Amusement Park Industry

Only available on StudyMode
  • Download(s) : 331
  • Published : November 25, 2010
Open Document
Text Preview
22nd May, 2010

INDIAN AMUSEMENT PARKS INDUSTRY
Highlights
SECTORAL REPORT
• The amusement industry in India is at a growing stage currently with more and more developments happening in this industry all across the country. • The size of the Indian Amusement Park business is estimated to be around Rs 4000 crores and is estimated to grow by 10% per cent per annum till 2010. • The amusement and theme park industry is deemed to be worth Rs. 10000 crores in India by 2020. Janaki Rao.U Analyst Equity Research Desk janakirao@firstobjectindia.com

• Currently for a population of 1.15 billion in the country, there are only 120 amusement parks and 45 Family Entertainment Centers. This indicates that the growth potential of Indian amusement and theme park industry is substantial. • Global leaders in entertainment parks and attractions like Universal Studios, Disney, Sony and Ripley Entertainment are mulling over investments of billions of dollars in India considering the vast potential in this region. Private equity funds are also aggressively dedicating resources towards this sector. • The Indian small and big players in the Amusement Industry are looking at the tremendous growth potential of this industry in the next 5 years. • Growth of India's retail sector had been the main driving force for the amusement industry in India. • Globally, domestic and international tourists comprise more than 50% of the total footfall at popular amusement parks. • Transport corridors like expressways and the Metro line are bringing an increasing number of people closer to entertainment hubs. • The high growth potential of the industry in highly populated India will boost tourism, social infrastructural development as well as employment generation. The success and growth potential of this industry is resulting into the advent of new manufacturers of amusement parks' rides in India.

V.S.R. Sastry Vice President Equity Research Desk 91-22-25276077 vsrsastry@firstcallindiaequity.com

Dr. V.V.L.N. Sastry Ph.D. Chief Research Officer drsastry@firstcallindia.com

1

22nd May, 2010

CONTENTS

1. Sector Overview 2. Current Trends 3. Profile of top three Indian Companies 4. SWOT Analysis 5. Conclusion

2

22nd May, 2010

1. Sector Overview

Structure & Development

The amusement and theme park industry in India is about two decades old and it is relatively new when compared to its origin in USA & Europe. This industry found its roots in India during mid and late 1980s when a few innovative entrepreneurs took challenge of pioneering few amusement parks in Delhi, Kolkata, Mumbai and Chennai. The growth in this industry started only in the last decade and that happened possibly during the advent of globalization when economic potential of the social capital began to be perceived.

A recent market survey research shows that this industry in India is growing at a rapid pace and over 120 amusement parks and water parks are currently in operation in India. Out of them only 15% can be classified in the "large parks" category, 30% as medium size parks and balance 55% are small size local parks.Investments to the tune of Rs 10,000 crore are likely to flow into the domestic amusement and leisure sector by 2020 with about 500 new parks are expected to come up across the country. The Rs 4,000-crore Indian amusement and leisure industry expects fresh investment of Rs 10,000 crore by the year 2020. In terms of employment generation, the new parks are likely to create jobs for six crore man-hours per month.

It is estimated that the total capital investment made in the amusement and theme park industry in India till date, is more than INR 40 billion (excluding investment on land). The estimated annual revenue generated by this industry is approx INR 20 billion, at present, which is expected to grow to almost three times by the year 2020 at a CAGR of over 11%.

3

22nd May, 2010

Amusement Parks are recreational facilities that...
tracking img