Callaway to invest more in India before break even

Identifying India's potential as one of the top three markets in Asia for it, golf equipment maker Callaway Golf Co today said it will continue to invest in the country for the next 3-5 years before it looks to break even here.

"We will continue to invest in India for the next 3-5 years," Callaway Golf Company President (International) Thomas T Yang told PTI when asked by when the Indian operations would break-even.

While he did not divulge the size of investments that the company is putting in India, Yang said the country has the potential to be one of the top three markets in Asia for the company.

"Currently Japan, Korea and South East Asian Countries put together enjoy the top three slots in Asia region for Callaway in terms of revenues," Yang said.

However, in the foreseeable future, may be in the next 5-10 years, India could be one of them, he said.

Globally a $1 billion company, Callaway gets more than 50 per cent of business from markets outside the US.

Citing China's example, which is another area of focus for the company, Yang said that after four years of continuous investments being made in the country, China operations have "already started giving financial returns".

Yang declined to comment on sales in India but said: "Given the growth of the economy, aspiring middle class and infrastructural developments, India might just surprise us."

Earlier, Callaway sold its product range in India through distributors but last year set up of a subsidiary -- Callaway Golf India.
 
Since then it has been working on strengthening its presence here by expanding retail reach and introducing new product ranges, prior to other global markets in a few cases.

Currently, the company sells golf clubs, balls and accessories under Callaway Golf, Odyssey, Top-Flite and Ben Hogan brands at around 40 multi brand stores situated in golf courses across the country.

It plans to set up exclusive stores from March this year, besides introducing the entire range of global accessories and merchandise here.

In India the total market for golf equipment is estimated to be around Rs 35 crore, of which the company claims to have about 25 per cent share currently.