners. This will enable event agencies to quickly determine
upgrade, training and technology need to be evaluated. The the quality and dependability of the vendors they are dealing
following initiatives can be considered by the industry: with
• Periodically, vendors can be provided with an accreditation
• Build a vendor database: Vendor details, their services/goods
— a rating that enables event agencies to quickly evaluate a
\]Õf]\Y[jgkk\a^^]j]flimYdalqk]_e]flk!$l`]ajkm[[]kk]k
vendor’s capabilities — which can be renewed annually based
and failures (as updated by event management companies)
on industry feedback
need to be captured on an events industry intranet, to enable

• In the course of time, an industry body can be created to take Approvals
appropriate action against defaulting vendors
The event management industry has often been plagued by
• The event industry can also take a cue from Indian delays in regulatory approvals wherein the time consumed in
Y\n]jlakaf_$ÕdeYf\ZjgY\[Yklaf_Ykkg[aYlagfko`]j]af permissions and licenses has limited the growth of the industry.
a defaulting vendor gets black listed across association J]_mdYlgjqZglld]f][ckafl`]kqkl]e\][j]Yk]gn]jYddaf\mkljq
members attractiveness. Online approvals and single window clearance
could help in accelerating growth of the industry.
Risk Management
Copyrights
In the event management industry, a lot is at risk till the point
]Y[`]n]flÕfYddq[gf[dm\]k&@]f[]$YfYhhjghjaYl]jakc It is currently possible to protect only a name, logo, design,
management system is essential to limit loss to event companies but not an event concept or process. The industry should work
in case of unforeseen events. Currently, the responsibility for towards obtaining legal advice to enable protection of its original
jakceYfY_]e]flakg^l]ffgl[d]Yjdq\]Õf]\&L`]af\mkljq[gmd\ concepts and processes. These can then be exported to other
consider the following initiatives in this area: countries as well.
• <]Õfaf_klYf\Yj\jakceYfY_]e]fl[dYmk]kafn]f\gj
agreements to detail the responsibility for risk management, 8.4 Strategic aspects
or the required risk management procedures required to be
undertaken by vendors and partners Factors such as development of intellectual property, digital
• Building awareness among vendors and other service offerings, future solutions and funding for growth are important
providers regarding risk management through workshops to ensure that the industry makes the most of the business
environment in which it operates.
• Dafcaf_jakceYfY_]e]fllgl`]n]f\gjY[[j]\alYlagfjYlaf_
mentioned above 8.4.1 Intellectual property
L`]Z]f]Õlg^\]n]dghaf_AHkakl`Yll`]nYdm]g^YfAHaf[j]Yk]k
8.3.3 Regulatory ecosystem gn]jYh]jag\g^lae]Yf\l`]j]^gj]l`]Z]f]Õlkg^gofaf_AHk
Tax increases dramatically during the later years. Moreover, over
the past few years, investments in IP have also become common
L`]]n]fleYfY_]e]flaf\mkljqakkmZb][l]\lgemdlahd]lYp]k with private equity investors and ad agencies taking stakes in
and taxes which vary by state. Taxes in some states go up to event companies owning IP12.
)((11, which discourages event activity in those states. In
^Y[l$l`]j]ak\akhYjalqaflYpYlagfo`]f[gehYj]\oal`Õde Given the increase in digital media consumption, led by
production, television and print. In order to promote increased smartphone penetration and improved broadband connectivity,
activity, the industry should lobby for tax rates to be made it is now possible for event companies to build their own
common across states and be aligned to the tax incentives communities of like-minded individuals, and cater to their needs
and schemes available to other segments of the Indian media through events, activations, digital etc., at far lower costs than
af\mkljqdac]Õdehjg\m[lagf$]pàZalagf$]l[&L`]k]Yj][gn]j]\ before. More importantly, there is a lesser need to rely on
in detail in another section of this report. expensive mass media, as these communities can be reached
l`jgm_`l`]\a_alYde]\ameafYn]jq[gkl]^Õ[a]fleYff]j&AHk
Infrastructure also have the added advantage that sponsors are willing to
sign long-term deals for IPs, and they can be easily televised —
The regulatory ecosystem should support infrastructure growth
broadcasters are facing increasing costs for acquiring satellite
in the event management industry; wherein event venues
ja_`lkg^Õdek$Yf\f]]\]n]flklg]f_Y_]Ym\a]f[]k&
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.
)) `llh2''ooo&Õdeln_mad\af\aY&gj_']fl]jlYafe]flWlYpWafWnYjagmkW
states.html
)* Af\mkljqKgmj[]kYf\=QJ]k]Yj[`

8.4.2 Digital opportunity • Pre event: Pre event activities including marketing campaigns
Yf\la[c]laf_[gmd\Z]\a_alar]\&Gfdaf]la[c]laf_Yf\
<a_alYd]n]flkYf\Y[lanYlagfkoadd]fYZd]l`]f]plh`Yk]g^ eYjc]laf_[gmd\kYn]lae]Yf\[gklafgj_Yfaraf_]n]flk&>gj
_jgol`^gjl`]af\mkljq$_jgoaf_^jge*g^lglYdY\kh]f\kaf instance, a large portion of tickets at events like Sunburn and
*())Ç)*lg1Zq*()1Ç*(& Vadfest are being purchased online. Moreover, events can get
Percentage of total ad spends by marketers Z]ll]jnakaZadalqYf\YehdaÕ[Ylagfl`jgm_`\a_alYdhdYl^gjekYlY
fraction of cost of traditional media.
81% • During event:<a_alYdhdYl^gjek[Yf`]dhaf[gflafmgmk
feedback during the course of the event. For instance,
69% audience opinions, voting, bidding, merchandising and awards
could be enabled through digital platforms. This would help in
saving time, money and effort while organising events.
• Post event: Post event activities such as feedback and
database development could be managed better through
21% \a_alakYlagf&<a_alYd[YfYdkg]fYZd]]f_Y_]e]flhgkl]n]fl$
18%
9%
be it marketing, information dissemination or preparation for
2%
the next event.
2011-12 2012-13 2013-14 2014-15 2015-16 2019-20

(E) (E) 8.4.3 Fund raising readiness
ATL (net) BTL Digital So far, access to different forms of equity investments,
\]Z]flmj]k$Yf\gl`]j^gjekg^ÕfYf[af_`YkZ]]fimal]daeal]\
Source: EY analysis
afl`]af\mkljq&@go]n]j$fgoafn]klgjkYj]c]]fgf[YhalYdaraf_
the increasing growth opportunities which the event industry
L`]Z]f]ÕlkYj]eYfq2 holds. For instance, private equity investors and leading Ad
• On the customer front, digital will help in improving the agencies are increasingly looking at event companies having
customer experience before, during and after the event. their own IPs. Media houses are also willing to do equity for
• <a_alarYlagfYdkgeYc]k[gfl]fl\akljaZmlagfYf\afl]jY[lanalq media space deals. More inbound investments are being made
affordable for smaller, yet advertiser friendly, customer afj][]flq]Yjk&=n]fl[gehYfa]kf]]\lghj]hYj]l`]ek]dn]k
segments. for onboarding investors. This will include better reporting,
implementing accounting and business policies, accounting
• Advertisers prefer digital events due to the lower cost of
technology and restructuring of contracts.
j]Y[àf_Ym\a]f[]k$dgo]jd]n]dkg^gn]jÖgo$YZadalqlg
\]egfkljYl]JGAafYj]Ydlae]ZYkakYf\YZadalqlgj]Y[` Type of deals 2005-2015
media-dark but telecom-lit consumers.
• On the administrative front, digital platforms can support
decision making requirement of event companies through Inbound 11
analytics wherein number of clicks, social media activity,
purchase cycle, visits and content viewed could be captured Domestic 5
through increasing usage of digital.
Private-equity 3
Value chain of digital convergence in events
Pre-event During event Post event Buy-back 1
• Marketing • Feedback • Feedback

Source: EY survey
• Contests/ • Opinions • Targeted
interaction • Voting/elimination marketing
• =ph][lYlagfk • Bidding • <YlYZYk]
• Ticket sales development
• Awards
• 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 Siddharth Ganeriwala Jai Mundra K.J. Singh Gurna Girish ‘Bobby’ Talwar
9JL=fl]jlYafe]fl Aura Integrated Solutions :]]h=ph]ja]f[] :]ddk]l=fl]jlYafe]fl BookMyShow
Services Management
Sunil Kutty Menon Sanjeev Pasricha Atul S. Nath PVN Vidyasagar Mohomed Morani
Brand Promotions ;K<aj]cl=n]flk Candid Marketing ;Ylhjg=n]flk Cineyug Media &
=pàZalagfk =fl]jlYafe]fl =fl]jlYafe]fl
Mandeep Singh Rajesh Varma Samit Garg Sharad Mathur Roshan Abbas
CPM India Sales & ;JA=n]flk =>Y[lgj=fl]jlYafe]fl =E?=fl]jlYafe]fl =f[gehYkk=n]flk
Marketing
Atul Chabra Siddhartha Chaturvedi Humayoon Zaidi Brian Tellis Khantil Mehta
=fl`mk]9fko]jk =n]fl;jY^l]j =n]flF]logjc Fountainhead Gobananas
Communication =fl]jlYafe]fl Hjgeglagfk=n]flk
Pramod Gaikwad Sanjay Kaul Harish Babu Deepak Pawar Vijay Bokadia
Ice Global Impact Communications Aehj]kYjag=n]fl Midas Next Media Egck`=n]flk
Management

Raj Batra Mandeep Malhotra Rahul Gomes Manuj Agarwal Rajeev Jain
EgkYa[=n]flk Mudra Max Oak’s Management H]j[]hlDan] JYkà=fl]jlYafe]fl
Consultancy
Harshal Kothari Sameer Tobaccowala Michael Menezes Harjinder Singh Himanshu Shah
Jakaf_=n]flk K`gZar=ph]ja]flaYd K`golae]=n]flk K`googjck=n]flr KGADan]EYjc]laf_
Communications =n]flk
Amit Gupta Sanjoy Roy Amanveer Singh Anushree Agarwal Dr. Jaydeep Mehta
Klgjq=fl]jhjak]k Teamwork Arts L]f=n]flkYf\ Theme Weavers True Innovation
=fl]jlYafe]fl
Ankur Kalra Sabbas Joseph Sachin Talwar Jojoe Jacob Rajesh Ravani
Vibgyor Brand Services Oar[jY^lAfl]jfYlagfYd Ogo=n]flk Plj]e]Eaf\r Zion Unlimited
=fl]jlYafe]fl
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^Õ[]jk
CFOs ;à]^ÕfYf[aYdg^Õ[]jk
CMOs ;à]ÊYjc]laf_G^Õ[]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$Af\aY
Great Britain Pound
GST Goods and Services Tax
IFC Afl]jfYdÕfYf[aYd[gfljgdk
AFJ Af\aYfJmh]]k
IP Intellectual property
ISP Internet service providers
ITCC Af[ge]LYp;d]YjYf[];]jlaÕ[Yl]
DYc` A hundred thousand
M&A Mergers and acquisitions
EA;= Meetings, incentives, conferences and
exhibitions
MIS Management information systems
NOC FgGZb][lagf;]jlaÕ[Yl]
PAT HjgÕlY^l]jlYp
JGA J]lmjfgfafn]kle]fl
L<K Tax deducted at source
TV Television
US$ Mfal]\KlYl]k<gddYj
WCGW What could go wrong

About us
Event and Entertainment EY
Management Association =Qakl`]dYj_]klhjgna\]jg^hjg^]kkagfYdk]jna[]klgl`]e]\aY
and entertainment industry in India. With a dedicated events
(EEMA) l]Yekaf[])111$=Q`YkZ]]fYkkg[aYl]\oal`gn]j)-(
different events, awards, contests, game shows, talent hunts,
L`]=n]flYf\=fl]jlYafe]flEYfY_]e]fl9kkg[aYlagf ==E9!
etc. It provides various events services including IP development
akYfYmlgfgegmkYf\fgf%hjgÕlj]_akl]j]\Zg\qg^[gehYfa]k$
and valuation, event risk management, voting/scoring process
afklalmlagfkYf\hjg^]kkagfYdkgh]jYlaf_oalàfl`]=n]flkYf\
automation, event process documentation and validation of
=ph]ja]flaYdEYjc]laf_af\mkljqgÂf\aY&Gn]jl`]hYklk]n]f
participant selection or winners.
q]Yjk==E9`Yk_jgofaflgl`]\]%^Y[lgnga[]^gj]n]flk&
Qgm[Yfk]f\afqgmj^]]\ZY[cYf\km__]klagfklg2
==E9akl`]ÕjklYf\gfdqZg\qgâlkcaf\$oà[`k]]cklg
Ashish Pherwani: Ashish.Pherwani@in.ey.com
Zjaf_lg_]l`]jl`][gmfljqÌkd]Y\af_=n]flEYfY_]e]fl$
JY\àcYHjY\`Yf2JY\àcY&HjY\`Yf8af&]q&[ge
KhgjlkEYfY_]e]flYf\:jYf\9[lanYlagf[gehYfa]k$EA;=
Jay Sampat: Jay1.Sampat@in.ey.com
Yf\O]\\af_HdYff]jk$=ph]ja]flaYdEYjc]l]jk$=fl]jlYafe]fl
Professionals, Artist Management Companies and International 9[[]kk=QÌk_dgZYdYf\Af\aYfe]\aYYf\]fl]jlYafe]flaf\mkljq
[gmfl]jhYjlkgfl`]kYe]hdYl^gje&==E9lg\Yqakl`]gfdq reports at
fYlagfYdYkkg[aYlagfoal`YmfaÕ]\nga[]l`Yld]Y\k\aYdg_m] ey.com/IN/en/Industries/Media---Entertainment
within its members and with government, Statutory Bodies,
LYpYlagf9ml`gjala]k$HjanYl]Yf\Emfa[ahYdDa[]fkaf_:g\a]k$
;gjhgjYl]Af\mkljq$N]f\gjkYf\9jlaklk&==E9akk]llaf_
Industry Standards that guide its members and has prescribed a
Code of Conduct for its members and their employees.
Kaf[]alkaf[gjhgjYlagfaf*((0$==E9`YkjYha\dq_jgofaf
e]eZ]jkàhlgaf[dm\]Yddka_faÕ[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]jaÕ]\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.

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Making experiences

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

6 Current state of the industry

24 Mergers and acquisitions

38 Governance, risk and control

44 EEMA wish list

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

Current state of the industry

Mergers and acquisitions

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

Governance, risk and control

EEMA wish list

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

1.1 The industry continues its • L`]]n]flkk]_e]fl`Yk_jgof^Ykl]jYlYjgmf\)-h]j

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

1.3 Managed events continue to be the largest service offering

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

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

Type of service offering

Genre of events IP Managed events Activations Digital

=fl]jlYafe]fl • IIFA • Filmfare • Indian Idol auditions • Axe Boat Party

:*:Ç;`Yff]d • Microsoft Corporate • <]Yd]je]]lk • <]Yd]je]]lk • >adel][JYbY

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

Digital events 78% No. of events 61%

Managed events 18%

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

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

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

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

Managing event risk

Best Second best Third best

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

2.1 The industry continues its • 0/g^kmjn]qj]khgf\]flk`Yn]hdYfklgg^^]jgf]gjegj]

Expected size of the events industry (INR Crore) >3 3%

2013-14 2014-15 2015-16 (E) 2016-17 (E) 0 13%

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

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

2.3 Personal events, activation events 14%

campaigns, MICE and sports Sports

Awards and 13%

Making experiences in India: The Indian events and activation industry | 19

Games favored by brands for their brand marketing campaigns

28% 27% 26%

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

imperative Payroll 15%

• Better management of procurement costs

Making experiences in India: The Indian events and activation industry | 21

IPs expected to be launched in next 2-3 years

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

Service outside India

Payroll costs 35%

Making experiences in India: The Indian events and activation industry | 25

3.1 Overview of the M&A • Mf[]jlYaflqaf[Yk`Ögok\m]lg`a_`[mklge]j

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

Date Target Investor Industry Deal type

February 2015 =n]flaÕ]j BookMyShow =n]flk <ge]kla[

October 2014 9\dYZk=fl]jlYafe]fl FQDAEBY[gZ:YddYkAf\aY =n]flk'9[lanYlagf Private equity

April 2014 E]\aYDgmf_] Origin BeanstalkCreatives =n]flk <ge]kla[

October 2012 CO9F=fl]jlYafe]fl CAA Talent management Inbound

July 2011 <aj]pagfk?dgZYd DgqYdlqGf] <YlYZYk]EYjc]laf_ Inbound

October 2010 9kaYf:mkaf]kk=p`aZalagfYf\ IAfn]klDD; =n]flk Private equity

EYj[`*((1 Candid Marketing Candid Marketing management Activation Buy-back

9hjad*((0 J9EK Grey (G2,WPP) Activation Inbound

1.1 The industry continues its • L`]]n]flkk]_e]fl`Yk_jgof^Ykl]jYlYjgmf\)-h]j

2.1 The industry continues its • 0/g^kmjn]qj]khgf\]flk`Yn]hdYfklgg^^]jgf]gjegj]

October 2012 CO9F=fl]jlYafe]fl CAA Talent management Inbound

January 2005 Ca\klm^^Hjgegk=n]flk <<:Em\jY =n]flk'9[lanYlagf <ge]kla[

Corporate social • L`];KJY[l[mjj]fldqklYl]kl`Yl*g^hjgÕlkg^[gehYfa]koal`lmjfgn]j We propose that the