RUMBLE UNDER OUR FEET
Business of Sports – Rumble Under Our Feet | 1 2 | Business of Sports – Rumble Under Our Feet TITLE Business of Sports – Rumble Under Our Feet
YEAR November, 2018 Media & Entertainment, Fine Arts, Luxury and Sports Banking Group, YES BANK; French Trade AUTHORS Commission - Business France India No part of this publication may be reproduced in any form by photo, photoprint, microfilm or any COPYRIGHT other means without the written permission of YES BANK Ltd. & French Trade Commission - Business France India This report is the publication of YES BANK Limited (“YES BANK”) and so YES BANK has editorial control over the content, including opinions, advice, Statements, services, offers etc. that is represented in this report. However, YES BANK will not be liable for any loss or damage caused by the reader’s reliance on information obtained through this report. This report may contain third party contents and third-party resources. YES BANK takes no responsibility for third party content, advertisements or third party applications that are printed on or through this report, nor does it takes any responsibility for the goods or services provided by its advertisers or for any error, omission, deletion, defect, theft or destruction or unauthorized access to, or alteration of, any user communication. Further, YES BANK does not assume any responsibility or liability for any loss or damage, including personal injury or death, resulting from use of this report or from any content for communications or materials available on this report. The contents are provided for your reference only. The reader/ buyer understands that except for the information, products and services clearly identified as being supplied by YES BANK, it does not operate, control or endorse any information, products, or services appearing in the report in any way. All other information, products and services offered through the report are offered by third parties, which are not affiliated in any manner to YES BANK. The reader/ DISCLAIMER buyer hereby disclaims and waives any right and/ or claim, they may have against YES BANK with respect to third party products and services. All materials provided in the report is provided on “As is” basis and YES BANK makes no representation or warranty, express or implied, including, but not limited to, warranties of merchantability, fitness for a particular purpose, title or non – infringement. As to documents, content, graphics published in the report, YES BANK makes no representation or warranty that the contents of such documents, articles are free from error or suitable for any purpose; nor that the implementation of such contents will not infringe any third party patents, copyrights, trademarks or other rights. In no event shall YES BANK or its content providers be liable for any damages whatsoever, whether direct, indirect, special, consequential and/or incidental, including without limitation, damages arising from loss of data or information, loss of profits, business interruption, or arising from the access and/ or use or inability to access and/or use content and/or any service available in this report, even if YES BANK is advised of the possibility of such loss. Maps (if any) depicted in this report are pictorial representation only and do not purport to be the political map of any nation or State and are not drawn to scale. YES BANK Ltd. Nikhil Sahni Group President & Global Head, MNC Corp. Banking Govt. Banking & Strategic Govt. Advisory Karan Ahluwalia Senior President & Country Head, Media & Entertainment Fine Arts, Luxury and Sports Banking Group Abhishek Issar Senior Vice President, Media & Entertainment Fine Arts, Luxury and Sports Banking Group Northern Regional Office CONTACTS 48, Nyaya Marg, Chanakyapuri New Delhi – 110 021 Te l : +91-11-66560562 Email : [email protected] [email protected] [email protected] Website : www.yesbank.in Registered and Head Office YES BANK Limited, YES BANK Tower IFC 2, 15 Floor, Senapati Bapat Marg Elphinstone (W), Mumbai 400 013, India Te l : +91 22 6669 9000 Fax : +91 22 2497 4088
Business of Sports – Rumble Under Our Feet | 3 4 | Business of Sports – Rumble Under Our Feet Message
France is a major player on the world stage of sport. European champion of hosting major international sports, France, after having hosted Euro 2016, World Championships of Men’s Handball, Wrestling and Ice Hockey in 2017, Ryder Cup in 2018, Women’s Football World Cup in 2019, will host Rugby World Cup in 2023, and the world’s biggest sporting event, the Olympic and Paralympic Games, which will be come back to Paris in 2024, a century after the last Summer Games organized in France. And how not to mention the Tour de France, Roland Garros, the 24 Hours of Le Mans or the great races such as the Vendée Globe or the Route du Rhum, as many world renowned prestigious events, which represent not only the modernity of the country but also the attractiveness of its territories.
They are a great showcase of French know-how and expertise in organizing major events in all its aspects as well as of all the numerous companies which are from this sector in constant growth.
Sports equipment, architecture, construction, security, telecoms, ticketing, signage, infrastructure management, event management, opening and closing ceremonies, hospitality, catering, performance measurement, spectator experience, training, communication, media, digital solutions ... the French offer is both complete and efficient. It encompasses, within the sport sector, big French groups, SMEs, and innovative start-ups from the French Sport Tech.
One of the objectives of France’s sports diplomacy, as defined by the Ministry of Europe and Foreign Affairs, is to provide support to the companies in this sector to export, in close cooperation with French Trade Commission-Business France, the Ministry of Sports and the Ministry of Economy and Finance. It is primarily in this context that I have the great pleasure of coming back to India with a delegation of companies, representative of this French know-how, at the “France India Sports Business” symposium organized by French Trade Commission- Business France at Embassy of France in New Delhi. France is already present in India in the field of sport. It wants to strengthen and develop this presence with our Indian partners.
But sports diplomacy is also the exchange, the interaction around multiple paths of dialogue around sport as an instrument of sustainable development, around the values that sport, universal language if any, conveys and promotes. India and France share these values and they have the will to put them into action. That is why during this trip I am particularly pleased to have the opportunity to interact with our Indian friends on the theme of our relations in the field of sport, and more generally on the place of the sport in our society.
I thank Embassy of France, in particular the French Trade Commission - Business France India team, for organizing this symposium, whose results, I am sure, will be very fruitful.
H.E. Mr. Philippe Vinogradoff French Ambassador for Sports, French Ministry of Sports
Business of Sports – Rumble Under Our Feet | 5 6 | Business of Sports – Rumble Under Our Feet Message
France’s skills and talent in both the sports and business sectors have brought it international prestige and recognition.
France has been hosting major international sports events every year, including the Tour de France since 1903, 24 Hours of Le Mans motorcycle race since 1923, the French Open (Roland Garros) since 1928, and the Vendée Globe yacht race since 1989.
France is a sporting nation: sixty-four percent of French people play sports at least once a week, and more than 16 million people belong to a sports club.
Every year, the Business France Head Office in Paris hosts the ‘International Meet for Major Sports Events’ (RIGES) in France, which brings together more than 200 international sports stakeholders to share their thoughts and experiences and take stock of public policies carried out for the development of sports, sports equipment and the organisation of forthcoming global events.
France’s know-how and expertise in staging sporting events and manufacturing sports goods and equipment will be showcased on a larger-than-life scale in Paris when it hosts the 2024 Summer Olympics.
Paris 2024 is planning to use renewable and recovered energy to reduce carbon emissions by 55%, compared with the Rio 2016 and London 2012 games, in line with the climate change commitments of the Paris Agreement.
95% of the venues needed to host the 2024 Olympic Games already exist. France has almost 2,70,000 sports facilities, including 43,500 large pitches (for football, rugby, hockey, etc.) and 40,800 tennis courts. France boasts 14 stadiums with more than 30,000 seats, while the 81,000+ capacity Stade de France is among the ten largest in Europe. The Stade Vélodrome (67,354 seats) and the Groupama stadium in Lyon (59,186) are the second and third largest in France. Opened to the public in October 2017, the 40,000 capacity U Arena in the Parisian suburb of Nanterre is Europe’s largest, most modern and versatile indoor arena. In 2024 it will host the gymnastics events for the Paris Olympic Games.
The biggest international players of the sports industry are investing in France to develop their business internationally as well as expand their presence in the country.
Since India has one of the world’s largest and youngest demographic, the current government has chosen sports as a strong driver of its economic development. India has thus opted for the creation of a holistic ecosystem for sports that would be transparent, robust and world-class. India’s performance in the 2018 Asian Games was praiseworthy.
France can thus be a strong partner for the development of sports in India.
This Symposium at the Embassy of France is an ideal platform for French companies to share their expertise in sports infrastructure, equipment technology, management, training, and the development of talent and sports business with their counterparts in India.
I wish the France-India Sports Business Symposium great success.
H.E. Mr. Alexandre Ziegler Ambassador of France to India Business of Sports – Rumble Under Our Feet | 7 8 | Business of Sports – Rumble Under Our Feet Message
The India Story is a promising one, not just with the advantage of its demographic dividend - with over 65% population under 35 years of age, but being the second biggest market for smartphones in the world with 221 million owners, and therefore the respective Over The Top (OTT) consumers, gives us an undeniable headway over many other competing economies. Club that with a base of fervent aspirations, we’re not only looking at youth dividend driving the near, mid and long term course of India, but also influencing the ensuing trends that may set the tone for various brands in the global market.
India’s population is projected to rise to 1.5 billion, by 2030, with about 600 million youth under the age of 25 years. This can prove to be a big competitive advantage for the country, provided sports is used as a tool of empowerment towards achieving a healthy, educated and skilled young India. Sports can be the lever to prepare the youth for newer challenges.
India holds no more than a drop, less than USD 3 Billion (approx), market share in the USD 650-700 Billion Global Sports industry. And in all fairness, we have substantial ground to cover when compared with Global sports giants like The United States of America, China, Australia or United Kingdom, with respect to our Olympic prowess and performances. However, our prime positioning on the youth index gives us a unique advantage that, enviably for the world, is knocking on the doors of sports excellence.
2018 has been a watershed year for our athletes, with a rank 3 finish at the Common Wealth Games, followed by a best ever Asian Games performance winning 69 medals, the most promising show was at the Youth Olympics with an unprecedented 13 medals. A majority of these athletes belong to non-metropolitans, a vindication of an aspiring and fast developing sports culture, reflecting the emergence of a strong sports infrastructure at all tiers as well as our growing bench strength. All very healthy signs to actualize India’s much anticipated potential for business of sports.
The industry has many set pieces, which continues to receive a much needed push at a Central policy level under the strong leadership of the Hon’ble Minister of Sport and Youth Affairs, Shri Rajyavardhan Singh Rathore, Sports institutions, Niti Aayog, the Ministry of Health & Family Welfare and a corresponding growing economy.
Increasing per capita income and the resultant increase in disposable incomes means that a largely young population is spending much more on entertainment, leisure, and wellness. Therein lies the potential for infrastructure, manufacturing, entertainment (including leagues and digital content) and the wellness (and fitness) industries.
Yes, there is an imperative need to give an industry status to the sector, and with that to engage all State Governments by creating a competitive performance index to gauge job creation in sectors like sports infrastructure and manufacturing industries, to create hubs (and Special Economic Zones) of sports excellence and varied disciplines depending on the respective topographical and demographic advantages of the States against national parameters of job creation, talent scouting and management, infrastructure establishments and wellness quotients.
Business of Sports – Rumble Under Our Feet | 9 There are several larger aspects related to the management of sports in India that need addressing in a multi- pronged manner. Bringing in management proficiency at grass root levels to nurture talent, the sector needs holistic, comprehensive policies, with buy in at district administration level. Here, a collaborative community approach, through a social equity model, accompanied by appropriate incentives, can help encourage sports talent.
Sports excellence has to be a collective dream of the nation, and not a reactive business opportunity.
In this report, we have reached out to industry specialists, and proven business minds, to evaluate the pulse of their respective sectors, gauge the pitfalls, highlight the underlying opportunities and seek recommendations on a strategy cohesive to the set-pieces within the sports industry.
I am confident that the contents of the knowledge report will provide important insights to policy makers in achieving the transformational vision necessary for growth and development of the sports sector and actualize our Olympic dream as a systemic outcome of an excelling ecosystem.
Mr. Karan Ahluwalia Senior President & Country Head, Media & Entertainment, Fine Arts, Luxury and Sports Banking Group, YES BANK
10 | Business of Sports – Rumble Under Our Feet Table of Contents
Introduction ...... 01
Policy...... 07
• Tahsin Zahid | Sports, Physical Education, Fitness and Leisure Skills Council ...... 07 The Big Bet: Skilling India’s Youth Dividend
• Siddhartha Upadhyay | STAIRS...... 11 Unifying India’s Diverse Demographic Dividend: Broadbase to Broad-gauge Talent Outreach
• Deepender Singh Hooda | Haryana Wrestling Federation of India...... 13 Strategy and Plans for Institutionalizing a Sports Ecosystem
• Mayank Pande | GoPlaySport...... 15 How Technology has started to Impact and Transform Sports
Markets and Investments...... 18
• Rajeev Kalambi | FidelisWorld ...... 18 Market Strategy: Investing in Sports, Media & Entertainment
• Karan Mohla | Chiratae Ventures...... 20 Market Strategy: Shaping up a Fit ‘Mind-Body’ India
• Ronnie Screwvala | U SPORTS ...... 22 Gaming & eSports – Redefining New Media Investment Strategy
Infrastructure...... 25
• Mustafa Ghouse | JSW Sports...... 25 Filling in the Void – Where Talent meets Training
• Udit Sheth | TransStadia ...... 27 Elephant in the Room – Walking the PPP Talk
• Anil Kumar | Great Sports Infra...... 29 The God of Small Things – Digging into Districts #PlayingArenas
Manufacturing...... 37
• Shiv Prakash Singh | Shiv-Naresh ...... 37 Stitching the Great India Dream: A Ground-Up story
• Rajesh Rai | Jerai Fitness ...... 41 What it takes to Sustain and Scale, The Growth Multiplier
Marketing & Packaging...... 43
• Vinit Karnik | GroupM...... 43 “Show me the money” – Ground report: The Grand India League
• Charu Sharma | Mashal Sports...... 46 Demystifying the Matrix – How Kabaddi reached Households and What Next?
Business of Sports – Rumble Under Our Feet | 11 Gaming and eSports...... 48
• Vamsi Krishna | NVIDIA...... 48 E-Giant, Knocking on the Door!
• Lokesh Suji | Esports Federation of India ...... 50 Global context, India and the inherent opportunity
• Siddharth Batra | Satram Dass B & Co...... 53 Precinct of Indian Law on Online Games
The French Connection...... 54
About, Strengths and India Strategy...... 54
• Fabien Dilem | PARIS SAINT-GERMAIN...... 54
• Pierre Debleme | W ARENA ...... 55
• Florent Marty | SOLIVE...... 56
• Christophe Carniel | VOGO...... 57
• Jean-Sebastien Gosuin | SEATERS...... 58
• Cédric Messina | MY COACH SPORT...... 59
• Guillaume Deguerry | METALU-PLAST...... 60
• Eric Leport | ALCOR...... 63
• Bertrand Pignole | SODIKART ...... 64
• Olivier Esteves | ABEO...... 66
About Business France...... 68
About YES BANK...... 69
12 | Business of Sports – Rumble Under Our Feet Introduction
“Spirit, strength, skill and stamina – are key elements in the field of sports as the core foundation of the nation. If the youth of a country possess these qualities, that country will progress not only in areas such as the economy, science and technology but also bring laurels home in the field of sports.” ~ Hon’ble Prime Minister of India, Shri Narendra Modi
The importance of sports in harnessing the power Clearly, India’s competitive edge is visible in its of youth towards nation building and economic economic performance, but a far cry on per capita, development has been evident ever since the 1896 health or sports excellence axis. The Olympics may Olympics, and has been firmly established during well be an important, if not the ultimate, parameter subsequent international sporting events around the to judge a country’s standing on the global sports world. excellence index. But critically, it is a strong reflection of the country’s sports culture, outlook towards India holds no more than a drop, less than ~USD fitness as part of its DNA and the presence or 3 Billion market share in the USD 650-700 Billion absence of an underlying sports fabric – that covers Global Sports industry1. A stark contrast for one relevance of sports in education, infrastructure, of the world’s fastest growing economies, high tangible manufacturing supply chain and the population and one of the most youthful nations in cumulative interest of a national and institutional the world, with over 65% population under 35 years push for sports driven content (covering all forms of age2. Evidently, India is a high potential market for of media). The sheer gap with other developed global businesses with an unenviable distinction of economies gives relevant perspective on the need to winning the lowest number of Olympic medals per proactively empower the system to enable a robust capita. That however, is not the only parameter of economy, given the human capital dividend offers a success or the underlying opportunity. prospective potential in more ways than one.
India’s population is projected to rise to 1.5 billion Today, sports is being adopted as a tool for by 2030, with about 600 million youth under the age development by countries world over, as it has of 25 years. This can prove to be a big competitive been proven that sports helps in improving human advantage for India, provided sports is used as a resources, economy and social fabric of a country. tool of empowerment towards achieving a healthy, educated and skilled young India. Sports can be the lever used to prepare India’s youth for newer INDIA RANK (in year challenges. 2018) Global Competitive Index, 58 India has been ranked as the 58th most competitive World Economic Forum economy on the World Economic Forum’s Global 3 Human Development 130 Competitive Index for 2018 , however our economic Index, United Nations standing may not be a fair reflection, from a holistic perspective, as the country sits at rank 130 on India’s medals tally at 51 the Human Development Index on a scale of 180 Summer Olympics (last 10 countries4. editions)
1https://assets.kpmg.com/content/dam/kpmg/in/pdf/2016/09/the-business-of-sports. 2https://yas.nic.in/youth-affairs/message-minister-0 3http://reports.weforum.org/global-competitiveness-report-2018/summary-of-key-findings/ 4http://www.in.undp.org/content/india/en/home/sustainable-development/successstories/india-ranks-130-on-2018- human-development-index.html
Business of Sports – Rumble Under Our Feet | 1 The United Nations (UN) recognised the potential It is therefore imperative that sports be approached of sport ‘as a means to promote education, health, holistically (through the multiple segments under it), development and peace’ (UN Resolution 58/5). and given the requisite importance and relevance to Agenda 2030 also emphasises the impact sports be used as a tool of transformation and capitalization can make in the direction of achieving sustainable - not just an avenue to bring laurels to the county development goals. in marquee global sports properties, but effectively, also as an important driver to add skilled labour to India can realize benefits such as increased GDP, India’s ever maturing workforce, promote India’s reduced unemployment level, improved health for GDP, and critically lead to a fitter, healthier and a citizens and enhanced literacy levels. mindful India.
Following is a segment wise breakup for better understanding on the size, scale, scope and opportunity in the industry.
• Ministry of Youth Affairs and Sports • Sports Authority of India Policy - Sports • National Sports Federations Governance Three key stakeholders in policy making responsible for: introducing transformational changes, on-ground execution, talent scouting, training, efficient management of processes and infrastructure
• One of the primary pillars of the industry to achieve sports excellence and create a robust grassroots program. • Smart - Districts to Cities – promote Centre-State mandate on sports infrastructure in Infrastructure the DNA and create a deliverable list • Aim should be to build state-of-the-art multiple facility stadiums and target setting up smaller playing arenas and introduce functional open-gyms • Drive Sustainable (solar rooftops and water management facilities) and community driven solutions for Sports Infrastructure for higher community engagement • Make Sports Infra self-sustainable with revenue intensive (Sportainment) facility usage
• Equipment Manufacturers, Retailers, Consumers and Private Sports Academies, all are playing an important role in driving this sector forward Manufacturing • Total sports goods exports for 2017-18 stood at USD 232.80 Mn, as compared to USD – Sports 224.83 Mn during the previous year Goods and Equipment • The industry provides employment to over 500,000 people • Global retail sports goods industry is expected to grow at 3.4% from 2015-20
• Ownership of sports properties/ expansion through regional broadcast penetration • International sports broadcasters investing in India as leading destination for business Broadcast, expansion. Over The Top audience in India is estimated to be around 225 Mn in FY18 Leagues and and expected to reach 550 Mn in 5 years Tournaments Broadcasters, Franchises, National Sports Federations, Sponsors and Spectators, everyone wants a bigger share of the pie
2 | Business of Sports – Rumble Under Our Feet • Gyms, training, marathons, outdoor sports and competitions, healthy food form sub- segments Sports, • Valued at USD 35 Bn in 2016, SFW business has been expected to grow at 17% CAGR Fitness & to reach USD 90 Bn by 2022 Wellness (SFW) • Fitness and Wellness attribute approximately 2.5 times the opportunity of Sports activities by itself
• Schools, colleges, universities, institutions are the harbinger of talent and breeding Education grounds of future talent and Culture • Global Sports Tourism industry is estimated to reach USD 5.72 Tn by 2021 (Toursim) • Sports Tourism in India is an untapped industry. With its topographic diversity, Government needs to introduce best global practices and policies to capitalize this massive revenue and job creator
• VR (Virtual Reality) and GFX are the future in animation and gaming ITES: Gaming, • Wearables market size USD 26 Mn in India and growing fast eSports, Startups • In 2018, the global video games industry was pegged at USD 137.5 Bn. India’s digital gaming industry is pegged at USD 890 Mn
Given the size and scale of the sector, it is more than The Ministry of Youth Affairs and Sports (MYAS) has evident that the business of Sports, as an opportunity seen transformational steps been taken since Col. for a relatively young nation, means much more than Rajyavardhan Singh Rathore took control, whether medals and podium finishes, it implies quite naturally this meant greater allocation of funds to the sports a means of integrating India’s impending need for budget, implementation of a concerted grassroots employment with myriad opportunities in the value development program in ‘Khelo India’ or something chain. as diverse as reaching out to a large audience with the #HumFitTohIndiaFit campaign. Importance of From a policy perspective, to ensure effectiveness of awareness cannot be undermined in a culturally programmes at the grassroots level, it is imperative diverse country like India and the subsequent to design inclusive plans that are aligned to the capitalization at a policy and programme level can help Government’s development agenda, build strong achieve goals seemingly unfathomable previously. To programmes, delivery platforms with continuous achieve this, there must be a synergetic relationship feedback system for improvement. Grassroots between the Ministry of Youth Affairs and Sports, sports development programmes have a lot of Sports institutions, Niti Aayog and the Ministry of potential to bring sweeping changes on the state of Health & Family Welfare. sports in India. These programs hold great promise to catalyze a One of the major fillips in the direction has been the new wave of sports revolution for India that will bring institutionalisation, for the very first time in the history Infrastructure, IT & Innovations, Talent Management of India, a sports minister who has been a top-class and Sports Education, all under one umbrella, with athlete himself and understands the system like any an equivocal ‘RURBAN’ (rural and urban talent) other athlete, Col. Rajyavardhan Singh Rathore. multiplier.
“There is only one VIP, and that is a A look into the annual budgetary allocations, over the sportsperson.” last 3 years reflect the growing cognisance of the Government of India towards supporting, nurturing ~Hon’ble Minister of Sports, and eventually actualising the real potential of sports Col. Rajyavardhan Singh Rathore and its influence on a large consumer base in India.
Business of Sports – Rumble Under Our Feet | 3 SPORTS BUDGET ALLOCATION BETWEEN 2016 – 2018 (In INR Cr) Sports Budget 2016 Difference 2017 Difference 2018 Difference (2015-16) (2016-17) (2017-18) Ministry of Sports 1592 + 50.87 1943 + 351 2196 + 258 Sports Authority of India 381.30 + 11.91 481 + 99.7 429 - 52 Scheme for Benefit for North 144.98 + 6 148 + 3.02 173 + 25 East – through sports Financial Assistance to 314.50 + 129.5 302 -12.5 342 + 40 Sporting Institutions (Federations / Associations) Khelo India 140 + 210 350 + 210 520 + 170
A couple of trends emerge from a quick look at the competition structure and sports economy. annual sports budget allocation over the past 4 years. We can see that the Ministry of Sports has quite The sports governance structure in India is well- literally taken the bull by the horn with increased defined. Broadly, it comprises of the Government budgetary allocation to ‘Khelo India’ program and and autonomous bodies established in compliance similar initiatives, while keeping a firm grip on with the Olympic charter. fund disbursement with respect to allocations that entail second-party administration and ground MYAS under the Government of India, is responsible management. for administering the Department of Sports. The Sports Authority of India (SAI) is the field arm of It is clear that ‘Khelo India’ has been a much sought MYAS in the promotion of sports in India through after project of the Sports Ministry and executed with the implementation of various schemes such as equal vigour. The programme has been introduced to the National Sports Talent Contest Scheme (NSTC), build the ecosystem ground up through engagaments SAI Training Centres Scheme (STC) and Centres of at schools and grass-root level by building a strong Excellence (COX) scheme. framework for all sports played in our country. There are 12 identified areas defined under the scheme, The strategy towards excellence and success which will impact the entire sports ecosystem, therefore is in the close collaborative approach including sports infrastructure, talent identification, of the MYAS with SAI and the respective sports coaching for excellence, community sports, Federations of India.
4 | Business of Sports – Rumble Under Our Feet MINISTRY OF YOUTH AFFAIRS AND SPORTS (MYAS) Total Budget: INR 2196.35 Cr | Sports budget: INR 1,425.50 Cr SNAPSHOT OF BUDGETARY BREAKUP
Sports Authority of India (SAI) Khelo India (KI) Key Schemes • Budget: INR 429.56 Cr • Budget: INR 520.9 Cr i) Assistance to Promotion of Sports Excellence received • Main cost heads under SAI: • Constitutes 23.67% of the INR 347 Cr total budget i) Stadium infrastructure – ii) National Service Scheme has • KI is a subset of National includes buildings and received an allocation of Program for Development sports equipment INR 160 Cr of Sports which has been ii) Player / Coach fee and allocated INR 1262.79 Cr iii) Nehru Yuva Kendra Sangathan has received INR 255 Cr training support staff • #FitIndia movement being pushed by the GoI, iv) Benefit of North Eastern Area iii) Hosting training camps and including PMO Scheme: fund allocation at INR development 173.16 Cr • Multiple programs • SAI owns and runs 5 key under KI: Talent search v) National Youth Corps granted stadiums in India – some and Development, INR 80 Cr have reached break-even and Playfield Development, vi) Incentives to sportspersons generating revenue Utilisation and Creation budgeted at INR 23 Cr • Names of stadia: Dr. Karni / Up-gradation of Sports Singh Shooting Range, Dr. Infrastructure, vii) HRD in Sports allocated SPM Swimming Pool Complex, INR 5 Cr Jawahar Lal Nehru Stadium, viii) National Sports Development Indira Gandhi Stadium Complex budget of INR 2 Cr – NSDF & Major Dhyan Chand National promotes The Olympics Podium Stadium Scheme which also raises its funds from CSR
Having said that, budget allocations and funds in important reason to look at this critical bridge sports development are still at a very small fraction between sports and other sectors and build ‘policy as compared to what is needed to make a meaningful driven mechanisms’ to cross leverage for a more impact. Sports infrastructure in states, federations holistic development of all related sectors. (at a central level), manufacturing facilities, to name a few, are all seeking greater fund allocation for Some of the above stated transformative inclusions taking the agenda forward. have however given reasons of joy to India with a calendar of successful performances coming in at With the fastest growing economy and mega the international level, a definite change from an infrastructure development across various core abysmal 2 medal show at the last Summer Olympics sectors, it is only obvious that there could be in 2016. constraints on funds for sports. This is another
Medal performances in 2018
Tournament Medals (Gold - Silver - Bronze) Rank
Common Wealth Games 66 (26 - 20 - 20) 3
ASIAN GAMES 69 (15 - 24 - 30) 8
Youth Olympics 13 (3 - 9 - 1) 13
Business of Sports – Rumble Under Our Feet | 5 After an astounding performance at the Common “Every life, every being is a source of Wealth Games 2018 with a combined 66 medals, and its third best showing in the history of the Games, inspiration. Every young sportsperson’s India returned home with a best ever rank 8 finish passion and dedication is the hallmark with the Asian Games 2018. India equaled 15-gold of New India.” tally of the inaugural games and an unprecedented 24 silver medals, a sign of India’s growing bench ~ Hon’ble Prime Minister of India strength. Shri Narendra Modi
In pursuit of excellence, India never had it so good in the continental showpiece that is considered only and training apparatus and the complimenting second to the Olympic Games. infrastructure being employed in the country.
There were three welcome subtexts in India’s Twenty-two-year-old Amit Pangal’s win over Olympic performance in Jakarta. The biggest success is the champion Hasanboy Dusmatov (Uzbekistan) in the triumph of youth. Of the 572-member contingent light fly weight category (49 kg) in the Asian Games at least 200 were aged 23 years or less. Half the is a vindication of the developing sports culture and number of medals won by India was by youngsters, emergence of sports infrastructure. He comes from several of them relatively unknown. And in many a family of small-time farmers who took up boxing ways, the second most defining information is that in Mayna village in Rohtak because local coach Anil the majority of talent does not come from tier 1 cities. Dhankar had set up a boxing academy there. The third, and a welcoming fact, was the emergence of a strong talent pool of women athletes. For a country that is frequently dismissed as the most underperforming sports nation with a population of And to top the sign of a talent uprising followed 1.2 billion people (Census 2011) with limited access India’s best ever show at the Youth Olympic Games to sports facilities (hardly reaching 8-9% of the in Buenos Aires, Argentina, with 13 medals from 8 population, and that too predominantly in the urban (out of 13) disciplines. In 2010, eight medals came in areas) for its talent pool, our recent showings at 5 sports; and two in 2014 from as many sports. These the CWG, Asian Games and the Youth Olympics is are promising signs of not just an increased talent a propitious sign of a building bench strength and pool, but the diversity of medal winning disciplines a well-oiled system producing an unprecedented showcase India’s inclusive and far reaching scouting supply chain.
Sports medals are an outcome of the health parameters of the sports business ecosystem. The global sports industry - at 1% of global GDP - includes sports infrastructure, sports events, sports hospitality, talent and training, manufacturing and retail of sports goods, education, ITES and the innumerable affiliate industries that accrue profits in association. To add more and relevant perspective, lets look into the minds of key stakeholders from India’s sporting fraternity and their views on Policy towards transforming and capitalizing India’s sports sector.
6 | Business of Sports – Rumble Under Our Feet Policy
The Big Bet: Skilling India’s Youth Dividend
Tahsin Zahid COO Sports, Physical Education, Fitness and Leisure Skills Council (SPEFL-SC)
ports always brings a sense of national “The classification would enable the pride that is incomparable to any other form intra and inter industry provision of Sof entertainment. Business of Sports has changed faces very rapidly in the recent past. The support and incentives for the domain.” introduction of entertainment and role of corporates has been increasing and evolving. Over the years, sport has evolved as a noticeable sector for all include but not be limited to economies, presenting myriad career as well as • Infrastructure construction growth business opportunities. The scope of this sector varies globally. It includes several segments: • The boosting of manufacture of sporting goods sports infrastructure, sports events, training, goods • More organized and systematic distribution of manufacturing and retail. licensed products Moreover, the business of sports is not just limited • Professional organization of live sports events to the mentioned avenues; it has far-reaching of any physical human activity that requires implications on the global economy due to its close exertion and which by its very nature is association with other sectors, including education, competitive. real estate and tourism. Further, sports contribute significantly towards improving the overall health The Sports Physical Education, Leisure, Fitness Skill and well-being of a country Council (SPEFL-SC) is a unique initiative to play a proactive role and bridge the gap by creating a vibrant Historically in the global context, Sports is an industry eco-system for quality training and skill development that has rapidly grown and evolved, positively for the Sports sector. impacting the overall GDP growth in numerous countries. There are enormous opportunities for SPEFL-SC is a Not-for-Profit Organization, registered further industry participation. However, there are under the Societies Registration Act, 1860. The challenges in attracting investment into sport. Council has been promoted by Federation of Indian To ensure positive participation by India’s private Chambers of Commerce and Industry (FICCI) and sector beyond mere Corporate Social Responsibility National Skill Development Corporation (NSDC). The (CSR) related investments, the time is ripe for supporting organizations include leading industry sports in India to be recognized as an industry. This and industry associations representing both public would in turn assist in transparency, sophistication, and private sector. professionalism, accountability, regulation, and growth. Purpose and Mandate
By giving sport industry status, there would be SPEFL-SC is mandated to impact 2.1 million people numerous benefits that other industries and the over ten years. The purpose of establishing SPEFL- government would receive. The classification would SC is to ensure that the Sports Industry can grow enable the intra and inter industry provision of with skilled manpower, increase productivity and support and incentives for the domain. This would profitability which will certainly bring paradigm
Business of Sports – Rumble Under Our Feet | 7 Policy shift in Sports landscape of India. Vocationalization • Sports Grassroots of Sports, Physical Education, Fitness and Leisure • Sports Facilities is the way forward for activating attitudinal change towards sports and help India get its due recognition • Sports Broadcasting and Media in sports sector. • Sports Event Management SPEFL-SC is expected to create a dynamic LMIS Mandate of SPEFL-SC to keep track of the market skill gaps, frame Occupational Standards, facilitate development of • Identification of skill development needs practical and high-quality training content, ensure including preparing a catalogue of types of adequate availability of faculty through Train the skills, range and depth of skills to facilitate Trainer initiatives, build accreditation and certification individuals to choose from them mechanisms and encourage capacity building • Development of a sector skill development through private sector participation. Sports sector plan and maintain skill inventory considered as a strategic sector and development of domestic capabilities is essential from a national • Determining skills / competency standards pride and overall development perspective. Sports and qualifications sector has multiplier effect and has bearing on the • Standardization of affiliation and accreditation growth of other industries. process According to KPMG analysis 2016 The global • Participation in affiliation, accreditation, sports industry, at 1% of global GDP, is estimated examination and certification to be worth around USD 600–700 billion. This • Plan and execute Training of Trainers and includes sports infrastructure, sports events, sports Assessors. hospitality, training, and manufacturing and retail of sports goods. While sports in India has usually • Promotion of academies of excellence been a government-led initiative, the private sector • Set up an effect LMIS and assist in planning has historically participated through corporate social and delivery of training responsibility channels, PPP in sports infrastructure development and for profit sports academies. Now, • Benchmark Indian Sports and Physical Fitness sports leagues have emerged as a primary vehicle education with international standards for the private sector. While on quantitative front, different sub-sectors and The Indian sports sector is experiencing a sea of companies would have different requirements; on changes with all-round developments initiated by the qualitative front, the key expectations from a job role government, the private sector as well as non- profit across sectors remain similar. organisations. The government is introducing game- changing schemes such as ‘Khelo India’ to address SPEFL-SC has already identified 17 Job roles as of issues regarding infrastructure, talent scouting and now to start work on including: training facilitation. Private sector and non-profit entities are also increasingly contributing to the • Sports Masseur / Sports Massage Therapist sector by organising leagues and tournaments, • Ayurvedic Sports Massage funding talented sportspersons and getting involved in grassroots development • Groundskeeper / Sports Turf Maintenance • Self-DéfenseTrainer Skills development in sports is required across following sub-sectors to begin with: • Sports Coach • Sports Science and Technology • Fitness Trainer / Gym Trainer • Sports Management • Physical Activity Trainer at school level • Sports Coaching • Pool Operator / Cleaner • Sports Medicine • Sports Nutritionist • Sports Manufacturing and Retailing • 10m Air Pistol Shooting Instructor • Sports Development • Lifeguard Pool & Beach
8 | Business of Sports – Rumble Under Our Feet Policy
• High Altitude Porter Mountaineering By giving sport industry status, there would be numerous benefits that other industries and the • Kayak and Canoe Guide government would receive. The classification would • Porter Mountaineering enable the intra and inter industry provision of support and incentives for the domain. This would • Rafting Guide include but not be limited to • Camp Manager • Infrastructure construction growth • Caddy Golf • The boosting of manufacture of sporting goods Conclusion • More organized and systematic distribution of India has a long journey ahead on its path to develop licensed products a strong sports culture. However, the ongoing developments indicate a promising future. A rising • Professional organization of live sports events number of sports start-ups, significant growth in of any physical human activity that requires gym memberships and the increasing number of exertion and which by its very nature is marathoners in the country, indicate a clear trend competitive. of growing consciousness about health and fitness amongst the Indian youth. The Sports Physical Education, Leisure, Fitness Skill Council (SPEFL-SC) is a unique initiative to play a With increasing demand for sports infrastructure proactive role and bridge the gap by creating a vibrant management, the requirement of skilled workforce eco-system for quality training and skill development cannot be negated. Sports always brings a sense of for the Sports sector. national pride that is incomparable to any other form of entertainment. Business of Sports has changed SPEFL-SC is a Not-for-Profit Organization, registered faces very rapidly in the recent past. The introduction under the Societies Registration Act, 1860. The of entertainment and role of corporates has been Council has been promoted by Federation of Indian increasing and evolving. Over the years, sport has Chambers of Commerce and Industry (FICCI) and evolved as a noticeable sector for all economies, National Skill Development Corporation (NSDC). The presenting myriad career as well as business supporting organizations include leading industry opportunities. The scope of this sector varies globally. and industry associations representing both public It includes several segments: sports infrastructure, and private sector. sports events, training, goods manufacturing and retail. Purpose and Mandate SPEFL-SC is mandated to impact 2.1 million people Moreover, the business of sports is not just limited over ten years. The purpose of establishing SPEFL- to the mentioned avenues; it has far-reaching SC is to ensure that the Sports Industry can grow implications on the global economy due to its close with skilled manpower, increase productivity and association with other sectors, including education, profitability which will certainly bring paradigm real estate and tourism. Further, sports contribute shift in Sports landscape of India. Vocationalization significantly towards improving the overall health of Sports, Physical Education, Fitness and Leisure and well-being of a country is the way forward for activating attitudinal change Historically in the global context, Sports is an industry towards sports and help India get its due recognition that has rapidly grown and evolved, positively in sports sector. impacting the overall GDP growth in numerous SPEFL-SC is expected to create a dynamic LMIS countries. There are enormous opportunities for to keep track of the market skill gaps, frame further industry participation. However, there are Occupational Standards, facilitate development of challenges in attracting investment into sport. practical and high-quality training content, ensure To ensure positive participation by India’s private adequate availability of faculty through Train the sector beyond mere Corporate Social Responsibility Trainer initiatives, build accreditation and certification (CSR) related investments, the time is ripe for mechanisms and encourage capacity building sports in India to be recognized as an industry. This through private sector participation. Sports sector would in turn assist in transparency, sophistication, considered as a strategic sector and development professionalism, accountability, regulation, and of domestic capabilities is essential from a national growth. pride and overall development perspective. Sports
Business of Sports – Rumble Under Our Feet | 9 Policy sector has multiplier effect and has bearing on the • Participation in affiliation, accreditation, growth of other industries. examination and certification • Plan and execute Training of Trainers and According to KPMG analysis 2016 The global Assessors. sports industry, at 1% of global GDP, is estimated • Promotion of academies of excellence to be worth around USD 600–700 billion. This includes sports infrastructure, sports events, sports • Set up an effect LMIS and assist in planning hospitality, training, and manufacturing and retail and delivery of training of sports goods. While sports in India has usually • Benchmark Indian Sports and Physical Fitness been a government-led initiative, the private sector education with international standards has historically participated through corporate social responsibility channels, PPP in sports infrastructure While on quantitative front, different sub-sectors and development and for profit sports academies. Now, companies would have different requirements; on sports leagues have emerged as a primary vehicle qualitative front, the key expectations from a job role for the private sector. across sectors remain similar.
The Indian sports sector is experiencing a sea of SPEFL-SC has already identified 17 Job roles as of changes with all-round developments initiated by the now to start work on including: government, the private sector as well as non- profit • Sports Masseur / Sports Massage Therapist organisations. The government is introducing game- changing schemes such as ‘Khelo India’ to address • Ayurvedic Sports Massage issues regarding infrastructure, talent scouting and • Groundskeeper / Sports Turf Maintenance training facilitation. Private sector and non-profit entities are also increasingly contributing to the • Self-DéfenseTrainer sector by organising leagues and tournaments, • Sports Coach funding talented sportspersons and getting involved in grassroots development • Fitness Trainer / Gym Trainer • Physical Activity Trainer at school level Skills development in sports is required across following sub-sectors to begin with: • Pool Operator / Cleaner • Sports Science and Technology • Sports Nutritionist • Sports Management • 10m Air Pistol Shooting Instructor • Sports Coaching • Lifeguard Pool & Beach • Sports Medicine • High Altitude Porter Mountaineering • Sports Manufacturing and Retailing • Kayak and Canoe Guide • Sports Development • Porter Mountaineering • Sports Grassroots • Rafting Guide • Sports Facilities • Sports Broadcasting and Media • Camp Manager • Sports Event Management • Caddy Golf Mandate of SPEFL-SC Conclusion • Identification of skill development needs India has a long journey ahead on its path to develop including preparing a catalogue of types of a strong sports culture. However, the ongoing skills, range and depth of skills to facilitate developments indicate a promising future. A rising individuals to choose from them number of sports start-ups, significant growth in • Development of a sector skill development gym memberships and the increasing number of plan and maintain skill inventory marathoners in the country, indicate a clear trend of growing consciousness about health and fitness • Determining skills / competency standards amongst the Indian youth. and qualifications • Standardization of affiliation and accreditation With increasing demand for sports infrastructure process management, the requirement of skilled workforce cannot be negated.
10 | Business of Sports – Rumble Under Our Feet Policy
Unifying India’s Diverse Demographic Dividend: Broadbase to Broad-Gauge talent outreach
Siddhartha Upadhyay Founder and General Secretary, STAIRS Member of the SAI Advisory Committee and Co-chair, FICCI
Sports the panacea! “My experience of using sports hen a nation decides, there’s a political will; as an instrument of social change things begin to change. Things change so has reinforced my faith that it’s the Wfast that within a few years the old order is changed forever. most important tool to achieve social development goals set by the United In this world capable of changing fast, human capital is the key. India, an ancient country of young people, Nations.” more than half of the 1.25 billion people are below the age of 25 and more than two-thirds below the age of 35--is on the verge of human capital revolution. There’s a need for a concerted and decisive action at the grassroots, as sport can be used as a India’s population is nearly twice that of Europe. multipronged strategy to deal with a host of pressing Every fifth man on the planet is Indian. India must issues like health, education, gender parity and harness its substantial demographic potential via empowerment of weaker sections of the society. sports. Think of it; sports is integral to a good and Our endeavour is a validation that many Sustainable healthy childhood. Moreover, sports is the best way Development Goals (SDG) of the United Nations to engage immense energy embodied by children can be met by encouraging sports. Sports ensures and youth constructively and hone their talent, in healthy lives, promotes societal well being, quality the process, prepare them to be a better citizen. education and gender equality. A sporting society is a healthy society, even the communists would agree. The emphasis, therefore, STAIRS has shown that engaging with youth and should be on interventions at the grassroots if India’s children in India’s hinterland and urban slums via huge demographic potential has to be harnessed. sports is a training ground for a whole generation, a medium of social change where skill, agility, ability, That’s precisely what we at Society for Transformation, the strength of mind and body, grit and determination Inclusion and Recognition through Sports (STAIRS) decide who the winner is. Considerations of caste, do. For the last nineteen years, at the grassroots in creed, race and gender have no role to play. more than five provinces of India, we run successful programmes specially designed for the deprived Sports also bridges the divide between the rich sections of the society with particular emphasis countries with poor, urban with the rural way of life, on girls and differently-abled. We have developed reduces inequality within and among nations, make interventions for people with drug abuse history and cities and human settlements inclusive, safe, resilient used sports as an effective tool to reintegrate them and sustainable, and in the process, promotes with the mainstream. My experience of using sports peaceful and inclusive societies for sustainable as an instrument of social change has reinforced development. Sports also provides access to justice my faith that it’s the most important tool to achieve for all and build effective, accountable and inclusive social development goals set by the United Nations. institutions at all levels. Our efforts have made a
Business of Sports – Rumble Under Our Feet | 11 Policy difference in honing talent of children and youth more protection and restriction on the movement of in the remotest parts of the country. Some of the people across borders. Protectionism has become a prodigies are playing at the highest level in various popular sentiment, identity considerations and rise sporting disciplines. of radicalism go hand in hand; as a result, immigrants are considered necessary evil, not just in India but My experience tells me that sports is one of the across the world. In a fractured society, Right to Play most potent instruments to create an egalitarian will act as the universal social glue. Sports can make society by inculcating a sense of self-worth and world a better place for all. fair play in individuals, giving a vent to their pent-up energies constructively. It also helps integrate the This is not possible without the support of underprivileged with the mainstream by providing Governments, and they should encourage sports, them an inclusive forum. In the process, develop by creating enabling conditions, for instance by confidence in them, hone their inherent talents and improving public health and education infrastructure sharpen their leadership skills, infuse camaraderie at the grassroots. It needs to be said, politicians and and joy in their daily life. As someone rightly pointed sports administration is not the ideal combination, out, “True sportsmanship is excellence in motion.” to say the least. Governments should take the ownership of the cause right to play but not own and In the last few years, despite being committed to a run sports. Right to Play is universal and will require globalised world, certain leading democracies of the a team effort by all members of the society, not just world have opted for right-wing ideology, seeking the governments . We all have to play our part.
12 | Business of Sports – Rumble Under Our Feet Policy
Strategy and Plans for Institutionalizing a Sports Ecosystem
Deepender Singh Hooda President Wrestling Federation of Haryana
he world record for 100 meters sprint stands at “Haryana’s success formula starts 9.58 seconds by legendary sprinter Usain Bolt, Trecorded at Berlin, Germany on August 16, with first convincing parents that a life 2009. In 2017, 16-year Delhi school boy Nisar Ahmed, spent in pursuing glory on the sports son of a rickshaw puller and domestic help, clocked field is economically sustainable.” 10.76 seconds.
There is no denying that Nisar has the talent and can bring glory to India if he can shave off 1.2 seconds It is important to understand what Haryana is from his time or could break the Asian games record doing right and if the entire nation can learn from of 9.92 seconds but this last second is what separates it. Haryana’s success formula starts with first the Usain Bolts from the thousands of others who convincing parents that a life spent in pursuing glory show the spark, give it everything and yet, faded into on the sports field is economically sustainable. This oblivion. Can we create an eco-system that allows is the critical part we tend to overlook and this is young women and men like Nisar to achieve their where our jobs for sportspersons made a big impact. true potential and more importantly, provide them with a safety net if they don’t make the cut? Providing a safety net to sportsperson was central to the Haryana model and we believed that even India is a nation of 1.3 billion people and we finished relatively modest sporting success should ensure 67th in the medals tally in the Rio Olympics in 2016 livelihoods to sportspersons when they hang up with one silver and one bronze. As an Indian, we their boots. Haryana became the first state in want India to do better in the 2020 Tokyo Olympics the country to launch the “padak lao, pad pao” and keep improving our performance going forward. scheme which provided career opportunities in The question is how? the government sector to the medal winners in the Olympics, Commonwealth Games, Asian In Haryana, we transformed the state into a sporting Games, other international events and the National power house and the state that wins the maximum Games. Hundreds of lesser-known sportspersons number of medals in the Asian games. Haryana won are also serving with the Haryana Police, and other 5 golds, 5 silvers and 8 bronze medals out of 15 gold, government departments. Yogeshwar Dutt was, in 24 silver and 30 bronze medals won by the country. fact, appointed as a DSP in the Haryana Police based A state with 2% of the population won 1/3rd of the on his potential four years before he won India an gold medals. Olympic medal.
Haryana has brought India laurels on the sports The process starts with spotting talent early. Sports field and the battle field. If Haryana was a separate and physical aptitude tests were made mandatory country, it would still be eighth on the 2018 CWG for all school students and they were required medal tally, behind sporting powerhouses Australia, to undergo a series of tests. The top performers England, India, Canada, New Zealand, South Africa. became eligible for stipends ranging from Rs 1,500 per month to Rs 2,000 per month.
Business of Sports – Rumble Under Our Feet | 13 Policy
Creating the right infrastructure was critical to “We always had the talent, through see this talent blossom. Haryana became the first state to set up modern sports stadiums in each our policies we were able to identify administrative blocks. Two hundred and twenty-six talent, nurture it and more importantly, Rajiv Gandhi sports complexes at the block levels provide a safety net to sportspersons were built and augmented with 232 rural sports stadiums at the village-level. Six international level by giving them the right economic sports complexes were built at the district-level. incentives.” We wanted to get the human element right as we brought in well trained coaches and support staff at the stadiums who wanted to bring results. for sports and sportspersons but there is still a long way to go for us to create an ecosystem that Through these efforts, we were able to bring in takes us forward. This ecosystem needs to provide a culture of sporting excellence in sports and and augment sports facilities and fill gaps when Haryana emerged as a key sporting powerhouse government help is not forthcoming. in the country. We always had the talent, through our policies we were able to identify talent, nurture We, however, need to look beyond medals as sports it and more importantly, provide a safety net to is not just about national pride and winning medals, sportspersons by giving them the right economic it is about building a healthy India and giving an incentives. opportunity to achieve their true potential. Sports is the prime reason why youth in Haryana have largely While governments are doing their bit, the corporate stayed away from drugs while states like Punjab sector and Non-Government players are going to have been hit very hard. be a big driver in creating and institutionalising a supportive eco-system for sports and answering the While the job of identification of sporting talent and fundamental question: can sports can be financially grooming them in the initial years is with the state sustainable for sportspersons. While cricket has governments, the overall economic system has to become sustainable, sports like Kabaddi and Football supportive of sportspersons not only in cricket but are being provided extensive support on television, also in other sports. The rise of the ISL, the IHL there is a lot that needs to be done for other sports. and the Kabaddi league are great developments but we need to have a much stronger support system Sports advertising in India crossed $ 1 billion in 2017 getting into wrestling, boxing and other sports where and marks the beginning of change in the country. state support is the only thing keeping them going. While cricket continues to dominate, sponsorship for Football and Kabaddi has also 60% plus increase in We need to not only provide rewards to people who advertising. A report by E&Y in July 2017 points out win us medals but also provide support to those that the third edition of the ISL in 2016 had a total who don’t fail to cross the winning line. A lot can go viewership of 224 million as compared to around 207 wrong in sports, you work 15 years of your life to million in 2015. The ISL 2016 finale had a viewership reach an Olympic final and then on the last day, you of 41 million, up 41% as compared to 2015. One of catch a stomach bug and it is all over. The next big the highlights of the season was the sharp increase opportunity is four years away and there is a lot that in rural viewership, registering a cumulative figure can change. of 101 million, indicating the widespread appeal of the sport. We need to understand that sportspersons are people first and while we need to motivate them, We are starting to see greater financial support we also need to address their insecurities.
14 | Business of Sports – Rumble Under Our Feet Policy
How Technology has started to Impact and Transform Sports
Mayank Pande Promoter GoPlaySport
he advancement in modern day technology “In the future, technology has to deliver is going to impact Sports more than you can imagine seamless and integrated results that T will enhance the sports experience and Technology is an ever-evolving process and we’re deliver higher audience engagement still three decades away from reaching singularity (defined as machine super-intelligence overtaking and better commercial outcomes.” human intelligence). work commitments are all enabled through some Up to 2018, technology has been largely uni- technology, program, device or application. dimensional in nature. As the next step, wearable devices, artificial intelligence and smart analytics are Over the last two decades, the application of science needed for seamlessly integrating technology with had led to a rapid evolution of sports equipment, application to guide the next stage of evolution and footwear, clothing and accessories. However, the to ensure higher relevance to human society. rate of technology evolution has been slow paced.
But for now, technology is a great enabler. It In many ways, humans have hesitated and resisted is deeply embedded in our everyday lives. Our in adopting technology in competitive sports. Their daily routines, health, travel & work schedules, major argument states that the sports’ too much weekend appointments, social interactions and our reliance on technology will inhibit natural competition and reduce the thrill of competition.
Stage 1: Sports & Technology Today - Limited Applications
Rules Enforcement & Referee 1 Assistance 2/ 5
2 Media & Reach 3/ 5 INDIA IMPACT - ACROSS Wearables & Equipment For 3 SPORTS Training & Coaching Support 1/ 5
Ticketing & Spectator 4 Experience 1/ 5
www.GoPlaySport.Co +91.9810594190 Business of Sports – Rumble Under Our Feet | 15 Policy
Here are four ways in which technology has started Stage 2: Sports & Technology Tomorrow to impact & transform sports, although on a restricted basis: – Seamless & Enhanced
1. Rules Enforcement & Referee Assistance: As technology adoption, reach and acceptance Systems such as Decision Referral System improves in India, the next stage of Sport-Tech will (DRS), Hawk-Eye and Hot-Spot, Shot-Tracer, aim towards a seamless integration of different Radar Gun and Snick-O-Meter have all helped platforms to deliver integrated data and analytics to administrators deliver a fair and unbiased enhance the total sports experience in the following experience in the sport. These technologies manner. have now reached the fields of cricket, golf, 1. Sports Regulations: New technology will athletics, football and lawn tennis and a few ensure far and wide applications beyond the other sports. field of play and include on the spot doping 2. Media & Reach: The internet, high-speed cable, checks, theatrical cheating, improved athlete HDTV, apps, blogs, social media platforms safety, timely injury prevention and prevent have brought sports deep into our everyday over exhaustion. In addition, the application will lives ensuring deeper engagement and a wider extend to crowd management and crowd flows. connect between the sports and its fans. 2. Performance & Athlete Analysis: As teams, 3. Wearables & Equipment For Training & coaches and athletes chase perfection, real- Coaching Support: Today minuscule electronic time data and information will become available devices can be attached on to the athlete’s to optimize coaching programs and training body, clothing, footwear & equipment to track schedules. critical information such as heart rate, stride, 3. Strategic Analytics: Mathematical & statistical speed, distance, swing speed, swing plane models will emerge and drive decisions on and other critical information which in turn is scoring patterns, team & athlete performance being used by the coaching staff for athlete and trading athletes. development. 4. Fan Insight & Engagement: Teams will begin 4. Ticketing & Spectator Experience: Online to track fan sentiment and align that with the ticketing has ensured a paperless world and real-time experience delivered and further created immense reach for organizers to connect that to fan engagement at retail. Mood improve their ability to fill stadiums. Organizers sensors, facial tracking and crowd maps will have therefore worked to deliver an enriching enable organizers to take real time decisions on audience experience through live HD screens, creating curated personalized experiences and services on order and other in-stadium commercial transactions. engagement services.
SPORT REGULATIONS
PERFORMANCE FAN INSIGHT & & ATHLETE ENGAGEMENT ANALYTICS
STRATEGIC ANALYTICS
16 | Business ofwww.GoPlaySport.Co Sports – Rumble Under Our Feet +91.9810594190 Policy
Conclusion data, his recent training outcomes, his big match performance results and mental makeup will be co- Smart Analytics & Artificial Intelligence Support: related to the city in which he is playing next (crowd In the future, technology has to deliver seamless support, temperature & humidity) in co-relation to and integrated results that will enhance the sports the rival team and his specific play pattern against experience and deliver higher audience engagement that team to project results. and better commercial outcomes. On the other side, this athletes fan base will be For this to happen smart analytics and artificial mined using social media linkages to understand intelligence support will be critical. Individual data fan sentiment & preferences to make commercial points from stand alone and independent systems decisions on budget spend, food, seating, (1-4) will draw intelligent co-relations to create smart experience, advertisements, on-site active and retail insights. For e.g. an athlete’s past performance preferences.
Business of Sports – Rumble Under Our Feet | 17 Markets and Investments
Market Strategy: Investing in Sports, Media & Entertainment
Rajeev Kalambi Principal FidelisWorld
sia’s, and specifically India’s, growth characteristics and demographics are well “As growth equity investors, we Aknown. Increasing per capita income and partner with companies that are on the the resultant increase in disposable incomes means cutting-edge of innovation but apply that a largely young population is spending much more on entertainment, leisure and wellness. This this in a way that generates shareholder is a long-term consumption trend that will continue value in a very traditional sense of the for years to come. As growth equity investors, we term – profits. Smaaash Entertainment look for profitable, fast-growing companies that are scalable both domestically and globally, sustainable is one such example.” from a growth perspective and have characteristics protecting them from competition. Our firm started investing in 2013 and employs a unique strategy that There are numerous opportunities in this space takes into account our learnings about the media, across the entire investment chain, right from technology, and entertainment sectors. venture capital all the way to strategic buyouts and IPOs. However, we identify specific criteria Through our experience, we have found that the that we feel enhances the likelihood of generating ‘sports business’ is a much wider universe of robust investment returns. I will expand a bit on companies operating in the larger technology, media three of these criteria. Firstly, we look for value, and entertainment ecosystem. The unifying point is not valuations. Secondly, we look for ways to that most clients and end-consumers for just about play a trend, rather than to put all our eggs in one all these companies are the same, whether B2B basket, while keeping an eye on underlying business or B2C. According to Deloitte, after spending on fundamentals. Finally, we look for companies that essentials, millennia’s in India spend about one-third offer truly unique, market-targeted products and of incremental income on entertainment and one-fifth solutions, and not companies that simply mimic on apparel. By including these types of businesses successful models from elsewhere. in the same portfolio, not only are we able to provide strategic guidance in our areas of expertise to our It is easy to get lost in a world where the latest investee companies, but the companies themselves startup commands a newly record-breaking can share knowledge and grow faster as a result. valuation. This is especially the case in an Using these insights, we identified high-growth investment universe that includes digital, internet companies that operate at the intersection of and tech-related businesses. However, as growth these sectors. Our portfolio accordingly comprises equity investors, we partner with companies that companies in media management, leisure and are on the cutting-edge of innovation but apply this entertainment, data and analytics, digital content, in a way that generates shareholder value in a very wellness and apparel. traditional sense of the term – profits. Smaaash
18 | Business of Sports – Rumble Under Our Feet Markets and Investments
Entertainment is one such example. The company investment, we were able to take advantage of the operates leisure and entertainment centers across general growth in entertainment consumption in India and now around the world. This model places India and realized an exit in March 2018 with returns the company on a rapid growth trajectory. However, of about two times our invested capital in four years. what protects the business from competition and provides upside value to the business model is the Finally, the most successful companies in India world-class R&D that constantly develops new and provide India-centric products and services that are exciting games, combining the latest in VR, robotics innovated specifically to suit the unique sensitivities and tactile technologies to create immersive and of the Indian consumer. Cookie cutter solutions augmented experiences. This company is no do not necessarily work, and even champions of longer just an entertainment center operator but a standardization like the global fast food chains adopt a product business with a wide and deep portfolio of deep level of localization to enhance their positioning intellectual property. in the Indian market. Wildcraft is one such company that, while on the surface seems to compete Similarly, there is always intense media interest with global brands like North Face and Columbia, surrounding the latest celebrity-led venture, be it a provides products and apparel uniquely suited to the sports league or an entertainment concept. While climatic conditions and idiosyncrasies of daily life in this is, in general, useful for companies looking to developing nations situated in the tropics. In warm attract media attention in an industry where much climes, down jackets are impractical; breathable rain of the revenues are media driven (broadcast rights, jackets reign supreme. Price points are in the ‘mass advertising, etc.), this can also have the effect premium’ category, leading to broad-based adoption of diverting attention away from the underlying and healthy margins. This unique product mix means fundamentals of business performance. Globally, Wildcraft is also well placed to provide its products in sponsorship revenues increase at upwards of 5% other tropical and semi-tropical geographies across per year whether there is a boom or a bust. In the Asia and Africa, at prices affordable for most. developing markets, the number for the overall sports market tends to be around 2x of GDP growth. In summation, the sports business is part of a larger While one way to play this would be to invest in a ecosystem of technology, media and entertainment league or a team (of which there are many options sectors that provide lucrative investment opportunities in India), we see this as riskier as, apart from the across Asia, but specifically in India. Macroeconomic Indian Premier League, a team or a league depends factors provide broad, foundational support for too heavily on sponsorship revenues in a space the entrepreneurial energy generating numerous where globally, broadcast revenues drive the bulk new businesses in the space. A prudent investor of earnings. Prudent investing requires identifying can identify and make use of these opportunities the companies that can benefit from the underlying by remembering that successful investing is the trends without getting distracted by glitz and glamor. same across all sectors and categories: keeping a Technology Frontiers is one such company. As a focus on business fundamentals will yield results. media management company headquartered in Look for value, not hype. Find businesses that take Chennai, India, Techfront provides display solutions advantage of broad trends in a diversified way, and sponsorship management for rights-holders avoiding concentration risk. And finally, just like in across the world. Whether teams are winning or any market, the Indian consumer values innovation losing, they require such services and Techfront and products and services tailored to his/her specific was well-placed to provide them. Through this needs.
Business of Sports – Rumble Under Our Feet | 19 Markets and Investments
Market Strategy: Shaping up a Fit ‘Mind-Body’ India
Karan Mohla Partner and Executive Director Chiratae Ventures
verall, the investment and attention paid to the sports and sports-tech market has “Another significant push for the Olagged as compared to other sectors in India. industry is marquee sportsmen However, in the past couple of years, largely spurred investing in, starting up or taking up on by consistent international successes across multiple sports, the interest and activity in the sector advisory roles in new age startups. For has accelerated. investors such as us, we would want to leverage this momentum and work India is a huge sports market, which goes far beyond cricket. Latent demand and interest has closely with entrepreneurs who are been bubbling up to the surface across many fronts. seeking to innovate and create new As sports continue to gain mainstream interest and models for the mobile, tech-focused growth, new opportunities in the ecosystem will continue to arise. Indian market.” Indian Super League and Premier Badminton Growth Catalysts League, have stirred an interest in the nation for alternate sports as well. The growth and interest in the sector can be attributed to a number of factors, some of which • Active Government support – The ‘Khelo are macro and broad-based and others which are India’ initiative by the Indian Government has specific to the sector. vouched to identify talented players in priority sports disciplines at various levels who will be • Global success in multiple sports and provided assistance of INR 5 lakhs annually. formats: from successes in medal sports This has triggered a massive cultural push at global events (Olympics, Asian Games, towards sports especially in Tier-2,3 cities and Commonwealth Games), to team and rural India. individual sport achievements outside of these forums (the incredible rise of the Indian • Favorable Demographics – With 65% of football team, individual success of athletes the population under the age of 35, the in golf, chess, billiards), the interest in non- demographic dividend enables an accelerated cricket sports has never been higher interest in the growth of multiple sport categories. By 2020, the median age in India • Commercial viability and the possibility will be just 28, compared to 37 in China of creating successful business in non- and the US, 45 in Western Europe, and 49 cricketing sports - Although the popularity of in Japan. Also as the disposable wealth Indian Premier League for Cricket supersedes increases among all age groups, the focus that of most other sports, professional on fitness and sports has also increased. This leagues of the likes of Pro Kabaddi League, can be seen via the growth of proxy metrics,
20 | Business of Sports – Rumble Under Our Feet Markets and Investments
such as wearables wherein Indian customers Ria, is able to track what users eat and makes bought nearly 2.7M units in 2017, creating a healthy lifestyle suggestions. good market opportunity for global companies including Fitbit, Samsung and Xiaomi. Cure.fit has made an impact via its multi-platform approach. With over 80 cult centers across the • Rise of Digital Platforms Impacting Multiple country, coupled with the acquisition of Fitness First Areas – With the increasing penetration of in India, the company was able to reach consumers smartphones coupled with lowest 4G tariffs in all the large metro cities in India. They recently globally, the consumption of sports via digital crossed the milestone of 5 million cult class bookings platforms has never been easier or quite as and offer services including sport activities, HRX dramatic. Platforms like Hotstar or SonyLiv work out, boxing, zumba, yoga, among others. The have seen record breaking audiences in company is focused on creating a new category of 2018 during the IPL and Football World Cup sports and fitness in the country. respectively. Equally important, digital crowd funding platforms such as Ketto and Milaap, By leveraging technology, both HealthifyMe and allow budding local and regional sports Cure.fit are able to cater to the requirements of athletes to get democratic access to funding. all users across the breadth of health, fitness and wellness. The result of these catalysts is increased capital flowing into sports but also growth in startups Emerging Areas of Investments and entrepreneurs. With a jump in venture capital investments flowing into sports tech sector of the • Sports Ecommerce - As the millennials engage country from 2017, the sector is brimming with in increasing sporting activities, marketplaces opportunities. Another significant push for the and sporting brands of associated merchandise, industry is marquee sportsmen investing in, starting products and services is bound to follow. up or taking up advisory roles in new age startups. Collectabilia, the online platform selling sports For investors such as us, we would want to leverage and celebrity merchandise is one of the key this momentum and work closely with entrepreneurs examples apart from Healthkart.com which who are seeking to innovate and create new models has created a new brand in the sport fitness & for the mobile, tech-focused Indian market. nutraceuticals industry.
Case Study: HealthifyMe and Cure.Fit • Sports Content & Community Engagement - Digital consumption has also been instrumental For Chiratae Ventures, our association with the sports in driving fan engagement in new age sports market has broadly centered around investments properties. Sports focused social networks in HealthifyMe and Cure.Fit. The former is the and fan engagement platforms are connecting largest digital platform focused on health, fitness with their audiences online, and this consumer and wellness in India, whereas the latter focuses database on digital will be key to connect with on creating an ecosystem of health and fitness via the audience for further downstream ancillary gyms & sporting centres (Cult), health food (Eat.fit), revenues such as brand commerce. meditation centers (Mind.fit) and primary healthcare (Care.fit). • Esports: The emergence of this sector as a primarily online-driven genre, and one Each of these has had a deep impact on consumers that like many traditional sports requires in India. HealthifyMe has over 7 million users, little localization, makes it ideally suited to 200 million foods and exercises logged, 15 million aggregating large audiences across multiple kilometres tracked via walking/ running and over territories. For the players of these games, 1 million kilograms lost. Via their integration into Esports is just like physical sports industry all wearable’s, the fitness performance combines – inviting team sponsorships, coaches, together under the same umbrella as a dietary data analysts, commentators and brand regime, HealthifyMe is creating a gigantic ecosystem endorsements. In evolved countries, players for active as well as passive sports enthusiasts. The have their own coaches and data analysts as company, via its proprietary AI-nutrition platform, well.
Business of Sports – Rumble Under Our Feet | 21 Markets and Investments
Gaming & eSports – Redefining New Media Investment Strategy
Ronnie Screwvala Co-authors: Supratik Sen, THINKTANK (Tushaar/ Amar/ Shubro) U CYPHER TEAM U SPORTS
Introduction “With a mobile subscriber base of 1.18 gainst the back-drop of digital revolution, billion coupled with the second largest when we look for opportunistic yet strategic number of smartphones globally, Abusiness models for investment and growth, India’s demand for gaming content is eSports presents itself as a shining example of what could potentially be a trojan horse in the ever far from being quenched and is only expanding portfolio of a media and entertainment going to grow many folds.” company. Predicated on a potent trio of; the ubiquity of mobile; the evolution of the gaming business model; and the surging popularity of gamers and gamer culture, eSport is clearly an exciting one of the categories such as First Person Shooter, investment option with less risks and down-sides for Real Time Strategy, Multi-Player Online Battle Arena a seven to ten year investment horizon typical of the and Fighting. Indian marketplace. Potential What Is It? It is estimated that given the inherent interest of the For the uninitiated, eSport is a multiplayer video digital generation in mobile phones and computers game played competitively for spectators, typically over football fields and running tracks, eSport would by professional gamers. In many countries around obviously be a major player in the world’s sporting the world, eSport is already a favourite pastime landscape but could also potentially challenge the amongst the young male millennials as it benefits three main cultural connectors for Indians namely from a digital-first-sport positioning for a predominant Astrology, Bollywood and Cricket as early as 2020. digital-default generation. Even the success of an eSport athlete requires many of the same attributes Evolution required from any other sportsman, be it a cricketer or Kabaddi player i.e. skill, strategy and competence Competitive video gaming, known as eSports today earned through practice, dedication and discipline of started somewhere in 1970s and over the decades sticking to a routine. For the eSport fan, the drama and since then gamers and gaming have increasingly of LIVE sport is all there. The thrill of watching and become more and more sophisticated and accessible interacting with their hero’s and reeling in a sense to a much wider audience. Today, online streaming of camaraderie whilst they cheer along with their platforms like Twitch, Youtube Gaming, Facebook community of fans makes the eSport fan as one of Watch and connected consoles link competitors the most loyal consumer. eSports gameplay is as across geographies to play popular game titles, and unique as its fan base with ambitious titles, creative spectating has blossomed online to support them. storylines and realistic worlds. Gaming titles fall in New digital communities of players and fans and
22 | Business of Sports – Rumble Under Our Feet Markets and Investments brands spend hours a day streaming game content Content and posting comments during live gameplay. The new mantra of the digital economy is content. India Story Be it sports, news, music, or films. The mobile phone has now become the primary mode of consuming Although eSports culture did not develop in India news, entertainment and gaming. Gaming is a unlike countries like the US and Korea because form of entertainment content that is consumed earlier there was not enough bandwidth for PC via interaction, participation and viewership. With a gaming whilst consoles’ pricing was prohibitive. mobile subscriber base of 1.18 billion coupled with However mobile has changed those dynamics and the second largest number of smartphones globally, now with greater bandwidth, Indians are also getting India’s demand for gaming content is far from being increasingly involved in eSports. The India Story is quenched and is only going to grow many folds. most promising at two levels. First, India has the As various telcos adjust their strategy after the Jio advantage of demographic dividend. A sizable chunk onslaught and consequent rolling out of home fibre – of our population is below the age of 35 years. the need to strengthen partnership between content And second, India is the second biggest market providers and telcos is becoming a top priority with for smartphones in the world with 221 million a view to retain and engage subscribers. Experts smartphone owners and as many as 800 million believe, to grow eSports at scale and with a larger Indian citizens joining the smartphone revolution share of voice, it will be pragmatic to fork out alliances over the next decade. These two reasons present a with telcos with in-built OTT platforms such as Airtel bullish view of the opportunity that exists for growth TV, Jio TV, amongst others to chart out exponential of eSports in India. At present, India is already home growth of eSports. This also augurs well for telcos to 120 million online gamers with potential to cross as it is in line with their strategy of permeating the 300 million by 2021. The subset of that is the serious rural and regional markets with new forms of content eSports community which is pegged at around 10 as consumption shifts in favor of data over voice. million. If we are to believe the adage that content is king and distribution is god -- it is only natural to expect eSports Business Model that eSports can get maximum engagement via a partnership with telco ensuring presence across the The quintessential eSport business model sits at value chain from content creation, to distribution and the junction of sponsorship and advertising with consumption through the network of the incumbent. subscriptions and micro-transactions. However as the lion’s share of the revenue comes from Career sponsorship, there is a need to unlock other revenue. As eSport attempts to migrate from a historical New age careers in designing and development of free-to-air to pay-per-view broadcast model it will video games is becoming main stream. Companies have to make the subscription model workable and like iD Tech Camps and Digital Media Academy attractive as the latter doesn’t work on television. In offer STEM based courses that range from simple addition, eSports can have scheduled ad breaks built robotics to machine learning and even designing into broadcast formats. So in total, an eSport league a video game like Fortnite: Battle Royale. Kids could benefit from sponsorship, micro-transactions aged between the ages of 6 to 18 learn all sorts and monetizing social engagement as audiences of technical skills ranging from video production start to pay for engagement with professional to designing. Since the introduction of “Fortnite players. Camp and Unreal Engine Level Design” more than 2,000 students have registered with another 4,000 In the case of U Cypher, a first of its kind eSport working to make different games. The class on property from the house of U Sports, our goal has Fortnite leveraged the overwhelming popularity been to focus on the three most important factors of the game to get students interested in game such as content (entertainment), community design. The Fortnite class can help these kids gain (advertising) and career (employment) to build the an interest in broader engineering skills that could eSports ecosystem in the country. one day apply to a number of different industries and
Business of Sports – Rumble Under Our Feet | 23 Markets and Investments potentially fill the 2 million unfilled STEM jobs in the disbursement of prize money in the eSport industry. US. The Unreal Engine is free for anyone to use since As a majority of the gamers come from the younger 2015 — including students and complete amateurs. demographic, they are consequently able to adopt Plenty of large video game developers use it. Even new forms of technology including blockchain and on the enterprise end of things Unreal Engine is crypto currency faster than other professionals in being used to transform so many industries other industries like banking or logistics. Blockchain is than video games such as architecture, aeronautics, helping eSports at two levels - first to deploy smart real estate construction, media film, marketing and contracts, fuel betting, host tournaments, and auto engineering. ease the purchase of virtual assets and second to help amateur gamers in their journey of becoming College eSports pro through both tournament and team building platforms. College eSports programs are mushrooming up everywhere around the world. Being an avid gamer Future today is now worth more than just glory. There are more than 30 colleges in the US that offer Interactive is the future. People won’t want to watch scholarships to gamers. University of Utah is one a Star Wars in the future. They’ll want to be in a Star of the larger sports schools to offer scholarships Wars says Ronnie Screwvala. The drift from Ronnie’s for video gaming. It’s eSports team competes at statements elucidates that the future will be highly the high-profile ‘League of Legends’ competition. interactive. The future of gaming and eSports will be The University of California-Irvine similarly recruits a convergence of many diverse and wide range of students on partial video game scholarships and subject matters that will offer an experiential learning have even built a gaming arena for gamers and its whilst providing a playing and watching opportunity school’s 10-player team. More initiatives like High for the gamers and gaming aficionados respectively. School eSports League (HSEL), considered as One that we believe will be a grand proposition (just one of the largest eSports leagues in the world is as an example) in this direction is the resurgence of focused on creating a stronger path for high school the epic sagas like the Mahabharat and Ramayan eSports athletes to move into the collegiate ranks as which will be re-imagined, re-scripted and re-told scholarship athletes. in a manner like never before. The gamers will be challenged and propelled to play both positive Blockchain and Crypto Currency and negative role-plays within the tenets of the same game uncovering a new insight and new Blockchain and Crypto Currency are the latest trends understanding of these epics, individual morality and to disrupt the micro-transactions, data systems and faith in religious folklore.
24 | Business of Sports – Rumble Under Our Feet Infrastructure
Filling in the VOID – Where Talent meets Training
Mustafa Ghouse CEO JSW SPORTS
uch has been spoken about India’s record at major non-cricket sporting events and the “We are uniquely positioned in India Mabsence of a ‘sporting culture’ in the country as the only company with a franchise finds mention in animated discussions everywhere, across the three top leagues of the from TV debates to conference panels. If one were to scratch beyond the surface, it is evident that a larger country. Besides, through our support portion of the success Indian athletes have had on to over 30 Indian athletes in Olympic the global stage this far has been not because, but disciplines and with over 150 junior despite the system, indicating the absence of a well- structured ecosystem for the promotion of sporting trainees at our Olympic Training Centre talent. It is within this context that the active in Karnataka, we feel confident in our involvement of the private sector and collaboration vision for Indian sport.” with state entities can be a game-changer for the rapid growth of sports in India. With the centre and many state governments taking initiatives to boost Through a strategic plan and a vision which sees sports development, this is a definite void that can be the tremendous value in sport investments, we are filled with effective planning and a long-term outlook, uniquely positioned in India as the only company something we at JSW Sports have witnessed first- with a franchise across the three top leagues of hand over the past six years. the country. Besides, through our support to over 30 Indian athletes in Olympic disciplines and with The development of the nation is core to the DNA over 150 junior trainees at our Olympic Training of the JSW Group and given the immense power of Centre in Karnataka, we feel confident in our vision sport to unite a nation, it was a logical extension for the for Indian sport. Speaking of Olympic sports, it is promoters. We started operations in 2012 with the heartening to see the government taking proactive simple premise of maximising the sporting potential steps backed by scientific evidence and examples of India by identifying, training and developing from developed sporting nations. With the Target talented athletes who can bring the nation glory at Olympic Podium Scheme and Khelo India focusing the world stage. With high-performance systems on support to elite and youth athletes, there is great and infrastructure alien to most of us, especially potential for private organisations to focus efforts in at the youth levels, all our sports interests have developing grassroots for a wider range of sports. focused on building these capabilities for an Indian Simultaneously, with the sports industry maturing, context. In this way, we are successfully targeting policies to enhance the entire ecosystem of sport the vast untapped potential for sport in the country, and allied industries will go a long way in creating while also doing our bit to bring professionalism to a constructive environment for the development of the still nascent sporting ecosystem in India. sport.
Business of Sports – Rumble Under Our Feet | 25 Infrastructure
Filling the void: A JSW sports athletes, from ages 12 onwards, have been scouted from across India for this program and are periodically perspective reviewed to measure progress. The impact of this facility on trainees has been immense and we’ve Since the inception of the Bengaluru FC, our focus already seen multiple elite Indian athletes and teams has been on setting up a professional management use IIS for training and conditioning camps. Among structure in place and on establishing player our first cohort of trainees is Thangjam Tabai Devi, development pathways with the aim of building a a 16 year old judoka who won India’s first ever pipeline of players for the national squad. While the Olympic Judo medal at the Youth Olympic Games headlines talk about the five titles in five years, we in Argentina in October. Alongside Tababi, we now take greater pride in the structures we have set up have a core group of talented athletes that are being with the BFC Youth Academy and reserve teams. groomed with an eye on the 2024 Olympic Games in The fact that 16 players from BFC have gone on Paris. With detailed training plans and individualized to represent the senior national team and 12 have programs put in place, this gives ample time for the risen through the youth team ranks to play for the athletes to progress further along their development national age-group squads is testament to the strong pathways, while having access to sport science pathways and opportunities for player development interventions and regular recovery support to ensure at BFC. Further still, 7 players were promoted from they are competition ready. the ‘B’ team to the ISL squad this year and 12 players moved from the U-18s to the ‘B’ team, which shows While we are still in early stages of our journey, the strong pipeline of talent we’ve been able to the initial success and positive impact on athletes create. With a network of 20 BFC Soccer Schools has made us confident about our role in providing scheduled to be in place across the city of Bengaluru a holistic environment for the development of before the end of the season, we are confident that these athletes. This has further been recognised we are bringing about a cultural change both at the by the Sports Authority of India, who have certified top and bottom ends of the footballing pyramid. IIS as a Khelo India accredited academy. Besides, many agencies have called upon our help to set up Similarly, the lack of infrastructure and funding High Performance Centres across the country. For support for athletes has led India to have the instance, we recently signed an MOU with the state unenviable distinction of winning the lowest number of Odisha to set up high performance programs for of Olympic medals per capita. With a view to swimming and football within the state. provide India’s present and future Olympic hopefuls a chance to fulfil their true potential, we led the To conclude, there are many factors that lead us to establishment of India’s first privately-funded High be positive about the future of Indian sport over the Performance Olympic Training Centre, the Inspire next decade. The concerted effort of all government Institute of Sport (IIS) in Vijayanagar, Karnataka. agencies, and an active involvement of the private The 42 acre campus houses world class training sector can play a critical role in helping India achieve facilities for athletics, boxing, judo and wrestling, much greater success in the sporting sphere. While along with a state-of-the-art Sports Science Lab and India has seen a visible infrastructural and cultural boasts of international coaching expertise in each shift towards sports, there is a dire need to make game along with support functions such as strength this infrastructure available to athletes at the right and conditioning, physiotherapy, physiology and age. It is only through these systems and practices, nutrition. complemented with adequate policy measures, that India can truly stake a claim at being a global sporting Over 150 of the country’s most talented young powerhouse.
26 | Business of Sports – Rumble Under Our Feet Infrastructure
Elephant in the Room – Walking the PPP Talk
Udit Sheth Managing Director TransStadia
Sports Infrastructure & Stadia – the very words have “In India alone there are over 150 stadia a shaking effect on people. World over countries are increasingly finding it difficult to justify investments that are defunct with a low utilization. in sports infrastructure – the high cost, low utilization With an adequate revenue model and a history of this segment has always been a major few concessions from the government concern for effective use of tax payers money. we could be looking at least a USD 6 One of the most important questions therefore to billion opportunity.” take into consideration is, ‘Can PPP save the sector?’ and the obvious answer to this is a big yes. oriented revenue share. The government of Gujarat India’s history with Government spend on sports and SE TransStadia Pvt. Ltd. entered an agreement infrastructure has always been shadowed by to build a multipurpose stadium in Ahmedabad. The questions of legacy, effective spends, utilization, stadium is based on StadiArena’s unique and globally operations and more. But a recent pioneering PPP in patented technology, which converts a part of an this sector by TransStadia in Ahmedabad has shown outdoor stadium into an indoor arena within minutes. a new and exciting future. The Hon’ Prime Minister What’s more, our facility also hosts a sporting recently inaugurated the world’s most advanced academy, training India’s future sports personalities sports arena in Ahmedabad, a staggering 1.4 million with an objective to produce world class competitive sq. ft. construction at a project cost of approx. USD teams in international competitions for men and 75 million. The Government contributed the land and women across all levels. Other areas for revenues with a simple revenue share agreement, the project are many and exciting. is the new city centre of the city of Ahmedabad with a utilization climbing towards 60% p.a form a global In India alone there are over 150 stadia that are average of 2%. defunct with a low utilization. With an adequate revenue model and a few concessions from the We at TransStadia built this iconic and bankable government we could be looking at least a USD 6 project in less than 3 years and launched it with the billion opportunity. This opportunity will open up a prestigious Kabaddi World Cup with Star Sports. completely new sector for sports, entertainment, The project has also been classified as a convention hospitality and more and will be a huge employment centre and is hosting all types of MICE and sporting generator. It will be the back bone for making sports events. At The Arena by TransStadia, we have built an industry. a multi-use facility which only assists in generating better revenues. If you see, many of the non-private From a policy and framework perspective – sports stadiums have multiple operating deficiencies and facilities need to be considered as a part of the overall challenges. Also, they are very restrictive as they infrastructure policy, this will further help in ensuring are built on old technology. One needs to upgrade the financial structuring of the sector, which is the them on PPP models and do a sports development current need of the hour. The most important role
Business of Sports – Rumble Under Our Feet | 27 Infrastructure
of the government in the PPP is in catalysing private have gained importance and given international sector into investing in this much needed social presence though in a limited sense. These sports engineering exercise. Sports has now become an have evolved necessary ecosystems just around important source of entertainment and in the process certain places in India where these sports could has become an effective source of employment as thrive. Badminton developed in Hyderabad & well. In India, Cricket in particular has evolved in the Bangalore, Wrestling in Haryana and Tennis around last 60 years as a source of entertainment almost Delhi, Chennai & Kolkata. All these sports including to the entire population of the country. It has also Cricket, however had one factor in common. All become a source of employment to a large number these Sports got International visibility because of of persons throughout the country – not just athletes the strong eco-system evolved by these sports and but also coaches, managers, financiers and more. most importantly with Indians doing well in it. It’s become a multi-billion dollar industry thanks to its packaging and media. Historically, we also had and have Sports persons like Milkha Singh, P.T. Usha, Mary Kom and the In the mid-sixties parents wanted their children to likes who have brought India laurels on sheer grit pursue academics. Today the parents understand and limited support system. Good PPP frameworks pursuing sports as a career is an option and are will bring infrastructure and expertise that will make encouraging their children to focus on sports. Even the funnel of talent larger and systemize this sector if they don’t become athletes, ‘the cost of fitness is and may be even create the concept of a student much lower than the cost of illness.’ Today cricket athlete by creating a robust school and college talent has fully evolved as a Sports Industry with a very development program that is synchronized. strong ecosystem that supports and sustains its growth. It is played at every nook and corner of We should therefore make very concerted efforts the country. Good players from all economic strata to create conducive environments to attract are evolving throughout the country and earning investments for setting up infrastructure and name and fame and are gaining successful career institutions for all identified sports. in cricket. Those who do not succeed in playing at the highest level too, have opportunities to pursue This is a massive social engineering exercise, that their passion as umpires, coaches, team managers, necessitates a close and continuous involvement physios, marketers and more. of the state and the central governments coupled with private enterprises. With TransStadia we Yes cricket, in India is the richest sport amongst all have shown the way – but we need an industry the cricket playing countries in the world and the framework replete with concessions, incentives that Indian team has emerged as the top class team will galvanize this sector into a well-oiled growth in the entire world. This growth of cricket is not sector that has at least a minimum 2% contribution accidental. This evolution has taken place in about to the national GDP. 60 years. Today, it has strength and ability to recruit international top class players to play for India. It’s the right time to quote a United Nations Report at this stage - “Nations must invest in their citizen’s Unfortunately the success has not happened in other right to play and compete in sport – and this will build sports like Tennis, Badminton, Wrestling etc., which a safer and healthier nation”.
28 | Business of Sports – Rumble Under Our Feet Infrastructure
The God of Small Things – Digging into Districts #PlayingArenas
Anil Kumar Founder & MD Great Sports Infra
lobally, sports is recognized as a great “The success of ‘Pay-N-Play’ facilities enabler for nation building owing to its in most cities now is also a reflection of Gpositive influence – directly or indirectly on various sectors of the economy. The sports industry the transition from a ‘spectator’ nation has rapidly grown and evolved over the years. To to a ‘participant’ nation in sports.“ nurture the sports industry, countries such as US, UK, Russia, China and Germany have made massive investments in sports infrastructure over the years. The US has 3 stadiums per million people vis-a-vis 1 stadium per 7 million in India. Lack of clear policy roadmap to develop sports infrastructure has also been impacting India’s Sports infrastructure plays a crucial role in creating performance at global sports events. On the other a culture of sports amongst citizens of a country. In hand, China’s better performance at global sports India, sports have been predominantly the domain events is supplemented by its Government’s of the public sector. Private/ corporate sector continuous efforts to develop the relevant sometimes participates through Corporate Social infrastructure. The Chinese Government is planning Responsibility (CSR) and Public Private Partnership to build a number of towns dedicated as centres (PPP) in sports infrastructure development, although of sporting excellence for various disciplines in the overall contribution is substantially lower than coming years. Government spending. In India, sports infrastructure is poor owing to a lower allocation of funds by the However lately, sports is going through a Government (< 1% of the union budget). Moreover, transformational phase in India, as the Government the dominance of cricket has impacted the and private institutions are now increasingly focusing development of overall sports infrastructure. on inculcating sporting culture amongst the youth.
Business of Sports – Rumble Under Our Feet | 29 Infrastructure
Govt. grants under Sports Infrastructure Scheme for creation and up-gradation of sports infrastructure projects:
(₹ mn)
2000 1887
1800
1600
1400
1200 1050 1000 891 795 750 800 605 599 548 550 600 400 364 350 400 249 200 220 200 125
0 July
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 YTD
Grants Sanctioned Grants Released
Besides the central Government’s Khelo India promotion of sports excellence, conferring ‘industry’ scheme (whereby Rs. 17.56 billion is planned to status to sports infrastructure and introduction of be spent over FY 2018-20), related schemes for sports as a subject in schools are a big welcome.
30 | Business of Sports – Rumble Under Our Feet Infrastructure
Key objectives of Khelo India Scheme:
Identification of talent & mass participation of youth in annual sports competitions through a structured competition.
Guidance and nurturing of talent through existing sports academies and new set-up either by the central or state Governments or in the PPP mode.
Creation of sports infrastructure at the mofussil, tehsil, district and state levels.
Indian sports infrastructure for the most part, been wide usage that sports facilities should ideally cater associated with massive stadiums that cost billions to. of rupees. Almost by default, they tend to be located in large capital cities. While these are quite necessary Thankfully, Khelo India Scheme is designed to address to conduct very large National or International events this very issue by decentralizing the allocation of (National Games/ Commonwealth Games/ Asian funds. The projects that can be sanctioned to a) State Games), they are otherwise a dead investment! Governments/ State sports council/ State sports authority; b) Local Civil Bodies; (c) Public School, Considering that only sportspersons who practice Colleges and Universities; (d) Sports Control Boards to compete at National and International level need along with the maximum admissible grant are: such international-class facilities, there is a huge opportunity and even necessity to provide the vast Maximum admissible grants under the Khelo majority of the nation with access to sports facilities India scheme: that are not expensive or elaborate. Particulars (Rs.) mn The conventional approach where a city has one huge, international class stadium comes with various Synthetic athletic track 70 other challenges, other than just the massive cost. Synthetic hockey field 55 For the most part, the access is limited and anything that is over 5-8 km each way becomes impractical to Synthetic turf football ground 50 reach each day within the limited available time that most students and amateur sportspersons have. Multipurpose hall 80
Moreover, such stadiums typically tend to be Swimming pool 50 designed for just one sport (eg. Hockey) or at most Construction of stadia complex 500 two (athletics and football). This greatly restricts the
Business of Sports – Rumble Under Our Feet | 31 Infrastructure
“Spreading the culture of sports to actually set up over 100-200 such facilities in the rural areas. The entire focus of the investment would the hinterland is the secret behind be on playing surfaces and not any other peripheral unleashing India’s potential as a sports development like galleries, lighting or rooms. nation, and ‘Smart Sports Infra’ offers This is a smart and effective approach that virtually that solution at the most optimal cost guarantees greater accessibility, participation, talent and in the most effective manner.” identification and potential champions, and rightly so, under a theme of ‘Taking Sport to the People’, we at Great Sports Infra, created 3 models of deployment India can become a true sports country only when of such ‘Smart Sports Infra’ depending on the most of – if not all – the citizens have access to population sizes in district headquarters, taluks and pursue various sports. It is when different sports are small towns. played for fun initially and later explored for serious pursuit, aided by trained coaches that talent truly All these ‘Smart Sports Infra’ models are designed to emerges. cater to multiple sports (almost every track and field event of Athletics including sprints, middle and long This requires basic sports facilities that are multi- distance runs, throws, jumps, basketball, volleyball, sport and within an accessible distance to be used tennis etc., as well as all grass-based sports at an regularly. Also, it is all the more critical to have the amateur level) all within a fairly small area (12,000 facilities in the semi-urban and rural areas, which is Sq m), with fencing and lighting if required – all really the untapped potential of India. this at just 1% of the cost of a typical international The same 4-5 billion rupees that it may take to set stadium and yet lasting 12-15 years with virtually no up one large international standard stadium, we can maintenance!
32 | Business of Sports – Rumble Under Our Feet Infrastructure
Business of Sports – Rumble Under Our Feet | 33 Infrastructure
Model 1 is designed for District HQ, where the Such a facility provides the opportunity to pursue population is larger than taluks and towns. Such various sports (and more sports than Models 2 and places typically have a migration of students as well 3) and at a higher level of proficiency. Depending on as sportspersons from villages and towns, to pursue the population size and geographic spread, a specific education and/ or sports at a higher level. This would district HQ could have more than one such facility or be the facility where the teams of nearby towns can a combination of Models 1, 2, and 3. gather for tournaments and matches.
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Model 2 is designed as an intermediate level with But this would comfortably suffice a small town with most of the sports facilities of Model 1 but not all. limited population and geographical size.
Business of Sports – Rumble Under Our Feet | 35 Infrastructure
Model 3 is designed to provide sports infrastructure and community spirit, an effective tool in disturbed for a very small population size. While it is a very areas to keep the youth engaged. ‘Taking sport basic model, it still provides access to multiple to people’ is the most optimal and fastest way to sports, encouraging people to try out various sports, achieve and the Government certainly needs to and also provides reasonable and safe infrastructure. adopt such a policy.
With the advent of successful leagues in various As per the National Sports Policy 2001, the sports, India is finally moving away from being a Central Government in conjunction with the State ‘Cricket’ nation and embracing various sports. The Governments, the Indian Olympic Association (IOA), success of ‘Pay-N-Play’ facilities in most cities now and the National Sports Federation will concertedly is also a reflection of the transition from a ‘spectator’ pursue the twin objectives of ‘broad-basing’ of sports nation to a ‘participant’ nation in sports . Most of and ‘achieving excellence in sports at the national the players (neighborhood friends, colleagues, and international levels’. However, implementation classmates, families, play-buddies) in such ‘PNP’ of the sports policy has not been up to the mark. facilities are there just for the sheer joy of playing The country still lacks adequate sports infrastructure. and not necessarily to become world champions Although, the primary responsibility of broad-basing reflecting the true spirit of why sports is played in the sports is with the State Governments (as per National first place and the start of a ‘sports’ culture in India. Sports Policy, 2001), lack of funds and the absence of a separate sports policy at the state level have Spreading the culture of sports to the hinterland is impacted the development of sports infrastructure. the secret behind unleashing India’s potential as a Moreover, the inclusion of sports in the concurrent sports nation, and ‘Smart Sports Infra’ offers that list of the Constitution of India has been pending for solution at the most optimal cost and in the most a long time. Hence, it is about time for sports to be effective manner. considered a priority so that India can see a more ‘sporty’ tomorrow. A sporting nation brings much more benefit to a country than just medals. Sports is meant not (Source: World Bank, World stadiums, Indian to produce just champions, but has also proven Olympics Committee, CRISIL Research; Note: extremely beneficial to the health and efficiency of its Population figures are as of 2016, Olympic medal are population, engendering the spirit of sportsmanship of Rio Olympics 2016)
36 | Business of Sports – Rumble Under Our Feet Manufacturing
Stitching the Great India Dream: A Ground-Up Story
Shiv Prakash Singh MD Shiv-Naresh
A Tale Of Origin “More than 60% of the sports goods available are counterfeit. In the case of It was the year of 1970 when Mr. Singh was an athlete. apparels, at least 40% of the listings He lived in the capital of India, New Delhi. In spite of living in the Capital, Mr. RK Singh did not find certain are by duplicate manufacturers.” apparel for playing various tournaments. He had to travel to Patiala, which is the hub of manufacturing apparel, to buy even the simple athletic shoes and a Mission and Vision pair of shorts. Our core belief is to take our premium quality As a result, he started tailoring at home. He sportswear and sports equipment to consumers learnt things for over a decade and increased his across the world, without compromising on quality production. In the year of 1978, Mr. RK Singh finally while keeping our product range economical and laid of foundation of India’s largest Sports Wear accessible to everyone. Brand “Shiv-Naresh”. Product Strategy - Brand Building ‘Shiv-Naresh’ started its production in a very confined area of the house, initially. The store was run from We sell an assortment of products, including the home. Since then, Shiv-Naresh has become an shoes and apparel for sports activities like football, emerging brand in the Indian Sports Wear Market. basketball, running, combat sports, tennis, rugby, athletics, etc. for men, women and children in association with the sports associations in India Shiv Naresh Today through tenders and bidding process.
Shiv-Naresh is one of the leading manufacturer Our retail customers have access through a and regular supplier of all types/active sportswear showroom at our registered office and also through and sports equipment today. A family of over 800+ major leading e-commerce retail stores platforms for employees, the brand is promoted as, “From the a pan India outreach. Indian, By the Indian & to the Indian”. We have also launched a Premium European Our association with Khelo India has been our Brand – OOK, which provides high performance initiative to promote good sports spirit. With Our products focussed at style along with functionality PAN India presence we deliver not just sportswear and comfort. The main focus of OOK is to cater to and equipments, but values too. the demand of ‘passive sportswear’. Collaborations
Business of Sports – Rumble Under Our Feet | 37 Manufacturing
include, Austria Hockey Federation and the 10 PL • Accessories: Gloves, Bags Dubai League. • Sports Flooring: Mats and Turfs Collaborations Brief on Manufacturing Our collaborations are a reflection of our business approach, for example, we have partnered with We are aided by a sophisticated and fully-integrated marquee tournament in 2018 like the Common infrastructure facility in Delhi with a running with a Wealth Games. capacity of 30,000 garments per day.
We believe in working closely with the promoters To ensure that all the processes run fluently and of sports disciplines in India, covering, apex sports smoothly, we have divided our spacious infrastructure bodies, league clubs, public sector units supporting into departments such as manufacturing, logistics, sports and various sports leagues in India. quality control and R&D.
The brand has also associated and created clothing Salient Features: for various bollywood sport biopics like Marykom, Azhar, Budhia and Soorma. • We have facilities for testing of the raw materials used in the manufacturing process. Some partnerships worthy of a mention cover: 12th South Asian Games-2016, Guwahati (Assam), • We have various ‘Steam Press Units’ for Directorate, Sports & Youth Welfare, Assam, providing ‘state-of-the-art’ conditions to our Association with Pro Kabaddi Team ,Gujarat and fabric. State-of-the-Art Infrastructure and Bengaluru Bulls, Asian Games (Incheon), to name a Technology is used to enhance productivity. few. • Foreign brands are the sellers of Passive Sports Shiv-Naresh Product Segment Wear, whereas, we are the manufacturers of Active Sports Wear that are preferable for any • Foot Wear: Custom made Shoes, Sports sport or athletics. We are at par with all these Shoes, Shoes for every sport brands in terms of quality, comfort and style and much more affordable. • Apparel: T-shirts, Tracks, Sportswear Kit Sets, Shorts • Our in house automatic cutting plant, sublimation, stitching & finishing unit under • Sports Equipments: Sports Kit Sets (for every trained & experienced staff makes it easy to sport) deliver high quality sportswear of our brand.
38 | Business of Sports – Rumble Under Our Feet Manufacturing
Problems and Suggestion least 40% of the listings are by duplicate manufacturers. Sports sector in India has witnessed a number of recent developments which have contributed to • Funding facilities: Every organization needs its significant growth. Every sport has gathered a fund for research. In order to create trendy yet sizeable interest over the past few years. Following comfortable kits/apparel it is very important to are the problems faced: support an Indian brand which is contributing to Indian economy. • Duplicacy: Product or logo duplicacy is one of the major issues which is being faced today. • Labor: No strict rules for labor protest and Logo not just being a brand, is also a mark of strike have been implemented. Opportunities the quality assured to the customer. However, to substitute other factors of production for recently mass production of counterfeit labor in sports are more limited than in most products is hampering the growth of small industries. scale industry. The investigation carried out by a team of brand investigators has revealed that • Assistance for R&D: No special budget is more than 60% of the sports goods available allocated for understanding technological are counterfeit. In the case of apparels, at advancement like Sports Analytics which plays
Business of Sports – Rumble Under Our Feet | 39 Manufacturing
an important role in sports sector. A challenge • A structure of good governance should be is how to align with the changing needs incorporated to make the system transparent and interests of the millennial population, and accountable especially sports player with the features offered to create the facility of the future. • Government should take effective measures to revive sports culture; otherwise the Suggestions immense potential of the country in sports will never be realized. • Allocation of funds as the percentage of budget should/can be increased to broad-base • Create sectors like SEZ for sport specific sports in the country companies which can aid the growth of sports sector. • Sports should be made as an integral part of the education system to inculcate sports We expect the government to play a proactive culture from the school level, which has role in promoting sports in India and implementing started this year (Khelo India) strategies to protect brand identity for every company.
40 | Business of Sports – Rumble Under Our Feet Manufacturing
What it takes to Sustain and Scale, The Growth Multiplier
Rajesh Rai Managing Director JERAI Fitness
Constant Innovation and Customer “We may possibly be the only fitness Satisfaction equipment brand to manufacture n today’s fast paced and transformational world, with fully automated, multiple robotic where older technologies are challenged and newer units, along with complete in-house Iones adapted and accepted instantly, we have to always make sure that we are always ahead of the production facility.” curve. Working on new upgrades with modifications and betterment for the ease of use our products for the customer remains out core objective. Scaling New heights
With a track record of over 25 years, JERAI Fitness JERAI as a brand has many case studies where small has successfully built a trust worthy brand – par entrepreneurs with small start-ups now own large excellence, with any other in Asia. We may possibly scale profitable businesses with constant support be the only fitness equipment brand to manufacture from us. If the customer grows the industry grows with fully automated, multiple robotic units, along and subsequently good quality brands excel. with complete in-house production facility with approximate space of 1 lac sq. ft. floor space. This With small and large scale fitness centers approach allows us to monitor quality and timely mushrooming in every corner of the country gives delivery to our customers. unlimited employment opportunities to the fitness professionals around those areas. As a real-time Today every business excels or fails due to its ratings potential, we’re working out a model to micro-finance by the end user. Our efforts are towards assuring the said start-ups, fitness centers and entrepreneurs, user satisfaction of products post sale. This not only to actualize the huge market potential. The gym builds good customer reviews but also generates industry forms an important contributor to other trust for the brand in the coming years. fitness brands – apparels, courses, supplements and wellness to extrapolate business and value. One-Stop-Shop solution and Outreach Being just another brand in the market will not suffice The Multipliers in today’s market. A brand which helps its customer grow is the brand that can sustain in the long Fitness on the whole is not just limited to clubs term. We already have 16 company owned stores and gyms anymore, many small studio setups are and showrooms across multiple states and we’re also gaining popularity with functional & aerobics planning to achieve 50 stores by 2019. Outreach in activities, which is now widely accepted by all genre a fast converting fitness conscious country like India of people. is critical.
Business of Sports – Rumble Under Our Feet | 41 Manufacturing
With various fitness & health tracking mobile apps That, in my opinion, will remain key to sustainable and wide range of tech gadgets already available in business management. the market, health & fitness awareness is at its best stage right now and right infusion of tech seeping Strategic Brand Management into the system. Now for the most recent, yet the most important, In terms fitness equipment business, the industry is brand collaboration with India’s most popular fitness divided into broadly 3 Markets: icon Salman Khan. JERAI Fitness will now be • US & UK brands manufacturing exclusively under the brand name: BEING STRONG FITNESS EQUIPMENT • East Asian brands • Indian brands The new venture will aim to have a wide reach and create fitness awareness along with educating Like many progressive countries which promote people about the importance of being fit and healthy. their brands to the world, India is also ready with state-of-the-art technology, quality products and Salman Khan envisions to make fitness affordable right marketing approach, which can very well cater to every Indian with made in India, state-of-the-art to its local markets by making it cost effective and fitness equipments. also help improve Indian economy. He aims to reach every village, town and city in India JERAI Fitness has estimated a 100% growth of the which can also create job opportunities for fitness industry in the coming 10 years. And to cope with entrepreneurs and sportspersons of the country. the high market demand, very few brands will be A vision we strongly believe necessary for private able to fulfill the supply chain management with and public units to evangelize and collaborate on to quality products and 100% customer satisfaction. achieve success.
42 | Business of Sports – Rumble Under Our Feet Marketing and Packaging
“Show me the money” – Ground report: The Grand India League
Vinit Karnik Business Head - Entertainment Sports & Live Events GroupM
This decade promises to be a transformational “Sports league have a product that is one for Sports in India. The triggers are all there. A hungry spectator base of over a billion people, a ‘designed’ a market that is global, fans dozen sports television channels beaming sporting as consumers, and experts as opinion content round the clock, a rapidly growing list of makers. These are mega events that keen corporates and brands waiting to invest in emerging sports platforms. With a population of 1.2 are promoted on a global scale, with billion, India is the second most populous country in billions of dollars at stake.” the world and the 7th largest country by area. Such a large population has interests in varied sports. India is also home to a few indigenous sports like Kabaddi, Over the past ten years, the sports firmament has Kho Kho, amongst others. Other sports that have a changed fundamentally. There has been an increase large fan following in India include Cricket, Football in the marketing of sports as well as a rise in the and Badminton. Interest in sports mirrored the rise use of sports for marketing purposes. Research of Indian middle class, sporting heroes emerging indicates that there has been a sharp increase from humble backgrounds and increased exposure in the Governmental support to sports as it is to quality domestic and international sports content. believed to increase societal and economic welfare These trends underlie the development and of the country, as well as promote the nation on popularity of sports leagues. a global stage. Increased economic activity has also contributed to the growth of sports and its Today sport is no longer an amateur, gentleman’s following. Today sports serve two purposes, one pastime. It is a business like any other. Sports league to be a platform to create marketing opportunities have a product that is ‘designed’ a market that is for brands, and secondly to actually create value for global, fans as consumers, and experts as opinion sports fans. These twin purposes go hand in hand makers. These are mega events that are promoted and serve the industry and business as well as the on a global scale, with billions of dollars at stake. So, sports fans. Given below is the chart that will help while the ideals of the game, and its passion remain put the Indian sports growth story into perspective: intact, there is a layer of business that has come into the running of the league.
Business of Sports – Rumble Under Our Feet | 43 Marketing and Packaging
2008 in 2009 in 2010 in 2011 in 2012 in 2013 in 2014 in 2015 in 2016 in 2017 in Year INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr
2726 4037 5314 4405 4381 4617 5363 6400 7300 Overall % Growth 2023 13% 48% 32% -17% -1% 9% 16% 19% 14%
On Ground % 420 1043 705 712 759 795 1030 1166 1337 426 Growth -2% 150% -30% 1% 6% 5% 30% 13% 15%
445 456 724 669 465 496 558 700 819 Team % Growth 437 2% 3% 60% -8% -30% 6% 13% 25% 17%
284 284 618 481 527 482 541 548 684 Franchise 284 0% 0% 117% -22% 10% -8% 12% 1% 25%
127 254 267 293 382 328 416 476 395 Athlete 126 1% 100% 5% 10% 30% -14% 27% 14% -17%
Media Spends % 1450 2000 3000 2250 2250 2518 2817 3511 4065 1150 Growth 26% 38% 50% -25% 0% 12% 12% 25% 16%
2008 in 2009 in 2010 in 2011 in 2012 in 2013 in 2014 in 2015 in 2016 in 2017 in Year $ Mil $ Mil $ Mil $ Mil $ Mil $ Mil $ Mil $ Mil $ Mil $ Mil
INR-USD 43 48 46 47 53 59 61 65 68 66 Conversion Rate
Overall 564 568 878 1131 831 74 3 757 825 941 1106
On Ground 99 88 227 150 134 128 130 159 171 203
Team 102 93 99 154 126 79 81 86 103 124
Franchise 66 59 62 131 91 89 79 83 81 104
Athlete 29 26 55 57 55 65 54 64 70 60
Media Spends 267 302 435 638 425 3v81 413 433 516 616
Going forward here are 5 key factors that can help grit, determination and familial support. As a country, India build a sustainable sporting culture: we can produce such rising and shining talent but that needs a push, spread and amp from the Sports at a grass root level needs an lowest denomination and broad-bases. Grassroots development will need to occupy significant mind amp-up: space for the sporting authorities and right holders. It will ensure sustained talent pool that will drive the The Olympics, Common Wealth Games and Asian performance of marquee leagues bottom up. While Games have forged new sporting champions in the many corporates like Reliance, JSW and Tata are country no easy task given their stories, facilities doing fabulous work through their respective sports provided and the lack of adequate support by States foundations, we as a country however need many and Governments. Their hard work is not on the day more to come forward and support our athletes. of the show but the years of training, perseverance,
44 | Business of Sports – Rumble Under Our Feet Marketing and Packaging
Cricket as a sport is a wonderful content during a game. In this digital sports sphere, marketers are developing clever ways to engage case-study. Take learnings, don’t just with modern fans. Social media has given athletes replicate: a very public and direct line of communication with their fans and brands will be tapping this potential From a one sport nation we have made significant more fervently than before. Fan engagement at progress in building a new economy around emerging multiple touch-points (on-ground, on-air, digitally etc) sports. Today, India has professional leagues in cricket, combined with the power of harnessing insights football, kabaddi, badminton, table tennis, and more. from data driven mechanisms can strengthen fan India is clearly world beaters in Cricket, Kabaddi and relationship which passes down generations and Badminton and is fast catching up in other team and help broad base the network of fans which in turn individual sports. Building a sustainable sporting becomes the hunting ground for brands to leverage culture on the back of performance, editorial support their objectives using engagement via sports. For for domestic sports and leagues and fan engagement e.g. of how football teams have created sports is something we as a country need to focus on. We tourism, fan parks, fan merchandise, games etc in have seen advertisers love for cricket, on the back Europe. of team India’s performance, star power in terms of world class talent and well packaged live and non- Advertisers need to look at sports live action served to the fan through multiple touch points. We have some phenomenal learnings from sponsorship from a fresh lens. Link cricket that can be partially replicated and leveraged. brand objectives to investments There can be a Tendulkar for every sport! Advertisers should not be looking at sports from a Team sports and individual athletes’ media buying lens. Sports as a platform if leveraged well can go beyond a media buy and can actually world class performance helps build provide multiple and complex solutions to brands further momentum marketing and communication objectives. With brands looking bullish on sports - ad spends in India A series of world class performances by our athletes touching INR 7,300 Cr (USD 1,106 Mn), there is an at the global arena in the last couple of years has option today for brands to categorize their spends created a new set of national icons for the country. depending on the wallet and intent. There is a league However, we need to ensure that our athletes and a team for every pocket size. Linking close continue to pursue their dream and appropriately ended brand objectives to the investments in sports train professionally without being dissuaded by could be a smart way to buy and sustain sports surrounding distractions and don’t drop out because sponsorships. Hence, ROI and ROO driven matrix of murky bureaucracy, monetary uncertainty and low can play a pivotal role in simplifying complex sports rewards and recognition. The real story is in creating sponsorships measurement. accessibility to play sports and build sustained programs like ‘Khelo India’ that will develop, nurture The impact of sports on the society & nation and encourage children in considering sports as an is multi-dimensional. Today it also emerges as active career option. It’s not just about large scale an important component of socio-economic events and medals, but about professional training development, enhances social cohesion and of from childhood that will help us become a truly course improves health and productivity. The role of sporting nation. people, Government and corporates hence becomes of vital importance to create, sustain and promote Greater emphasis on performance this culture. The measure is not to gain digital likes, shares and conversations but to take concrete action analytics and fan engagement and plan. Therefore, the time is right to facilitate investment so corporates/brands investing in The modern sports experience isn’t confined to the sports can up the support and others may consider stadium. Significant number of sports fans prefer to this sector as an ideal avenue for investment. This follow their teams digitally and frequently use their perhaps could be the next big wave for the Indian laptops or smartphones to look up sports-related economy!
Business of Sports – Rumble Under Our Feet | 45 Marketing and Packaging
Demystifying the Matrix – How Kabaddi Reached Households and What Next?
Charu Sharma Co-Promoter, Mashal Sports & Co-Founder, Pro Kabaddi League
The Success Story – how Kabaddi “Upon rediscovering the many reached households and what next attractive attributes of kabaddi during for the grand league Jumboree the Asian Games of Doha in 2006, I
hen one embarks on a crusade, revolution, knew instinctively, that India’s very passion and commitment do play a very own unique, heritage sport could Wimportant role, but one cannot underplay bloom magnificently.” the importance of good fortune, which we can only hope for, since we cannot engineer it. on sport, it gave everybody a rather skewed and And so it was with the Pro Kabaddi League. Upon unrealistic picture of the kind of viewership ratings rediscovering the many attractive attributes of and commercial support which all other ventures in kabaddi during the Asian Games of Doha in 2006, other sports could attract. I knew instinctively, that India’s very own unique, heritage sport could bloom magnificently. All that And so, in early 2011, armed with a plan, purpose, this rough diamond needed, was to be cut and enthusiasm and a whole lot of hope, we embarked on polished, and placed on the public pedestal it so a crusade to crash through all the barriers of neglect, richly deserved. Like almost all projects, the first disrespect, perception & ignorance and showcased step was the toughest one. After mentioning the the might of this incredibly robust sport. We had no potential of kabaddi to Anand Mahindra over a few doubt in our minds that, in its new, sophisticated, casual sittings, and advising him to provide impetus international, competitive avatar, a professional to the sport in some institutionalised manner, he Kabaddi League will be a very compelling and finally suggested in late 2010 that we consider the attractive proposition. The chronology was simple, possibility of planning and conducting a professional but the execution was, as one can imagine, rather League. complicated.
There is no doubt that the advent of the ICL, followed Out of the many innumerable hurdles involved, we by the official version of a professional cricket had to first get legitimacy by procuring the long term League, the IPL, led to wide-spread awareness rights through the official national federation, then in India of Franchise owned sports Leagues - get ourselves a committed television network and with due respect to such Leagues which were finally, convince eight franchise partners to take a attempted, on and off, in Football and Hockey since giant leap in the dark with us. Through this journey, the late ‘90s in India. In many ways, the IPL was let us just say, we were blessed and were finally able a dangerous, double-edged sword. Yes, it garnered to part the curtains on 26th of July, 2014. It was a unprecedented attention towards Franchise based blockbuster start and, much to our delight, the sport Leagues in India. However, since cricket cornered of kabaddi was instantly hoisted to the pedestal it a ridiculously large percentage of all money spent deserved. Without exaggeration, the Pro Kabaddi
46 | Business of Sports – Rumble Under Our Feet Marketing and Packaging
League has been the biggest revolution in Indian players. This kindles hope in thousands of others. sport. All negative connotations and perceptions And let us not forget the ripple effect in other kabaddi surrounding the sport – one that was for ‘them’, playing nations. By including overseas players in not ‘us’ – have largely vanished. Though one must every PKL team, the game is poised to spread rapidly admit that a section of the elite media, written and in other nations. Very few other international sports electronic, is still holding out, with their refusal to can claim to be so elementary in nature, requiring acknowledge the existence, leave alone massive little or no infrastructure and equipment. The other popularity of the PKL. In the main though, the PKL extremely important aspect that I will never tire of has been embraced by the sporting fans of India. pointing out, is patience. In a sense, the rebirth of Hearteningly, the younger generation is deeply kabaddi is still only 4 years old. A lot of work still involved. Not just by thronging the stadia or by needs to be done, and that requires continued watching in large numbers on television but most stability, co-operation and wisdom. importantly, by playing in schools and open spaces. I suppose, with so much information available these And so, to the numbers. Prior to PKL, all kabaddi days on so many platforms, it should be easy for tournaments in every corner of India were very well anyone to access figures associated with most of attended affairs inside the arena. But, it will be fair the prominent sporting events and Leagues in India. to suggest that in terms of television, the coverage From a team owner prospective, the expenditure was negligible, and thus viewership was almost is what it is, and building revenues will always take zero. And the once in four years coverage of the longer than one wishes. The one category that will Asian Games was also inadequate and negligible. always benefit is that of players. Just as a case in From this scenario, it is truly mind-boggling, that point, in the PKL, the Franchisees are doing rather within the first week of the first edition of the PKL, well, the sponsors are getting very good visibility Kabaddi became the second most watched sport returns on their investments, but the players are in India! And with India’s population figures, this the ones right on top of the list of beneficiaries, meant a very formidable number of millions. It was regardless of the different size of commercial circles no flash in the pan either, as all manners of ratings that surround them. As an indication of the potential grew consistently over the years. To quote a well- of what a sport can do for its professionals, the researched Economic Times report some months highest paid kabaddi player’s wages went up from back, the IPL has a TV rating of 3.5, PKL registered 0 to 20,000 USD in 2014, to 200,000 USD in 2018. at 1.5 next and India’s football league listed at an average of 0.3 – ahead of the other professional Pro Kabaddi may be a shining example of how sports Leagues in India. commercial circles surrounding the world of sport can be given a sharp spin. But there is no denying that, One can get merrily lost in the world of figures, of as a country, India has been witnessing a significant expenditure and revenue. But in the middle of those increase in the economic attention garnered by numerals, it would be a travesty of justice to lose sports, even as we continue to be a very price sight of the resurrection of a sport. The restoration sensitive market. Is it a good time to join hands with of its popularity and pride. The creation of numerous the burgeoning sports market in India? Absolutely. sporting stars and role models. Employment Success is such a relative term. To help succeed, I opportunities for officials, franchise management am happy to list two most vital ingredients: a deeper staff and, most of all, a source of livelihood for understanding of how the world of sport works in hundreds of the tough, extremely athletic kabaddi India, and, patience!
Business of Sports – Rumble Under Our Feet | 47 Gaming and eSports
E-Giant, Knocking on the Door!
Vamsi Krishna Marketing Head – South Asia NVIDIA
ver the past decade competitive video “China has 160,000 gaming cafes with games has transformed from a subculture an average size of 200 PC’s catering to Oto mainstream entertainment – attracting interest from large investors, sports franchises and an audience of 60 million gamers. On media companies. the other hand India has a mere 500 Today esports is a global phenomenon watched by cafes with an average size of 20 PC’s hundreds of millions of gamers as the best esports for 35 million interested PC Gamers.” athletes complete for unimaginable prize pools, at times, on par with traditional sports. The global estimated revenue for esports alone is expected to consoles is much more modest but still substantially touch USD 1.4 billion in 2020 according to market large – 35 million PC interested gamers. We believe research firm Newzoo. 60% of this revenue comes around 2 million of these PC gamers are falling from North America, China and South Korea. into serious esports category. The raise in esports culture in India has also witnessed the growth in India is universally considered as the next big tournament culture where we saw the prize money opportunity in gaming after the massive success going up from few thousand dollars few years back companies have seen in China. Currently we are to USD 200,000 in 2018. We are just few years away in the middle of a gaming boom led mainly by before we see big million dollar tournaments. two driving factors – a massive spike in internet penetration and rising popularity of mobile gaming. The journey to esports must start at the grassroot The internet revolution started a few years ago by level through gaming cafes, an opportunity where Jio and their 4G introduction. They are currently in there is so much scope for expansion. To put things the second phase of their internet rollout strategy in perspective China has 160,000 gaming cafes with and are taking GigaFibre connections to 80+ cities in an average size of 200 PC’s catering to an audience India causing everyone in the space to rethink their of 60 million gamers. On the other hand India has a strategies and pricing. While this has led to greater mere 500 cafes with an average size of 20 PC’s for consumption and a much easier time for gamers, 35 million interested PC Gamers. With the massive the PC gaming story is also receiving a major boost influx of mobile gamers, not only is gaming becoming thanks to mobile gaming. a much more accepted form of entertainment there is also this aspiration for more, for a step above Cheaper smartphones combined with easy 4G mobile gaming i.e. PC’s and consoles. Esports accessibility has allowed mobile gaming to become Gaming Cafes provide that middle ground to jump the leading factor in not just the growth of the gaming into gaming without having to purchase hardware industry, but one of the key factors driving the mobile that is substantially more expensive than an average industry in India. Currently there are estimated 250 smartphone. It also allows gamers to get first-hand million mobile gamers in India, with the number experience of esports and competitive gaming constantly rising. The number of gamers on PC’s or along with local communities that are acting like
48 | Business of Sports – Rumble Under Our Feet Gaming and eSports lighthouses, attracting more and more people We’ve helped publish a gaming cafe whitepaper towards gaming. to outline the potential in the industry and best practices from massive scale survey done across With teams and players from India having tasted cafes in India, China and Southeast Asia. Our latest small successes in esports overseas with an Asian efforts have culminated in multiple investor summits Games bronze medal in esports and multiple across India that have generated a lot of interest in qualifications for top tier international events; more the space and a significant growth in the number and more gamers are looking at this as a serious of upcoming esports cafes in the country as more career opportunity making esports gaming cafes on and more investors see the potential in an untapped ground zero for future success. market.
Multiple franchises in India have seen tremendous success with esports gaming cafes with medium In my 20 years of experience in and around the to large format cafes thanks to multiple revenue gaming industry, the past 5 years have certainly sources like Game Time, F&B, Events, Marketing been the most exhilarating in terms of growth and Deals and more. However this hasn’t translated potential. While we’ve come a long way in terms to wide scale acceptance of the gaming cafe yet of gaming in India, this is just the beginning. We because the high value investors aren’t aware of the are witnessing a massive shift in attitude towards opportunity or the industry for that matter. gaming as a new generation takes the lead in terms of spending habits. A country with 1.3 billion We at NVIDIA have been working with partners people where cricket and bollywood together have across the gaming ecosystem to help grow the dominated the public space and generated billions industry, educate existing and new investors on in revenue year after year is now looking towards the potential and guiding them wherever possible. gaming as the next big thing in entertainment.
Business of Sports – Rumble Under Our Feet | 49 Gaming and eSports
Global context, India and the inherent opportunity
Lokesh Suji President Esports Federation of India
sports is the buzzword globally and the fastest “By the end of 2018, the global growing sport. 152 countries are actively Einvolved in Esports with an over 400 mn Esports Economy will grow to USD audience. 905.6 million, up 38% YoY. Brands will There are more than 20 Global Universities which contribute 77% of this, or USD 694 have already started giving Esports Scholarships; million, a 48% increase since last year. online courses are being offered (Udemy) where students can now learn how to maximize their skills On its current trajectory, we estimate in games such as Fortnite, League of Legends and the esports industry will reach USD 1.4 Counter-Strike: Global Offensive (CS:GO), as well as billion by 2020.” build their live streams and personal brands online.
ESPORTS AUDIENCE GROWTH Asia-Pacific will GLOBAL | FOR 2016, 2017, 2018, 2021 account for
OCCASIONAL VIEWERS TOTAL ESPORTS ENTHUSIASTS AUDIENCE 53% +14.4% of Esports CAGR 2016-2021 Enthusiasts in 2018 TOTAL AUDIENCE TOTAL AUDIENCE +13.8% YoY +19.3% 307M 14% YoY 15%
215M 192M 18% 160M 250M 165M 20018 165M 143M 121M ©2018 Newzoo 53%
2016 2017 2018 2021 NAM EU APAC REST OF WORLD ©Newzoo | 2018 Global Esports Market Report Esports was included as a demonstration title in Asian By the end of 2018, the global Esports Economy will Games-2018 and will be a medal sport in Hangzhou grow to USD 905.6 million, up 38% YoY. Brands will Asian Games, 2022. It is progressing towards being contribute 77% of this, or USD 694 million, a 48% an Olympics medal sport. International Olympic increase since last year. On its current trajectory, Committee concluded Esports Forum in Sept’18 we estimate the esports industry will reach USD 1.4 where they decided to form an Esports Liaison billion by 2020. Group to explore ways and means to include Esports in the Olympics.
50 | Business of Sports – Rumble Under Our Feet Gaming and eSports
2018 ESPORTS REVENUE STREAMS | GLOBAL INCLUDING YEAR-ON-YEAR GROWTH
GAME PUBLISHER FEES MEDIA RIGHTS $116.3M +11.0% $160M +72.1%
MERCHANDISE 13% & TICKETS 18% $95.5M +16.2% 11% 2018 TOTAL ADVERTISING $906M $173.8M +38.2% 19% +23.8% YEAR ON YEAR
SPONSORSHIP 40% $359.4M +53.2%
Newzoo’s esports revenue figures always exclude revenues from betting, fantasy leagues, and similar cash-payout concepts, as well as revenues generated within games ©Newzoo | 2018 Global Esports Market Report History of Esports in India Esports or ‘competitive video gaming’ is not new Back then, Teams like ATE, NSD Gaming and players to India, there have been successful properties like Prince Johal, Rueben Pereira and Santanu Basu in the past like World Cyber Games (WCG) which brought accolades for the country. It’s only during ran for approx 10 years or so during 2000’s, which last couple of years that esports has caught some was backed by major brands like Samsung, Maruti serious attention in India, because that’s where the Suzuki. No college fest was (is) ever complete millennial are. without Esports tournaments / championships.
Key factors defining Indian gaming maturity by 2021 (Projected)
2016 2021P 2016 2021P
Gaming 1.5x 3% Number of 2.6x Share of 2% 310 [87] online [90] 120 M&E gamer(s) (Million) Per Capita 1.9x 35 1.4x 310 Spend in 19 Number of 250 M&E [88] (USD) developers[91]
Digital Buyer 3.5x [89] 28% Penetration 8% (% of population Consumption parameters Development Parameters
*Online gaming in India: Reaching a new pinnacle - KPMG, Google May 2017
Business of Sports – Rumble Under Our Feet | 51 Gaming and eSports
Indian Esport’s biggest achievement so far is winning We are also seeing some sustained esports ‘Medal in Asian Games, 2018’, which is a massive tournaments, recently Tencent concluded a PUBG boost to the eco-system. Tirth Mehta who won Mobile Esports Championship, which had a prize Bronze (Hearthstone) and Karan Manganani who pool of INR 50 lacs. The total prize pool in various was ranked 4th (Clash Royale) in Asian Games’18 esports championships has crossed INR 3 Crores for created History for Indian Esports and are perfect year 2018. Tencent even launched a TV commercial examples to look upon for greater things to follow. for their Game PUBG, which (to the best of our knowledge) is first ever TV commercial for a video game in India.
THE INDIAN GAMER* KEY CONSUMER INSIGHTS
NUMBER OF GAMERS TOTAL GAME REVENUES
MARKET#17 IN THE 263.6M $817.8M WORLD
These consumer Insights are representative for the online urban population
AGE/GENDER WATCHES VIDEO ACTIVE CONSOLE PLAYERS CONTENT 61% OF PEOPLE WHO WATCH 7% M10-20 GAMING VIDEO CONTENT 19% WATCH TIPS & TRICKS 18% M21-35 FOR GAMES M36-50 CROSS-PLATFORM 7% F10-20 GAMERS F21-35 49% 13% 36% OF GAMERS PLAY PC, F36-50 MOBILE & CONSOLE GAMES OWNS A GAMING
PLAYS MORE THAN ONCE A MONTH HEADSET 53% OF ALL GAMERS OWN A GAMING HEADSET Potential and will be enough opportunities, you just need to be persistent and passionate for esports. With the highest youth population, improving internet speeds, esports in India is destined to be India has seen some investments already, but the next big thing/ sport. there’s a long way to go. Unlike other sports, esports eco-system is yet to be created. Be it Coaching, Skill Development or Corporate involvement Infrastructure (in terms of Esports Arenas), there are Esports is the best way to reach and engage with and will be enough opportunities to come forward, the millennial of today’s digital world, this has adopt this ‘sport of millennial’. been proven multiple times. Indian brands have We need infrastructure in terms of Esports also started taking note of esports and want to get Arenas/ Academies, Coaches, Team Owners, involved, some of them have slowly started to get Team Managers, Commentators, Analysts, Event involved, but as of today largely their involvement Managers, Admins, Lawyers, esports journalists if purely from ‘product activations’ perspective e.g. and so on and not to forget, we need to enable & Mountain Dew, HP etc. create ‘the Sachins & Sainas of Indian Esports’. We What we need is some forward looking/ futuristic are building a new industry all together and there are corporate to own up Indian esports & get invested.
52 | Business of Sports – Rumble Under Our Feet Gaming and eSports
Precinct of Indian Law on Online Games
Siddharth Batra Advocate-On-Record, Supreme Court of India Former Additional Advocate General Haryana Partner, Satram Dass B & Co.
he game of Chaturanga popularised by the “India is a very promising market vis- ancient mythological treatise of Mahabharata à-vis online gaming subject to you Tin 400 BC, finds a mention in the religious texts of Rig Veda and Atharvana Veda both written in 1500 play within the rules of the game. BC. Hindu mythology is replete with references to We can name it ‘Skill Gaming’ which gambling as an intrinsic part of life and has left an indelible mark on the Indian civilization. It is perhaps will witness immense growth in the befitting to know, along with the Greek and Roman gaming industry.” Civilizations, Indian civilization was amongst the first to embrace gambling as an integral part of our life.
Estimates suggest that India’s mobile games market on the other hand, requires a certain amount of skill will be worth $1.1 billion by 2020, and number of because the fall of the cards has to be memorized users projected to become 628 million by then. and the building up of Rummy requires considerable skill in holding and discarding cards. It was said that Gambling is a State subject, and only States in the game of Rummy is not a game of entire chance. India are entitled to formulate laws for gambling It is mainly and preponderantly a game of skill. activities within their respective States. The Public Gambling Act of 1867 is a Central law that prohibits Recently an Indian High Court held that fantasy running or being in charge of a public gaming house. sports platform Dream11 is a game of skill in a Interestingly the expression ‘gaming’ has been judgement. The court also noted that since fantasy interpreted by the Supreme Court of India, wherein sports is not gambling, it is a business activity that it has been authoritatively held that a competition is afforded the protection of right to free trade and which substantially depends on ‘skill’ is not gambling. commerce guaranteed under Article 19(1)(g) of the Constitution of India. The Supreme Court of India The Supreme Court of India clearly laid down that dismissed the Special Leave Petition against the (i) the competitions where success depends on High Court judgment. substantial degree of skill are not ‘gambling’ and (ii) despite there being an element of chance if a game is India is a very promising market vis-à-vis online preponderantly a game of skill it would nevertheless gaming subject to you play within the rules of the be a game of “mere skill”. It was held, that the game. We can name it ‘Skill Gaming’ which will expression “mere skill” would mean substantial witness immense growth in the gaming industry. degree or preponderance of skill. Digital Ad spending in India in 2018 is 134.3 (in billions) and Mobile Internet Ad spending is 55.4 (in The Supreme Court of India has, for instance, held billion). Clearly, a visible sign that mobile will remain that the game of Rummy is not a game entirely of the most valuable platform for consumers and chance like the ‘three-card’ game. The ‘three card’ gaming an important branch for OTT content, that game which goes under different names such as will play as a multiplier to a fast growing digital Ad ‘flush’, ‘brag’ etc. is a game of pure chance. Rummy, industry.
Business of Sports – Rumble Under Our Feet | 53 The French Connection
About, Strengths and India Strategy
Fabien Dilem General Manager for MEA / India PARIS SAINT-GERMAIN
n 2011, the President of Paris Saint-Germain, “The Club has become one of the most Nasser Al-Khelaifi set out his vision to make Paris followed teams in the world, gaining a ISaint-Germain one of the most powerful sports brands in the world. Under his leadership, the club community over 60 million social media has transformed at a brisk pace. followers in just seven years. Among Paris Saint-Germain’s international popularity never these fans, 95% are located outside stops growing. The Parisian club has become one France. We aim to keep increasing the of the most followed teams in the world, gaining a brand’s visibility in India by cultivating community over 60 million social media followers in just seven years. Among these fans, 95% are located new potential partnerships.” outside France. In order to get closer to these fans around the world, this season the club has opened multi touch point platform strategy that Paris Saint- international offices in New York, Singapore and Germain prides itself on. The club sets itself apart Doha. by targeting various types of audiences through a differentiated marketing strategy and associations Paris Saint-Germain is proud of its loyal fanbase with fashion icons. Paris Saint-Germain aims to be throughout Asia which is growing as football the most stylish club, capitalizing on the avant-garde becomes more and more popular in the region. The approach of its Parisian roots and with the ambition continent represents 25% of the club’s fans. They to combine performance, innovation and style on are more and more numerous as shown by the and off the pitch. The club recently launched an development of many new fan clubs throughout the exclusive collaboration at Paris Fashion Week with area. India already boasts one fan club in New Delhi the Indian designer Manish Arora, one of the most and the country is in the top 5 in terms of Paris Saint- celebrated and inspiring contemporary designers in Germain fans on Facebook and Instagram. the fashion world today.
In this development strategy, India is a territory of Paris is the most loved and visited city in the world. the future where the Club wants to build long-term This popularity is undeniable, especially amongst links. Paris Saint-Germain aims to keep increasing Indian tourists who visit the City of Light in larger the brand’s visibility in India by cultivating new numbers every year. It gives the club the legitimacy potential partnerships. Very few football clubs can to explore new frontiers away from the pitch such as offer the same promise of explosive growth and a fashion, gastronomy, music and cinema.
54 | Business of Sports – Rumble Under Our Feet The French Connection
About, Strengths and India Strategy
Pierre Debleme Director W ARENA
Arena advises stakeholders (clubs, “W Arena is now looking forward to federations, private operators, right W holders, governing bodies and cities) on contributing to the growth of the sport all aspects of their sport & entertainment venues/ economy and community, with an aim investments lifecycle. of bringing innovative decision-making We provide practical, strategic and commercially tools to professionals and amateurs of sound advice to clients at every stage of their all popular sports in India.” sport related project, whether it’s a stadium, arena, entertainment venue, a long-term sponsorship or a one-off event. Well known sport related organizations and multi- functional venues such as the AccorHotels Arena, At W Arena, we believe any simple and easy to use Stade de France & Paris La Defense Arena, brands new technology represents a huge opportunity for like BNP and organization like French Tennis all players in the sport industry, or those willing to Federation have already experienced our services! enter it, to maximize ROI, their image and fans’/ clients’/ players’ experience. Please come for a showcase of our spirit at Le Tremplin (Paris and Co-incubator), the city that will How do we work? We select proven structural or host the Olympics in 2024. digital solutions, with providers ready to assist in any project anywhere in the world. W Arena has always considered India as a high potential market with huge business opportunities, Our company’s unique solution platform (including and already has a good track record owing to its Terraplas, Seaters, Vogo, MyCoach and Solive) partnership with the Great Sports Infra, a sports enables its clients to deliver an efficient and company based in Hyderabad and managed by its innovative global experience throughout their venue, founder – Mr. Anil Kumar. W Arena is now looking and even outside, making benefits of best practices forward to contributing to the growth of the sport available from other markets sharing the same economy and community, with an aim of bringing objectives. Key features include: digital platforms, innovative decision-making tools to professionals loyalty rewards, third-party integrations for in- and amateurs of all popular sports in India. stadium communication and more. For further information, you can contact us via email at: [email protected]
Business of Sports – Rumble Under Our Feet | 55 The French Connection
About, Strengths and India Strategy
Florent Marty Managing Director SOLIVE
olive is a social media publishing and “Fan engagement is the heart of any monetization software dedicated to the Sports Sindustry. The start-up was founded in 2015 by sports property strategy and Solive can communications agency – La Fourmi greatly help right holders, brands and media to boost their social audiences.” Majority Sharehoder: La Fourmi Managing Director: Florent Marty Employees: 15 • Target regional sponsors through the geo- Website: www.solive.biz targeted variation of content
Software Features • Push marketing to a live game 1. Boost Fan Engagement: 4. Integrate Content on any Medium
• Produce a greater quantity of high quality • Publish visuals on any network/platform: app, static and animated content before, during and website, chatbot, giant screen, etc. after each game • Bring brand consistency by using your visuals • Create and publish in less than 20 seconds on all your platforms for static content and less than a minute for animated content • Increase the size of your media inventory • Post simultaneously on major social media networks (automatically or manually): Facebook, Instagram, Twitter, Weibo, VK, YouTube etc. 2. Reach International Audiences
• Create automatically translated content
• Dedicate only one Social Media Manager to handle all your communications
• Engage directly with your fans in their native language 3. Monetize your Social Audience
• Integrate brand exposure on an attractive digital inventory
56 | Business of Sports – Rumble Under Our Feet The French Connection
About, Strengths and India Strategy
Christophe Carniel CEO VOGO
ounded in 2013, VOGO develops, markets and “India is an amazing country for cricket distributes a tech solution for broadcasting Flive audiovisual content in stadia that is and football competitions, and VOGO revolutionising the spectator experience, through is looking forward to enriching fans’ live or instantreplay multi-cam content, while also providing professionals with video decision-making experience during the games, and to tools. bringing innovative decision-making Launched in 2014, the VOGO SPORT solution tools to professionals associated to gives spectators at sports venues or outdoor these events.” events instant real-time access to the feeds of the cameras filming the event through their terminals (smartphones, tablets, etc.). The app offers several events in more than 20 athletic disciplines on four features such as live multicam, replay, zoom and slow continents. To date, over 60 clients around the motion. Spectators thus enjoy a unique experience world have already embraced the VOGO SPORT combining the raw emotion of the stadium and the solution: clubs, federations and leagues (French immersion of “Live & Replay”. Rugby Federation, French Track Federation, Stade Toulousain, Montpellier Handball, Dijon Football The Company also successfully launched a version Côte-d’Or, Lou Rugby, EVZ (Switzerland), Montreal for industry professionals (doctors, referees, Impact (Canada), etc.), event organisers (Evian coaches, journalists) in 2017. This solution gives them Championship, Extreme Sailing Series, International access to a mobile and autonomous decision-making Festival of Extreme Sports, Longines Paris Eiffel tool used for medical staff, refereeing or analysis of Jumping, etc.) and sports venues (Stade de France, athletic performances. Allianz Riviera, etc.). In the professional industry, the Unlike existing streaming solutions, which are VOGO SPORT solution has been chosen by none plagued by huge latency problems and are quickly other than the National Rugby League to equip all saturated when solicited by large groups of people, the TOP 14 and PRO D2 stadiums for the purpose of VOGO technology is a disruptive solution whose monitoring concussive head trauma. performance is independent of the number of people VOGO is now seeking to develop new markets, and connected. In that way, VOGO offers users a fluid, considers India as an attractive market with huge responsive service that allows them to instantly load business opportunities: “India is an amazing country content from among available video feeds, with zero for cricket and football competitions, and VOGO is download time for replays, slow motions and zooms, looking forward to enriching fans’ experience during available immediately just by touching the screen. the games, and to bringing innovative decision- This technology is protected by four patents and making tools to professionals associated to these is subject to ongoing developments aimed at events. We have already confirmed the relevance of incorporating new features and covering new types VOGO SPORT solution during cricket matches in the of events. UK.”, says Christophe Carniel, CEO of VOGO. He also added, “After being in Japan and China, India is the Since its inception, VOGO has covered over 700 next large market we seek to address in Asia.”
Business of Sports – Rumble Under Our Feet | 57 The French Connection
About, Strengths and India Strategy
Jean-Sebastien Gosuin Founder SEATERS
eaters Wish Lists system has been proven to “Return on investments for the growing significantly boost engagement, by creating Smultiple new opportunities to interact with a number of sponsors, clubs, organizers user. When a new Wish List opens, registered fans and operators in Indian Cricket or receive a notification to join the Wish List. Within Football are very important to secure minutes 1000’s of fans are going for their place on the list. and we want to provide full support to this booming economy.” On We Are Tennis for example ( powered by Seaters), fans have the opportunity to increase the number of Wish Lists they have access to by completing different tasks, which moves them through the they are most passionate about. With each Wish levels of ‘fandom’. Different assets are assigned to List joined, Seater’s individual user profiles become each level by BNP (the brand behind WAT) and these richer and the brand has more information, which otherwise off-limits opportunities act as an incredible is used to know more about each member of their incentive for fans to remain active, even if they did audience. This smart data aids them in their business not receive a ticket yet. goals across these different target groups. Since its creation in 2014, Seaters has opened 4 offices in This process of gamifying the experience has allowed France, Bruxelles, New York and London. our client BNP to gain multiple engagements with each user – each strengthening the bond between Seaters has raised over 8 million Euros over the brand and fan. same period allowing the technology to meet high level of clients expectations all over the world. With One platform for multiple targets clients in several industries – BNP, ALLIANZ, LA POSTE, KPN, PROXIMUS and sports organizations – Using the Wish List system allows our clients to FédérationFrançaise de Tennis, Olympique Lyonnais, engage with their entire audience in one place. Toulouse Rugby Club, Anderlecht. SEATERS is now Whether a fan is a customer or not, there is a seeking to develop new markets and considers Wish Lists for them to join. The same applies to India as an attractive market with huge business employees. Now, on one platform, each client has opportunities. Return on investments for the the opportunity to promote brand loyalty, acquire growing number of sponsors, clubs and organizers/ new leads and share an engaging goodwill message operators in Indian Cricket or Football are more and with their employees. more important to secure and we want to provide full support to this booming economy. By offering their assets on Wish Lists, our client is connecting with their audience on the events that www.getseaters.com
58 | Business of Sports – Rumble Under Our Feet The French Connection
About, Strengths and India Strategy
Cédric Messina CEO MY COACH SPORT
reated in 2011, by Cédric Messina (CEO) “My Coach Sport is currently adopted My Coach Sport is a pioneer actor within C the movement which is currently digitalizing by more than 500,000 users. India’s practices and processes involved in mass and sport market is not only a business high level sport. Cédric Messina was named Sport opportunity but also the possibility for tech ambassador of the French Tech in 2015. It has become one of France’s sport tech leader by My Coach Sport to transmit French conceiving and developing digital tools. My Coach know-how in technology, education Sport covers needs of clubs, national federation, and and high level of sport.” international sport association. The digital solutions address to coaches, athletes & staffs of the professional teams. Their aim is to develop sport, improve educational practices and performance.
The 2017 turnover was 1.5 million euros. The My Coach Sport is currently adopted by more than company has secured partnerships with major 500,000 users. India’s sport market is not only a National Federations in France (Soccer, Cycling, business opportunity but also the possibility for Volleyball, Hockey and Surfing). The partnership with My Coach sport to transmit French know-how in NF allows the transmission of the federal technical technology, education and high level of sport. knowledge towards the largest number.
Business of Sports – Rumble Under Our Feet | 59 The French Connection
About, Strengths and India Strategy
Guillaume Deguerry International Trade Director, Marketing and Communication METALU-PLAST
“The Indian Sports market, by its size and culture, represents a great human and commercial adventure for a renowned French manufacturer like MetaluPlast.”
Key Figures and References
With nearly 40 years of experience in the MetaluPlast in few words manufacturing of sports equipment, MetaluPlast and it’s 80 co-workers represent the French industrial ince 1980, MetaluPlast is the leading French model. company specialized in the design, manufacture Sand marketing of sports equipment across More than the great know-how of conception, it is the various Sports – Football, Badminton, Basketball, synergy of many skills (production, R&D department, Handball, Rugby, Tennis, Volleyball, Hockey, Golf to international department, logistic department), name a few. In addition, we manufacture handrails, which allows MetaluPlast to equip at the date some ball-stop enclosures, sport fences and multi-sports major stadiums and international sport events, like play grounds. the 2016 Rio Olympic Games with hockey goals for the training grounds, the 2018 FIFA World Cup in MetaluPlast works exclusively with professionals: Russia with the VIP team shelters, or the future CAN distributors, installers, mail order companies, 2019 in Cameroon with football goals, team shelters enclosers, landscapers, construction companies, and ball-stops enclosures. etc. We offer to our partners the necessary support, to market and install our equipment’s: data Today, MetaluPlast with a 2017 turnover of Euros 14 sheets, catalogs, installation manual and our R&D million under its ambit has 15,000 sq m production department study all specific requests. site in Normandy, 10,000 deliveries per year: 3,000 football goals, 1,100 handball goals, 100 km of ball- stops and handrails, 150 multi-sports play grounds and soccers.
60 | Business of Sports – Rumble Under Our Feet The French Connection
Our Commitments • 8 days for 60% of our sport range and for standard handrails To maintain our status as a leading French • 3 weeks for sports equipment and sports manufacturer of sports equipment, we have fence upon request developed a 3-point strategy, which inherently constitutes our values and commitments. • From 4 to 8 weeks for special productions 1. Professional customers at the heart of our 3. Represent the French industrial model organization • As on date, MetaluPlast is the only sports • Personalized advice and supports equipment manufacturer to own the label ‘Origine France Garantie’. This annual • Custom made solutions to each specific certification requires that at least 50% of the technical demands products production costs should be acquired in France. (MetaluPlast 97%). This label is • Structured administrative process, fitted to issued by an independent control office on B2B, with clear information at each steps of extremely strict criteria. the project • In addition to R&D, MetaluPlast constantly innovates in terms of logistics, production and • Commercials and installation tools: brochures, human organization to assist you wherever catalogs, data sheets, installation instructions you are in France or worldwide. & technical files • All our products are tested internally and by an • High level of expertise for enclosures independent agency, to ensure that they meet calculation notes that allows very accurate the sports codes, the European norms, and sizing of structures the requirements of the sports federations. MetaluPlast guarantees a safety sport practice • Respect of the distribution network of our to the end users on its equipment’s. partners • We reduce our waste by prioritizing recycling 2. Short delivery time and sorting, and eliminating chemical stripping and aerosols. MetaluPlast contributes to • 48 hours for 200 references of accessories preserving natural resources in the long term and nets through a qualitative environmental approach.
Business of Sports – Rumble Under Our Feet | 61 The French Connection
‘At MetaluPlast we believe that human investment adventure for a renowned French manufacturer like is the driving force of a good overall management. MetaluPlast” That’s why we are very careful about the recruitment of our employees: at the technical level of course, The accelerated opening of India to the cultural but especially in their state of mind. Our main globalization implies a very strong increase of the standard of selection is their own involvement, demand for Sports practice, as for football and tennis their joy of learning. This impetus creates the for example. synergy of MetaluPlast, where each profile is a key element of our development. This is partly why we In this context, the National Sports Park faces several work exclusively with professionals and we seek challenges: long term partners, to cultivate this virtuous circle around know-how and well-being.’ – Guillaume • Reconcile competitive spirit with sports Deguerry, International Trade Director, Marketing and disciplines, vector of physical and mental Communication. balance
• And to develop the young players skills and Our Strategy make the future athletes and Indian sport events at the international level. We commercialize our products in 27 countries with the main Strategy: Building sustainable business By keeping these objectives as a guideline, partnerships by offering local companies: MetaluPlast presents you its catalog of sports equipment, enclosures and multi-sports playgrounds, • Wide and qualitative range of sports equipment with specific solutions designed for urban areas, • Individual support services and documentation school centers and sports clubs. for your sales force and technical teams We offer you to prepare together the future Indian • Short delivery times sport landscape by accompanying the younger generations of athletes as elements of the Indian It is therefore natural that we pursue our strategy global radiance. with India, a major power nation. Our international team is at your disposal to discuss “The Indian Sports market, by its size and culture, any project with you, answer your quote, request, represents a great human and commercial and study a long term partnership with you.
62 | Business of Sports – Rumble Under Our Feet The French Connection
About, Strengths and India Strategy
Eric Leport Chairman ALCOR EQUIPMENTS
LCOR is the French leader in modular “Our motto: If you give up searching stadiums and grandstands. Our in-house Adesign team produces individual solutions for excellence, you have just stopped on a project-by-project basis to ensure that client’s performing.” specific requirements are fully respected. Driven by an ongoing concern for safety, all our products meet the European standard EN 13200-6 and are approved In 2017, Alcor was invited by the French Sports by Socotec construction inspection services. Today, Minister to the Elysée Palace and was recognized Alcor is a key partner for building sports and events as the French leader in modular grandstands. Alcor infrastructures. equipment has been part of important events in 2018 like The Centenary of the Great War 1914- We offer temporary, semi-permanent and permanent 1918, Simone Veil’s Cermony at the Panthéon, Pari. arenas for whether indoor or outdoor. Alcor is represented in India by GSI (www. Our galleries are fast and inexpensive alternatives to greatsportsinfra.com), South Asia’s leading provider conventional concrete grandstands. of turnkey solutions for sports infrastructure. The competitive strengths of our products are: Selected International Projects • Exclusive construction system with no screw • India, Mizoram, extension of 15,000 seats for and no blot (safe and easy) the Rajiv Gandhi Stadium • Quick construction time (2-3 times less than • UK, Bishop Auckland, construction of an with concrete) 8,000-seat grandstand for the Puy du Fou • Modular and evolutive system • Cameroon, renovation and extension of Each year Alcor builds over 250,000 seats for a Yaoundé stadium (40,000 seats) variety of clients including local authorities, sports • Euro 2016, construction of grandstands for federations, professional sports clubs and events stadiums of Lyon and Bordeaux agencies like the official grandstand providers of Roland Garros and the 24H du Mans. India, Mizoram, extension of 15,000 seats for the Rajiv Gandhi stadium
Business of Sports – Rumble Under Our Feet | 63 The French Connection
About, Strengths and India Strategy
Bertrand Pignole CEO SODIKART
ODIKART, world leader in karting industry, “The teams at SODIKART constantly has built its reputation on an audacious Sdevelopment strategy, exclusive innovations strive to deliver new solutions to the supported by numerous patents and a constant users of our products without ever pursuit of excellence in serving its customers. losing sight of the fact that innovation SODIKART exports in 85 countries, against 20 must serve quality, performance and countries five years back. In the past 5 years, the excellence.” grand-export share increased from 30% to 55% of the global turnover, without losing any market share in Europe. What is the secret of this expansion? SODIKART is a financially sound and profitable company since its creation, present on the five “SODIKART maintains relations based on essential continents and now a key player in the karting market values with all its clients, professionals and private offering a unique range of products and services: individuals. We invest all our energy and mobilize all our expertise to assert our commitments and the Karts manufacturer: SODIKART is the exclusive reputation of our brands to offer long-term support manufacturer of the SODI chassis. Our karts are to our partners. Every day, our teams strive to deliver all designed and produced according to very strict new solutions to the users of our products without criteria. Each kart benefits from an individual quality ever losing sight of the fact that innovation must follow-up (identification card), from its production serve quality, performance and excellence. to its delivery and all along its service life. Two distinct ranges are produced: SODI Rental & SODI Either gasoline or electric, our Rental SODI go-karts Racing. SODIKART has built its strong reputation drives up to 70 km/h speed. They are present all of high-quality chassis by creating a factory racing around the globe, in 1500 tracks and used every year team, among his 100 employees, 4 are official racing by more than 18 million people. We have recruited 3 drivers. SODI has won in Russia, Le Mans, Australia export sales managers, whose one for Russia, one and Mexico this year. for America and one for ASIA. Kart equipment & accessories: Dedicated exclusively We have developed our distribution network in each to the karting market, SODIKART has created strategic area, with 14 distributors and 6 importers. different brands as BOX’S, Tekneek and Mekaone. If required, we create subsidiaries as SODI Asia or BOX’S offers an equipment range dedicated to SODI Middle-East. At SODI we speak 10 languages the rental and racing market (suits, gloves, shoes, and we are the only manufacturer to have a specific helmets etc). TEKNEEX offer a full high technology After-sale Department of 5 persons, ready to be range of accessories and parts exclusively dedicated everywhere around the world the next day to to Karting. The MEKAONE offers a selection of provide you a complete and customized solution.” – accessories, parts and tools allowing every driver Bertrand Pignolet, CEO, SODIKART
64 | Business of Sports – Rumble Under Our Feet The French Connection to have a good technical product level at the lowest • Roadster Karting, China price. • Harbor Circuit, Japan Karting store: created in 1991, ITAKAshop is the brand for the distribution of Accessories and Equipment India should now claim to be amongst developed by SODIKART for professionals and the best kart circuits in the world individuals. ITAKAshop is present on international markets and now aims at dual development via its SODIKART targets to conquest Asia, and so India internet site (ITAKAshop.com, 1st Site for kart online is a key strategy and this is one of the reasons of sales in Europe) and the ITAKAshop stores. its presence at the French India Sports Business Sympossium, Delhi. Karting events creator in addition to its production, distribution and import activities, SODIKART has “The Asian motorsport scene has exploded, with established since 2010 an organizational structure, more and more of the continent’s circuits making under the name of 3MK Events, responsible for it onto high-profile race calendars of series like F1 management in France of the National series Karting, (Buddh International Circuit), India is also the home Challenge Rotax and at an international level, the of Force India. The increase in popularity and passion SWS (SODI WORLD SERIES). for motorsport shows that consumers primed to embrace higher-value leisure. Karting is a simple, SODIKART decided to comfort his leadership by existing activity for every family member, this is a creating 10 years ago, the first and unique worldwide significant opportunity for Indian’s entertainment rental series named SWS, it gives you the opportunity market and so leisure karting activities!” – Fabien of seating in a bucket seat and in participate to go- Philipperon, Export Sales Manager, SODIKART. kart races all year long wherever you like within the 480 international SWS track’s network. Export uses In order to support its customers, SODIKART offers unusual circuit – get your track SWS approved. below a clear understanding of the steps which are necessary to achieve a successful project. SODI You drive as you feel and win points race after recommended Independent Market Experts can be race to improve your position in the championship. subcontracted by the customer on all points outlined More than 53,000 drivers are affiliated to the 2018 below and depending on customer preferences: championship. The Sodi World Finals gather each year the very best worldwide 280 SWS drivers on a • Initial advices - Starter package 2-days intense competition event. • Concept definition
Few Asian SWS track reference: • Protection barriers • Bahrain International Kart Circuit, Bahrain • Tracks flooring • Dubai Autodrome, UAE • Timing solution • City Kart, Philippines You want to open a leisure karting complex and need some advice, go and visit www.sodikart.com.
Business of Sports – Rumble Under Our Feet | 65 The French Connection
About, Strengths and India Strategy
Olivier Esteves CEO ABEO
ABEO is a French group and one of the worldwide “We wish to establish an ABEO base leaders in the sports and leisure equipment sector. in India from which we can start to Abéo – One of the World leaders in develop, produce and sell our brands Sports and Leisure for the sports, climbing and leisure industry in India. Doing this locally with béo is a major player in the sports and leisure local entrepreneurs is our goal.” (‘sportainment’) market, build around strong Abrands in sports, climbing and changing room equipment. With over 1.600 people working for Abéo on all continents, we are truly a multi-national company. Our products and services cover markets in international competitions, which have won it from high end gymnastics and basketball equipment high recognition, as well as via external growth. The used at 15 Olympic Games, to lockers and gymnastic Group has made 17 acquisitions since 2002, which benches installed and serviced at your local gym hall. have enabled it to develop the climbing and sports businesses and expand its original locker room Spieth & Gymnova gymnastics equipment, Schelde business. Sports basketball backstops and Entre-Prises climbing walls have been selected for numerous The ABEO group posted revenue of €187.9 million national and world championships. These brands for the year ended 31 March 2018, 71% of which are being considered the leading brands in their was generated outside France. At year-end we had respective markets. With concepts like Clip ‘n Climb 1,600 employees. ABEO is a designer, manufacturer and the recently acquired US based leisure company and distributor of sports and leisure equipment. Fun Spot, ABEO is continuously strengthening its We also provide assistance in implementing position in the worlds leisure industry as well. The projects to professional customers in the following Group now markets its products in around 100 sectors: specialized sports halls and clubs, leisure countries. ABEO coordinates all these activities from centers, education, local authorities, construction its Head Office in Rioz (70 - Haute-Saône) in France. professionals, etc. ABEO has a unique global offering, Each brand of ABEO designs its own product range and operates in a wide variety of market segments, in its own design office, manufactures the products including gymnastics apparatus and landing mats, using its own subsidiaries and then markets and team sports equipment, physical education, climbing installs them. Each entity has a great deal of walls, leisure equipment and changing room fittings. autonomy. The Group has a portfolio of strong brands which partner sports federations and are featured at major The Group has expanded both via organic growth, sporting events, including the Olympic Games. primarily due to the presence of its leading brands ABEO is listed on Euronext Paris.
66 | Business of Sports – Rumble Under Our Feet The French Connection
ABEO, an ambitious plan aimed at equipment, climbing walls, climbing and leisure building a world champion centers and locker room fittings. These activities are coordinated within three divisions ABEO has become a natural focal point of at ABEO: Sports, Climbing and Locker Rooms. consolidation in a highly fragmented market made up of specialized local operators. We will continue to implement our 2020 strategic plan Gymnastics and other sports aimed at ramping up global expansion via targeted acquisitions. Accordingly, it reaffirms our target “Gymnastics” represented by GYMNOVA, of generating revenue of €300m by 2020. To JANSSEN-FRITSEN, SPIETH GYMNASTICS and successfully implement our plans, ABEO will pursue SPIETH AMERICA, which rank among the world its development model combining organic growth leaders in this specialty. Between them, these four with targeted acquisitions, based on three strategic brands participated 11 times in the Olympic Games priorities: international expansion, capitalizing on ; JANSSEN-FRITSEN was a supplier at the Beijing the brands, and increasing the Group’s presence Games in 2008, GYMNOVA in London in 2012, and in “sportainment” (sports and entertainment) and SPIETH GYMNASTICS and GYMNOVA supplied the services. Rio Games in 2016. These four ABEO brands give the Group a strong presence on every continent.
Local presence is key, also in India ‘Other sports’ represented by SCHELDE SPORTS which specializes in team sports — particularly Vertical integration, local presence, closeness to basketball ; O’JUMP which specializes in our customers and anticipating market trends are wrestling and other combat sports SPORTSAFE considered key to our company’s success. For these UK is a worldwide specialist in the sports facility reasons ABEO wishes to be present in India as well. maintenance. The growing importance of the Indian sports and leisure market and the potential for our brands in Climbing India make it a logical choice for our group to look for ways to create a strong local presence here, now. This division consists of the ENTRE-PRISES brand, which is a global leader in artificial climbing walls, We wish to establish an ABEO base in India from and the TOP 30, DOCK 39 and CLIP’N CLIMB brands. which we can start to develop, produce and sell our With climbing becoming a new Olympic Sport as of brands for the sports, climbing and leisure industry Tokyo 2020, this will worldwide boost the Climbing in India. Doing this locally with local entrepreneurs Sport in the years to come. is our goal. Locker rooms layouts Our equipment has been used in India at the highest level already. The 2010 Commonwealth Games in This division consists of France’s leading brands — Delhi where held on our Gymnova equipment, and FRANCE EQUIPEMENT, SANITEC, SUFFIXE and the 2002 National Games in Hyderabad where held NAVIC — PROSPEC brand in the UK and the USA, on Janssen-Fritsen gymnastics equipment. META in Germany.
ABEO’s activities are divided into three divisions
The Group is a unique global operator on the professional sports and leisure equipment market: its main business activity is the design, manufacture SPORTS CLIMBING CHANGING ROOMS and distribution of equipment intended for sports and leisure centers, including gymnastics apparatus and Gymnastics Artificial walls Lockers Physical education Fun climbing modules Cubicles landing mats, team sports and physical education Team sports Leisure centres Fit-out
Business of Sports – Rumble Under Our Feet | 67 The French Trade and Investment Commission in India
Sophie Clavelier, Director South Asia
Welcome to the French Trade and Investment For the French Trade Commission, 2018 is a major Commission Business France in India! year as we plan to launch over 25 trade events during the course of the year, for which you can Our key mission is to promote trade relations register. A strong focus shall also be put on advising between France and India. We assist French and providing high value-added services to French companies seeking potential partners and new companies willing to establish in India. markets in India, while helping Indian businesses to identify potential French suppliers, commercial and To meet French suppliers, contact us or visit the technical partners. French exporters’ directory You buy France http:// www.youbuyfrance.com/in, the dedicated portal In India, our 4 offices are located in business hubs, to facilitate contacts and increase international New Delhi, Mumbai, Bengaluru and Chennai. We business opportunities online. have a dedicated multicultural team of 38 experts in Follow us on Twitter ! the following growing sectors: Follow us on LinkdedIn ! • AgroTech Follow us on Facebook ! • Industry and Cleantech • Lifestyle and Healthcare About Business France • Tech & Services Business France, the French Agency for International • Invest Business Development, is an executive agency of • Business Services Department the French government placed under the supervision of the: Our Trade Commission also has a Press office in charge of helping French companies to communicate • Minister for Economic Affairs and Finance in India as well as a Market Access Department enabling them to better understand and adjust to the • Minister of Foreign Affairs and International Indian regulatory and fiscal framework. In addition, Development Business France is also in charge of helping and providing a soft landing to foreign companies willing Business France promotes technologies, products, to set-up and invest in France / Europe. services and know-how from France, and puts French-based professionals in contact with their We accompanied, in 2017, more than 300 French international counterparts. Business France companies to India by providing customized mobilizes the expertise of 1,400 persons in France services, by bridging them with local clients and and in 70 other countries. partners through the organization of missions, and by assisting them to participate in collective Business France’s know-how and experience are events, such as French Pavilions at leading trade globally recognized with a worldwide network of 80 fairs, technical seminars, B to B meetings, various Trade Commissions, which have worked with around business networking events and press conferences. 7,500 SMEs & mid-caps during 2017. The agency holds an ISO 9001 quality management certification. Our offices
New Delhi office Mumbai office Bangalore office Chennai office Embassy of France in India Consulate General of France Consulate General of France Bureau de France 2/50E Shantipath, Chanakyapuri, Wockhardt Towers, East Wing, 21, Palace Road Vasanth Nagar Bannari Amman Towers, New Delhi 5th Floor, Bandra Kurla Complex, Bengaluru 6th Floor 25 Dr Radha Krishna Tel: + 91 (11) 43 19 63 00 Bandra East Mumbai Tel: + 91 (80) 22 14 12 40 Salai, Maylapore www.businessfrance.fr Tel: + 91 (22) 66 69 40 00 Chennai
Contact: Mrs Brinder Rault, Head of Lifestyle, Luxury & Healthcare 68Department, | Business of SportsBusiness – Rumble France Under India Our – [email protected] Feet YES BANK, India’s fourth largest private sector Bank with a pan India presence across all 29 states and 7 Union Territories of India, headquartered in the Lower Parel Innovation District (LPID) of Mumbai, is committed to establish a high quality, customer centric, service driven, private Indian Bank catering to the future businesses of India.
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Business of Sports – Rumble Under Our Feet | 69 NOTE
70 | Business of Sports – Rumble Under Our Feet Business of Sports – Rumble Under Our Feet | 71 72 | Business of Sports – Rumble Under Our Feet