Pad­man­abh Inds to In­vest .₹ 100 crore in Sports Arena

Co may use .₹ 50 cr on fran­chises, re­main­ing on sports acad­e­mies & prod­ucts busi­ness

The Economic Times - - Companies Pursuit Of Profit - Gau­rav.Laghate @times­group.com

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.

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