Rio is a golden chance for Indian sports business
Rio is a golden chance for Indian sports business
Since winning a medal at the London Olympics, SainaNehwal has been in great demand for TV commercials, including for health food products and instant noodles. Her fee for such advertisements has doubled. Sushil Kumar is a wrestler who won a bronze in Beijing and a silver in London. M.C. Mary Kom was a bronze medalist in women's boxing in London. They have been appointed brand ambassadors by a carmaker and a government organization, and have become very popular. This is a sea change in India's advertising business, which is typically headlined by Bollywood and cricket stars. Advertisers are keeping a sharp eye out for new heroes at the Rio Olympics.
Seeking to build on the strong performance of the Indian Olympic squad in London, sports authorities are stepping up efforts to discover and develop young athletes. They have also started bringing in coaches from abroad and working on athletes' mental training. However, India's sports budget is limited, given the country's need for infrastructure, education and health care. Playing sports seriously at the high school and university levels remains far from ideal in India due to a lack of facilities and coaches. So private companies are venturing into the sports business and starting to promote and manage individual athletes.
In August 2015, IOS Sports & Entertainment signed a two-year contract with badminton player SainaNehwal for 250 million rupees ($3.72 million). The contract covers appearances in TV commercials and other media, as well as brand profiling, licensing and digital rights. Nehwal was quoted by an Indian newspaper as saying the contract was meant "to help me achieve my business goals and maximize the value of my brand."
IOS concluded a two-year exclusive commercial and marketing deal with the Indian Olympic Association in January, the first of its kind in India's sports industry.
Last fall, Reliance Industries, a unit of the eponymous Indian conglomerate, hired Sundar Raman, former chief operating officer of the Indian Premier League, India's professional cricket league, to head its sports unit. It is expected to develop a new sports business by collaborating with Reliance JioInfocomm, a group company that offers 4G mobile phone service.
The Rio Summer Games may mark the beginning of a new sports culture in India and bigger business opportunities in a country with vast untapped potential.
Seeking to build on the strong performance of the Indian Olympic squad in London, sports authorities are stepping up efforts to discover and develop young athletes. They have also started bringing in coaches from abroad and working on athletes' mental training. However, India's sports budget is limited, given the country's need for infrastructure, education and health care. Playing sports seriously at the high school and university levels remains far from ideal in India due to a lack of facilities and coaches. So private companies are venturing into the sports business and starting to promote and manage individual athletes.
In August 2015, IOS Sports & Entertainment signed a two-year contract with badminton player SainaNehwal for 250 million rupees ($3.72 million). The contract covers appearances in TV commercials and other media, as well as brand profiling, licensing and digital rights. Nehwal was quoted by an Indian newspaper as saying the contract was meant "to help me achieve my business goals and maximize the value of my brand."
IOS concluded a two-year exclusive commercial and marketing deal with the Indian Olympic Association in January, the first of its kind in India's sports industry.
Last fall, Reliance Industries, a unit of the eponymous Indian conglomerate, hired Sundar Raman, former chief operating officer of the Indian Premier League, India's professional cricket league, to head its sports unit. It is expected to develop a new sports business by collaborating with Reliance JioInfocomm, a group company that offers 4G mobile phone service.
The Rio Summer Games may mark the beginning of a new sports culture in India and bigger business opportunities in a country with vast untapped potential.
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