Competition heats up as Ctg's artificial turf business expands
Entrepreneurs see reduced profits with hourly charges decreasing
With rapid and unplanned urbanisation leading to a decline in playgrounds, the popularity of artificial turfs has surged in Chattogram. Within just one year, the number of these artificial playgrounds has increased from seven to 80.
Stakeholders say new investments are flowing into this sector, extending beyond urban areas as the popularity of artificial turfs has now reached villages across various upazilas of Chattogram.
However, they also note that the rapid expansion of turf facilities within a short timeframe has intensified competition in this sector, consequently reducing profits as the hourly charges for turf use have decreased.
This trend is compelling entrepreneurs to offer additional amenities to attract customers. Consequently, entrepreneurs are organising social events and expanding their offerings to include restaurants, food courts, and swimming pools in order to sustain their businesses.
Entrepreneurs say there are currently over 50 artificial turfs in Chattogram city alone, with the turf business also extending to villages in Hathazari, Sitakunda, Patia, Karnaphuli, Chandanish, Satkania, and Lohagara. Around Tk50 crore has already been invested in Chattogram within this sector, with a monthly market value of about Tk3 crore.
Investments ranging from Tk2 crore to Tk5 crore are necessary to establish large indoor sports zones equipped with artificial turfs, while smaller turf setups require investments between Tk25 lakh and Tk40 lakh, they say.
The average daily income from small turfs ranges from Tk8,000 to Tk12,000, whereas larger courts generate an average daily income between Tk30,000 and Tk35,000.
Turf bookings are particularly high on Thursdays, Fridays, and Saturdays throughout the week, with additional bookings extending from evening to night on other days. The investment in turf facilities varies depending on the quality of the grass or turf utilised.
More turfs, more competitions
SG Sports, an artificial turf facility, was launched in July last year, spanning an area of around 6,000 sq-ft in Satkania. At least five new turfs have been set up in this upazila within a span of eight months.
Due to the development of more turf facilities, entrepreneurs report increased competition in the business and shrinking profits.
Abu Taher Mintu, founder of SG Sports, said, "In the first few months after the opening of our turf, there were bookings up to 17-18 hours on Thursdays, Fridays, and Saturdays. Currently, it has come down to 5-6 hours. On other days of the week, only 2-3 hours are booked."
"More than 15 turfs have been established in Karnaphuli, Patia, Anwara, Chandanish, Satkania, and Lohagara in South Chattogram. So people now go to the nearest turf. That is why it is difficult to meet the expenses for us," he added.
The situation in the turf business in Chattogram city is facing similar challenges. Traders have reduced turf charges in efforts to maintain bookings, with rates previously ranging from Tk2,000 to Tk3,000 per hour now dropping to between Tk1,000 and Tk2,000. Daytime and weekday bookings are available at even lower costs.
Zakaria Ahmed, director of Time Out Turf in the Halishahar area of Chattogram city, said, "Now people call and inquire whether booking can be made for Tk500 per hour."
Tanjeerul Mustaqeem, owner of Infinity Sports in Hathazari, said, "The establishment of turfs is not being carried out in a planned manner. Many businessmen are constructing courts with low-quality turfs. Without proper drainage systems, the courts are prone to damage from water accumulation during the monsoon season."
Facilities added to allure customers
To survive amid growing competition, in addition to football, entrepreneurs are incorporating various sports facilities such as cricket, badminton, basketball, tennis ball, and pool into their courts. Moreover, amenities like fine dining, restaurants, and swimming pools are being integrated to maintain competitiveness. Special packages are being crafted to attract players, and spaces are being rented out as venues for different events.
Symon Sadat of Fortune Sports Arena said, "We hosted an event for the mobile finance company Nagad in the open area of our swimming pool. Another company held their annual general meeting here. Additionally, we have organised wedding events in our restaurants and fine dining area. We are striving to manage our business with multi-dimensional services."
AMM Saiful Islam Chowdhury, founder of Sicho Arena, told TBS, "Our indoor gaming zone features turfs as well as a kid's zone and gaming area. We are in the process of opening a restaurant, which will be managed by a third party experienced in the restaurant sector."
How artificial turf business started in the country
In mid-2018, Footy Hags, a football team based in the capital's Bashundhara residential area, constructed a turf court named the NDC Sports Facility for their exclusive use. By the end of the year, another artificial turf, JAFF Arena, was inaugurated in Bashundhara, spanning 16 kathas of land, solely for commercial purposes. Subsequently, the NDC Sports Facility began renting out their turf.
Wasif Salam, director of Asian and Daf Group, made the first artificial turf in Bayezid, Chattogram in 2020. He made the 35,000 sq-ft turf only for friends and families.
Wais Hossain and Awsaf Hossain, sons of Western Marine Group chief Sakhawat Hossain, launched the first commercial turf "ChattoTurf" in Gate 2 area of the port city in November 2021. Currently, it has a 20,000 sq-ft game zone.
AMM Saiful Islam Chowdhury, the head of Sicho Group, built an artificial turf in the Outer Signal area in the port city for his family when the Covid-19 pandemic started in 2020.
In March 2022, Sicho Arena was converted into a commercial turf due to increasing demand for playgrounds in the city.
Fortune Sports Arena was established in Chandgaon at the beginning of 2022 by five young men from the family of businessman Chan Mia Saudagar of Chattogram. Since then, over 70 new commercial turf facilities have been launched in Chattogram within the past year, with an additional 10 artificial turfs currently under construction.
Symon Sadat, founder of Fortune Sports Arena, told TBS, "Working people are finding turf facilities beneficial for recreation at the end of a busy day. Indoor games played on turfs are gaining popularity, leading to increased investment in this sector."
"Around 12-14 people can play on turf for around Tk2,000 per hour, equating to an average expenditure of less than Tk150 per person. The affordability factor has contributed to the growing popularity, making it accessible to people from all socioeconomic backgrounds," he added.