Development of

Floating restaurant at
Sabarmati riverfront

Tourism
Government of Gujarat
Contents

Project Concept 3
Market Potential 4
Growth Drivers 5
Gujarat – Competitive Advantage 6
Project Information 8
- Location/ Size
- Key Players/ Machinery Suppliers
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Considerations
Project Financials 13
Approvals & Incentives 14
Key Department Contacts 15

Page 2
Project Concept

About riverside floating restaurant

A riverside restaurant or a floating restaurant is usually a restaurant built on a large flat steel barge
floating on water. Some times retired ships are also refurbished and given a second term as a
floating restaurant.
Some of the floating restaurants in India are-
1. Majastique-1 operated by Majas Travels, Tours and Logistics at Kochi
2. Flor Do Mar operated at Morjim Beach, Goa
A revolving restaurant or rotating restaurant on the other hand is usually a tower based restaurant
eating space designed to rest on the top of a wide spherical rotating base that operates as a large
turning table. The building remains stationary and the diners are seated on the revolving floor with
all the other basic restaurant features in place. The main aim of such restaurant is to provide a
scenic view to its diners from a height.

About Sabarmati riverfront

Sabarmati river has been an essential component in of
daily life in Ahmedabad since when the city was
established in 1411 along the river side. Apart from
being an essential source of water, it provides a view of
cultural activities and historic significance of various
events. During the dry seasons, the fertile river side
became a good farming land. In modern times, it also
offered meeting spot for different informal economic
activities and markets. In the due coarse of time, the
intensive usage of the riverside took its toll on the
beauty of the river front.
The Ahmedabad Municipal Corporation (AMC) formed
Sabarmati Riverfront Development Corporation Ltd
(SRFDCL) in May 1997 funded by Government of India
with an estimated capital of INR 12 billion for riverfront
development. Environmental Planning Collaborative
(EPC) prepared the feasibility report in 1998. In 2003,
the project was planned to cover a 11.25 km stretch of
the riverfront and reclamation of 202.79 hectares
(501.1 acres) and was put on fast track. Construction
on ground started in 2005 and majority of the planned
infrastructure was completed by 2012 and was opened
to Public the same year.

Page 3
Market Potential

Indian Restaurant Industry Overview

Restaurant Industry composition 2015

3% 32% 45% 12% 7%

Fine Dining Casual Dining Quick services restraurants Cafes Others

Quick Service Restaurants (QSR) and casual dining are the two most popular formats
that form 45% and 32% of the overall market respectively.

Favourite outdoor activity € Restaurant market in India is mostly led by

unorganised segment in 2015 and even
though in the future it will decline significantly
over the next 4-5 years, it is likely to remain
10%
18% more than 60% of the market.
€ The Indian economy is expected to add
25% another trillion USD to its GDP in next 5-6
years, ensuring per capita CAGR of 12%
from 2015 to 2020. As a result income growth
39% would lead to a rise in the number of middle
8%
class customers.
€ High expenditure on food and related items
Eating out Hangout with friends coupled with the large portion of the
Goingout with family None population being a part of the target market,
Others the growth of this sector is expected to be
high.

Indian Restaurant Industry Overview

€ Indian Industry grew 11%from 2013 to 2014
Restaurant Industry size in India to reach USD 151.6 billion in 2014.
(in billion) € Full-service restaurants registered a
slowdown in growth due to changing taxation
structure in 2015.
151.6
136.6 € Age profile of the people eating out
123.0
92.1 € 18 to 20 years – 18%
70.5
€ 21 t 30 years – 40%
€ 31 to 40 years – 31%
€ Above 40 years
FY10 FY11 FY12 FY13 FY14

Page 4
Growth Drivers

Rise in foreign tourist arrivals (FTAs) and tourist movement within the
country has driven growth in the hospitality industry. The number of
FTAs reached 7.4 million in 2014, up 27.6% from 2010.
Increase in India is known as a destination for spiritual tourism and also offers
tourist cruises, adventure, medical, wellness, sports, film, rural and religious
movement tourism. Travel and tourism is the third largest forex earner for India,
which contributed US$19.7 billion in 2014.

€ Campaigns such as Khushboo Gujarat Ki, Incredible India, Athithi Devo

Bhava launched to attract tourists from locations outside Gujarat.
€ FDI under the automatic route in tourism and hospitality is allowed up
Policy support to 100%, subject to applicable regulations and laws.
€ Capital subsidy programme for budget restaurants.
€ Exemption of Fringe Benefit Tax on crèches, employee sports and
guest house facilities would enable lower operative costs.

€ The GoI has made efforts to improve and upgrade infrastructure

facilities at important tourist destinations, thereby, improving
Improved accessibility to such services.
infrastructure € FY16 Union Budget allocated INR14.8 billion toward infrastructure
development for destination and circuits, domestic / overseas
promotion and publicity

€ Online and mobile based booking is picking up in restaurant industry

Apps for web
with the emergence of companies such as Swiggy, Zomato operating
and mobile
in Ahmedabad and other major cities as well. These apps will help in
based booking
attracting young audience.

The state is one of the least corrupted in the country with an anti-
Apps for web corruption index of 0.69.
and mobile Gujarat leads in project clearance in coastal areas with a success rate
based booking of 93%.

€ There are sites that compare the results from all these sites to provide
Growing cheapest table booking options to the customers. These aggregators
aggregators sites helps customers in comparing services of various restaurants.
€ Examples are Zomato, Tripadvisor etc.

Page 5
Gujarat - Competitive
Advantage
Gujarat tourism industry

CAGR: CAGR: 11
615
8.0% 12.5%
465 9
316 6
198 4

2011 2015 E 2020E 2025E 2011 2015 E 2020E 2025E

Source: Tourism Policy for state of Gujarat(2015-20)

€ The total flow of tourist is expected to record an increase over the years
€ This is attributed to the growing prominence of the state as a major business hub.

€ As per HVS State Ranking Survey 2015 of Hospitality Industry, Gujarat stands fifth among the
Indian states, scoring high in the ease of doing business, Gross State Domestic Product
(GSDP) per capita and intangible parameters
€ In FY16, maximum number of tourist (73.6%) visiting Gujarat where from within the state i.e
Gujarat origin.
€ In FY16, 44% of the total Tourist visiting Gujarat fall under the economic category whereas
20% each was shared by medium class and Luxury class tourist.
€ The gross tourist flow in Gujarat reached 38.3

million in FY16, growing at a CAGR of 14.1% Gross tourist arrivals in Gujarat

over the period FY11-FY16 FY16
(in million)
€ Ahmedabad, Ambaji, Dwarka, Surat and
Vadodara accounted for ~42% of gross tourist 38.3
flow to Gujarat in FY16 28.8 32.7
25.4
19.8 22.4
€ Tourist flow to Gujarat in FY16 was driven by
business purpose (56%), followed by religion
(35%), leisure (7%) and other purpose (2%)
FY11 FY12 FY13 FY14 FY15 FY16
Tourist flow to Gujarat – Origin Tourist flow to Gujarat – Class
(FY16) (FY16)
1.9% 16%

24.5%

44%
20%
73.6%
20%

Page 6 Domestic Tourists (in million) International Tourists (in million)

Gujarat - Competitive
Within Gujarat Other Indian states Foreign Economy Luxury Medium High

Advantage

Page 7 Domestic Tourists (in million) International Tourists (in million)

Gujarat - Competitive
Advantage
Tourist flow to Ahmedabad
Tourists (in million) Destination wise tourist destination

17%
CAGR:
29% 33%
54,65,433
45,99,488
16%
32,46,987

28%

2012-13 2013-14 2014-15 Within Gujarat Other Indian state

NRI Foreigners
Tourist purpose 2015-16

94% 2% 1% 3%

Business Leisure Spiritual Others

Overall Ahmedabad has seen a tremendous growth in tourist arrival, majority of the
incoming tourists are Foreigners and reason of visit for most of them is Business
purpose.

India has received ~US$6.70 billion worth of Foreign Direct Investment (FDI) during the period
April 2000-December 2015 in food serving related sectors. The Confederation of Indian Industry
(CII) estimates that the food processing and related sectors have the potential to attract as much
as US$33 billion of investments over the next 10 years and also generate employment of nine
million person-days.

Page 7
Project Information

Sabarmati Riverfront Master Plan

Sabarmati Riverfront project represents an opportunity to create a common platform for business
as well as leisure activities at the edge of the river on the eastern and western sides of
Ahmedabad. By bordering the river to a persistent width of 263m, riverbed land has been
reclaimed to create a 11.25 kms of public riverfront on both sides of the banks. The total land area
reclaimed is 202.79 hectares.

East Promenade – 11.3 km On Boarding and Off

West Promenade – 11.2 km boarding services

Park – 15 ha Enquiry counter and

Plaza – 2 ha reception center

Medical assistance and

Parking space
Security measures

€ The governing body and grievance redressal body is Sabarmati River Front

Development Corporation Ltd..

€ Its office is located in the riverfront, near Nehru Bridge.

Page 8
Project Information

Value chain for floating restaurant

Trained Staff

Marketing
(Promotion &
Advertising)

Service

Exclusive dinner set

& equipment

Quality Ingredients

Location & interior design

Quality of food

Suggested dining options and features

1.Indoor Dining 2.Outdoor Dining 3.Sunset Dining

4.Corporate events 5.Wedding arrangements 6.Rooftop Bar

Page 9
Project Information

Responsibilities sharing matrix

Gujarat Tourism
SRFDCL or Private Operator
private player

Terminal development On board and Off Floating Restaurant –

and O&M board services Deployment and O&M

Other basic Marketing and

infrastructure Promotion

Major Restaurant chains in Ahmedabad

Name of Restaurant Cuisine Location

Swati snacks Indian, Fast food, Ellisbridge,

Vegetarian Ahmedabad

Barbeque Nation Indian, Barbecue, Asian, 1. Prahlad Nagar

Vegetarian 2. Drive –In - road
Agashiye Indian, Asian, Vegetarian Laldarwaja,
friendly Ahmedabad
Vishala Indian, Vegetarian Ambawadi,
friendly Ahmedabad
Atithi Indian, Vegetarian Bodakdev,
friendly Ahmedabad
New FreezeLand Fast food, Vegetarian Gurukul, Ahmedabad
Friendly, Italian, Mexican,
Indian, Gluten Free
Options
Rajwadu Indian, Vegetarian Vejalpur, Ahmedabad
Friendly, Gluten Free
Options
Gordhan Thal Indian, Asian, Vegetarian Bodakdev,
Friendly Ahmedabad

Page 10
Infrastructure
Availability
Logistics & Connectivity
Rail
€ Ahmedabad is connected via rail broad
gauge to Delhi and Mumbai
€ The Government is developing a
Ahmedabad–Vadodara rail link, a metro
project for Ahmedabad and Gandhinagar
and a high-speed passenger corridor
from Ahmedabad to Mumbai .
€ The government plans to connect
Ahmedabad with Kalol-Kadi, Sanand-
Viramgam-Katosan Road, Naroda-Prantij
and Barejadi-Mehmdabad with railways
Air
€ Ahmedabad has an international airport,
which handled 59.3 million tons of freight
in FY15
€ A new international airport at Dholera is
under development which is expected to
become operational by 2018
€ Ahmedabad is also closer to domestic
airports such as Surat and Vadodara
Utility
Water
€ Ahmedabad Municipal Corporation (AMC)
has implemented a number of projects
related to water supply and sewerage
systems
€ Some of the initiatives taken by AMC are
Kotarpur water treatment plant, Raska
project and Jaspur water treatment plant
Page 11
Road
€ Ahmedabad is connected to Delhi Mumbai
Industrial Corridor (DMIC)
€ It also has a very good connectivity with
other cities of the state such as Vadodara
(182 km) and Surat (278 km)
€ The Bus Rapid Transport System (BRTS)
is being implemented in Ahmedabad jointly
by the state government, Gujarat
Infrastructure Development Board (GIDB)
and Ahmedabad Urban Development
Authority (AUDA)
Port
€ Gujarat has one of the strongest port
infrastructures in India. It is the first state in
India to take up port privatization
€ Ahmedabad is connected to several leading
sea ports such as Dahej, Kandala, Mundra
and Nhava Sheva sea port
€ Most of the sea ports are within 300 km
from Ahmedabad
Power
€ The power sector is privatized in
Ahmedabad
€ Electricity in Ahmedabad is generated
and distributed by Torrent Power Limited
Source: IBEF
Infrastructure Refer to speaker notes section for further details

Page 12
Project Information

Potential Collaboration Opportunities

 Institute of Hotel Management Ahmedabad

 Asia Pacific Institute, Ahmedabad
 DIMS Institute of Hotel Management, Ahmedabad
 Gujarat Institute of Hotel Management, Vadodara
 Jindal School of Hotel Management, Vadodara
 Anand Institute of Management Science, Anand
 CZ Patel College of Business Management, Anand
 Lords Institute of Management, Surat
 Vivekananda Institute of Hotel and Tourism, Rajkot

Key considerations

€ Licenses and Permits – In order to operate restaurant many licenses and permits may be
required for activities like food handling, liquor catering etc. In order to obtain permits the
management will have to approach the local governing bodies like Ahmedabad Municipal
Corporation and other state governed bodies. If the restaurant operator is a starting entity it
has to get itself registered with central government governed bodies as well.
€ Health and Safety – As the restaurants are the places where people dine, such places are
subjected to significant regulations and other similar frameworks. Apart from operating
restaurant and self monitoring quality of food as well as ingredients used, one has to be
ready for impromptu quality checks by Food Safety and Standards Authority of India
(FSSAI) and other local monitoring bodies.
€ Presence of medical assistance – In order to ensure assistance to any medical
emergency on board, management must have 2 persons who can provide medical
assistance.
€ Floating deck/Barge regulation - All barges and floating vessels must be designed and
operated in compliance with strict requirements of international law and follow a number of
established rules and regulations to protect everyone on board. It should also follow
regulations of Merchant Shipping Act, 1958 and the guidelines issued by Gujarat Maritime
Board (GMB).

Page 12
Project Financials

The cost of project is calculated as sum of operating cost of a single floating restaurant (capacity 75
passengers) and cost of constructing a land based terminal.

Capital Cost of project

Project components & specifications Cost (INR crore)
Cost of building a floating restaurant 12
(Capacity – 75 passengers)
Marketing expenses 0.1

Support Infrastructure and safety equipment 0.9

Pre-operative expenses 0.6

Contingencies 0.24
Cost of machinery (pumps, cables, hooks etc.) 0.1

Margin money for working capital 10

Total project cost (a) 23.9

Cost of building a cruise terminal

Project components & specifications Cost (INR crore)
Development of riverfront berth and jetty 0.6

On board and off board yacht 0.4

Salaries and other expenses 0.6

Total project cost (b) 1.6

The total cost of project is estimated at (a) + (b) = 25.5 crores

The cost of project comes down by 19.6% to 20.5 crores, if we use a

refurbished 2nd hand floating restaurant.

Page 13
Approvals and
Incentives
Approvals Required
€ Registration at Sabarmati River Front Development Corporation Ltd. (SRFDCL) Office and
Ahmedabad Municipal Corporation.
€ Allotment of plot from SRFDCL and AMC.
€ ‘No Objection Certificate’ from the Gujarat Pollution Control Board
€ Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF)
€ Registration with Food Safety and Standards Authority of India (FSSAI)

Incentives by Government of Gujarat

€ Provides power tariff subsidy at the rate of INR one per unit in the billed amount of the utility as
promotional incentive on reimbursement basis for a period of five years with effect from the
commencement of commercial production/ rendering services.
€ Provides assistance at the rate of 50% of fee paid, subject to maximum of INR 10 thousand per
employee on obtaining industry recognized skill certifications from recognized institutions.
€ Assistance to eligible tourism units up to 75% of the cost of carrying out Energy Audit by a
recognized institution/consultant, Water Harvesting / Conservation and Environment-friendly
practices like Green Buildings, Solar and other Renewable Energy measures.
€ Incentives to tourist attractions-
• Luxury Tax - 5 years from the date of commencement of commercial operation
• Entertainment Tax - 5 years from the date of commencement of commercial operation
• Electricity Duty - 5 years from the date of commencement of commercial operation for
New Tourism Units only.

Incentives by Government of India

Some of the major initiatives taken by the Government of India (GoI) to improve the food
processing sector in India are as follows:
€ Union Budget 2016-17 has proposed 100% FDI through FIPB (Foreign Investment Promotion

Board) route in marketing of food products produced and manufactured in India.

€ The Food Safety and Standards Authority of India (FSSAI) has issued new rules for importing
products, to address concerns over the entry of sub-standard items and simplify the process
by setting shelf-life norms and relaxing labelling guidelines.

€ NABARD Loan for Food Processing Industry: In the 2015 Budget, the Finance Minister had
announced the setting up of an INR2000 crore fund in NABARD for providing loans to
entrepreneurs setting up food processing businesses in designated food parks.

Page 14
 Tourism Corporation of Gujarat Limited
http://www.gujarattourism.com/

Department of Tourism, Gujarat

http://www.gujarattourism.com/

Industries and Mines Department, Gujarat

www.imd-gujarat.gov.in/

iNDEXTb - Industrial Extension Bureau

www.indextb.com

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Tourism Corporation of Gujarat Ltd,

H. K. House, Opp: Bata Showroom,
Ashram Road, Ahmedabad,
Tel: +79 26578044/46/26589172
Fax: +79 26582183
E-mail: tibahd@gujarattourism.com