F1 bonanza for businesses
01 November 2011
Assocham says the first F1 event in India is expected to have generated business worth Rs10,000 crore from the sale of tickets, advertisements, hospitality and travelling, besides creating new business hubs and boosting commercial and residential property development.Nithin Rao reports
The success of the Formula One India Grand Prix at Greater Noida's Buddh International Circuit (BIC) is expected to not only boost motor sports in India, but also result in a bonanza for a range of businesses.
The F1 hoopla usually sees top multinational brands sponsoring teams and thousands of affluent tourists descend on the circuits. India's maiden foray into the world of F1 has given it abundant exposure in the global media and has also triggered off competition for more such tracks.
The Maharashtra State Road Development Corporation (MSRDC), a government agency, has already hired a consortium led by Capita Symonds, the designer of London's Olympic stadium, to prepare the master plan and ''a business case'' for a new multi-purpose race circuit in Mumbai.
India's financial and commercial capital missed out on hosting India's first F1 foray, as an unenthusiastic state government failed to respond to the organisers of the event when they showed an interest in setting up a track near Mumbai about five years ago.
Chhagan Bhujbal, Maharashtra's tourism minister, bemoans the fact that the government could not clinch the deal. But the UP government ensured the timely completion of the track – built by infrastructure major Jaypee group – and the successful staging of the prestigious event.
The Jaypee group, which invested about $400 million in building the track, has won the rights to stage the event for 10 years. It is also developing a sports city around the track that will include an international standard cricket stadium.