Padmanabh Inds to Invest .₹ 100 crore in Sports Arena
Co may use .₹ 50 cr on franchises, remaining on sports academies & products business
Mumbai: Ahmedabad-based Padmanabh Industries will invest up to .₹ 100 crore in sports-related businesses through its wholly-owned subsidiary Padmanabh Sports, a top executive said.
Earlier know as Nilchem Industries, the company has already bought Gujarat franchises for two sports leagues — Cue Slam-the Indian Cue Masters League (Gujarat Kings) and Premier Badminton League (Gujarat Smash Masters).
It has also signed a definitive agreement to acquire the team leasing rights of Ahmedabad for Indian Volleyball League, expected to launch later this year. “We want to build a major sports brand in Gujarat and enhance the sporting culture in the state,” Ashish Shah, CMD of Padmanabh Industries, told ET. “We are already seeing a great response and we are ready to spend around .₹ 100 crore over the next three years in the sports business.” Shah said his company would like to own Gujarat franchises in all the major leagues. “Out of the four league franchises in the state, we own three (the fourth, the Pro Kabaddi franchise, is owned by the Adani Group). We would also want to own teams in all the future leagues,” he added. Currently, Padmanabh Sports has divided sports business into three separate verticals — franchises, sports education and training academies, sporting products and equipment.
“Close to .₹ 50 crore will be needed for managing and operating the franchisees.” Remaining money will be used for the academies and products business. “We will follow an assetlight business model, where money will be spent on branding and promotions rather than capital expenditure,” Shah said.