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Our Bureau

New Delhi , Jan. 10

IT'S all about de-risking the event management business model. Bangalore-based event management company, DNA Networks, has signed on five big brands - Pepsi, Nokia, Hero Honda, Hutch and McDowell's to sponsor some of the popular events on an exclusive basis.

Speaking to Business Line, Mr T. Venkat Vardhan, Managing Director, DNA Networks, said, "We have decided to limit our sponsorship for our events to five sponsors, one being the title sponsor and the remaining four would be associate sponsors." This is being done to enable brands to break out of the clutter and reach out to the audiences in a focused manner.

Hence, Pepsi will be the presenting sponsor for the forthcoming shows by Sting in Bangalore and Delhi. "This show will attract the younger, upward moving crowd and therefore there is a brand fit," he said. For other events such as Campus Rock Idol held in smaller towns, Hero Honda and Pepsi have been associated. "Each sponsor has committed about Rs 4 crore - Rs 6 crore for this event and the company will be able to generate Rs 20 crore - Rs 30 crore as turnover this year," said Mr Vardhan.

Also rivals or competitors in the same segment would not be able to sponsor shows managed by DNA. Thus, other soft drink brands or cellular service provider or two-wheeler company could be kept out of the fray.

The live events business is currently estimated to be about Rs 400 crore - Rs 500 crore with corporate events garnering an 80 per cent share. And of the revenues generated from each show, about 60 per cent is generated through sponsorships and the remaining 40 per cent from ticket sales.

Meanwhile, Mr Vardhan said that the Event Management Association of India is in talks with various State Governments to bring down the entertainment tax.

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