The events, activation and live entertainment industry is expected to touch the Rs 4,375-crore mark by 2013-14, according to a white paper released by Event and Entertainment Management Association (EEMA) and Ernst & Young.

The EEM industry is currently pegged at Rs 2,800 crore and has been growing at 20 per cent in the last two years, the white paper said.

“Sports, which are in the nascent state, digital activations which are becoming a part of our B2C events and events and activations targeted at the rural audiences are the areas that will drive the growth of the sector in the future,” said Mr Ashish Pherwani, Partner, Advisory Services, Ernst &Young, said. Estimates suggest that the marketers plan to increase the proportion of the below the line (BTL) spends from 17.8 per cent to 19.6 per cent by 2013-14.

The white paper was released by Minister of Information and Broadcasting, Ms Ambika Soni, on Monday.

Talking about the challenges faced by event management firms, Mr Brian Tellis, President EEMA, said, “There is a need to rationalise state taxes mainly high entertainment tax that makes events financially unviable. We would also urge the Government to provide the sector a tax waiver or a tax holiday for five years.”

The report also pointed out that the events and activation industry is likely to see mergers and acquisitions and interest from private equity and strategic investors in the medium to long term. “As more and more companies grow and cross the Rs 100-crore mark, build niche capabilities and get more corporatised, there could be more mergers and acquisitions in the industry,” Mr Pherwani added.

Meenakshi.v@thehindu.co.in

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