Amusement Parks Industry In India: A Short Overview

Amusement Parks in India

Amusement Parks In India

Amusements parks in India, which were once meant as a fun place for kids to spend their time, have now emerged as a billion dollar industry. Over the years, the industry of amusement parks in India has witnessed lots of variations; there was a time when Indira Gandhi promoted the Appu Ghar just as a fun zone for the poor kids who could enter the park free of cost and spend time their parents and other kids. And today, most of the amusement parks charge not less than Rs 1200 or so excluding the charges for the rides and theatre shows. Quite evidently, the amusement park industry in India has emerged as a great investment options.

Here are a few key points that will give you an overview of the amusement parks in India:

·         Initially amusement parks were meant for poor children with free entry and rides not more than 10 rupees.

·         Today it is a giant industry with Rs 1,800 crores generated in FY 2013 and by 2020 the revenue is expected to cross Rs 4,000 crores.

·         Retail sector in India is the main driving force behind the growth of amusement parks in India as an industry.

·         The sector is still in its nascent stage which is an indication of its huge growth potential.

·         Amusement parks in India attract both domestic and offshore clients to make investments.

·         Adlabs Imagica – India’s biggest amusement park is a perfect example of how the sector is flourishing as a lucrative investment option.

·         Even during a not-too-pleasant economic condition, the IAAPI has recorded a sharp 8 percent in FY 2013.

·         Introduction of new technologies including rides, gaming machines and simulators will spur growth in the industry.

·         State-of-the-art-infrastructure in India’s major cities has also resulted in increased demand for amusement parks in India.

·         The amusement parks in India are yet to receive a boost from the tourism sector.

·         A joint initiative by the private sector and the government to boost the amusement park industry in India can generate more revenues.

·         Today, Indian manufacturers are producing goods of international standards which is a great asset for the amusement park industry of the country.

·         Currently, there are about 150 players in the amusement parks industry in India which is quite less for a country with population more than 1.2 billion.

·          Today, tickets to theme parks in Indian metros cost nearly Rs 1200 and more while in the tier II and III cities, the price starts from Rs 350 per individual.

Conclusion

Foreign investors are frequently eyeing the amusement parks in India and many have already started promoting some of the major ones like the Wonderla in Bangalore. The fast-paced infrastructural developments across all major cities and metros are expected to further boost the identity of the industry as a great investment option. Some of the best amusement parks in India like the Wonderla Amusement Park, Bangalore, Ramoji Film City, Hyderabad, Wonderla Amusement Park, Kochi, Science City, Kolkata and Essel World in Mumbai are already listed among the top 20 amusement parks in Asia.

For more information on amusements parks in India, feel free to visit http://mergeralpha.com/.

Facts That Make Amusement Parks In India A Huge Investment Market

Merger Alpha

These days, the weekends seem to be much-more fun-filled for the Indians as there are numerous amusement parks in India located across all the major cities offering one-stop destinations for food, fun and entertainment.

The amusement parks industry in India, mainly driven by the retail sector and the enhanced connectivity, has become a great investment option for both domestic and foreign investors. In November 2014, the UK-based Eros Investments Limited has expressed its interest in the amusement industry in the state of Andhra Pradesh currently governed by Chief Minister N Chandrababu Naidu. The company has already signed a memorandum of understanding to develop a mega entertainment city in India near Vizag.

If we compare it with that of US and UK, the amusements parks industry in India is quite new although it has already completed two decades. However, the industry has mainly bloomed during the last decade owing to the advent of globalization. Currently, the sector is witnessing fast-paced development with more number of amusement parks in India flowering across various cities.

Some of the best amusement parks in India include Wonderla (Bangalore), Adventure Island (Delhi), Essel World (Mumbai), Veegaland (Kochi), Ocean Park (Hyderabad), Nicco Park (Kolkata), Food and Fun Village (Delhi), Worlds Of Wonder (Noida) and many more located in Chennai, Kannur and other cities.

Something that has given a significant push to the development of amusement parks in India is the improved connectivity and transportation facility. Infrastructural developments across the major cities are bringing people closer to the entertainment hubs.

A prominent example is the development of the Delhi Noida Metro line that has brought the amusement parks in both the cities so much nearer. Be it the Worlds of Wonder in Noida or the Adventure Island in Delhi, reaching out to these places have become easier now leading to increased affinity among people for such places. Further, the development of Expressways have also reduced the travel time drastically and brought distant places closer.

Currently, there are nearly 120 amusement parks in India and 45 family entertainment hubs which is a quite an insufficient number for a country with a population of over 1.15 billion. However, this is a clear indication that there is huge growth potential in the amusement and theme parks sector in India. Among the various recreational facilities and amenities at the amusement parks in India, there are thrilling roller coasters, theme parks, theatres, giant wheels, fun-filled food joints and family restaurants and various other entertainment options.

The biggest demand drivers for the amusement park industry in India are the emerging middle class, increased disposable income, lifestyle and culture change and most importantly, the increased craze among people for a fun and leisure-filled lifestyle. Spending weekends at the amusement parks is becoming an increasingly popular practice among people and according to market experts, there are many more entertainment hubs to come up in the next few years and by 2020, the amusement parks in India is expected to be an industry worth Rs 10,000 crores.

So it is quite evident why investors from across the globe are increasingly getting attracted towards the industry. For more information on amusement parks in India, feel free to visit http://mergeralpha.com/.

Interesting Tools to raise Capital for Your New Business

Merger Alpha

Tools You Need to raise Capital for Your Startup

Are you planning to raise capital for your newly-started business? Of the various tools to raise capital, below are the most important ones that you should always remember. 

·         Your Business Plan And The Market
A unique business plan and a sizable and scalable market are the most important tools to raise capital. In the absence of these two, chasing an investor would be sheer wastage of time. Make sure you have a brilliant business idea that can set a new trend in the market and instantly grab customers’ attention; that should be something the customers cannot do without. Such ideas are great head-turners for the professional investors, especially the venture capitalists.

·         Business Valuation
To ensure that you value your business correctly in front of the investors, it is very important to determine the value of your business at the very beginning. Business valuation will help you identify the loopholes in your business and rectify them as early as possible so that you can boost the value of your business further. Any professional investor would like to see this aspect while exploring your venture so make sure all your documents are at the right place.

·         The Right Investor
The right investor is also one of the most significant tools to raisecapital as it is only source that can provide you with the capital for your startup. Until you find the right investor, you won’t be able to convince them to bring out the dollar to the table. Now who is the right investor? It is someone who is interested in your industry sector. If yours is a tech startup, try to chase only those investors who are looking to invest in the same sector. To save time, it is best to go through their websites and then approach the investors.

·         Your First Pitch
Your first pitch can be a game changer so play it safe always. A lot of preparation goes into this and then you come up an ultimate product that is no less than a platinum deal; something that the investors won’t be able to resist.  Make it simple, clean, exciting and strong.  You need not make your first pitch tool long and descriptive; just try to say something that can create curiosity within the mind of the investors.

·         A Strong Value Proposition
 Make sure you have a logical answer to the question “why should customers buy your product or service?” Do you have a strong and valid answer to this? If yes, you are a winner.  You have to convince the investors by demonstrating how your business is the only solution to a prevailing issue. You can also back your demonstration with the help of a set of beta customers. Prove to them that you are targeting a sizable market and that your product/service will remain in demand even when your competitors arrive.

Conclusion         

So these are the best tools to raise capital that you can rely on at any given point of time. Raising capital is no cakewalk, you have to do a lot of preparation and planning and the above aspects, if kept in mind, will only make you a stronger entrepreneur than others.

For more information on tools to raise capital, feel free to visit http://mergeralpha.com/.

A Few Tips Before You Sell Or Finance Companies

Sell or Finance Companies

The other day, a first-time entrepreneur asked me excitedly: “when should I actually plan about selling my company”? Though for a newly-started venture, it is quiet a distant dream but the fact is, you should start planning for the day right from Day 1 of your business. Whether you sell or finance companies is all up to you but it is very important to prepare your business for that moment right from the beginning.

Here are a few tips that you should follow if you are planning to sell or finance companies in the near future:

Place Your Financial Statements In Order

Financial statements very strongly project your company’s future performance. These are really helpful for a buyer to evaluate the future prospects of the business before buying it. Try getting it prepared or verified by a professional accountant so that should give your business more credibility. Even your investors would love to see a great combination of a unique business plan and well-kept financial statements.

Keep Your Business Growing

The best time to sell or finance companies is when they are at the peak. So try to grow your business with an aim to make it attractive enough in front of your potential buyers or investors. The venture capitalist usually prefer to invest in the growth stage businesses and even buyers give more credibility if you can show more sales and return prospects.

Determine The value of Your Business

When it comes to valuing your business for sale, both tangible and intangible assets combine together to help you come to a conclusion. The intangible assets such as your employees, skills and knowledge, customer relations and other things play a key role in determining the company’s actual worth.

There are broadly three different approaches to determine the value of a business: Asset-based Approach, Income Approach and the Market Approach. Being an entrepreneur, if you feel that your investment capital is inadequate, it becomes all the more important to evaluate the true value of your business. This showcases all the strengths and weaknesses of your business and helps you to work on the negative issues as soon as possible. 

Try To Maximize Your value

Now this is very closely related to the above point. The more you maximize the value of your business, the easier it will be to find a potential investor or buyer and it is possible only when you do a proper business valuation. How to maximize your business value? Typically, those companies that focus on their core competencies rather than moving to different directions are far more reliable than those who do just the opposite. Identify the exact mission, vision and future objectives of your company and do not let your focus deviate from them. Also, try to reduce the customer concentration before a sale. Usually, a buyer prefers to invest in a company where a small number of customers generate a large part of the company’s revenue. 

Identify Your Potential Buyer

When it comes to identifying the right buyer for your business, you have to think much more than just the ‘pricing’. Your buyer can be anyone, your rivals, employees, customers or even your friends and relatives and everyone may approach you with different objectives based on which you will have to pitch your business to them. You also have to ensure that your buyer is financially efficient enough to invest in the business. You can hire a broker or an investment banker to verify your buyers which they will do by reviewing the buyer’s equity, fund-strength, source of fund and his/her legal credibility..

If the deal is among family members or friends and relatives, you may not need any agent but if the buyer is from some other section, you may consider hiring a professional to carry out the deal. 

Think About Management Succession Before You Leave

Make sure the business is able to run on its own even when you have left the company. In case you are the sole master in every single department, how will the buyer run the company once you leave? Before you leave, train the person next to you in the company whom the buyer can rely on after you. You must delegate key responsibilities, especially in departments connected to customer relations and revenues. The buyer will always ensure that the business runs successfully even without you so try to take it to that position.

Conclusion

Try to remember all the above points before you plan to sellor finance companies in future. Your newly-started business will give you enough time and opportunity to work on these aspects. If you really have a unique business plan with a sizable and scalable market on target and a highly efficient management team, it won’t be that tough to find the right buyer or investor.

Also, there’s a better way to get easy access to your potential buyers and investors without wasting much time. Try to become a member of an intelligent network like Merger Alpha. It’s a common platform that brings together buyers, sellers, investors and financial advisors of the startup ecosystem. If you want to know more about this community, feel free to visit http://mergeralpha.com/.

Good Luck!