Indian F1 promoters set sights on breaking even in 3 years

Lily

B.R
Staff member
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New Delhi: The promoters of the inaugural Indian Formula One (F1) race facility on Tuesday said that they are confident of breaking even in 2-3 years.

"The break-even on such a big investment would be reached within 2-3 years time. We are very confident in the business," Sameer Gaur, managing director of Jaypee Sports International Ltd (JPSI).

Gaur, whose company is behind the Buddh International Circuit, spoke to IANS on the sidelines of the unveiling ceremony of the track ahead of the inaugural Indian Grand Prix October 30.

According to Gaur, the facility, which has come up with an investment of $200 million (Dh734.6 million) and another $200 million for F1 licences will not only host F1 races but a slew of other events including races, corporate events and will house establishments such as a racing academy.

"Well we have many options in which we can use the facility after F1 race. There will be other motor sports races like Moto-GP, motorbiking, it can be given for training purposes, corporate events, so there are many options for revenue generation," Gaur said.

Partnerships

Gaur said the company has finalised partnerships like merchandising and sponsorship for other races.

"We have roped in Puma as our merchandising partner," Gaur said.

The company had earlier tied up with luxury car manufacturer Mercedes-Benz, which has been appointed as the official automobile partner of the Buddh International Circuit.

Mercedes-Benz will also set up a race car academy which will be the fourth such facility by the German automobile manufacturer after others in the United States, Germany and China.

"After the inaugural race at the circuit, we intend to open the track [to the] public on Saturdays and Sundays," Gaur said.

Aspiring

"Aspiring racing car drivers and motor sport enthusiasts can come over here to practise."

Other auto-giants such as Mahindra and Mahindra too have plans to use the track for sports activities.

Gaur added that the funding in the project is through an equity infusion of Rs5.5 billion (Dh406 million) and a debt element of Rs2 billion.

Key facts

The following are the key features of the new race track:


  • Cost of project: Rs17 billion (around $400 million)
  • Length: 5.14 km
  • Seating capacity: 120,000
  • Parking capacity: 15,000 cars
  • Distance from Delhi: Around 40 kilometres.

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