Indian weddings, long renowned for their penchant for lavish spending, are attracting corporates across a clutch of industries, transforming the wedding services industry into a more organised business.Firms are making substantial investments in the segment to offer services spanning the entire gamut of the matrimonial business from matchmaking and entertainment to insurance.
"It is one time no one minds spending," says Manjunath Jyothinagar, president, business development, Gitanjali group, which is investing 1 billion rupees over the next three years in wedding-theme malls and luxury retail.
He expects family spends of 1-2 million rupees each on jewellery and designer brands at these malls, where group firm Gitanjali Gems Ltd. will house its retail jewellery.
"If you want to be in the jewellery business, you are catering for weddings," said V. Govindraj, vice-president, retail and marketing, Tanishq, pegging about 40-60 percent of India's jewellery revenues to weddings and festivals.
Tanishq is owned by Titan Industries Ltd., which derived more than half its revenue from jewellery sales in FY07.
Real-estate developer Omaxe Ltd., which has filed initial listing documents with the market regulator, is building three wedding malls slated for completion by end-2007.
Non-traditional businesses also see an opportunity here.
People Interactive (I) Pvt. Ltd. offers match-making services through its portal shaadi.com and its 'ShaadiPoint' retail chain is expanding to 400 outlets from 150 in the next 18 months.
"It's a very large industry, easily upwards of $10 million if not more, and 99.9 percent of it is unorganised," says Chairman and Managing Director Anupam Mittal.
Catering to this demand are also other matchmaking websites like jeevansathi, promoted by Info Edge (India) Ltd., and bharatmatrimony.com.
Insurance provider Bajaj Allianz General Insurance has introduced wedding policies to cover losses due to postponements or cancellations due to fire or other accidents.
"The need is there, but people don't look at it because the awareness is not there and for superstitious reasons," a company spokesman said. "It's a niche product." While few policies have been sold, the firm is sure it would grow, he added.
Ghai Enterprises, which operates banquet hall chain Mayfair Celebrations, reported 70 million rupees in revenue from banqueting services for weddings alone in FY07.
Weddings bring in 65 percent of its banqueting revenues, said Srinidhi Rao, chief operating officer, Ghai Enterprises, adding it plans to have nine halls from three now by end-2007.
WEDDING WHIMS
The clientele is now more demanding with requests that range from champagne bars and theme weddings to exotic cuisines and entertainers from around the world.
"People are not concerned about discount, but they are about value," says Thomas Abraham, resident manager of luxury hotel Leela Kempinski Mumbai, owned by Hotel Leelaventure Ltd. "It is a consumer's market."
Larger firms also act as 'in-betweens' for the smaller players, said Rao of Ghai Enterprises. "Service providers are more flexible now. They say yes to everything--there are more options available, more competition and more awareness."
