Rajasthan Royals agrees to take strategic investment from UK-Based Entrepreneur Raj Kundra and his partner Shilpa Shetty. Mumbai, February 3, 2009: Rajasthan Royals, Champions of the inaugural Indian Premier League (IPL) in 2008 today announced that it was planning to add a strategic investment from London based entrepreneur Raj Kundra and his partner, well known Bollywood celebrity, Shilpa Shetty. Raj Kundra is the Chief Executive Officer of Essential General Trading LLC, a Dubai based international trading company dealing in precious metals, construction, mining and green renewable energy projects. Shilpa Shetty is the Chief Executive Officer of S2 Global Productions Pvt Ltd., which is her home film production company. The announcement was made by Manoj Badale, Chairman and joint owner, Rajasthan Royals.
Says Manoj Badale – Chairman & Joint Owner, Rajasthan Royals, “It is our pleasure to welcome our new investors Mr. Raj Kundra and Shilpa Shetty to the Royals. The selling of this stake is part of our long-term strategic approach to build the Rajasthan Royals into a global sports brand. Our resources are already focused on on-field investment in the key areas of player development infrastructure; international expansion; and to also support continued investment in our playing staff. However, this investment enhances the off-field commercial potential of a brand already recognised throughout India, and much of the global cricketing world.”
Says Raj Kundra – Chief Executive Officer, Essential General Trading LLC, Dubai, “The benefits to us of investing in this venture were to complement the assets of last year’s professionally managed champions. We can add the winning formula of Bollywood to create a true global cricket brand. I believe that the addition of Shilpa Shetty creates a multitude of commercial opportunities – for sponsors, for merchandisers and for ancillary development opportunities.”
Says Shilpa Shetty, Chief Executive Officer, S2 Global Productions Pvt. Ltd, “We have taken a strategic approach by investing in Rajasthan Royals – whose brand values we associate strongly with. Cricket is not a sport in our country, it’s a religion. I am very passionate about Cricket and who better to invest in than the current reigning IPL champions. It completes the success story for the IPL team by merging with Bollywood.”
As part of their strategic development of the Rajasthan Royals brand, the franchisee has lined up a slew of initiatives and licensing and merchandising plans to enable their army of supporters to uniquely connect with the team and the brand. Rajasthan Royals recently created and launched a five-tier Royals Army fan club membership programme by adopting global best practices and combined with elements that make the packages attractive for their community of fans both locally and globally.
The Royals Army membership programme has five fan categories, Maharaja Club, Captain’s Club, Royal Lions Club, Royal Bugles Club and Young Royals Club, with membership fees ranging between Rs 2,500 and Rs 1.5 lakh. The benefits for the members include season tickets, autographed bats, official team jerseys, preferential access to tickets sold online and invitations to the season ending party.
The Rajasthan Royals have also chalked out extensive licensing and merchandising plans that will cover not just India but also countries like US, UK and Australia where the team already has a growing fan base. To begin with, the franchisee also wears a new logo that has been undertaken in line with the key re-branding initiatives across the Royals brand for various aspects including the jersey and other merchandise.
The franchisee has been offering various products such as jerseys, practice T-shirts, bags, sporting goods, team caps and autographed bats as merchandise since the first season. This year, they have decided to get aggressive with its merchandising business and doing it on a much larger scale.
In a first move, it has already started selling its merchandise online through its official website, www.rajasthanroyals.com. The prices for the various products range between Rs 1,000 and Rs 1 lakh. Going forward the company is looking at partnerships in different categories like FMCGs, linen and kids products. They would use Rajasthan Royals’ branding to come out with product formulations. Besides the sportswear, Rajasthan Royals is also planning to launch formal wear and children’s products. The franchisee is in talks with many Indian and international brands to launch formal wear, including Jodhpuris and other apparels.
The franchise is also planning to come up with fan engagement contests in Rajasthan and Gujarat, and other activities such as cricket clinics and talents hunts, consumer activation programmes, and meet and greet cricketer and fan interactions in the near future.
About Rajasthan Royals
Rajasthan Royals is the Jaipur franchise cricket team that represents the state of Rajasthan in the Indian Premier League.The team is led and coached by Shane Warne. The team’s mascot is a lion named Moochu Singh. The Rajasthan Royals team embodies the spirit of the Rajasthani people – of valour, courage and honour both on and off the field. Rajasthan Royals won the inaugural Indian Premium league held in April-May 2008.
