From a teenage student guiding companies
to their exhibition spots on his bicycle at bauma 2014 in Munich barely ten
years ago, to being in charge of organising the Indian edition of the global
equipment fair – dubbed bC India – IGOR
PALKA, CEO, bC EXPO INDIA PVT. LTD has come a long, long way. The young
exhibitions veteran offered CONSTRUCTION OPPORTUNITIES, India’s leading
construction equipment magazine an understanding of his organisation’s
efforts to build the bauma Conexpo brand in India.
Construction
Opportunities queries regards the assessment of bC India which will now be into
its 3rd edition?
I
would say we are still comparatively young event but the good point with brand
bauma – which is well established – is that we are also well known now as bauma
Conexpo. We are offering the platform in India which we used in Europe or in
China and now also in Africa. Therefore many people know what we are talking
about and we don’t really have to market ourselves further as to our identity.
What
is the distinction that you draw from other bauma Conexpo editions abroad and
what does India mean as a market to you?
We
do our analysis of how much the potential is. If you look at the most recent
Five Year Plans that the Indian government is addressing you will see there is
a great emphasis on infrastructure projects. There is so much that needs to be
built here. It has been so for the last 10 years and will continue for the next
20 years. India is a country set for a boom in development. Of course the pace
will depend on the government’s approach to execution of projects but we do
know that development and growth is assured. It also means from our perspective
that India has great potential as an exhibition destination. India because of
its huge market size has always been on the bauma radar and it was only natural
that we had to be positioned here.
Give
us a sense of why and at what point your headquarters in Munich thought of
India as an exhibition destination?
I
am not sure how the dateline looked like by that time, but I think by a certain
point of time during the last 10 years we had pretty much analysed India and
thought of launching our exhibitions here. After seeing hundreds of thousands
of visitors at our home base in Munich – which this year is celebrating its 50
th year – we decided that foreign business was also important. We thought: Why
should it be that the customer should always come to you? Why not go to the
customer? Of course that is when we thought of exporting our events abroad.
China was the market which we explored first when we opened our subsidiary
office and extended our bauma brand there launched bauma China to showcase
construction equipment and construction machinery. bauma China happened with a
comparatively smaller event than in Munich but it grew comparatively fast in
terms of size – it is 60 per cent the size of bauma in only 5 or 6 editions
when bauma itself was in the 30th edition. This development happened during the
last 10 yrs and we thought it could happen in India as well, there was no doubt
about that, so we brought it to India together with our American partner AEM.
The process took some time because we had to set up the legal company, find
office premises and such things. Then five years ago the execution happened
quickly. Then we started with our subsidiary MMI India and just one show –
Electronica – which further grew to 8 shows. I think every company in Europe
and the western hemisphere now is led to think that it has to move to India –
and that such a step should come sooner than later. India is a virtual
continent, you don’t jump in and gain results within one year because you need
to adapt to the local market in the local way. You grow with India. Things
don’t happen here immediately and you have to think of investing for the long
term to gain benefits. And that is why we are inspired to be here.
bC
India is a joint venture between Messe Muenchen International – which holds 66
per cent share – and the Association of Equipment Manufacturers of the USA. AEM
had the expertise and knowledge of organizing the biggest event on the American
continent with CONEXPO-CON/AGG. We had the experience and expertise of
organising the bauma Munich for a long time and we are competitors for other
event organisers but when we launched in India we decided to work hand in hand
with AEM which has a presence in Asia and in North America. The joint event was
renamed bauma Conexpo India. We have done a similar thing in Africa. Because we
are from the same industry we are close partners with AEM. We combine our
knowledge and expertise and customer base to function effectively.
Can
you tell us about the progression made in two previous editions of bC India in
terms of delivery of your objectives?
We
launched our first event in February 2011. Obviously there were many challenges
since we were doing it in India for the first time. There were certain
expectations from Europe from the brand bauma after our tie up with AEM. The
first event was an extreme success. We had 508 exhibitors and the visitor
turnout was around 22,000 in 80,000 sq m of exhibition space. That for a first
event was amazing and it over achieved our expectations. It was a perfect
launch for bC India and two years later in February 2013 our exhibitors grew to
710, a jump of more than 200 companies. In terms of visitors we grew to over
28000. This gives us the indication that we are on a right track and that the
brand is moving forward and becoming stronger. The feedback is always great. We
have one slogan: ‘Quality is the difference’. I think that is what companies
expect from us as organisers. We want to further raise the bar of quality of an
event and this is something that we are working on everyday here.
These
two events happened at a particularly sensitive time of history – the global
economic meltdown. How correct would it be then to categorise the two bC India
editions as a success?
The first show was more than a success. It over
achieved our targets. We had a waiting list of companies. We were not expecting
that kind of response. The economic situation went down in 2012 especially the
2nd half. 2013 was expected to be flat as well but what happened at
the second edition was that the companies were considering to cancel or to
reduce exhibition space. That also happened to a certain extent. Companies said
it’s getting worse but they still wanted to remain with the show and instead of
2000 to 1500 sq mtr decided to go with a little less. They still remained with
us because they knew it was important to have a strong connection with us and
we thank our customers for that. Otherwise we couldn’t possibly have increased
exhibitor size to 710 companies although the economic situation was not in our
favour. Yes, the show could have been much better in terms of visitors but we
are still happy with the outcome of both the events. We were then only on our
2nd birthday and could say we were developing.
I
remember your colleague Thomas Loeffler telling me after the 2013 edition that
it was a success in terms of the quality of visitor turnout?
That
is correct. What we do is that we are selective and don’t open our doors to
everybody. We could easily have achieved 35,000 visitors. The point is we are a
business to business platform on which the top people of the industry come
together. Here quality makes the difference not only in terms of organising the
event but also visitor wise.
As
an organiser how do you assess who is the right exhibitor – is there a process
of weeding out involved?
We
know most of the exhibitors very well because we have a very good relationship
with each one of them from the past through organising shows in Munich and in
Las Vegas. From our database we know about the companies in various categories
and the products they represent. Of course there are new companies – small and
mid-sized – which we don’t have on our monitors who send their applications,
but we have a system of checking who they are and what they are doing – because
if we have them on the show we don’t want others feeling uncomfortable. We
would like exhibitors to fit into our portfolio and try to ensure there is no
mismatch. We don’t want a wrong perception of our show and therefore have a
whole set of requirements for exhibitors to meet. We have guidelines for
various categories and sub categories of products related to their position and
placement on the fairgrounds – we try to club various product categories like
vehicles, building construction equipment. When an application form is accepted
from a company we don’t spread them around loosely on the venue but combine
them in locations where it becomes easier for visitors to focus on a particular
group of products. So companies in scaffolding or form work will be pooled
together. Some companies may not want to be next to an XYZ company – that is
tricky and almost like a puzzle for us to unravel. So we are allocating space
keeping in mind sensitivities offering a perfect overview of the product
market.
You
mean companies are very touchy about things like their positioning on the
exhibition chessboard?
That
is one of the biggest challenges. Every company has its own set of demands
of space in terms of size, the position of its stand in the exhibition zone, even things like the identity of the company in the stand next to it. If we were to follow all their demands things would become so difficult for us. We have to do a lot to convince them in order to cater to the requirements. It therefore makes strategic sense for us to clear the big blocks first. We allocate big companies with stands and only after their approval is obtained we proceed with the placement of mid sized and small companies.
of space in terms of size, the position of its stand in the exhibition zone, even things like the identity of the company in the stand next to it. If we were to follow all their demands things would become so difficult for us. We have to do a lot to convince them in order to cater to the requirements. It therefore makes strategic sense for us to clear the big blocks first. We allocate big companies with stands and only after their approval is obtained we proceed with the placement of mid sized and small companies.
That
would naturally mean a lot of advance preparation for the next event here?
We
started for bc India 2014 in September last year. We require 15 months of
preparations. The pace is slow initially: you send the application forms, get
in touch of the companies, and work with them after receiving their
applications. The pace increases as the show gets closer. It has been quite a
learning experience for me in the short period I have been here.
I was a little worried in the beginning because I was used to the application period in Munich where right after sending out the application you received 100 back within a minute. Here that comes a little bit more towards the end. With so many holidays – Diwali and Christmas – and other events like elections taking place companies want more time to make a decision as also to monitor the market. But I am happy they are finally coming back to us.
I was a little worried in the beginning because I was used to the application period in Munich where right after sending out the application you received 100 back within a minute. Here that comes a little bit more towards the end. With so many holidays – Diwali and Christmas – and other events like elections taking place companies want more time to make a decision as also to monitor the market. But I am happy they are finally coming back to us.
Construction
Opportunities queries regards to the feedback that you have received as of now
- what are your expectations from the next edition of the show?
We
have to be realistic in our expectations. The market hasn’t picked up that
dramatically as compared to the last event. We hope to increase the turnout
both in terms of quality and quantity. That is the deliverable expected of us.
We really would like to cross the 800 mark but cannot be very sure. The next
edition is at a new venue and we need to understand that we are dealing with an
entirely untapped market of visitors coming from the north. As far as
expectations go, with a new government in place and projects being announced
everybody anticipates 2015 to have a significant growth rate – and that from an
exhibitions perspective is good news for us.
How
is India as an exhibition hosting destination?
Exhibitions
have been recognised as a very good marketing tool by companies in Germany as
indeed in much of Europe. Because of the regular conduct of such exhibitions
which leads to buyers and dealers meeting each other the business has reached a
very high level of sophistication. I think this understanding of the benefit of
exhibitions must still grow in India and if there are proper venues for the
conduct of such exhibitions. India is a very big country it needs more
facilities to measure up to the requirements of international visitors.
The
main challenge of course is the absence of proper fair grounds. We at Messe
Muenchen are always keen to know of development in terms of trade for
exhibition centers all across India especially for a show like bauma for which
you need proper space. Ideally we would look for a venue of 200,000 sq mtrs. We
would like indoor facilities with high ceiling hangers and without pillars and
with a high loading capacity where all the huge machinery can be displayed. We
would also want a levelled concreted outdoor area with a drainage system and
electricity supply, connectivity in terms of roads and other infrastructure,
proximity to a port, airport and hotels nearby would be great. Everything has
to be monitored and it’s quite a challenge to find a proper venue. We are now
doing the third edition of bC India in Greater Noida. We will see how it works
and we are pretty confident that it will work out well.
Could
you explain the choice of Noida as a venue over Mumbai?
From
the temporary structures that we see in Mumbai we will experience an increase
in quality at Noida because of the existing fixed infrastructure available
there. We don’t have to build anything like halls and toilets. Then we have a
huge outdoor area with concreted grounds so no leveling is required. Indeed the
support offered by the venue is very big – and that is the main reason why we
picked it over Mumbai. Besides it made sense to look at the untapped market of
the north.
Won’t
the absence of a port close to Noida pose a logistical challenge?
We
would have to calculate 2-3 days more than it would take for a venue like
Mumbai to move material by road. It is so easy to transport equipment to BKC
than to bring it to Delhi. Of course we have very good support from our
logistic partners and forwarding companies.
Construction
Opportunities asks about the support that you are receiving from urban local
bodies and the government?
The
Builders Association of India (BAI) which is a co-organiser has been very
supportive of our project since the first event. We are also working closely
with iCEMA and other international associations which support us by bringing
delegations. We have received tremendous support from industry and from various
government bodies in the past and we expect the same this time around too. We
are also in touch with various diplomatic missions to have the head inaugurate
the various national pavilions. For example, we hope to have the German Consul
General to welcome the local companies.
Tell
us of the turnout of Indian companies at bauma’s parent show in Munich. What
are the prospects of India raising its exhibition venue profile?
I
think bauma in Munich and Conexpo in North America is still very far away for
India. bauma in Munich is the mother of international equipment shows. There
are 30 to 40 big international companies who want to be there at that
exhibition but are in the waiting list. Still we have 30-40 companies
representing India who come to bauma. This figure could be higher if we had
more space in Munich. In comparison there are about 300 Chinese companies who
are regulars at Munich – there are more of attachment providers than
manufacturers of big machinery. They have been able to raise their exhibition
profile over the years. I think India can also grow like China if it develops
an exhibition mindset along with infrastructure
Very
obviously your idea would be to surpass the previous experience. How are you
looking to do it in the next edition of bC India?
I
have to admit that for me some things are usual because the show is for the 3rd
time. However I am organising it for the first time and doing so at Noida,
which is a different venue with new local authorities to deal with, is like
conducting an event for the first time. We would most certainly want to improve
the quality of the event. We know from the monitoring of past events what we
must do and what we should not do, so we are very well guided. Luckily enough,
I have the same team working on the project as the previous two editions. We
will try to bring in fresh ideas based on our past experience to make this
upcoming event a great success. We definitely have a few plans up our sleeve to
raise the quality bar at the new venue.
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