The Hindu Business Line : `Now F1 will give brands good RoI'

Narain Karthikeyan is on a break from the gruelling Formula One circuit. In Chennai for an endorsement event for one of his earliest sponsors, Amara Raja Batteries. Post-event, Narain was all set to fly out on a charter flight to Coimbatore, his home town, for a programme with yet another sponsor, ESPN, for which he is a brand ambassador. Accompanied by clad-in-black Jayadev Galla, the youthful managing director of Amara Raja, Narain unveils the Amaron pro - NK Racing Edition, a special limited edition automotive battery in yellow, to commemorate his entry into Formula One racing. Before the press conference, where Narain was mobbed like the celebrity he is, he took time off to speak to Catalyst on motor sport and sponsorships. Excerpts:

How has your association been with Amaron, one of your earliest sponsors, over the past six years?

Amaron has been one of the long-standing sponsors that I've had. You can't compare them with other sponsors that I have today. They are special as when I was struggling to find sponsors, they recognised I had potential and backed me all the way. I am obviously delighted with my association and hope they are too.

What about motor sport - are you happy with the level of sponsorship and viewership the sport is generating now in the country?

Things are looking good now as far as Formula One and I are concerned. We have Amaron and the big corporates like the Tata group and Bharat Petroleum, apart from some more endorsements. It's looking okay from my point of view, but still, at the grassroots level, it's difficult. Amaron has taken the initiative of promoting go-karting. It makes it more affordable for youngsters and gives them some exposure to racing. In Europe, it is very popular; in India, it is growing. The picture looks a lot better than when I started, that's for sure. With an Indian at the top, other Indian drivers can see that and aspire for it.

So, is it a chicken and egg situation? Unless you are successful the big sponsors don't show up and you need big sponsors early to succeed in Formula One?

I don't think it's that bad, to be honest. There are a lot of schemes; today if you win the go-karting title, you get some sponsorships, it's sure easier than when I started.

Compared to your peers in Formula One do you feel that you've achieved a certain level of comfort as far as your sponsorship is concerned?

Coming from an Indian background, we've achieved a huge amount of backing from Indian corporates and so far it is going pretty well.

You've been several years now in the sport and are also endorsing several brands; what do they expect you to bring to the table?

Well, Formula One has given the brands I'm associated with a lot of return on investment and publicity not only in India but globally as well. There's a lot of interest in an Indian driving well so that has created a lot of brand awareness about me and the sponsors associated with me. And, I think in the beginning, perhaps two-three years ago, a huge amount of money was being spent on cricket but they were guaranteed the ROI on it. But now Formula One will also give them a similar kind of ROI. In India, cricket obviously has a lot of viewers, but Formula One is number two.

How do your endorsements work? Does the sponsorship come to you or to your team?

Unlike cricketers, at this stage of my career, all the money goes to Jordan; it's only in the next couple of years that I expect to earn the big bucks of Formula One.

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