It is a potential risk. And I think considering the dearth in quality space in India (especially Mumbai), the impact is likely to be minimal. Plus the size caters to different client segment.
Also, if you see on the map, Reliance convention centre is not directly accessible through NH or train. Nesco has this unique advantage.
My view is that upcoming BEC which is 4x the current size is the management’s thought process for countering modern exhibition from Reliance. So, existing BEC can cater to small clients and those who require modern and large space can take new BEC.
On pricing, I think exhibition business is quite inelastic. So, unlikely to have any price war. Let’s wait and watch how it unfolds.
Plus, in the model have considered very conservative estimates including occupancy of new BEC which gives margin of safety.