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MUMBAI:
India Cements, the owner of team franchise Chennai Super Kings,
has got a revenue of Rs 680 million from its Indian Premier
League (IPL) business in FY'09.
The
operating margin was at Rs 171.4 million, up from Rs 76.5
milliion a year ago.
"We
got Rs 130 million in the fourth quarter and the full-fiscal
revenue stood at Rs 680 million from the IPL," a source
in the company says.
For India Cements, the IPL business has been profitable from
the first season itself. "Since the Champions League
T20 was cancelled, BCCI compensated us. This Rs 120 million
that we received turned us cash positive in the augural edition
of the IPL," the source adds.
The
second season of IPL will give Chennai Super Kings (CSK) a
sponsorship revenue of Rs 230 million, up from Rs 170 million.
CSK had lined up a bevy of 13 sponsors for the second edition
including Pepsi’s two brands 7Up and Lays, Aircel, Reebok,
Peter England, Nivea, Wrigley’s, Johnson & Johnson,
Big Bazaar, Camlin, Cloud9, NowPow (Hyderabad-based mobile
Vas compay), Fosters and makemytrip.
CSK
expects to get Rs 460 million from the central pool, as against
Rs 300 million in the first season. "With the tournament
shifting to South Africa, we had additional expenses and are
not yet clear how much BCCI is going to absorb. Since the
telecast contract was also upped, our central pool revenues
would go up. Om the whole, we expect to be profitable even
this year," the source says.
India
Cements has no plans to demerge its IPL property and dilute
equity in the venture.
Also
Read:
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Cements not to dilute equity in Chennai Super Kings
India
Cements sees IPL in South Africa as a brand building opportunity
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