2025-05-07 03:12:03
Latest Post
Godrej Consumer Products Limited declares interim dividend of Rs. 5 for FY2026
Jagsonpal Pharmaceuticals Limited recommends dividend of Rs. 2.5
Comfort Commotrade Limited recommends final dividend of Rs. 0.50
eMudhra Limited recommends final dividend of Rs. 1.25
Ador Welding Limited declares dividend of Rs. 20
Research
India Amusement Parks - Opportunities galore: AnandRathi Institutional Research
Posted On : 2015-12-12 09:41:17( TIMEZONE : IST )
Ms. Sonal Gandhi(Research Analyst- Consumer, AnandRathi Institutional Research)
The Indian amusement park segment is valued at $400m, compared to the $25bn global amusement park segment, offering immense growth opportunities. With rising income levels, increased domestic tourism and rise in discretionary spending, we expect the amusement park culture to pick up significantly as an alternative source of entertainment.
India amusement parks in a nascent stage of development. The Indian amusement park segment is valued at $400m (Rs. 25bn), expected to register a 20% CAGR over the next five years to Rs. 60bn, driven by new park development and favourable demographics. India has 150 amusement parks for a population of 1.21bn, offering vast potential for growth in the amusement-park segment.
Amusement parks to attract Rs. 170bn investment in the next 3-4 years. Investment of ~Rs. 170bn has been planned for 12 major projects over the next 3-4 years. These new parks, along with those in operation, will be major drivers of footfalls, expected to grow 10-15% to 75m-80m in the next couple of years.
Revenue composition skewed toward entry fees. In India, the greater share of revenue comes from ticket sales (75-80%); the proportions of revenue from the sale of food and beverages (F&B), merchandise and accommodation are small. On the contrary, our study of global parks suggests that ~60% of revenue comes from entry fees, the balance from F&B, merchandise, accommodation and others. We expect the percentage of non-ticket revenue to inch toward global levels due to the mounting consumer tendency to spend on F&B and merchandise.
Valuations. We see immense opportunities in the next 10 years in the development of amusement parks as an alternative avenue for entertainment. We initiate coverage on Wonderla Holidays (Buy) and Adlabs Entertainment (Buy). Risks. Incidents at parks, extreme weather and a slowdown in the economy.
