India - Montgomery Exhibitions’ India division has closed its Mumbai office and is in the process of dissolving InterAdsMontgomery, its joint venture with Inter Ads Exhibitions.
The company’s India and Ireland divisional director and group CFO, George Tsangari, says Montgomery Exhibitions has no plans to launch any new shows in India in the foreseeable future, although plans are constantly under review.
“We could not see adequate returns in the medium term in order to justify spending more money. The current economic climate forced us to re-look at our strategy and assess the risks versus the potential rewards from all our business units,” he says.
Both Montgomery Exhibitions and Inter Ads Exhibitions say the break up of the joint partnership, including the hosting of IFE India which was launched in 2002, is by mutual consent.
Tsangari says that while India can still offer rewards in the longer term, the risks are too high in the current economic climate. “The lack of adequate venue space, the delays, postponements and cancellations in building new venues in Delhi and Mumbai, the increasing costs of running shows, the high administration processes required to conduct business as well as the different business practices involved with doing business in India just added to the risks.”
Meanwhile, Reed Exhibitions has closed its Delhi office, one of two that the company runs in India, in a move to consolidate the business. CEO Alastair Gornall blames the current climate. “There is no way that we would be pulling out of the country as it is a very important long term market for us, but we have had to slow down our investment.”
Reed Exhibitions still plans to organise several of its current shows in the cosmetic and recycling sectors. “It is clear to remain in India for when the global economy improves,” he adds.
Photo copyright © Lonnie Rattner / Abercrombie and Kent
