Final CWG Report (1)

8/8/2019 Final CWG Report (1)

1/16

Submitted to: Prepared By:

Dr. Rasananda Panda Darshita Shah (PGPIBM)

DhavalRaninga(PGPIBM)

(PGPIBM 2009-11)

Ahmedabad Management Association

COMMONWEALTH GAMES

DELHI2010

&

ITS BUSINESS IMPACTS ININDIA


2/16

Commonwealth Games 2010 & its Business Impacts Page 2

INDEX

1.About Commonwealth games 3

2.Commonwealth Games 2010 4

3.Cost and Expenditure of CWG 2010 6

4.Facilities and Business opportunities 8

5.Revenue Generation 11

6.Marketing Strategies for Commonwealth Games Delhi 2010 117.Business club of india 13

8.Conclusion 15

9.References 15


3/16


Commonwealth Games:

The Commonwealth of Nations, popularly known as the Commonwealth, is an association

of independent sovereign states and dependencies spread over every continent. From Africa

to Asia, the Pacific to the Caribbean, the Oceania to Europe and the Americas, the

Commonwealths two billion people make up one-third of the worlds population, with acommon belief in equality, amidst the vast ocean of religious, racial, linguistic, cultural and

traditional diversities.

The Commonwealth Games is a multi-sport event held every four years between 53

commonwealth nations, once colonies of the British Empire. The first such event was held

in 1930, then known as The British Empire Games. Later, its name was changed to The

British Empire and the Commonwealth Games in 1954, followed by The British

Commonwealth Games in 1970, and finally, it assumed its present name, The

Commonwealth Games, with the motto: Humanity, Equality, and Destiny.

Growth of Commonwealth Games:

Before 1998, the Commonwealth Games traditionally hosted only single-athlete events. In

1998, however, team sports were introduced at the Commonwealth Games in Kuala

Lumpur. For the first time, cricket, field hockey, netball and rugby 7s were contested. In

2002 field hockey, netball and rugby 7s again were contested, though cricket was dropped

from the schedule. In 2006 basketball was added to the program, but was again dropped in

2010, and field hockey, netball and rugby 7s were the only team sports contested. The

Commonwealth Games have included disabled athletes since 2002. Disabled athletes

participate in swimming, athletics, table tennis and power lifting at the Commonwealth

Games. Since 1930, the Commonwealth Games has grown to include athletes from 71

countries. In 2010, 6,081 athletes participated in 260 events across 17 sports. Only six

countries have competed in each of the 19 Commonwealth Games, including Australia,

Canada, England, New Zealand, Scotland and Wales.


4/16


Commonwealth Games, Delhi 2010:

The 2010 Commonwealth Games is the nineteenth Commonwealth Games, and the ninth to

be held under that name. The Games are being held in Delhi, India from 3 to 14 October

2010, the largest multi-sport event conducted to date in Delhi and India, which has

previously hosted the Asian Games in 1951 and 1982. The opening ceremony is takingplace at the Jawaharlal Nehru Stadium, the main stadium of the event.

Come Lets Play: with this message, Delhi is hoping to advertise and promote the

upcoming mega event: the prestigious Commonwealth Games 2010. India is set to host an

event of this kind after nearly thirty years, hoping, in the process, to propel itself onto the

world stage as an economic superpower, along with bringing about improvement within the

hosting city itself in terms of infrastructure, and also promoting sports culture in the country

as a whole.

The Games ostensibly bring with them global media exposure, which could in effect make

or break Indias image onthe global scene. However, one must question the rationale of

spending more than a billion dollars on a sporting event of this kind in a country like India,

which is already riddled with numerous issues of numerous kinds, and where the disparity

between the rich and the poor is disturbingly wide. Will this turn out only to be an exercise

in politician-induced patriotism and nationalism with political interests in mind rather than

welfare or progress, or will it really have notable positive effects on the community?

Especially considering the fact that India is a nation where sports culture is not as popular as

it is in the West?

One must also keep in mind that the money invested in such events comes from public

funds and the event should then benefit the public it derives capital from, not restricting

itself to the elite rich minority, while simultaneously ensuring that it does no harm to the

community. Other questions that arise, with particular relevancer, include the impact of

such an event on the lives of the people of the host nation, and its impact on the urban

scenario. Will the event lead to unplanned and unchecked development or any beneficial

development at all? Will the infrastructure established be utilized well post the event or will

it remain unutilized, and fall into disrepair? Can the country avoid economic debt and crisis post Games which are a common phenomenon during events of this scale? Does the

preparation hinder, in any way, the lives of the citys residents? There are numerous such

questions that arise with regard to such an event. It therefore becomes important for the

host community to keep in mind pros and cons of organizing such an event, before bidding

for the opportunity to do so.


5/16


6/16


y Government ofIndia (GoI):GoI is the sovereign government of the host country that has

supported the Games since the initial bid stage. It is committed to ensure adequate funds

for the conduct of the Games to the OC as well as for the development.

Cost and Expenditure of CWG 2010:

5 Union budget Allocation for the commonwealth games 2010:

5 Estimated Infrastructure Costs of CWG :

Activity-wise breakup ofestimated(in Rs. crore)Activity Rs. %

Broadcasting 463 4

Security 284 2

Operationalexpenses of OC

1628 13

CityInfra.Develop. 4550 35

Venue Develop. 5214 40

Others 749 6

5 Bidding for The games: an expensive deal:

License fee payable to the CGF 55 crore

Amount pledged for athlete training to each CGA 32.4 crore

Estimated budget of bidding submitted by IOA 1.61 crore

Union Budget Allocation for the 2010 Commonwealth Games

Year Budget Estimate (BE) (in crore rupees) Revised Estimate (RE) (in crore rupees)

2005-06 45.5 45.5

2006-07 150 150

2007-08 150 307.72

2008-09 356.74 967.74

2009-10 2264.42 2883

2010-11 2069.52

Agency-wise estimated(in Rs. crore)

Agency Rs. %GNCTD 4720 37

SAI 2475 19

OC 1628 13

MYAS 1503 12DDA 1153 9

Min. of I &B 483 3

MHA 284 2

others 682 5


7/16


5 Approximate cost of projects related to CWG 2010 (Govt. of Delhi data)

Name of project Cost(in Rs. crore)

Flyovers and bridges 5700road over bridges/road Under bridges 520Stadia 650HCBS 1518Augmentation of DTC fleet 1800Construction of Bus depots 900Widening of roads, strengthening and resurfacing 700street lighting 650Street Scraping 525Improved road signage 100

Metro connectivity 16887 New Power generation plants 35000Water supply 950Health 50Parking facility by covering Nallahs 400Communication and IT 200

Total 66550

5 Games Village :

Stadium Cost

Indira Gandhi Complex 689.21 crores

Yamuna Complex 285 crores

Mukherjee Swimming Complex 377 crores.

Dr. Karan Singh Shooting Range 149 crores

Dhyanchand Stadium 262 crores

Jwaharlal Nehru Stadium961 crores

Tyagraj Sports 300 crores.

Khunna Tennis Complex 65.65 crores

Kadarpur Shooting Range 28 crores

Talkatora Stadium 150 crores.

Main Sports Ground (DU) 135 crores


8/16


Facilities & Business Opportunities:

Organisers of the Commonwealth Games 2010 are not only aiming at the provision of an

improved infrastructure and global media exposure consequently transforming the image of

the city, are also aiming to provide us with the legacy that will ensure the social, economic

and physical regeneration of the Delhi. The Games will help to boost urban renewal and will

promote increased investments.

The facilities can be divided as the following:

Sporting:The year 1982 saw the first constructions of the sporting facilities in Delhi when

the Asian Games were organised for the first time in India. At that time 4 new stadiums

were built. Jawaharlal Nehru Stadium was the centerpiece of the Games, being the venue for

the opening and closing ceremonies and athletics. The other major stadiums that were built

were the Indira Gandhi Stadium, Talkatora Stadium, and the Yamuna Velodrome. The

National stadium on the other hand was an exception, which was an earlier construction.

With time new constructions were made in Delhi with regard to sporting facilities and today

we have a number of sports complexes both DDA and privately owned along with 9

stadiums out of which 5 are the new constructions for the upcoming Commonwealth

Games.

Non sporting: India is intensively preparing for the event and has, as a result, a number

of projects in the pipeline for the sameAnd with another sporting event coming up in the

country at present, the city is being given a virtual facelift, that is inclusive of improved

infrastructure at large, along with better and more organised road and transport networks.

A number of the following projects are being sub-contracted to private firms by the

government, to ensure timely and quality development:

y Indira Gandhi International Airport

y Transportation and road network

y Civic Services


9/16


10/16


y No free entry to Taj for CWG visitors: nations will have to pay Rs.550 while other

foreign tourists will have to pay Rs.750,"

y In a boost to the crisis-ridden Commonwealth Games (CWG), telecom major Airtel is

understood to have offered sponsorship of USD 1 million (about Rs 4.5 crore) to the

organisers.

y According to OC officials, a total of 10 sponsors and partners of the CWG have

committed to giving Rs 390 crore despite the Railways, the lead partner, yet to give its

promised Rs 100 crore. Other sponsors have also delayed their contributions.

y Mumbai, India (Washington Bangla Radio) The Associated Chambers of Commerce and

Industry of India (ASSOCHAM) and Pricehouse Watercoopers (PWC) have

recommended to streamline FDIs regimes for Media & Entertainment Sector (M&E)by asking government to hike FDIs ceiling in FM radio from existing 20% to 49% and

Direct To Home (DTH) services from 49% to 74%.

y In addition, the two institutions have also proposed that foreign direct investments limit

in Cable Networks should go up to 74% from existing 49% and that of their share in

Uplinking a News & Current Affairs TV Channel be raised to 49% from current levels

of 26%.

y India expects foreign investments to the tune of around 30 billion in fiscal 2010-11,

reports IANS.

y Great opportunity to give due recognition to sportsmen

Impact on various sectors:

India is aspiring to establish itself as a superpower through hosting this hallmarkevent,

and is all set to change the westerners view of India as just being a land ofspices and

slum dwellers. It has in consequence intensified efforts to present a newface to the

world, with world class infrastructure, hospitality, facilities, etc.The primary positive

impacts of the same are as follows:

5 Infrastructure: Delhi will get a radical facelift on account of the Games. If the nature

and form of the infrastructure so created can be modelled in a manner that ensures its

adaptability tothe already existing infrastructure of the city (for instance, the stadiums,

entertainment facilities, parks, airports, roads, telecommunication, housing, hotels and so


11/16


on) which also includes the various temporary structures, the country can hope for

satisfactorily efficient use of the infrastructure after the Games are over.

5 Generation of Employment: The Games being, at this point, the countrys most

expensive and ambitious event requiresan efficient support system at all levels of

planning and implementation, which might enable the provision of very beneficial

employment opportunities, subsequently boosting the economic cycle.

5 Investment in the region: The growth and encouragement of sports culture in India that

could be brought about on account of the given facilities, might serve to attract more

investors even in the post Games scenario. Also, the Games are expected to boost to the

local demand during their duration,provided the economy maintains caution with regard

to the possibilityof oversupply.

5 Improved Transport and Road Network:Another sector that is slated to witness

immense improvement is transportation: flyovers, bypasses, broader roads, a larger

metro system, an integrated Rail Bus Transport system and a High Capacity Bus system.

5 Sporting Legacy:The legacy of the Commonwealth Games Delhi 2010 will be toboost a

near-absent sports culture as a part of the daily life of every Indian,of all classes,regions,

and all ages as well, with special emphasis on the youth, the future of the nation.

5 Volunteering Culture: The Games can also be hoped to develop and encourage

aculture ofvolunteering in the host country, preparing the youth with values ofhospitality

along with enhancing their life skills, such as self-awareness,etiquette, creative and

critical thinking, empathy, communication andInterpersonal relationships.

5 Boost to Tourism Industry:Renowned globally for its rich cultural traditions as well as

its hospitality, India seeks to make use ofthe Games to encourage its tourism industry,expecting visitors duringthe games as well as after them, once it has gained adequate

media exposure.

5 Knowledge, Skill Development and Education: The host population can hope to gain

greater knowledge and skillsfrom staging a major sporting event such as these

Employees and volunteerscan achieve skills and knowledge in event organisation

andmanagement, human resource management, security, hospitality and service, etc.

5 Improved image of the country: The media coverage that comes with the Games can

be expected toreach over a billion people, providing a boost to the tourism

industry,attracting business investment, and further opening India up to theglobalisedworld economy.

5 A Cultural Legacy: The Commonwealth Games can also be hoped to enable

encouragementof cultural ideas, recognition and understanding of cultural identityand

cultural awareness. With the spirit and message of friendship,unity and peace, the

country aims to strengthen its cultural legacythrough the event.


12/16


As per the reference of times of india newspaperThe Total estimate Job opportunities in

various field of business:

Revenue Generation:

OC has indicated that they would be able to realize 1708 crores as revenue from theGames. The details are given below:

The projected revenue for the

Games(2003) Rupees

crore

Grants - National Government 1021.5

Grants - State Government 35.19

Grants - Organizing Committee 1.13

Total Grants 1057.8

Revenue from sponsorships 450

Revenue from broadcast rights 299.7Revenue from licensing 59.99

Revenue from ticket sales 29.97

Total Revenue 839.66

Till now OC has got commitment of ` 627.20 crore as revenue out of which ` 264 crorehas been realized.

Marketing Strategies for Commonwealth Games Delhi 2010

IntegratedMarketing & Communication Elements

y Mascots, Logo & Slogans

y Bank Notes, Coins and Stamps

y Merchandising

y Bank Schemes

y Video Games & Films

Job Prospects CWG 2010

Airlines & Airports 250000

Hotel industry 150000Tour Operators 35000

Eco and Medical tourism 15000

Construction 30000

Unorganized Sector 35000


13/16


y OOH

y Colleges Involvement

y Multimedia

y India On Road Campaign

y Promoting in Other Sports Events

y Marathon 300,200, 100 days prior to event

y Online

y Post Offices & Other Government Institutions

y Corporate Advertising

Following some of the main Marketing Strategies which are described as follow.

5 Bank Notes, Coins and Stamps:

Launch limited edition currency notes and coins for CWG. Famous Athletes or Stadium

can be imprinted on notes Postal stamps similar to the one introduced in 1982 AsianGames should be launched. Printing of CWG Inland letters and post cards.

5 Merchandising:

CWG specific outlets to be launched in metros. Vending machines dispensing merchandise at

metro & railway station. Partnerships to launch special merchandise like Mobile Phones,

Bags, Sports equipment. Specially designed for CWG Indian Art & Craft souvenir to be

promoted and sold across the world. Games merchandise like mascots, apparel, key chains,

mugs, t-shirts. Online shops to provide access to the merchandise all over the world.

5 Bank Schemes:

CWG special Fixed Deposit Schemes with maturity during the games to increase spending

during games. Start events like Guinness book of world record signature campaign with the

objective to send Best wishes to our team throughout the country. Brand Government

initiatives like Green Delhi as Commonwealth Green Delhi. Brand Delhi a Delhi

2010(twenty ten) in all announcements in railway stations, airports and state transports

Incredible India branded with CWG and offer packages for tourism during games CWG

specific volunteer plan to generate participation from all sections of society.

5 Delhi is ready:

New Low floor buses can be used for advertising to promote games and Delhi outside and

inside India .Common Wealth Express Train can be launched to spread the spirit and message

of games all over India. CWG special Autos to be designed and plied across Delhi and othercities. OOH Designer Buses, Autos & Trains.

5 Schools , Colleges & Universities Involvement International:

Involve Indian students present in universities/colleges throughout the world, specially in

commonwealth nations. Indians abroad could be identified to promote CWG in their

universities/colleges. Material, videos and other relevant material to be provided to them to

promote the event.Online forum to discuss the events and the Delhi/travel related information


14/16


to be provided. Bringing out International Newsletter with information related to

developments in CWG and articles from eminent athletes.

5 Promoting CWG in other Sports Events:

CWG2010 can be promoted in other sporting events taking place in or outside India

Airtel Delhi Half Marathon - 1st November

South East Asian Games - DecemberSingapore Marathon - 12th December

Cricket India-Australia Series Nov/Dec 09

Youth Olympic Games Singapore , August 2010

Winter Olympics Vancouver , February 2010

IPL 3 April-May 2010

5 OnlineCWG2010 Website:

Need for an exhaustive website of CWG India 2010With Queen Baton about to begin , we

need to cover each country in detail aboutGeneral Introduction , Culture ,Tourist Places

Sports Culture , Other stories about the country Website should have detail info about Delhi

Hospitality Facilities , Dos & Don&apostsetcBlogs and Forums

Business Club ofIndia:

The Organising Committee Commonwealth Games 2010 Delhi has partnered with

Federation of Indian Chambers of Commerce & Industry (FICCI) and Confederation of

Indian Industry (CII) to launch the Business Club of India. It aims to market the XIX

Commonwealth Games 2010 Delhi and promote and facilitate business networking as

well as showcase the country as a preferred business destination for the global business

community. Its objectives are:y To leverage focus on India through key business partnerships, both within India

and overseas, and enhance Indias business reach at the Games

y To showcase India as the preferred business partner and destination through high

level networking events, conferences and trade shows

y To promote the business of sports and sports marketing

BCI has continuously worked to enhance business and investment opportunities in India. It

organised a series of business road shows in the following key business destinations along

the Queens Baton Relay 2010 Delhis International Sector, fostering business

partnerships:

y London with UK-India Business Council

y Birmingham with Birmingham City Council

y Glasgow with Business Club Scotland

y Mauritius with Mauritius Tourism Authority


15/16


y Johannesburg with Johannesburg Chamber of Commerce and Industry (JCCI)

y Toronto and Ottawa with Canada-India Chambers of Commerce

y Melbourne with Australia-India Business Council), Austrade/Business Club

Australia

y Singapore Business Federation (SBF) in Singapore, Kuala Lumpur, Malaysia and

Colombo

The Road Shows received a tremendous response for business tie-ups with South Africa,

Australia, Singapore and Malaysia. Top business leaders, corporate heads cutting across

sectors such as energy, information technology, oil and gas, non-conventional energy,

tourism, sports industries, luxury goods, cuisine and food processing attended the events.

More Australian companies eyeing work in India's infra sector

About 1,000 Australian companies evince interest in doing projects in India every year

despite the challenges of "bureaucracy" and "delays" as opportunities outnumber these

impediments.

Already 47 Australian companies are executing contracts worth ASD 83 million for the

Commonwealth Games. Besides, At present, there are 60 companies working in the

infrastructure sector here.


16/16


Conclusion (Recommendations and Observations):

There is a need for proper planning when organizing such international events to

minimize inconvenience to public.

Similar Development of infrastructure for sports should also be taken up in other parts of

country.

Indian Business Houses should also contribute for the development ofSports Talent

and Sports Industry in India which has a great potential to bring laurels and business to

the nation with so much of extravaganza being associated with Sports.

References:

y Sellotape lagecy: by Boria Majummdar

y http://www.expressindia.com (CWG 2010 will result in economic impact of $4.94

bn)

y http://www.cwgdelhi2010.org (Business Club of India )

y http://en.wikipedia.org (2010 Commonwealth Games )

y FCCI survey Delhi 2010 Commonwealth and beyond

y http://www.slideshare.net (Marketing Strategies For Commonwealth Games Delhi

2010)

y Whose wealth? Whose commons? Research done by :Shalini Mishra, Shivani

Chaudhry and Miloon Kothari

y Commonwealth Games 2010 and Use of the facilities after the Games :

A business of hope

Submitted to Centre for Civil Society

Documents

Final CWG Report (1)