Three top executives from Puma India, including managing director Abhishek Ganguly, have launched a new sportswear and athletic solutions platform called Agilitas Sports. The firm plans to raise INR4.3bn ($64m) and has already secured nearly INR4bn from Convergent Finance’s advisory funds. Agilitas Sport aims to invest in India’s sports ecosystem, with a strong focus on technology and innovation. The total footwear market in India is projected to be worth around INR110bn and is expected to grow by a compound annual rate of about 13% until 2030. Sports footwear currently accounts for 16% of the overall footwear market and is the fastest-growing segment.
The launch of Agilitas Sports
On 7 August 2017, Agilitas Sports, a new venture led by outgoing Puma India executives Abhishek Ganguly, Atul Bajaj and Amit Prabhu, was launched. The venture aims to raise INR4,300 crore ($64m) with a focus on investing in the core structure of India’s sports ecosystem. Agilitas Sports is also aiming to disrupt and redefine the sportswear industry by integrating technology and innovation across the product value chain.
The total footwear market in India
The total footwear market in India is forecast to be worth INR11,000 crore and is projected to grow at a compound annual growth rate of around 13% until 2030. Sports footwear accounts for 16% of the overall footwear market and is the fastest growing segment. In emerging markets, it is predicted this could rise to around 30% of the market and up to 50% in mature markets.
Investment and advisory conglomerate Convergent Finance
Investment and advisory conglomerate Convergent Finance led by Harsha Raghavan, advised funds worth INR4bn have been invested in Agilitas Sports. The firm has stated its focus is on “capital allocation and long-term business strategy areas”.
The appointment of Karthik Balagopalan as Puma India managing director
Last week Puma, the German footwear and apparel maker, announced the appointment of Karthik Balagopalan as managing director for Puma India. Mr Balagopalan had previously been managing director of retail and e-commerce at the company. He replaces Abhishek Ganguly, who spent 17 years at Puma India. Ganguly is due to remain at Puma until the end of August 2017.
Future growth potential for India’s sportswear market
It is expected that India’s sportswear market has huge potential for growth, with a focus on fitness and ‘Made in India’. This is illustrated by the growth projections in the total footwear market and the increasing demand for sports footwear. Agilitas Sports appears to be taking advantage of these opportunities and is positioning itself to take advantage of the opportunities in India’s sportswear market, particularly in the areas of innovation and technology.
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