Amusement parks set for huge growth ride in India; expect to double revenues by 2020

The Indian amusement and theme park industry is set to more than double revenues to Rs 4,000 crore from Rs 1,700 crore now in annual revenues by 2020.

The sector is growing at at a compounded annual growth rate (CAGR) of 17.5% over the past few years, according to industry body The Indian Association of Amusement Parks and Industries (IAAPI), the sector is currently at approximately Rs 1,700 crore has been growing at a compounded annual growth rate (CAGR) of 17.5% over the past few years.

Speaking to dna, Ajay Sarin, president, IAAPI and managing director, Hindustan Amusement Rides Pvt Ltd, said that the sector has picked up pace in the last few years as players have been creating compelling experiences. "The present growth has been achieved over a revenue base of Rs 700 crore four years ago. While there are quite a few projects that are under development across the country, the current players are also expanding their offerings. The combined effect will lead to significant growth for the sector in the coming years."

India has 120 amusement and theme parks, and according to the association's internal assessment, there are over a dozen-odd small and large projects currently under development.

While brands like Adlabs Imagica and Wonderla Amusement Parks have added spice to the market through their respective offerings, there are talks about Wonderla looking to add more such facilities in south India. Similarly, the promoters of Appu Ghar are working on adding a few facilities in north India. Another player expanding aggressively in the water park space is the Malpani Group that operates under the banner 'Wet N' Joy at Shirdi and another one coming up in Lonavala.

Sarin said companies are raising money to invest in this business, and the association is also working towards seeking government support in this area. "We'd recently organised an investment meet with FICCI that had representation from the government. There was considerable interest from Tourism Financial Corp of India for funding at a lower rate of interest.

"Promoters of upcoming projects in Nagpur, Chhattisgarh, Telangana, etc have shown interest and are currently in discussion for availing funding for their developments," said Sarin, adding that certain state governments are open to offering subsidies and tax holidays for developing projects there.

In terms of the kind of money that gets invested in setting up an amusement or theme park, Sarin said in smaller cities the cost could range Rs 1-1.25 crore per acre. "However, there are larger projects that require investments of anything from Rs 100 crore to Rs 1,500 crore," he said.

Another interesting development in this industry is in the area of exports with a handful of Indian companies like Arihant Industrial Corp Ltd, Premierworld Technology, Hindustan Amusement Rides etc making a very meaningful contribution. According to IAAPI's internal assessment, exports from India currently stand at Rs 25-30 crore shared between 6-7 companies.

Kamlesh Chandra, chief executive officer, Premierworld Technology Ltd, said, "In value terms, our exports would be around Rs 10-11 crore to countries in South East Asia, Middle East and Europe among others. Besides, there are companies in the US which buy our components."