|
|
 |
|
Viewing report
|
|
|
|
Industry Report - India Round-up
Business Strategies Group Ltd, Aug 2010, Pages: 21
This is an updated edition of this report which was last published in May 2009.
For this edition of the India Roundup, we have focused exclusively on the exhibition industry in India. The exhibition industry in India is dynamic and poised for continued growth and as a result, it has received considerable attention from organisers with global ambitions. For the past several years, exhibition organisers including UBM, Global Sources, Tarsus, Reed and Diversified, to name just a few, have all been eyeing the opportunities in India.
In 2009, BSG recorded 112 B2B trade fairs in India representing over 700,000 m2 sold. Measured based on net m2 sold, that puts India fifth in the region behind China, Japan, Hong Kong and Korea. But with a population of over 1.2 billion and a GDP in 2009 of US$1.2 trillion, the upside potential is compelling. The scale of the opportunity in India is heightened by the fact that it is one of the fastest growing economies in the world. Last year GDP growth was 5.7% and in 2010, it is forecast to grow by 8.8%. Exports, which drive so much of the trade fair market there, are also expected to post strong growth.
This opportunity has not been lost on organisers with international reach. Global Sources’ Mumbai-based sourcing exhibition grew by 120% reaching 800 booths last year. UBM has continued to demonstrate a long-term commitment to the market with a local team of more than 150 and a portfolio of 17 exhibitions. U.S.-based Diversified acquired two B2B entertainment-focused trade fairs. While Tarsus, in addition to its LabelExpo India, is continuing to actively look for acquisitions in India.
There should be no shortage of acquisition targets in India. The exhibition market there is dominated by small local players (and industry associations that act as organisers). These small local players account for some two thirds of the market.
Given that fact and the optimistic outlook for India and its exhibition industry, we would expect to see more acquisitions. Yet, in 2009, BSG recorded just one transaction in India. This is, at least in part, a commentary on the quality of the potential acquisition targets as well as the often unrealistic valuation expectations of the local event owners. As a result, consolidation is occurring rather slowly. This means that a situation of copycat or “me-too” shows and occasionally hyper-competitiveness is likely to persist for some time.
The opportunities in India are also hampered by other factors including: a lack of high-quality venues, a sometimes uncertain regulatory environment and tendency toward bureaucratic red tape, but the venue issue is chief among these.
There are 14 exhibition centres in India comprising 257,000 m2 of venue space and only three venues offer 40,000 m2 or more. Pragati Maidan, the largest, has just less than 63,000 m2 while the Bangalore International Exhibition Centre and the Bombay Exhibition Centre both feature 40,000 m2. To put the Indian venue issue in context, by the end of 2011, China will have 95 venues and 4.1 million m2 of available space.
Despite these challenges, it is clear that the opportunities in India will continue to attract the attention and resources of key exhibition organisers across the region.
Customers who bought this item also bought
Exhibitions & Conferences Market Report 2009
Key Exhibition Venues in Asia
Stationery (Personal & Office) Market Report 2010
Exhibitions and Conferences Market Report 2006
Top 100 Exhibitions and Top 25 Organisers in Asia
Research Report on China's Convention and Exhibition Industry, 2011-2012
Exhibitions & Conferences Market Report 2007
Profile of the South China Exhibitions Market
Exhibition & Conference Industry - Business Ratio Report
The UK B2B Information Market
|
|
|
|
