The Hindu Business Line : Racing + Narain = New Formula

ADVERTISERS in India seem to be looking beyond the green pastures of the cricket field. While Indian tennis star Sania Mirza landed a string of lucrative contracts after her performance at the Australian Open, advertisers are now setting their sights on the fastest Indian in the world. With his Formula One debut this season, Jordan driver Narain Karthikeyan has become the latest sportsman to actively join the brand endorsement bandwagon.

<15,3m>The 28-year-old Karthikeyan was recently appointed the brand ambassador for Reebok, JCB (a construction equipment manufacturer) and ESPN Star Sports (which has won the rights to telecast live the Formula One World Championship in India). Other brands he is associated with include Tata, JK Tyre, Speed, Amaron and Ambipur. The enthusiasm in corporate circles about the speed king was palpable over the past fortnight, when he was in India after his 12th place finish at the Hungarian Grand Prix. Karthikeyan has attended events over the past few days to help launch products ranging from shoes to a sports utility vehicle to apparel and car batteries and was mobbed like a celebrity wherever he went.

Surely, though slowly, brand endorsements are flowing in. Karthikeyan's manager, Piers Hunnisett, Managing Director of Eurasia Motorsport Management, says there has been a sea change in the popularity of motor sports in India over the past few years resulting in higher interest among advertisers. He, however, adds that it does not mean that there is a rush of corporates wanting to sign up Karthikeyan as brand ambassador, but that the scenario may also change in the coming years. "We are also not very keen to sign up too many brands right now, primarily due to constraints of time," says Hunnisett.

The current sponsors, though, are sanguine about the brand association. "We find Karthikeyan a marketable commodity. He is a youth icon. It's a matter of pride that out of 20 elite racers who compete on the Formula 1, India is ahead of many developed countries and has a representation. Karthikeyan represents the type of authenticity and individuality that Reebok stands for. Further, Reebok is excited to be part of the motor sports culture which is gaining immense popularity among today's youth and Karthikeyan is the ideal partner for our new endeavour," says Subhinder Singh Prem, Managing Director of Reebok India Company.

Further, the presence of an Indian at the top level in motor sports is helping to increase its popularity in the country. This is similar to what happened to tennis after Sania Mirza made her mark on the international tennis scene. In fact, analysts point out that motor sports is the second most watched sport on Indian television. Viewership for it has been growing at over 25 per cent every year in the country, with the youth being the primary drivers.

"In fact, when Doordarshan was given free telecast rights for Formula One championships a few years ago, the viewership was estimated at a massive 50 million," says Sanjay Sharma, Head (Motor Sports), JK Tyres, which has been actively promoting the growth of motor sports in the country.

Little wonder then that more and more companies are planning to ride on the motor sports bandwagon this year. Korean chaebol LG Electronics, for instance, is finalising a strategy to associate with the sport in India. "So far, our association has only been with cricket. We plan to associate with motor sports in view of its growing popularity and also to get the first mover advantage. It would help us to reach out to the 15-24 year segment, which accounts for a large percentage of our customer base for mobile phones, and personal computers, among other products. We are working on several properties for association with the sport," says Salil Kapoor, Head (Marketing), LG Electronics India.

Further, the popularity of the sport among the youth can be assessed from the sheer number of live screenings organised/sponsored at pubs and clubs across the country. Many companies have also rolled out special editions of their products (such as luxury watches and sportswear) inspired by F1 racing to connect with the youth.

Sanjay Sharma of JK Tyres, which organises go-karting championships and other motor sports in the country, points out that there has been a surge in interest in motor sports after Karthikeyan reached the F1 level. "Also, one of the major reasons for the increase in popularity of motor sports over the past few years has been that it has become more accessible and more affordable. A person can now take up go-karting for about Rs 100. Further, for a sport to become popular in India, it has to be perceived as a career here. And surely, the emergence of an icon in any sport, such as Karthikeyan reaching the F1 level, helps in its popularity," says Sharma.

He adds that though countries such as Turkey, China and Malaysia have sophisticated racing tracks for F1 events, they do not have any drivers at that level. "That must say something about Indians and motor sports," says Sharma.

Meanwhile, though the surge in interest in F1 racing is resulting in endorsements deals for Karthikeyan, market officials point out that the money is still not close to that in cricket with unconfirmed estimates pegging the total value of the Jordan driver's endorsement deals at about $3 million-$4 million.

"This game is not like cricket. The money is not for personal use. What I earn now is going towards the maintenance of my car," says Karthikeyan. Market officials, however, add that the size of the endorsements could swell phenomenally if Karthikeyan makes it to the top ten this year. "He does have the attention of the entire nation. In fact, the popularity of sports, besides cricket, catching up in India is to a large extent dependant on how sustainable the success of our rising sportspersons is," states an official at a sports management firm.

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