Market Research Report :Event Management Market in India 2012


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As globalization set in, event management got a head start as multinationals started pouring into India. The general need to sculpt an event with utmost success has deliberated on the advent of event management as a profession. Today even general family events such as marriages are treading the lines of getting assistance from event management concerns. Formerly what started as a means of streamlining the entire set of activities to make a grand event, has inadvertently transpired into infusing elements of glamour and glitz to make it stand out from the rest.

The report begins with an introduction of concept of event management along with a brief description of the event planner as well as the activities that is required to manage. It is then followed by a detailing of the key steps in event management. The market overview section entails an understanding of the sector in India as also provides the market size and growth. A description of the key segments that event management concerns look to cover comes next. This gets followed by an analysis of the costs incurred and revenues garnered by a concern in this field on a normal basis. The focus then moves towards discussing the revenue model adopted by majority of the players in this sector. The next section elaborates on the value chain analysis of the sector. The section gets concluded with a Porter’s Five Forces analysis of the sector.

Brief descriptions of the drivers that help the sector to prosper include growth in disposable income and consumer spending, increase in below the line activities, increase in corporate vents, spurt in sport events, rise of wedding and other family events and rising need of organized and structured events. Event management service is deemed as a luxury product whose chief driver remains increased disposable income that can be expended beyond one’s expenditure for necessity. It is possible for people to splurge on extravagant events only if they have enough income at their hands coupled with their willingness to spend on parties. Another significant aspect in this regard is the increase of below the line (BTL) activities. Marketing as a genre has improved vastly with innovative avenues like BTL churning more publicity and visibility for products. BTL indulges in public events that are required to be organized keeping the interaction quotient in mind.

A significant driving factor in this sector is the increase in corporate events which are organized on a grand scale and as such require the help of event management concerns. As India awakens to a light towards prosperity, it is beset with a growth in the corporate sector per se. While corporate events get associated with business events, sports events are the latest addition in commercial events that also ask for event management services. Gala events in the likes of ICC World Cup or Commonwealth Games have th

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Market Research Report :Event Management Market in India 2012

  1. 1. Event Management Market IndiaEvent Management Market ‐Event ManagementEvent Management July 2012
  2. 2. Executive Summary  Event management market is slated to grow at a rate of 14% per annum over the period 2011‐14e  Can be categorized into 4 segments namely Corporate events, Leisure events, Cultural events and  Market Personal events  Revenues for the sector is sourced from predominantly 2 types such as reactive and proactive  bases Drivers Challenges – Growth in disposable income and  – High entertainment tax Drivers &  consumer spending – Increase in below the line activities Increase in below the line activities – Lengthy procedure for import of Lengthy procedure for import of  Challenges equipments – Increase in corporate events – Spurt in sports events – Rise of wedding and other family events – Rising need of organized and structured  events  Sports broadcaster entering event   Events going green in their outlook Trends  management domain  Hybrid elements coming to the fore  Event management courses in the offering  Foreign universities collaborating with Indian  F i Foreign companies entering India i i I di universities Major PlayersCompetition Advent Greens DNA Entertainment Fusion Events Percept Showhouse Wizcraft International EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 2
  3. 3. •Introduction•Market Overview•Cost Revenue Analysis•Drivers & Challenges•Government Participation •Trends•Competition•Strategic Recommendations pp•Appendix EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 3
  4. 4. Need for sketching events with precision and grandeur converges on the surfacing of event management sector SAMPLE Event Management Market – Overview   • Event management industry in India is roughly ten to twelve years old and is fast gaining momentum • Primarily it has been an unorganized market which is slowly transitioning into an organized structure • Increase in a1 and a2 needing professionals to manage them has led to a major demand for event managers • a3 and a4 are considered to be 2 areas where there is immense potential for getting jobs a3 and a4 are considered to be 2 areas where there is immense potential for getting jobs  Event Management Market – Growth INR bn f% E D C B A 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 4
  5. 5. A cost‐revenue analysis deliberates on the costs incurred and revenues garnered by the players Cost – Revenue Analysis  SAMPLE  Costs incurred being of the organizers and vendors, revenue model for  this sector varies from firms to firms    P1 P5 X1 X5 P2 R X2 E P6 C V O E S X6 P3 N T U X3 E P7 P4 X7 X4 EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 5
  6. 6. Drivers & Challenges – Summary   Drivers Growth in disposable income and  consumer spending Increase in below the line activities Challenges Increase in corporate events High entertainment tax Spurt in sports events Lengthy procedure for import of  Lengthy procedure for import of equipments Rise of wedding and other family  events Rising need of organized and  Ri i d f i d d structured events EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 6
  7. 7. Efforts to make family events unique translates into growth proposition for event management services Rise of wedding and other family events  Impact• As wedding industry shoots with burgeoning demand for lavish events, wedding planning  industry gets a boost for demand of organized and structured planning services• Th These planning services are the forte of event management concerns whose revenues are  l i i th f t f t t h sourced from these events by a considerable percentage• Wedding as an event needs precision in planning and implementation which is rendered by  event management concerns• Presently, people are willing to shell out huge money to make their events glorious and stand  out from the rest  Selecting proper venue, cuisine to that of arranging for entertainers like actors or singers to perform in  weddings constitute the multifarious facets that actually require professional and organized help• As income level increases and associated affluence augments, time devotion becomes a  constraint which paves the way for event management concerns  to step in and hold reins Wedding Industry – Growth in India INR bn u% T S Q1 R Q P 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 7
  8. 8. Umbrella association holding the reins of the entire… SAMPLE Event & Entertainment Management Association (1/3) • Event & Entertainment Management Association (EEMA) is an apex body that represents all credible event  management companies of India  management companies of India • Is an unified voice of the industry to the Government, statutory bodies, taxation authorities and private  licensing authorities as also individual clients or vendors or artists • It primarily looks to lay down professional standards of management and interface between its members and  clients, vendors and artists across the country   Representation to Legal/  Features of EEMA Government Bodies F1 • R1 • R2 F2 • R3 • R4 F3 EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 8
  9. 9. Trends – Summary  Sports broadcaster entering event management domain  Event management courses in the offering Foreign companies entering India ` Key Trends Events going green in their outlook Hybrid elements coming to the fore Foreign universities collaborate with Indian universities EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 9
  10. 10. Going green has become the buzzword for this sector SAMPLE Events going green in their outlook • Event management concerns are presently concentrating on environmentally conducive  themes • Organizers are looking at incorporating green elements to their shows by including all those  g g p gg y g components that do not harm the environment • This not only acts as a means to preserve the environment but also manages cost effectively in  the long run T1 T2 Advantage T3 T4 T5 Advantage  T6 T7 T8 Advantage  Ad t T9 T10 T11 Advantage  Advantage T12 EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 10
  11. 11. Private: Domestic Company – Company 1 (1/3)Company Information SAMPLE  Offices and Centres – India Registered AddressTel No. Place      Fax No.WebsiteYear of Incorporation Registered  AddressProducts and ServicesProducts and Services Category Products/ServicesServices Event Management Key People Name N Designation D i ti Person 1 D1  Person 2 D2 Person 3 D3 Person 4 D4 EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 11
  12. 12. Private: Domestic Company – Company 1 (2/3) Financial Snapshot i i lS h SAMPLE  Key Ratios K i Total Income y‐o‐y change  Particulars  2011 2010 2009 2008Total Income Profit (2011‐10) INR mn Profit / Loss INR mn  Profitability Ratios V Operating Margin 12.71 25.64% 12.94% 24.07% N.A. X Net Margin 13.03 15.19% 2.15% 15.62% N.A. Profit Before Tax Margin 12.71 25.64% 12.94% 24.07% N.A. W Return on Equity 27.23 31.10% 3.86% 56.61% 11.33% Return on Capital Employed 45.71 70.09% 24.38% 121.64% 28.11% Return on Working Capital 40.81 48.94% 8.14% 105.38% 13.62% Return on Assets 26.67 30.18% 3.51% 50.24% 9.07% U Return on Fixed Assets 78.17 84.59% 6.43% 101.35% 33.82% 0 0.0 Cost Ratios 20‐‐ 20‐‐ 20‐‐ 20‐‐ Operating costs (% of Sales) ‐12.71 74.36% 87.06% 75.93% N.A. Administration costs (% of  N.A. N.A. N.A. N.A. N.A. Financial Summary  Sales) Interest costs (% of Sales) Interest costs (% of Sales) N.A. NA N.A. NA N.A. NA N.A. NA N.A. NA • Company incurred a net profit of INR ‐ mn in FY 2011, as  Liquidity Ratios compared to net profit of INR ‐ mn in FY 2010 Current Ratio ‐22.90% 3.26 4.23 2.31 3.33 Cash Ratio ‐7.49% 1.93 2.09 0.74 0.24 • It reported total Income of  INR ‐ mn in FY 2011,  Leverage Ratios registering a decrease of ‐% over FY 2010 Debt to Equity Ratio ‐63.69% 0.03 0.08 0.12 0.25 Debt to Capital Ratio ‐61.80% 0.03 0.08 0.11 0.20 • Earned an operating margin of ‐% in FY 2011, an increase  Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A. of ‐ percentage points over FY 2010 Efficiency Ratios • The company reported a debt to equity ratio of ‐ in FY  Fixed Asset Turnover 86.47% 5.57 2.99 6.49 0.00 2011, a decrease of ‐% over FY 2010 Asset Turnover 21.73% 1.99 1.63 3.22 0.00 Current Asset Turnover Current Asset Turnover ‐22 63% 22.63% 2.23 2 23 2.89 2 89 3.83 3 83 0.00 0 00 Working Capital Turnover ‐14.79% 3.22 3.78 6.75 0.00 Capital Employed Turnover 14.06% 2.05 1.80 3.62 0.00 Improved Decline EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 12
  13. 13. Private: Domestic Company – Company 1 (3/3)Key Recent Developments SAMPLE  Description  News • Boasts of handling all the five stage sin an event including b1, b2, b3, b4Overview • Provides management services in fields of b5, b6, b7, b8, b9Services  • Events organized include b10, b11, b12, b13 • Judges every event by its own exclusivity and categorizes events into 3 divisions which are  y p looked after by experts in each fieldMiscellaneous i ll • Starting from b14, b15, b16 to b17, b18, it looks after every nooks in the organizing of  events EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 13
  14. 14. Thank you for the attentionThe Event Management Market – India 2012 report is a part of Netscribes’ Business Services Industry Series.For more detailed information or customized research requirements please contact:Phone: +91 33 4064 6214E‐Mail: sales@netscribes.comFollow us on:About NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used in the preparation of this report,Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes. and Netscribes is not responsible for any loss or damage arising from use of this document This document is the sole property of Netscribes andprior permission is required for guidelines on reproduction. EVENT MANAGEMENT MARKET IN INDIA 2012.PPT 14