Exhibition World Issue 4 — 2019 | Page 39

India inflection point in terms of growth. According to Prasad, “The world is sitting up and taking notice of India … it is now India’s time to script its own growth story”. Anbu Varathan, CEO of Bangalore International Exhibition Centre, supported his colleague’s assertion, identifying huge growth potential. The IEIA, which has launched its own Made in India programme, is targeting 8% growth per annum over the next few years. Rising profile India’s profile is in the ascendant, it would seem. The annual IEIA seminar is gaining traction and the fact that Anbu Varathan will be President of UFI in November 2020 – the first time an Indian has held this position – brings kudos and can surely only raise the industry’s profile. Yet, even though the industry has come a long way, it is still playing catch-up with many developing India’s exhibition industry – an overview In a nutshell: The exhibition industry is highly fragmented, dominated by the north and west regions, worth INR265bn to the economy in 2018. The key challenge is a lack of exhibition space (c.480,000sqm total venue capacity nationwide), according to IEIA President KV Nagendra Prasad. However, moves to address this issue (i.e. new venues in Mumbai and Dwarka) could see 400,000sqm added in the next 3-4 years. 2018 performance: India held 615 B2B and B2B+B2C exhibitions last year, of which 38% were national and 62% regional, put on by 195 organisers. This represents a 3% Y-o-Y fall in the number of exhibitions due to cyclicality. w w w.exhibitionworld.co.uk countries (i.e. The Philippines) in terms of infrastructure and logistics, Dr Anup Wadhadwan, India’s new Commerce Secretary, told the seminar’s opening session. For all the talk about the industry’s exciting growth potential, the IEIA’s President was maintaining a sense of perspective. India is a mere eleventh the size of China in terms of exhibition capacity, he stressed, and the country’s lack of exhibition space at national level remains an issue. That said, the situation is improving. For example, several years after the original plan was conceived (in 2011), the first phase of the India International Convention & Expo Centre at Dwarka (near Delhi airport) is expected to open in February 2020. So, too, a new exhibition venue in Mumbai is being built. Collectively this will expand India’s venue capacity significantly – Prasad predicting that industry capacity will double in size in the next 3-4 years However, the total size of exhibitions (i.e. gross space rented out) was up c.9% Y-o-Y. Sector split: General consumer (B2B+B2C), building & construction and medical & pharma accounted for 28% of total gross exhibition space in 2018; most other sectors are still at a very early stage in terms of exhibition space. Regional skew: Regional events accounted for two-thirds of the total market (5.1m sqm. of gross space) last year, with the north and west making up 72% of exhibitions. A regional split of exhibition space shows a heavy skew towards the north (38%), west (34%) and south (22%), with very limited indoor capacity in the centre and the east of the country. Consolidation underway: Domestic companies made up ~55% of total >>> India Trade Promotion Organisation (ITPO) www. indiatradefair. com from the current 480,000sqm. Government support The IEIA President also stressed the government’s key role in helping to develop India’s exhibition industry, and fellow IEIA board member Ravinder Singh agreed. “More government support is needed in terms of providing venues for the country’s Tier 2 cities,” he said, although he did acknowledge the progress that has been on the capacity front in the past two years. events last year, with industry association and trade bodies leading with ~40% of total gross sqm. However, multinationals are gaining market share through M&A. Key drivers: Consolidation, B2B engagement, a growing regional focus on the south and the north, more emphasis on niche topics (luxury, safety), digitalisation and a focus on Tier 2 cities in India. 2020 outlook: India’s exhibition industry is forecast to grow at a 12% CAGR next year, according to EAC Consulting, reaching 6.4m sqm, driven by emerging sectors, new events and new venue capacity coming on-stream. Gandhinagar Railway and Urban Development Corporation Ltd. www. garud. org.in Kinexin Convention Management Pvt. Ltd. www. iiccnewdelhi.com/ Tamilnadu Trade Promotion Organisation www.chennaitrade centre.org Source: EAC Consulting Group (Snapshot: Exhibition industry India 2018: Status quo and Outlook) Issue 4 2019 39