Venky’s hatch Blackburn Rovers Deal!

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It is not the Ambanis who are set to join a Middle Eastern prince, the Russian oil oligarch Roman Abramovich and others  as proud owners of EPL teams. But instead a relatively smaller & unknown group – Venkys (formerly Western Hatcheries Private Limited) is set to buy the Blackburn Rovers – currently ranked 17th in the EPL table for a sum of £46 million.

Venkys Who?

Venkys

Venky’s was started in 1976 as Western Hatcheries Private Limited for producing broiler chicks for markets in North India. But over the years it has turned into Asia’s largest poultry producer having a turnover of over £1 billion with products including animal and human health products, pellet feeds, processed chicken products and other nutritional products. It has been voted by the Forbes Magazine as the 67th best global small company for the year 1999-2000.

Blackburn Rovers who?

blackburn-rovers

Blackburn Rovers are based in Blackburn, Lancashire. Since becoming league champions in the year 1995 with players like Alan Shearer and Chris Sutton, they haven’t been able to achieve that legacy. This has led to them being ranked 10th or beyond, thrice in the past 5 seasons. For the last two years they have been on sale.

So what does Venky’s plan to achieve with this deal?

Many football fans dream of owners putting all the income generated back to the club itself for improvement in its facilities, grounds etc. But things are always not so simple. Everyone has a motive for buying a club whether its extravagance, style or business objectives is another matter altogether.

Anuradha Desai, chairperson of Venky’s has already said that this is an investment for the group to expand beyond the Asian markets. They also aim to leverage the 14% Indian fan base in Blackburn. But then they are also pretty candid and right in their approach of making the top 10 at least and avoid being relegated.

But then considering the net transfer fees of the past seasons to be -£7m and them spending only £5m to buy new players, the money left for the recruits will be very little.

Venky’s aim to keep the club at the elite level. But with such a miniscule investment by English Premier League standards, it could be a problem in the future.

But all in all, this is something really exciting for an Indian company and that too one whose not in the league of the biggies. With this Deal Venkateshwara Hatcheries has become the first Indian Company to own an EPL Team beating Reliance’s and Sahara’s of the world who have been tipped on owning EPL Teams

Do you think owning an EPL team is a good investment for an Indian company?

  1. Jashan Joshi says

    Proud to be a Puneite & so happy to see Pune’s connection to the best league in the world – English Premier League

    Blackburn should make it at least to top 10 & Venky’s will be a HIT in Europe

    best wishes
    Jashan Joshi

    1. Aseem Rastogi says

      Making it to the top 10 is going to be a real tough task. But I sincerely hope for the sake of Venkys, Blackburn do decently…

  2. Altaf Rahman says

    Venkys may be unknown to most but in Andhra Pradesh, its a household name.
    In fact Venkys is a major reason that today Andhra produces 33% of the eggs in India.

    What I see the business logic of Venkys in EPL team is like this.

    Football in UK is the equivalent of IPL in India. Dedicated fans follow where ever teams travel to play. May be this team Blackburn have a stadium on their home turf. When you have a place which attracts thousands for an event (a match involving Blackburn), the stadiums will be full. They may have fast food shops in the stadium complex. They may have shops selling chicken.

    Here is the link!!

    As owners of the stadium, they may ask (even make it a condition) that the shops buy chicken only from Venkys. Also as owners they will have visibility in and around stadium. Imagine the followers include 14% indians !! Venkys have guaranteed business for their chicken whether their team performs or not.

    As their team is touring places to play matches, Venky’s banner goes with them. Ad budget is reduced.

    Also if by chance they win the cup, they will make the captain say in his trophy acceptance speech that ever since they started eating Venky’s products, their performance increased. Ha ha.

    Jokes apart, I am wondering what happened to one of their ventures which is unique to India. Saurav looks to be well informed on Venkys affairs. May be he can inform us.

    Way back (may be 10 years back) Venkys in collaboration with some Australian company planned to start a unit processing eggs. They planned to process 10 million eggs per day and seperate egg yoke and egg white and make them into powder and sell. I liked the idea because it will drastically reduce the wastage of eggs (as the eggs are perishable). Once they process it and make it into powder, it will be made available in shop shelfs. Those ppl who want to eat low cal eggs will buy egg white and for kids who need lot of fat, ppl will buy egg yoke. The by-product egg shell is the purest form of calcium which they planned to sell to industry.

    That idea was a win win for all parties concerned. Farmers will get regular market, people will get a new era product, prices will stabilize, wastage gets reduced. Egg shell instead of finding garbage dumps will be better put to use.

    I tried to find it on google but no proper info is available. Can Saurabh or some one else throw some light on it?

    1. Aseem Rastogi says

      Great points mentioned by your sir. Especially the one about the acceptance speech may could well be true. But for that they need to win more games and not get relegated. :P

  3. balaji yadhav says

    This was purely a business decision made by them .They are trying to increase their businesses in Asian markets and have found that EPL is the way to go.

    1. Arun Prabhudesai says

      Yes, I agree…it is pure branding exercise and business decision…

  4. Saurav says

    Anuradha Desai has really taken Venky’s far and wide, ever since she stepped in… (Two yrs back, i believe). A little known fact about Venky’s is its presence in array of countries including middle east and all… Great to see Indian companies taking a global approach, like this one!

    Hope the odds turns out in their favor!

    1. Aseem Rastogi says

      If I am not wrong, its 12 yrs and not only 2..All of us hope to see Venkys image along with Indian ones to rise tremendously with time…:)

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