Business Players Ready, Set, Go!
Business Players Ready, Set, Go! For The 20th Commonwealth Games 2010
Just one look around New Delhi is enough to show that the 20th Commonwealth Games are approaching and approaching fast. The capital city is being turned inside out in an effort to dress it up for the games in 2010. While the preparations may spell chaos for the inhabitants of the city, the emerging business opportunity is a godsend gift for thousands of big, medium and small Companies.
Hundreds of projects are up for grabs. Everyone from Indian real-estate giants to foreign Sports infrastructure majors and from hospitality bigwigs to training experts is gearing up to bite a slice of the Games pie. While some projects have been launched, others are still on the drawing board. With the government opening its war chest for the Games, the interest from the corporate sector is understandable. A look at the written reply by Mani Shankar Aiyar, Minister of Youth Affairs & Sports, to a question by an MP recently gives a fair idea of the money at stake.
The letter reads: "Government have approved project proposals of the Sports Authority of India for an amount of Rs 1,000 crore (± 10%) for the upgradation/creation of Sports venue infrastructure; upgradation of the tennis venue by the All India Tennis Association at a cost of Rs 30 crore (± 15%) and an expenditure budget for the Organizing Committee (for Commonwealth Games) on a revenue neutral basis of Rs 767 crore (± 15%) for the `Conduct of the Games'. The Expenditure Finance Committee have considered the proposal of the Delhi Development Authority (DDA) for about Rs 765 crore for the International Zone in the Games Village (the residential part of which is being developed in the public-private partnership mode) and Sports infrastructure at the Village/other venues belonging to DDA. The Expenditure Finance Committee have also considered the proposal amounting to Rs 257.41 crore of Ministry of Youth Affairs & Sports for upgradation/creation of competition/training venues for CWG 2010 at the Delhi University, Jamia Millia Islamia University and Delhi Public School, RK Puram."
The major chunk of the budget is being spent on civil engineering projects and improving the city's infrastructure like roads, flyovers, expanding metro rail network and building the Bus Rapid Transit System. Many of these projects are being developed through the public-private partnership model. For instance, Larsen & Toubro has grabbed a Rs 5,400-crore contract from the GMR-led Delhi International Airport Private Limited for the expansion and modernisation of the Indira Gandhi International Airport. A part of the project will also include associated work for the airport, which has been commissioned for the games.
While Parsvnath Developers has won a Rs 160-crore contract for developing a Metro station-cum-shopping mall at the Commonwealth Games village site, Emaar-MGF will develop a residential complex. Spread over 27.7 acres, the complex is expected to accommodate over 8,500 participants in 1,161 apartments.
As the break-up of the government's budget suggests, the next big money spinner is Sports infrastructure. There is a unanimity that Sports infrastructure in the country is in bad shape and this very fact opens the gates of opportunity for both Indian as well as foreign majors who bring with them specialisation in various aspects of the industry. Calling India's Sports infrastructure a disaster, Anirban Das Blah, chief executive of Globosport, an Indian Sports infrastructure firm, says, "There are not many organised players in the Sports infrastructure domain in the country." He is himself looking at projects like the deployment of scoreboards and stadium surfacing and says it's going to be a big business in future.
The fact that Indian Companies lack the expertise in this sphere is just one of the reasons why foreign Companies are taking a keen interest in the games. In the past couple of years, about eight British delegations have visited India.
So, have delegations from Queensland, Australia. Queensland is a hub of Sports-related activities like coaching, Sports management, technology, Sports equipment and marketing. "More than 35 Australian Companies are working extensively in Beijing for this year's Olympics. The count for 2006 Doha Asian Games was 200," says John McCarthy, Australian High Commissioner to India.
Many of its Companies are already involved in projects in India, too. For instance, Queensland-based company Taiyo Membrane Corporation will build the tensile roof for the Jawaharlal Nehru Stadium, which will be used for the opening and closing ceremonies and athletic events.
Says Richard Mac Donald, president, India operations, Taiyo Membrane Corporation, "Shapoorji Pallonji was awarded the main contract and we won the subcontract for the membrane, cables and castings. While the total project cost is about Rs 300 crore, the membrane and cables component is worth nearly Rs 100 crore." Taiyo has worked for several other projects in India and is looking at other stadium sites as well.
Meanwhile, the organising committee has roped in Australia's Maxxam International to conceptualise, design and execute the Queen's Baton Relay, which is similar to the Olympic Torch Relay. The Sydney-based event management company is also conducting the Olympics 2008 torch relay.
As far as international broadcasting rights are concerned, Fast Track, a broadcast rights, sponsorship and event marketing agency, has been chosen by the committee. Fast Track has been associated with many earlier Commonwealth Games, too. Also, Queensland's Golder Associates, an engineering firm, has opened its India office in Gurgaon and AEG Ogden, which operates infrastructure facilities, is working in partnership with DLF to build a convention centre in Dwarka on the outskirts of Delhi.
Infrastructure apart, services like hospitality, training, catering, security and marketing are coming across as equally potent business opportunities. Hospitality in Partnership, the global arm of UK-based Cavendish Hospitality, is gung-ho about the potential India offers. The company has a track record of providing hospitality services in many top events across the globe with the latest being the 2007 ICC Cricket World Cup in West Indies.
"We have on our radar services like management of catering contracts, required at various venues and the athletes' villages," says Chris Bruton, CEO, Hospitality in Partnership. He adds that in the last few years, the budgets for hospitality have gone through the roof. According to him, the profits out of hospitality in the last world cup were around $1 million and the company usually gets between one-third and one-fourth of the profits.
With India using the opportunity to showcase its charms as a tourist destination for all, tourism in the country is set to get a big boost, not just during the games but also in years to come. This spells opportunity for tour operators, travel agents, caterers etc.
Consider this: For the games, Delhi is expected to be thronged by foreign visitors from all parts of the world. To ensure that they have a hassle-free stay, the Delhi government will run training programmes for cab drivers, waiters and security staff in English language and basic etiquette.
This is being done under a capacity building programme in partnership with the Union Ministry of Tourism. According to Jagat Singh, chief manager, Delhi Tourism and Transportation Development Corporation, "We are working on the economies of the project and how to take it forward. The plan of action should be ready in a few days." The government agency may still not have a clear blueprint, but it may need the help of many small English training schools strewn over the city and other grooming firms to implement the large-scale programme.
The Union Ministry of Tourism, which is expecting to receive a record number of tourists, has already started working on tour packages. However, what remains as a major clog in the wheel is the non-availability of hotel rooms. There is a requirement of around 40,000 rooms in the city alone and as of now the gap between the demand and supply is big.
Besides, a big business opportunity is seen in conducting proper courses in training and development of corporate personnel. For instance, Australia-based Griffith Business School is working on providing executive education and in-house staff development programmes to Indian corporations. "In collaboration with our Indian partner, we are hoping to conduct training with staff involved in the games in the area of logistics and supply chain management," says Chris Auld, dean (International), Griffith Business School.
Give it to the Commonwealth Games for making India such an attractive investment destination for Sports related businesses, but the fact is that Companies that are keen on taking up projects worth millions are also considering India's potential for Sports events beyond the Common- wealth Games. And the potential is big.
Come 2011 and India will jointly host the ICC Cricket World Cup. Besides, the launch of the Indian Premier League (IPL) and Indian Cricket League (ICL) has already infused new life into domestic cricket. "India is reasonably Sports focussed compared to other Asian countries. There is so much in cricket here, but very little has been spent on cricket facilities. Now, with IPL's launch, the team owners will wake up to the fact that they need good infrastructure for their teams. I foresee them designing their own cricket stadiums in future," comments Russell Merz, principal, Golder Associates.
Moreover, the nation has slowly but steadily started looking beyond cricket, football and hockey. It only means more opportunity and more money for Indian and foreign Companies.
Just one look around New Delhi is enough to show that the 20th Commonwealth Games are approaching and approaching fast. The capital city is being turned inside out in an effort to dress it up for the games in 2010. While the preparations may spell chaos for the inhabitants of the city, the emerging business opportunity is a godsend gift for thousands of big, medium and small Companies.
Hundreds of projects are up for grabs. Everyone from Indian real-estate giants to foreign Sports infrastructure majors and from hospitality bigwigs to training experts is gearing up to bite a slice of the Games pie. While some projects have been launched, others are still on the drawing board. With the government opening its war chest for the Games, the interest from the corporate sector is understandable. A look at the written reply by Mani Shankar Aiyar, Minister of Youth Affairs & Sports, to a question by an MP recently gives a fair idea of the money at stake.
The letter reads: "Government have approved project proposals of the Sports Authority of India for an amount of Rs 1,000 crore (± 10%) for the upgradation/creation of Sports venue infrastructure; upgradation of the tennis venue by the All India Tennis Association at a cost of Rs 30 crore (± 15%) and an expenditure budget for the Organizing Committee (for Commonwealth Games) on a revenue neutral basis of Rs 767 crore (± 15%) for the `Conduct of the Games'. The Expenditure Finance Committee have considered the proposal of the Delhi Development Authority (DDA) for about Rs 765 crore for the International Zone in the Games Village (the residential part of which is being developed in the public-private partnership mode) and Sports infrastructure at the Village/other venues belonging to DDA. The Expenditure Finance Committee have also considered the proposal amounting to Rs 257.41 crore of Ministry of Youth Affairs & Sports for upgradation/creation of competition/training venues for CWG 2010 at the Delhi University, Jamia Millia Islamia University and Delhi Public School, RK Puram."
The major chunk of the budget is being spent on civil engineering projects and improving the city's infrastructure like roads, flyovers, expanding metro rail network and building the Bus Rapid Transit System. Many of these projects are being developed through the public-private partnership model. For instance, Larsen & Toubro has grabbed a Rs 5,400-crore contract from the GMR-led Delhi International Airport Private Limited for the expansion and modernisation of the Indira Gandhi International Airport. A part of the project will also include associated work for the airport, which has been commissioned for the games.
While Parsvnath Developers has won a Rs 160-crore contract for developing a Metro station-cum-shopping mall at the Commonwealth Games village site, Emaar-MGF will develop a residential complex. Spread over 27.7 acres, the complex is expected to accommodate over 8,500 participants in 1,161 apartments.
As the break-up of the government's budget suggests, the next big money spinner is Sports infrastructure. There is a unanimity that Sports infrastructure in the country is in bad shape and this very fact opens the gates of opportunity for both Indian as well as foreign majors who bring with them specialisation in various aspects of the industry. Calling India's Sports infrastructure a disaster, Anirban Das Blah, chief executive of Globosport, an Indian Sports infrastructure firm, says, "There are not many organised players in the Sports infrastructure domain in the country." He is himself looking at projects like the deployment of scoreboards and stadium surfacing and says it's going to be a big business in future.
The fact that Indian Companies lack the expertise in this sphere is just one of the reasons why foreign Companies are taking a keen interest in the games. In the past couple of years, about eight British delegations have visited India.
So, have delegations from Queensland, Australia. Queensland is a hub of Sports-related activities like coaching, Sports management, technology, Sports equipment and marketing. "More than 35 Australian Companies are working extensively in Beijing for this year's Olympics. The count for 2006 Doha Asian Games was 200," says John McCarthy, Australian High Commissioner to India.
Many of its Companies are already involved in projects in India, too. For instance, Queensland-based company Taiyo Membrane Corporation will build the tensile roof for the Jawaharlal Nehru Stadium, which will be used for the opening and closing ceremonies and athletic events.
Says Richard Mac Donald, president, India operations, Taiyo Membrane Corporation, "Shapoorji Pallonji was awarded the main contract and we won the subcontract for the membrane, cables and castings. While the total project cost is about Rs 300 crore, the membrane and cables component is worth nearly Rs 100 crore." Taiyo has worked for several other projects in India and is looking at other stadium sites as well.
Meanwhile, the organising committee has roped in Australia's Maxxam International to conceptualise, design and execute the Queen's Baton Relay, which is similar to the Olympic Torch Relay. The Sydney-based event management company is also conducting the Olympics 2008 torch relay.
As far as international broadcasting rights are concerned, Fast Track, a broadcast rights, sponsorship and event marketing agency, has been chosen by the committee. Fast Track has been associated with many earlier Commonwealth Games, too. Also, Queensland's Golder Associates, an engineering firm, has opened its India office in Gurgaon and AEG Ogden, which operates infrastructure facilities, is working in partnership with DLF to build a convention centre in Dwarka on the outskirts of Delhi.
Infrastructure apart, services like hospitality, training, catering, security and marketing are coming across as equally potent business opportunities. Hospitality in Partnership, the global arm of UK-based Cavendish Hospitality, is gung-ho about the potential India offers. The company has a track record of providing hospitality services in many top events across the globe with the latest being the 2007 ICC Cricket World Cup in West Indies.
"We have on our radar services like management of catering contracts, required at various venues and the athletes' villages," says Chris Bruton, CEO, Hospitality in Partnership. He adds that in the last few years, the budgets for hospitality have gone through the roof. According to him, the profits out of hospitality in the last world cup were around $1 million and the company usually gets between one-third and one-fourth of the profits.
With India using the opportunity to showcase its charms as a tourist destination for all, tourism in the country is set to get a big boost, not just during the games but also in years to come. This spells opportunity for tour operators, travel agents, caterers etc.
Consider this: For the games, Delhi is expected to be thronged by foreign visitors from all parts of the world. To ensure that they have a hassle-free stay, the Delhi government will run training programmes for cab drivers, waiters and security staff in English language and basic etiquette.
This is being done under a capacity building programme in partnership with the Union Ministry of Tourism. According to Jagat Singh, chief manager, Delhi Tourism and Transportation Development Corporation, "We are working on the economies of the project and how to take it forward. The plan of action should be ready in a few days." The government agency may still not have a clear blueprint, but it may need the help of many small English training schools strewn over the city and other grooming firms to implement the large-scale programme.
The Union Ministry of Tourism, which is expecting to receive a record number of tourists, has already started working on tour packages. However, what remains as a major clog in the wheel is the non-availability of hotel rooms. There is a requirement of around 40,000 rooms in the city alone and as of now the gap between the demand and supply is big.
Besides, a big business opportunity is seen in conducting proper courses in training and development of corporate personnel. For instance, Australia-based Griffith Business School is working on providing executive education and in-house staff development programmes to Indian corporations. "In collaboration with our Indian partner, we are hoping to conduct training with staff involved in the games in the area of logistics and supply chain management," says Chris Auld, dean (International), Griffith Business School.
Give it to the Commonwealth Games for making India such an attractive investment destination for Sports related businesses, but the fact is that Companies that are keen on taking up projects worth millions are also considering India's potential for Sports events beyond the Common- wealth Games. And the potential is big.
Come 2011 and India will jointly host the ICC Cricket World Cup. Besides, the launch of the Indian Premier League (IPL) and Indian Cricket League (ICL) has already infused new life into domestic cricket. "India is reasonably Sports focussed compared to other Asian countries. There is so much in cricket here, but very little has been spent on cricket facilities. Now, with IPL's launch, the team owners will wake up to the fact that they need good infrastructure for their teams. I foresee them designing their own cricket stadiums in future," comments Russell Merz, principal, Golder Associates.
Moreover, the nation has slowly but steadily started looking beyond cricket, football and hockey. It only means more opportunity and more money for Indian and foreign Companies.