A Sri Lankan computer manufacturer which entered into local racing in 2009 solely as a sponsor to promote its computers recently revealed plans to become the top domestic team by 2015 and grow its racing subsidiary into at least a Rs. 100 million a year venture by that date.
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| Sealing the partnership |
Speaking at the announcement of a five-year, Rs. 40 million partnership with Singaporean clothing brand Crocodile, represented in Sri Lanka by shirt maker Emerald, EZY Racing Team Principal Shafraz Hamzadeen recounted how EZY Racing's parent, EZY Holdings, initially entered competitive domestic racing and that, even before EZY's computers were launched locally, EZY computers staff were fielding close to two calls a day from the racing fraternity and related people. He also noted this had translated into big business as the racing enthusiasts were generally affluent and this had led to even more potential customers downstream.
Mr. Hamzadeen also revealed that EZY Racing was set up in March 2010 with a lot of investment in the essential infrastructure necessary for creating a sustainable racing team, including drivers, fitness, structure, etc. Currently, EZY Racing has five drivers and two special guest drivers, and a team of 50 dedicated professionals. It also emerged that it costs Rs. 12 million a year to run the team, with 60% to 70% of required resources coming from partnerships. However, Mr. Hamzadeen noted that this was not inclusive of costs such as repairs, tuning, etc. which EZY Racing has partners for who perform these services free of charge. Also indicated, in 2011, EZY Racing was at the winners’ podium in every race it had participated in. And, from 2014 onwards, the team will start to aggressively compete in international racing circuits such as India, Malaysia and Indonesia.
Further, Mr. Hamzadeen also noted that currently EZY Racing owned 40% of its cars with their ultimate goal being to fully own all the vehicles. He also noted that the team expected to enter motorbikes in 2012 as well as adding three additional drivers and take their vehicle numbers up to 10. He also revealed that eventually he planned to add replacement vehicles. Additionally noting that his Rs. 100 million venture estimates for 2015 was "essimistic," he added that plans were to actually gather Rs. 130 million to Rs. 140 million a year after 2015 with 70% coming from partners and 30% anticipated to come from a suspension manufacturing company EZY Racing hopes to tie up with. He also signalled that, in 2015, Rs. 60 million would become continuous investment into vehicles and the balance would be profit which could be used to grow, pay back investors, etc., especially since there were ideas currently being considered to raise equity for near term growth requirements.
Mr. Hamzadeen also noted that this venture was already proving to be sustainable as, in 2011, Rs. 30 million was raised from partnerships and this had already over-achieved the team's expenses. He further identified 2014 as being the next stage for significant team growth.
Speaking about the EZY Racing's recently minted partnership with Singapore's Crocodile clothes, he revealed that, initially, some of the Rs. 40 million would be used to create clothes for drivers and merchandising to 'glamourise' the sport locally and create more mass appeal. He also noted that at a later stage this money would also be used for investments in the team.
Identifying some of the efforts taken to popularise motor racing in Sri Lanka, Mr. Hamzadeen highlighted EZY Racing's recent motorbike stunt show at the recent, 2011 Colombo Motor Show. He also noted that his team was the only racing team at the show and thus had access to 70,000 visitors, many of whom visited EZY Racing's 14 stalls. He also announced that a pilot programme of the team, Pit Pass, which is set to only fully roll out in January 2012, had also signed up 10,000 members at the Motor Show. These Pit Pass members would soon be able to access a range of benefits including discounts at Crocodile stores and other partners. He also added that the team also had 10,000 Facebook fans.
Mr. Hamzadeen further suggested that these integrated marketing plans added greater value for partners as well as helping popularise the sport, while also indicating that Crocodile would be issuing six limited EZY Racing team shirts for purchase by fans in conjunction with six races which would occur this year, including Foxhill and the Colombo Night Race (slated for December 2011). A concept that was in line with an earlier initiative whereby EZY computers launched a laptop called the ER3 commemorating the championship winning EZY Racing ER3 car.
Meanwhile, also present at the occasion, Ceylon Motor Sports Club (CMSC) President Niroshan Pereira revealed that it costs an individual car anywhere between Rs. 400,000 a year, for a Mini, to Rs. 10 million a year to compete in Sri Lanka's more than 26 races as there are races virtually every week. He also noted that trends were proving to be in favour of more corporate style racing teams as opposed to individuals who could not hold down sponsors. He also suggested that, while Sri Lanka would never be able to field a Formula One team, the country could, in 15 or more years, field a driver. However, he did note that local teams were very close to getting to the next stage of competing in the Asia Pacific tracks.
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