Sunteți pe pagina 1din 27

A Business Plan

for

Amrapali
(Noida, Pune, Bhubaneswar, Mysore)

The Colossus Group

5th floor, Fortune Towers


Bhubaneswar, Orissa, India.
Phn: +91 674 345 222, 223
Fax: +91 674 345 224
E-mail: info@colossus.org
Confidentiality Agreement

THE UNDERSIGNED READER ACKNOWLEDGES THAT THE


INFORMATION PROVIDED BY _______________ IN THIS BUSINESS
PLAN IS CONFIDENTIAL; THEREFORE, READER AGREES NOT TO
DISC LOSE IT WITHOUT THE EXPRESS WRITTEN PERMISSION OF
_______________. IT IS ACKNOWLEDGED BY READER THAT
INFORMATION TO BE FURNISHED IN THIS BUSINESS PLAN IS IN
ALL RESPECTS CONFIDENTIAL IN NATURE, OTHER THAN
INFORMATION WHICH IS IN THE PUBLIC DOMAIN THROUGH
OTHER MEANS AND THAT ANY DISCLOSURE OR USE OF SAME BY
READER MAY CAUSE SERIOUS HARM OR DAMAGE TO
_______________. UPON REQUEST, THIS DOCUMENT IS TO BE
IMMEDIATELY RETURNED TO _______________.

___________________

SIGNATURE

___________________

NAME

___________________

DATE

(THIS IS A BUSINESS PLAN. IT DOES NOT IMPLY AN OFFERING OF


SECURITIES.)
Amrapali

EXECUITVE SUMMARY

The Colossus Group is a new limited liability company formed under the laws of Indian
Government. This document has been prepared to provide the reader with information about our
company, including business structure, company goals, projected growth, venture capital
requirements, start-up costs, an investment analysis and the industry trends.
The Colossus Group aims at family entertainment industry as its primary interest. Company has
focused its efforts on the development of one or more family entertainment centers (FEC) to
provide quality family entertainment activities to four cities of India. FECs will be based on
demographic profiling of the cities, climatic conditions and economical standards of the
population.
Focused on family entertainment in a family-oriented community, The Colossus Group is a
company primed to take advantage of an expanding and profitable industry.
Quality family entertainment is the focus of The Colossus Group. The construction and
commercialization of one initial FEC is factored into the initial development phase detailed
within. The company's proposed FECs will be designed to provide the type of family
entertainment and adventure the current market demands.
The proposed site is a ten-acre area each in four major cities i.e. Noida, Pune, Bhubaneswar and
Mysore. A second site is to follow within five years.

In addition to other funding and capitalization efforts detailed herein, the Company anticipates
that it will seek funds from the Government Redevelopment Agency and Investors which may
assist in the purchasing of land for development of the proposed sites.

A recent census conducted by the Indian Census Bureau found that from 1998 to 2008, personal
consumption and expenditures for amusement and recreation increased by Rs.9, 500 crores, with an
overall entertainment industry gross of $21, 200 crores. Source: Indian Census Bureau, Statistical
Abstract of the India: 2000 - The National Income and Product Accounts of the India, 1929-94, Vol.1.
Based on the current entertainment prices and cost of revenue structure in the local amusement and
recreation industries, we believe that our anticipated FEC's will have the potential to gain break-even in
gross sales in the first year of operations.
With our strong management team and our aggressive marketing plan, we project a consistent and
minimum annual growth of five percent.
1.1 VISION

The company’s objective is to build a quality and fully managed spectacular amusement park
preserving its standard and embellishing it.
Our goals include:
1. A 10% market share in our first year.
2. An modest increase in our gross margins within the second year of operation
3. An increase in our market share by a minimum of 10% for each of our first five years.
Currently, there are no quality FECs in states of Maharashtra, Karnataka, Orissa and Uttar
Pradesh in accordance to it’s demography profiling and local paradigms. The company believes
that by entering the marketplace first and by establishing quality facilities, it will become, and
remain, a leader in the FEC industry in Indian Entertainment Market.
Our fundamental objective is to realize how we impact the community that we do business in,
knowing that we will stand the test of time if the local residents approve and support our center.

1.2 MISSION

The Colossus Group sole purpose is to establish a profitable and well managed company while at
the same time creating an atmosphere of fun and excitement for the entire family, with activities
designed to please the local residents, as well as the substantial tourists.

1.3 KEYS TO SUCCESS


Based on our research, our primary targeted market is different in all cities. The core idea is to
establish FECs in four different cities with different layouts based on:
 Age group distribution
 Discreet demographics pattern
 Climatic Condition
 Variable economic profiles
According to Indian Census Bureau, Statistical Abstract of the India: 2007, cities of Noida and
Bhubaneswar include majority population (45%) of youths in the age group of 19-26. In such a
market scenario amusement parks based on adventurous themes would be most attractive. Since
Pune and Bhubaneswar experiences hot summers and moderate winters, hence waters parks
would be special features in these cities.
Mysore census showed married couples and their children (ages 5-15) forming 57 % of the
population. With that in mind, we intend to design our facilities to address this primary market
with fun rides and amusement events, while also keeping in mind the secondary markets such a
teens and young adults.
Our main keys to success include:
• Delivering Entertainment services in accordance with population distribution.
• Providing popular and wide-ranging entertainment activities
• Ample and secure parking
• Indoor activities for year round entertainment
• The use of state-of-the-art technology
• Easy access
• Target high traffic areas for maximum public exposure
• Design facilities to curb overcrowding
• Seasoned management team
We believe that we can minimize certain risk factors by:
• The attractions have to both interactive and competitive.
• Initial capitalization of the company to sustain operations through year one
• Low overhead through the use of multi-skilled employees and continual training
• Strong customer base through aggressive marketing
• Strong community ties and involvement
• Eliminate collection costs by establishing cash/credit/debit card only facilities
COMPANY SUMMARY

The company anticipates that its first FEC will be located in four different Indian
cities. The company's FEC will be the most modern in the Indian sub-continent.The
Colossus Group proposes to choose its locations after thoughtful and detailed
research and demographic profiling.

2.1 NAME OF ENTREPRENEURS

Operations Manager & Public Relations –

Finance Managing and General Accounting –

Manager of Promotions & Customer Service –

General Entertainment Manager / Consultant

2.2 PROPOSED PROJECT

Amrapali

2.3 PROPOSED LOCATION

Noida:

Bhubaneswar

Pune

Mysore

2.4 TYPE OF ORGANISATION

Private Organization.
ENTREPRENEUR PROFILE

SERVICES

Our FEC's will provide customers with a wholesome environment that provides amusement,
entertainment, excitement, competition, year round activities, souvenirs and great food all while
forming lasting memories at affordable prices.

Although there is currently moderate competition in the immediate area in which we plan to
establish our FECs, we believe that because the FEC industry is expanding exponentially, this
project will acquire maximum market share because of its unique marketing and delivering
strategy.

TYPE OF PRODUCT
Service

PRODUCT/SERVICES DESCRIPTION (TYPE, QUALITY & USES ETC)

Type: Entertainment

Quality: High Quality

Uses: Better Health + Better Environment + Entertainment = Better Society

MAJOR CONSUMERS
Families and children of age group 5-15in Mysore and Pune. Youngsters in cities of
Bhubaneswar and Noida.

To that end, the company plans to become profitable and retain a solid leadership position in the
marketplace by providing:

 Year round play with a wide variety of activities - Our season never stops.

 Seasoned, successful management team.

 Contracting top FEC consultants - To counsel on key attraction layout and design in
accordance to demographic profiling.

 Working with USU Extension Program - Determining tourism impact.

 Working with Indian Department of Tourism - National and international exposure.

 Family-oriented - Partnership-operated center gives the company local insight.

 Aggressive marketing.
 Customer Incentive Program - Reward frequent visitors/customers.

 Easy access and exposure.

SERVICE DESCRIPTION
The ability of The Colossus Group to accomplish its goals and lead the local family entertainment
industry depends upon the expertise and social conscience of the management team. Our management
team understands these facts and several members of our management team have been recognized in the
past for their outstanding community service and involvement.

Several local surveys have been reviewed and provide valuable information about a vast list of
requirements that need to be met for an FEC to attract the local residents in different part of India. We
will strive to meet these desires and we will take future surveys with our customers to make sure that we
are ahead of the curve.

Since the demographic profiling is different in all four cities, consequent demand of services is also vivid.
City of Noida and Bhubaneswar would need services like go-carts, miniature golf, climbing walls,
batting cages, skycoaster or tower swing, air hockey, foosball, paint ball, laser and phazer tag,
skateboard arena, outdoor bumper boats, gaming & redemption center, chess/backgammon
playing areas, souvenir/gift shop, ice cream, pizza, pretzels, drinks, private party rooms (birthday
& corporate), massage therapy center and a coffee shop would be best of demands.
For Mysore and Pune, a complete family entertainment services would serve the purpose. A subtle park
design which would try to cut down the amount of time people spend walking between one attraction and
the next. Decorating the park would attract most of the customers and maintain an environment of
celebration. Rides which are meant for age groups of 5-15 should be installed. Stalls would be an
involvement for parents as children will be enjoying rides. Moreover they would serve as another source
of gaining cash. Different fireworks display and putting in more exciting rides would be a different
feature. Entertainers should be placed near rides that have a particularly long wait time. At least one
entertainer should be placed somewhere near the park entrance to hand out umbrellas if it starts to rain.

Bhubaneswar and Pune being hot cities would encourage water park and roller coaster for more
attraction.

Attractions
Name Area Extra Full Typ Cap Excite Reliability
Race Car Ride 2x1 Track Y GT 25 Very Good Quite Good
Rubber Tubing 2x1 Track Y GT 25 Excellent Quite Good
Big Dipper 5x1 Track N RT 4 Superb Okay
Roller Coaster 5x2 Track N RT 4 Top Notch Okay
Loop The Loop 5x1 n/a Y TE 0 Top Notch Okay
Water Splash 5x1 n/a Y TE 0 Superb Okay
Cork Screw 1x6 n/a Y TE 0 Excellent Okay
Big Wheel 4x4 Ent Y SR 6 Good Excellent
Bouncy Castle 4x4 Ent Y SR 4 Okay Very Bad
Flight Sim 4x4 Ent Y SR 5 Superb Poor
Ghost House 4x4 Ent Y SR 5 Okay Very Good
Haunted House 4x4 Ent Y SR 14 Excellent Very Good
Observatory 4x4 Ent Y SR 30 Okay Superb
Parasol Chairs 4x4 Ent Y SR 6 Quite Good Poor
Pirate Boat 4x4 Ent Y SR 8 Excellent Very Good
Plane Flyer 4x4 Ent Y SR 4 Quite Good Very Good
Space Shuttle 4x4 Ent Y SR 6 Very Good Very Good
Super Spinner 4x4 Ent Y SR 20 Quite Good Very Good
Clown Acts 6x5 n/a N LS 24 Okay Superb
Cowboy Acts 6x5 n/a N LS 24 Good Superb
Dolphin Acts 6x5 n/a N LS 24 Quite Good Superb
Medieval Acts 6x5 n/a N LS 24 Very Good Superb

FUTURE SERVICES
The Colossus Group will expand its family entertainment activities during its first year of
operation, by adding bumper boats, go-carts and other attractions as discussed elsewhere in our
plan.

In addition I&B Investments is already working on contingency plans for adding more facilities
along the Wasatch Front.

To further increase revenues and public attraction, The Colossus Group is working to establish
several other entertainment (outdoor) activities that will be put in place using revenue-sharing
programs, such as the Skycoaster.
MARKET ANALYSIS SUMMARY

Demand: High

Supply: Low

Research has indicated that the prime market for a FEC is in urban areas close to
neighborhoods with large concentrations of upper- to middle-income bracket
population. Ease of access is important, but street frontage is not a crucial
requirement.

A seven to ten mile radius is considered the radial market area of a FEC. However,
depending on competition market area can grow to a fifteen mile radius and with
easy highway access to a radius of twenty miles from the FEC.
The Indian Census Bureau, Census 2000, and the Indain Economic Development
Authority provides us with the following demographic information about our area
(15 mile radius).

Cities Gross pop. Age 5-15 Age 19-26

Noida

Bhubaneswar 196,533 171,297

Mysore 42,750 37,308

Pune 238,994 209,794

• Target customers in the cities are two age groups viz. 5-15 and 19-26.

• Children of age group 5-15 are accompanied by their parents and family.

• Bhubaneswar and Pune would encourage Water Parks and other water sports.
This facility can also be availed in Noida but on a smaller scale.

MARKET DISTRIBUTION

According to the census in all the cities, two designs for the park has been
proposed. Categorized on the basis of age groups these categories are: 15 to 24
year old, 25 to 34 and 35 to 54 years old. To better understand the size and
breakdown of the local population see the following table and chart. This is an
average analysis of Pune and Mysore where targeted customers are children of age
group 5-15 and families.

Following is the table depicting increase of specific age group in these cities over a
period of 5 years.
PIE CHART

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Age 5 to 15 7% 90,450 96,329 102,590 109,258 116,360 6.50%

Age 15 to 35 2% 66,800 68,136 69,499 70,889 72,307 2.00%

Age 35 to 54 w/ older
9% 125,250 136,523 148,810 162,203 176,801 9.00%
children

Total 6.65% 282,500 300,988 320,899 342,350 365,468 6.65%

TARGET MARKET SEGMENT STRATEGY

A full-time public relations coordinator is a vital part of The Colossus Group


management team. The job will require this person to be responsible for assuring
customer satisfaction, generating public awareness for the types of entertainment
offered at our "FEC," and attractively promoting the various activities to the public.

Even though, our customers can be considered all age groups, both sexes, all races,
all income levels, local residents or tourist to the area. The most important factor
behind our success is simply, THAT A PERSON CAN ENJOY THEMSELVES, while
participating in the activity they choose.
PRICING STRATEGY

There would be two types of gate tickets:

1. All pay gate price(includes all rides in the park*)

2. Low gate price(each ride pay)

Regular customers would be provided special offers to enjoy at nominal costs.

Tie-ups with different food chain agencies and beverages would serve refreshment
purpose in the park. Pricing of the stalls and food centers would be based upon
location and size of the center.

1. Mc Donalds

2. Monginis

3. Share a Cup

4. Café Coffee Day

5. Happy Meal

6. Top n Town

MARKETING STRATEGY

 Pamphlet Distribution

 Advertisement over Television and Newspapers

 Sky Banners

 Public Announcements

 Arranging School Trips at nominal costs


START-UP SUMMARY

For Phase 1 the Start-up table reflects the cost of the center, activities and 8.5 +/-
acres.

All Construction cost are included in the gross loan, but not detailed in the "Start-up
Cost table" because these costs happen before the projected pro forma begins.

In the Start-Up Funding table there are two forms/types of investors listed:
The Seed Investors/Partners that come under #1-11, are considered the seed funding
group and company management team. Their investment is not secure and carries
a greater risk of loss. Therefore, the percentage of the company that this group
receives for their investment equals a much greater company ownership than the
secure partners do for their investment (these partners are also earning sweat
equity shares for their involvement/efforts rather than wages during development).

The Start-up Investors/Secure Partners that come under #1 -4, are considered the
start-up funding partners. They may or may not be part of the company's
management team but are the voting and percentage controlling partners. Their
investment will be escrowed and secure until the company has secured funding for
the entire project. There is no risk of loss that is associated with these investors.

The Use of Funds table details many of the Start-up Expenses.

Start-up Funding

Start-up Expenses to Fund $229,575

Start-up Assets to Fund $5,277,925

Total Funding Required $5,507,500

Assets

Non-cash Assets from Start-up $5,077,925

Cash Requirements from Start-up $200,000

Additional Cash Raised $0

Cash Balance on Starting Date $200,000


Total Assets $5,277,925

Liabilities and Capital

Liabilities

Current Borrowing $890,000

Long-term Liabilities $3,652,500

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

Total Liabilities $4,542,500

Capital

Planned Investment

Seed Investor/Partner #1 $5,000

Seed Investor/Partner #2 $5,000

Seed Investor/Partner #3 $2,500

Seed Investor/Partner #4 $2,500

Seed Investor/Partner #5 $2,500

Seed Investor/Partner #6 $2,500

Seed Investor/Partner #7 $5,000

Seed Investor/Partner #8 $12,500

Seed Investor/Partner #9 $12,500

Seed Investor/Partner #10 $12,500

Seed Investor/Partner #11 $12,500

Start-up Investor/Secure Partner #1 $222,500

Start-up Investor/Secure Partner #2 $222,500

Start-up Investor/Secure Partner #3 $222,500


Start-up Investor/Secure Partner #4 $222,500

Additional Investment Requirement $0

Total Planned Investment $965,000

Loss at Start-up (Start-up Expenses) ($229,575)

Total Capital $735,425

Total Capital and Liabilities $5,277,925

Total Funding $5,507,500

Start-up Expenses

Seed/Development Stage Cost $35,000

Professional Fees $60,000

Commercial Loan/Mortgage Points


$109,575
Cost

Sweat Equity Cost $25,000

Total Start-up Expenses $229,575

Start-up Assets

Cash Required $200,000

Other Current Assets $0

Long-term Assets $5,077,925


Total Assets $5,277,925

Total Requirements $5,507,500

Use of Funds

Use Amount

Phase 1 Construction Cost Breakdown $0

Total Sq.Ft. Building (±) $15,000

Direct Construction Cost $150,000

Table Top Games/FoosBall $50,000

Redemption Games/Inventory $50,000

Bumper Boats $175,000

Batting Cage and Pitching Device $140,000

Miniature Golf Course $225,000

Street Construction $800,000

Storm Water and Infiltration Program $217,000

Building Permit/Subdivide/Connection $35,000

Parking Lot $167,000

Construction Insurance Cost $4,000

Property Cost 8.6 ± Acres $688,000

Drafting/Renderings $90,000

Site and Building Engineering $45,000

Computers/Desks Office Supplies $14,000

Signs $20,000

Go-carts and Tracks $500,000

First Year Operations Captial $200,000

Gross Cost of Equipment &


$3,570,000
Improvements

Construction Cost of Building $1,000,000

Construction Loan Cost $300,000


Cost + Building $4,870,000

25% Loan (LT) Buy Down Cost $1,217,500

RDA Write Down $0

Retail Pads Sales $0

Net (LT) Loan $3,652,500

Loan Points Cost $109,575

Gross Cost $1,327,075

Loan + Points Cost/Gross Investment $4,979,575

Total $24,611,225

COMPANY LOCATIONS AND FACILITIES

The first proposed site / property has two different aspects to it:

We purchase a 10 acre parcel on the site and construct our center.

We incorporate a Government Redevelopment Agency (RDA). Which can provide


our company with a government grant (funds) that can help us purchase the entire
44.6 acres? This involves more risk but offers higher profits because we will need
to resell 20 acres +/- once they are developed.

Therefore, within this business plan we will present a primary look at


both possibilities, including the basic business structure, the start-up cost, the
company's projected growth, the market, the local demographics, the economic
impact, the industry trends, the construction costs, the development of the land,
the oversight of operations during the development of the infrastructure and
the companies future management and marketing team.

Our proposed site is the 10.3 +/- acres in each city, preferably in the city area.The
entire property is zoned commercial and the owner has stated that he supports our
project and will carry a contract.
LAND AND BUILDING

Sr. No. Particular Area Required Total Value Remarks


1. Land 60 acres 80,00,000 Lease
2. Control 2000 sq ft 8,00,000 Own
Building
3. Restaurant 5000 sq ft 1,00,00,000 Own
Total: 1,88,00,000

MACHINERS/EQUIPMENTS

Rate Total
Sr. No. Description Nos. Required
(Rs) Value
1 Toy Train 1 10,00,000 10,00,000
2 Cable car 3 3,66,130 10,98,390
3 Water Chute 1 7,55,000 7,55,000
4 Water Coaster 1 12,90,000 12,90,000
5 Tilt a whirl 1 11,75,000 11,75,000
6 Flying Saucer 5 2,50,000 12,50,000
7 Moon Raker 1 4,00,000 4,00,000
8 Pirate Ship 1 3,00,000 3,00,000
9 Monorail Cruiser 1 9,50,000 9,50,000
10 Children Horse Riding 1 1,90,000 1,90,000
11 River Cave Ride 1 6,00,000 6,00,000
12 Paddle Boat 10 55,000 5,50,000
13 Aqua Cycle 10 47,000 4,70,000
14 Derby 1 3,00,000 3,00,000
15 Lazy River 10 50,000 5,00,000
Total: 1,08,28,390

MISC FIXED ASSETS

Sr. Nos. Rate


Particulars Total Value
No. Required (Rs.)
1 Café chairs 330 265 36,300
2 Café tables 50 1080 54,000
3 Office equipment, 2 1,50,000 3,00,000
furniture
4 Refrigerator 4 1,00,000 4,00,000
5 Aqua guard drinking 5 10,000 50,000
water cooler
6 Electrical Equipments
Fans 32 850 27,200
Halogen Lights 30 270 8,100
Tube Lights 100 135 13,500
Power House 2 1,00,000 2,00,000
Central Air 1 20,00,000 20,00,000
Conditioner
7 Phone Booth 2 1000 2000
8 Miscellaneous 1 5,00,000 5,00,000
Total: 35,91,100

PRELIMINARY AND PRE-OPERATIVE EXPENSES

Sr. No. Particulars Amount(Rs.)


1. Interest during implementation 2,00,000
2. Establishment expenses 50,000
3. Start-up expenses 25,000
4. Inauguration Ceremony 10,00,000
5. Postal expenses 2,000
6. Stamp and duties (court) 2000
Total 12,79,000

SALES REVENUE

Year Item(s) People/Year Rate per Sales


unit(Rs.) Realization(Rs.)
2009 Membership Fees 12,000 people 1000 1,20,00,000
2009 Entertainment 3,65,000 People 200 7,30,00,000
Fees
2009 Food Tokens 2,65,000 People 60 1,59,00,000
2009 Parking Tokens 1,00,000 People 20 20,00,000
Total: 10,29,00,000

RAW MATERIAL (MONTHLY REQUIREMENT)

Total
Sr. No. Item(s) Quantity Rate(Rs.)
Value(Rs.)
1. Food Stuffs
Cold drinks 40,000 11 4,40,000
Snacks 50,000 10 5,00,000
Tiffin 25,000 20 5,00,000
Total 14,40,000

UTILITIES – MONTHLY

Sr.No. Particulars Expenditure Remarks


1. Power/Electricity 50,000 Essential

2. Water 36,000 Essential


3. Oil 3,00,000 Essential

4. Any other item 30,000

Total 4,16,000

MAN POWER (SALARIES/WAGES)- MONTHLY

Serial No. Particulars Numbers Wages/Salaries per Month Monthly


(Rs) Expenses
1 Shift manager 2 18,000 36,000

2 Skill worker 40 8,000 3,20,000

3 Semi skilled 45 4000 1,40,000

4 Unskilled 50 3000 1,50,000

Total 6,46,000

Annual = 12 x 646000 = 77,52,000


REPAIRS AND MAINTENANCE- MONTHLY

Sr.No. Particulars Amount(Rs.)

1 Lubricant 25,000

2 Electrical repair 10,000

3 Mechanical repair 20,000

4 Others 8,000

Total 63,000

Annual = 12 x 63000 = 7,56,000

SELLING AND DISTRIBUTION EXPENSES- MONTHLY

Sr.No. Particulars Amount(Rs.) Remarks

1. Publicity Expenses 10000

2. Misc. 4000

Total: 14000

Annual = 12 x 14000 = 1,68,000


ADMINISTRATIVE EXPENSES- MONTHLY

Sr.No. Particulars Amount(Rs.) Remarks

1. Stationary & Printing 5000

2. Post/Telephone/Fax 4000

3. Guest Entertainment Expenses 15,000

4. Misc. 5,000

Total: 29,000

Annual = 12 x 29000 = 3,48,000

INTREST- ANNUAL

Loan Amount(Rs.) Interest(Rs.) Installment(Rs.) Balance(Rs.)

4,39,59,136 43,95,914 1,00,00,000 3,83,55,050

3,83,55,050 38,35,505 1,50,00,000 2,71,90,555

2,71,90,555 27,19,056 1,80,00,000 1,19,09,611

1,19,09,611 11,90,961 1,31,00,572 Nil


DEPRICIATION

Sr. No. Type of Asset Cost of Asset Depreciation Amount


(WDV)

1. Buildings 1,08,00,000 33% 35,64,000

2. Plant & Machinery 1,08,28,390 8% 8,66,271

3. Moulds & Equipments 35,91,100 15% 5,38,665

Total: 49,68,936