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| Sports infra draws big bucks |
| Rajesh Bhayani / Mumbai Nov 22, 2009, 00:19 IST |
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World’s first convertible stadium to come up in Ahmedabad.
The sports business in India is set to witness some serious action. Traditionally, sporting infrastructure has survived on government largesse. It will soon see investments by business houses.
TransStadia, a Setco group company promoted by the Sheths, is building the world’s first convertible multipurpose stadium in Ahmedabad. The company is investing approximately Rs 300 crore for the project. Udit Sheth, CEO of TransStadia, said: “Infrastructure plays a key role in development of sports. We see our role as a catalyst in developing India’s sporting eco-system. This will be our first offering to the nation and we are planning 12 such stadiums across the country in the next five to seven years.”
TransStadia is in discussions with leading private equity players and strategic investors for the initiative. It is also in discussions with various state governments and private parties to create integrated sporting complexes. The other cities where such facilities can be developed are Mumbai, New Delhi, Chennai, Kolkata, Hyderabad, Jaipur, Ludhiana, Chandigarh, Lucknow and Pune, etc. Since the technology is patented, such projects cannot be awarded through the competitive bidding process.
The Setco group has a public listed company, Setco Automotive Ltd, which manufactures proprietary automotive products at its facilities in India, the UK and the US.
The concept of a convertible multipurpose stadium addresses one of the prime issues facing these facilities, their utilisation. TransStadia has entered into an exclusive licensing agreement with UK’s StadiArena, which has patented technology to convert an outdoor stadium into an indoor arena within minutes so that up to 12 sports can be played at any given venue.
“Our patented technology sweats the infrastructure asset to the maximum and generates footfalls at all times, thereby augmenting stadium utilisation,” said Sheth.
At present, outdoor stadiums are used hardly once or twice a month. TransStadia has procured the right to use and sell this technology, developed and patented by Paul Fletcher, an erstwhile English Premier League footballer who is also a globally-renowned stadium administrator and the CEO of Burnley Football Club, UK. TransStadia has exclusive rights to this technology for India and South Asia. It can accommodate between 2,000 and 20,000 people in air-conditioned comfort for indoor games or entertainment events. This technology can be incorporated during the concept phase or retro-fitted in an existing stadium.
Is such a venture remunerative? “Infrastructure is long-term play and payback is expected in three-five years. India is at an inflection point with a young population, an economy which is gaining momentum, presence of large brands and a sport-crazy nation. The only missing link is sporting infrastructure, world-class training facilities, and marketing,” said Sheth.
The company wants to develop entire sporting eco-systems. Hence, the project will have training facilities, a sports medicine division, and a sports academy that will search and train talent. Such stadiums can also have hotel facilities.
“It is time we break away from conventional thinking and see sports as a business that can contribute big bucks to the economy, give livelihood to thousands of people and create a healthy nation. It will be wonderful to see the government create pro-sports policies in India, just like they did in telecom or software,” said Sheth.
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