Silverstorm Parks & Resorts Limited: An Integrated Leisure & Entertainment Destination

[00:00:00][music] >> Welcome friends. My name is Avinash Gorakshakar and I welcome all of you to another interesting episode of Connect CR High Flyers.

[00:00:24]Friends, as all of you are aware, these episodes help us understand emerging companies from emerging sectors in a much better way.

[00:00:30]And we get an opportunity to talk to the promoters and the top managements of such companies which helps us understand these companies in a better way. We get to know their business model, their growth journey, their future growth plans and aspirations. And all this helps all our investors to take a very conscious investment call when they invest in such companies.

[00:00:48]And friends, today we are going to talk about another interesting company which operates in a very interesting space and which is going to hit the capital market very soon. The company today we are going to talk is called Silver Storm Parks and Resorts Limited. And I have the privilege of having the managing director Mr. Shalimar AI and Mr. Arvind Dakshan who's also director of the company.

[00:01:08]So, sir, welcome to the show both of you. And thank you very much for sparing your valuable time with us.

[00:01:14]I think we can start, sir.

[00:01:16]I will start with the first question, Shalimar ji.

[00:01:19]If you can please tell us, you know, what is the business model of our company? What do we do? And how did this business journey started? It's a very interesting location which you have got.

[00:01:29]And you're doing very good business, sir. Tell us how did this business journey start in the first place? How did it hit upon you to start this, you know, resort as well as this water park? You know, which is growing rapidly. So, tell us about the journey and then about the business model of the company.

[00:01:46]>> Yes, sir. Good evening.

[00:01:47]Thank you for an opportunity to for a interact with to tell us about our company. My name is Shalimar.

[00:01:54]I'm the managing director from '98 onwards.

[00:01:57]Our company is an entertainment company.

[00:01:59]Nearby Cochin, there is a very famous waterfall, Athirappilly waterfall.

[00:02:04]That's one of the biggest waterfall in South.

[00:02:08]And we started this theme park in 2000 August.

[00:02:13]And at least 15 times we increased the number of attractions.

[00:02:18]And 2002 we started a resource in the same premises.

[00:02:23]Then 2017 we started a first snow park at the same location.

[00:02:29]That is people have a multiple attraction in one location.

[00:02:34]That was a big turning point for us.

[00:02:36]And further we added some more rides in 2023 in Silver Storm.

[00:02:41]Last 3 years before we took a decision apart from the huge success of snow park. Because in Kerala, it's a God's own country. That we have a tremendous population and almost 5 to 6 million domestic tourists are coming to Kerala.

[00:03:01]Definitely visit this Athirappilly waterfall waterfalls and we are in the same route.

[00:03:08]Then after the snow park we thought we'll go for a one more attraction like cable car. Cable car and a forest village. Forest village we created is a like a real forest with pet sanctuary, birds, aviary, pets attractions and ornamental fishes, waterfalls, a lot of butterfly garden like that. And the attraction of the cable car, we are in the midst of one of the best location of Western Ghats. Full surrounded lush mountains and beautiful forest now.

[00:03:43]Then last year we moved to Jamshedpur to start to start a snow park. We started the operation from October onwards in Jamshedpur. Jamshedpur the specialty they typically Tata all Tata Motors, Tata Steel, everything and another big industrial city in India two-tier and three-tier cities we don't have the family entertainment centers, no.

[00:04:08]That's why we plan to move to in Pan India two-tier and three-tier cities of to start a snow park and some ideal location one or two location we are planning to start the cable car also.

[00:04:21]>> Okay.

[00:04:21]>> Here in Kerala we have almost 17.5 acres of land in a one location we have a full-fledged amusement park and water theme park and a snow park and a cable car and pets aviary that we call forest village.

[00:04:38]And we are we now we completed 25th year. We are going to uh 20 this is going to 26th year. That's why we are bringing 25 new rides also.

[00:04:48]That will be a massive expansion. All together we are spending 100 crore rupees. The cable car is we are going to open uh this here in Kerala Onam is a massive festival.

[00:05:01]Uh we are going to start the third week of August. That means next month. In a month's time we are going to open to the public.

[00:05:07]>> Okay.

[00:05:09]Right.

[00:05:10]Uh Shalimarji now I just wanted to understand you mentioned about Athirappilly where you got 17.5 acres.

[00:05:15]So all this is in the name of the company or is it in the name of the uh you know promoter that is yourself? How is it structured uh for the company?

[00:05:24]>> No, in in entire land is in under company. In Kerala we have a land ceiling act. We can hold maximum 15 acres of land.

[00:05:32]>> Okay.

[00:05:33]>> Then uh just below 14.85 acres in the mother company. We started a subsidiary company 100% owned by the mother company >> Okay.

[00:05:42]>> for keeping the lands.

[00:05:44]>> Okay. Understood.

[00:05:45]Achha uh Shalimarji now I want a little bit of breakup, you know, like our uh Salim now I want little bit of breakup, you know, like our resort offers lot of rides, food and beverages. Sir, if you could tell us in a very rough way, not exactly, approximate percentage also will do. Sir, what is the breakup of your uh revenue for FY 26 and 25? Like 25 full year numbers are there and September 20 till September 20 uh are there. Tell me one thing, sir, what is the uh amount which we got from ticket sales and food and beverages and merchandise? If you can give us a rough idea, you know, so we can understand how much revenue is coming from which segment? Like is it the ticket sales, the food and beverage, the merchandise, or maybe some other items also which you sell, sir? If you can give us an approximate percentage also, that will be helpful.

[00:06:34]>> Yeah, definitely. Mr. Arvind Acharya will tell you. He will explain to you beautifully.

[00:06:39]>> Yeah.

[00:06:40]>> Yeah. The So, good evening, uh Mr. Arvind Acharya. Thank you for So, basically, uh we have uh the ticketing revenue and non-ticketing revenue. These are the two classification which we take it. And the ticketing revenue is almost 70 to 75% of total income. Uh and balance comes from the F&B, merchandise, and uh we have a uh and then we have something called photo booth like that. So, that constitute the non-ticketing revenue.

[00:07:12]So, uh in 25 26 full year, uh in the park itself, the ticketing revenue is almost uh 31 31 31 crores, and balance uh around uh you know, put together, we have made up 44 43.57 crore at total revenue.

[00:07:32]So, of which the uh restaurant sale uh that has actually a tremendous if you see some 2 years. Because we were having some contractual arrangement earlier, then now we move to complete on F&B. So, in 25 26, 18% of total revenue and the merchandise is also 3 crore plus and other revenue also 1 crore plus. So put together almost 72% coming from the ticketing and almost balance from the non-ticketing. So we are improving the average revenue per user in the non-ticketing segment.

[00:08:04]>> Okay.

[00:08:04]>> Yeah. It's marketing to other competitors. So we are using lot of avenues into that.

[00:08:10]>> Sir, very nice to hear. Sir, tell me what is the overall you know size and peak capacity of both the parks that is in Athirappilly as well as in Jamshedpur. In Jamshedpur I believe there is a snow park. At peak levels are how many people can be accommodated in Athirappilly as well as in Jamshedpur?

[00:08:27]>> In Athirappilly our main amusement park and water theme park we have a capacity 4,000 people in a day.

[00:08:34]Usually we will take a capacity for annually 300 days only.

[00:08:38]>> Okay.

[00:08:39]>> 12 12 lakh per annum.

[00:08:41]>> Okay.

[00:08:42]>> [clears throat] >> Whereas our snow park have a 2,000.

[00:08:45]>> Okay.

[00:08:46]>> That is also >> And sir >> Yeah. 2,000 Yeah. The upcoming cable car is 5,000 people in a day and we if you're calculating 300 days 15 lakh people.

[00:08:59]>> Okay.

[00:09:00]>> We are adding 25 new rides in existing Silver Storm park. Definitely our capacity will go to 5,000 people in a day.

[00:09:07]Why we are keeping 5,000 people now? In a in a year 70 to 80 days is a peak season. Those days we will have a 100% footfall.

[00:09:19]>> Correct. That's right.

[00:09:20]>> Our park should be a reasonable size.

[00:09:23]>> Okay.

[00:09:24]Sir, normally normally the season is what? The second half is better than the first half normally?

[00:09:30]>> Yeah, in Kerala season see usually monsoon June, July, August is a monsoon is average business only, but after the Onam Onam in September usually season coming from September. This year end of August after the Onam season starts in tourism season starts in Kerala.

[00:09:48]Then we have an institutions we get uh 4 to 3.5 to 4 lakhs of students in every year from September to February.

[00:09:57]>> Okay.

[00:09:57]>> Then in between Diwali, Dussehra, and Christmas holidays. And in here in Kerala we have an April May full summer holidays.

[00:10:07]>> Okay.

[00:10:08]>> Whereas in Jamshedpur we have capacities 2,000 per day. That we are started the snow park in there is only one shopping mall P and M HiTech Mall.

[00:10:18]>> Okay.

[00:10:18]>> Almost as you shopping mall more than 6.5 lakh square feet shopping mall.

[00:10:23]That is the destination for the Jamshedpur family.

[00:10:26]>> Uh-huh.

[00:10:28]>> We are getting massive response from the Jamshedpur.

[00:10:31]>> Okay.

[00:10:32]>> And as a part of our IP we are we already started the one of the biggest snow park in Lucknow.

[00:10:40]>> Okay.

[00:10:40]>> There Lucknow we are starting snow park and indoor amusement.

[00:10:44]>> Okay.

[00:10:45]>> So there are two interesting >> Two two interesting points to add. One is you know as he was mentioning the H2 will be almost 70% revenue talking. Uh and similarly of the revenue the group booking everything that is happening in the H2 almost our revenue segment also 55 to 60% come from the group booking.

[00:11:05]That is a basically for the educational institutions corporate. So there are two interesting point both is happening actually in the second half.

[00:11:12]>> Achha both of them happening in the second half.

[00:11:14]>> Second half.

[00:11:15]>> Okay.

[00:11:16]Achha tell me you know this is very interesting. You said about group booking you know for college and school students. Now tell me one thing that you know every company which is there in this amusement park business water park and snow park you know the biggest challenge is to get the customer back to the park. You know, eight months but then second time what? So, is this a well thought strategy by you that you focus on schools, colleges and I've got some different pricing where you ensure that you know this these customers also come in big numbers and your park gets occupied. If you could please tell us on this aspect.

[00:11:48]>> Yes, very good very good question. See, in in Kerala we have a culture all the institutions see nowadays all the CBSE all the education system children are hectic full time school and tuition now. In a year they are getting these one or two days going outing for the institutions now. Institutions they will take the children to mainly theme park. Why why because theme parks are well organized staff system. We have a proper security, guest relation staff operation staff, life guards now. And our system is now every 10 students one teacher accompanying teacher is absolutely free.

[00:12:29]There we are giving a group discount to uh lower class students we are giving 35 40% higher class students we are giving 20 25% discounts.

[00:12:38]>> Okay.

[00:12:39]>> And we have a very good strong marketing team here in Kerala and Tamil Nadu almost 40 45 staff is working.

[00:12:47]>> Okay.

[00:12:48]No, that is very nice to hear sir because that actually helps your repeat business you know recurring business comes for the park regularly because that is the biggest challenge of companies operating in this segment. So, very nice to >> we we are we are adding you know some kind of new attractions every season. We keep on adding something new. So, that's why the our marketing team goes there as you were asking. So, what is something this time different? So, there is something always some new rides like that. For this year now we'll be going for 25 new rides.

[00:13:18]So, like that in every year you have to have some attraction to get the repeated customer. As the right right question.

[00:13:24]So, definitely we are doing it.

[00:13:26]Therefore, we are getting the repeated clients.

[00:13:30]>> I think very nicely mentioned by you, sir. Sir, now tell me in terms of the positioning of our company, especially when we talk about this very beautiful, you know, Athirappilly Resort, which is near near to the Athirappilly waterfalls. Sir, are we the only player located in this part of the country?

[00:13:45]Because, you know, there are many parks.

[00:13:47]I mean, you must be aware there are players like Imagica, Wonderla. So, sir, for our kind of location, can you say that we are reasonably secured? There is no nearby park which is competing with us. Are we the only player in this particular region? Can we say it safely that >> Well, sir, see, we started in 2000. Even Wonderla, the their first park also started here in Cochin in 2000. We are almost in the same three, four months gap, you know.

[00:14:14]They also running the park last 25 years. We also running the park 25 years. The main specialty for us, you know, only we we are the only park have park, snow park, cable car, the forest village, and resorts.

[00:14:30]All five attraction in one location.

[00:14:33]That is the first time in India. No other park have the other other attractions, you know.

[00:14:38]Why because now the families and children, you know, they wanted new attraction, whatever new in the market.

[00:14:45]Nowadays all the families why preferably preferably they are going to Singapore or Malaysia, they want to travel in the cable car.

[00:14:53]Go to Sentosa. Go go to Genting Highland.

[00:14:57]That that that travel is a fantastic experiences.

[00:15:03]>> Moreover that, Wonderla is something in a city centric kind of clientele. We are in the part of the Cochin city.

[00:15:11]We are away from that Cochin city. We are actually on the remote side as part of the tourism circuit. Because of Athirappilly waterfall is something because every year there are huge visitors. So, therefore, this is a part of the tourism circuit, whereas in Wonderla is a more of a city-centric entertainment park. So, the the competitive landscape is totally different and it is might be a little >> Yeah, the another thing, sir.

[00:15:39]In our business, you know, like a restaurant, we will never go for a one restaurant every weekend.

[00:15:47]See, they want to exceed. This year, maybe they come in year, no. Next year, go to Wonderla, like that.

[00:15:53]>> Correct.

[00:15:54]>> Not a big competition.

[00:15:55]>> Yeah, yeah. No, no, understood. Sir, tell me one thing, like for the park at your Kerala, you know, basically water is a very big resource. Like, you know, recently we heard that monsoons were bad in, you know, city like Mumbai and, you know, Pune, Lonavala. So, you know, water was limited, you know, and Imagica was told that they will not get enough water. For us, from where do we source the water?

[00:16:16]Are we well insulated for the water requirements? If you could tell us, and secondly, sir, one more question. Sir, power is a fairly reasonably high cost for us. Sir, do you have any solar arrangements to take care of your power cost?

[00:16:29]>> Sir, first I'll tell you about the water. Actually, there is a perception water theme park, maybe water theme park needs a lot of water. Actually, sir, the all the swimming pool water is recycling, you know. Online filtration is going on.

[00:16:44]If today 1,000 or 2,000 um guests came and they played in the water, there will be some losses from their dresses.

[00:16:53]Only we have to making the makeup water only on daily basis.

[00:16:58]It's an example, wave pool, we have a 7 lakh liter of water.

[00:17:02]Even a massive rush day, there will be a loss of 10,000, 15,000 liter water.

[00:17:07]That's all.

[00:17:08]And we have enough ground water facility. We are not depending any outside source for the water.

[00:17:15]Mhm. And all the waste water we recycled and that water we are using for the landscaping, gardening all the purposes.

[00:17:24]Definitely, we have a very serious plan to almost in the finalization for the solar solar energy also. Now we are depending government electricity board power supply and we have a 100% backup diesel diesel generators also.

[00:17:42]>> Okay.

[00:17:44]Understood. Sir, now just wanted to get little more numbers that for basically your Kerala unit, you know, typically what could be the kind of footfalls which we recorded say in the last 2 years for 26 and 25 and typically what was the [clears throat] average you know our pools like you know in Imagica or maybe in the you know the Wonderla you know these are slightly more expensive but I was told that your price is very competitive you know both for the students and colleges as well as for the other part of your customer range. So if you can give us some idea about the broad range of our pools and how many people visited your park in say in the last 1 year and before that so if you can get an idea about the popularity of the park you know from these numbers.

[00:18:26]>> Yeah, yeah may I have like explain. So last 3 years actually it's together it's almost 16 lakhs and particularly in 26 26 we had a visitor of 6.3 lakhs in Adlab and almost 40,000 visitors because the last year in Jamshedpur it was only soft opening has happened so 40,000 visitors were there so put together you can take it 6.7 but Adlab 6.3 lakhs.

[00:18:54]And our pool that is what was the interesting thing over in just 2 years before it was having around 440 rupees almost 50% up 25 26 we have crossed 650 average revenue per user.

[00:19:09]This This one point basically because of we are adding more restaurant and other merchandise channels within the park premises itself. So, there will therefore our on a comparison also, we still have to go a long way to increase our RPU.

[00:19:26]Basically, you need to have all these facilities within the park. So, we are gradually bringing in more restaurants, branded outlets like that. And cable car is one option where we will be having more food joints.

[00:19:38]Our this you know, forest village will also have a multiple merchandise outlets.

[00:19:45]So, basically from 650, we can safely go up to you know, maybe 800 like that in the very near future.

[00:19:54]Our vision is to get 2,000 level 1 million visitor and 1,000 RPU. So, that is a level we can achieve very soon.

[00:20:04]>> Yeah. I think very nice to hear. And sir, tell me one thing like normally every year, do we increase the RPU by 3-4%? Is it a kind of a business philosophy like every year marginally 2-3% is a normal price hike for us like in the last 2 years, what has been the price increase like?

[00:20:20]>> Usually sir, theme parks, we prefer to increase the ticket price. We will add some more rides.

[00:20:26]At least every year or maybe once in one and a half year or something, then we will increase the ticket.

[00:20:33]>> Okay.

[00:20:34]And sir, currently >> Last year, we have not made any revision. So, we are waiting for this two 25 new rides to add. Then you know, with a massive scale of expansion, then we can go for a major revision instead of going in small dose. Somebody will come to they have to see the substantial change. Then they will be happy to pay.

[00:20:55]You know, they should not feel that you know, they are coming and then they are not given enough rides. So, once right now, we have around 41 rides uh on play. So, we will be adding more, then definitely we will go for a major revision of pricing.

[00:21:12]>> And then now sir, I wanted to understand that I believe the cable car project you told me, and of course there is another snow park which we are planning in Lucknow. Sir, first of all tell me how did this idea strike that you wanted to go to Lucknow and set up a snow park?

[00:21:26]Because you know, very few people must have thought about it, and it is a good business, you know, business will definitely come. Sir, first how was Lucknow identified? Just like Jamshedpur, you know, which I think nobody could have even dreamt you know of going there and putting a snow park, and it actually worked very well [clears throat] for you. So, how was Lucknow first of all identified? And so, what is the revenue potential?

[00:21:46]Let us assume that at 60-70% or 75% you operate the cable car and the Lucknow you know projects. What is the peak revenue which we can expect? I mean, roughly mota moti what kind of revenue can we expect?

[00:22:00]>> Sir, first of all I'll tell you uh we I told you in the beginning of the interview.

[00:22:06]In India, two-tier and three-tier cities now, they don't have they don't have any family entertainment center. See, Bihar is a big state. There is no single snow park.

[00:22:19]Mhm. Uttar Pradesh is also one of the biggest state in our country. And there is no snow park, not in Lucknow, not in nearby places.

[00:22:29]That That will be the That will be the first snow park now. And about I think one NCR there is a one snow park.

[00:22:37]And in Lucknow, see we are we we located one of the posh location of Hazratganj. There is a nice shopping mall, that's a massive mall. In and around just 1 km, 50-60,000 apartments are. All posh area, and people have more than 5.5 million people are living in Lucknow.

[00:22:58]There is a huge potential for the family entertainment centers and the snow parks.

[00:23:03]>> Okay.

[00:23:04]>> Understood.

[00:23:05]>> Basically, if you see the conversion ratio and in Lucknow, we are looking at capex is somewhere around 26 crore.

[00:23:14]The full potential of revenue almost equivalent to that of you know 25 to 30 crore kind of revenue we can generate from the snow storm plus family entertainment also from the other non-ticketing revenue. Similarly, cable car also the capex is somewhere around 60 65 crore and we are adding another 5 crore for the forest village like that.

[00:23:35]So, the potential we have estimated 15 lakh visitors comes in and RPO 500 something like that. We have a potential of 75 crore and the cable car is going to be a separate vertical.

[00:23:48]Definitely, we will be offering combo offers cable car, snow storm, cable car, theme park, forest village. All combos will be operational. So, cable car itself can fetch in at the RPO at least 500 rupees per person.

[00:24:03]>> Right.

[00:24:03]>> There's a huge potential looking at it.

[00:24:05]So, actually we are in the cusp of quantum jump on the top line once we commission because as MD was mentioning almost 100 crore capex is going on. Not the IPO funds. IPO funds yet to come and that has go for another 40 crore capex.

[00:24:18]So, 100 crore capex is already funded through internal generations, debt fund and also got some some IPO some pre-IPO kind of investors came in. So, that money is used for this.

[00:24:31]>> Okay.

[00:24:32]Shalimar Ji, when was the Jamshedpur snow park started? I just wanted to know what was the contribution in terms of revenue for FY 26 from the Jamshedpur snow park?

[00:24:41]>> Yeah, we started in October. We started in last 25 25 October.

[00:24:46]>> October 25. So, this will be the first full year that the unit will first full year unit will contribute, right?

[00:24:53]>> Yes, this 27 will be we will get a entire entire uh 12 months from the Jamshedpur.

[00:25:00]And this cable and our major revenue will come cable cars we are going to start around 3rd week of August.

[00:25:07]That means we'll get a we'll get a clean 8 months this year. And in in the history of Kerala, H2O is 75% revenue is coming.

[00:25:16]>> Okay.

[00:25:17]>> That means cable car will contribute uh 27 finan- financial is a major contribution from the cable car.

[00:25:25]>> Okay. I understood. And sir, when will the Lucknow snow park start which we have planned?

[00:25:30]>> Hopefully we are we are seriously to come we already started the works. We are seriously to complete in the coming Diwali time October in uh Lucknow.

[00:25:40]>> Okay. Right. Sir, and now one important question Shalimar which I want to ask you is that see setting a water park is a very expensive proposition. We have seen how companies like Imagica, Wonderla have put 100 crores per park.

[00:25:52]Now, what is our thought process when we are talking about snow parks which is your you know diversification? Of course, Athirappilly is there. But sir, what is your thought? Will you go for such large-size investments in future or will you like to go for small-size investment which give you a better ROI? Sir, if you can please tell us.

[00:26:10]>> Yes, sir. I'll tell you. If I if I'm starting a theme park, amusement park, and water theme park, the size is depends on the market. It's an example, if I'm setting up in Bombay, minimum we have to spend 40-50 acres of land and minimum 800-2,000 crore.

[00:26:27]>> Mhm.

[00:26:27]>> If it is if you if you are planning in two-tier cities in a theme park, no, it should be minimum 30 acres of land and another 400-500 crore.

[00:26:37]>> Uh >> And three-tier city, it will be 300 crore minimum.

[00:26:41]>> Okay.

[00:26:42]>> is also at least 20 acres of land. We need a 20 acres of land.

[00:26:46]Now, land is not an easy to get.

[00:26:48]>> Correct.

[00:26:49]>> Cost cost is very high in everywhere.

[00:26:51]>> Yeah.

[00:26:51]>> And whereas the snow park we can put up in stand alone as well as in the inside the mall. Inside the mall we we don't want to spend any budget for the building, common facilities, parking, washrooms, security arrangement, all the facilities already inside the mall.

[00:27:12]>> Okay.

[00:27:12]>> And malls are very interested to setting up the snow park.

[00:27:17]Why? Because this will be the massive attraction to pulling the crowd to inside the mall.

[00:27:24]>> Okay. Fine.

[00:27:26]So understood, sir. I think thanks for the information. Sir, but I want to know from you like you mentioned this will be the broad cost, you know, depending upon the location and the cost of the land.

[00:27:35]But as a company and as a promoter will you like to go for a proper smaller kind of project and then get a good ROI or will you like to go for a massive investment? Because see most of these companies to be very frank, if you look at Wonderla, you look at Imagica, the kind of money they have spent on their projects is huge and the ROI has not been great. I mean, let me be very frank about it. So as a promoter will you like to go and set up small snow parks initially and then you know, get scale and size and then maybe you can think of a bigger investment. Is this the strategy you are planning for next 2-3 years?

[00:28:09]>> Yes, sir. Definitely we are planning within next 2-3 years snow parks at least a half a dozen snow parks and one or two cable car. Cable car capex is high but the running cost is less. Whereas the theme amusement park theme park, the capex is high and running cost is also high.

[00:28:29]>> Okay.

[00:28:30]Okay.

[00:28:30]>> EBITDA margin EBITDA margin is 60 plus in snow park and cable car.

[00:28:38]>> Okay.

[00:28:39]So the board level board level discussions is basically to expand for next 2-3 years into a smaller formats like snow storm and FEC combined kind of thing and also look at as MD was mentioning if there are good opportunity comes in we can look at the cable car also because cable car wherever installed it's a massive success. It's going to be a huge attraction. So there will be company will be focusing more to roll out more snowstorm and you know FEC and then kind of cable car like that. We are not on the near future contemplating any huge investment for theme park like that.

[00:29:15]>> So what is the >> Yeah, these these let us go with this plan for next three years. Let us see how things turn out.

[00:29:22]>> Okay.

[00:29:23]I understood.

[00:29:24]Return on investment is very quick compared to theme park, sir.

[00:29:27]>> Yeah.

[00:29:29]>> Exactly.

[00:29:30]>> Yeah.

[00:29:30]>> Sir, now I just wanted to understand if you can give me a number, sir. You said for FY26 we have a revenue of 43-44 crores. Sir, please correct me if I'm wrong. Sir, out of this how much revenue came from Jamshedpur because we started in October. October to March, what was the rough revenue like from Jamshedpur?

[00:29:46]>> It's roughly two crore only.

[00:29:49]So full year we are this year we are expecting anything between eight to 10 crore.

[00:29:55]So last year it was a soft opening and it was also winter. Now now we are getting good crowds and business is picking up.

[00:30:05]>> Okay.

[00:30:05]>> Understood.

[00:30:06]And sir, here the major cost for the Jamshedpur and the Lucknow unit will be the rental, right? You will have to pay rental. This is not a bought out place, right?

[00:30:13]>> Rental and the revenue share.

[00:30:16]>> Revenue share.

[00:30:16]>> Revenue share also. Okay.

[00:30:18]>> Revenue share.

[00:30:19]>> So rental, sir, actually fixed based on there is a dead rent and plus you know the rental. So it is always on the upper side which ever is higher. So therefore we will have to shell out certain percentage as you know rentals to the So that is the advantage for the builder.

[00:30:38]>> Yeah. Yeah.

[00:30:39]Sir, now tell me one thing for the snow park, uh sir, how many people are required to run this snow park? Like how many people do you really require? Like is it five, six people or little more depending upon the size of the snow park?

[00:30:50]>> So, in Kerala snow park, in season we will keep 45-50 staff easily.

[00:30:56]See, why? Because inside we have a crew members and supervisors. Now, they cannot they cannot stand all day long.

[00:31:03]Every 1 hour every 1 hour they will come out and another crew members will go.

[00:31:09]>> Okay. Okay.

[00:31:10]>> That That 1 hour they have an outside duty.

[00:31:12]>> Ah.

[00:31:13]>> In Jamshedpur season time, Jamshedpur is not so big size. We maintain for 35 staffs.

[00:31:20]>> Okay. Fine.

[00:31:22]And uh sir, another thing which I wanted to understand is that uh you know, apart from the employee cost and maybe the power cost, I mean, what are the other major costs which are involved? Like to you know, to ensure that the operations are you know, during all throughout the year because you said there are some uh you know, sections like college and school students come to your park. Typically, apart from power and apart from your employee cost, is there any other cost which is involved?

[00:31:46]I mean, any big cost which we have to incur?

[00:31:49]>> Not a big cost, but we need an advertisement and the sales and promotions expenses.

[00:31:55]>> Okay.

[00:31:55]Understood.

[00:31:55]>> Of course, operational side, you want to know, we we go for the preventive maintenance kind of format, you know, all all the skilled labors are here, but whatever the stores and consumption that is happening and we keep apart certain set of people. Actually, if you see the employee employee counts, uh major count is on the operation and maintenance. So, therefore that uh you know, we have to continuously because every morning and every evening that the continuously that you have to have that preventive maintenance. Therefore, therefore that manpower goes partly for the maintenance part and then whatever the consumption stores, that is also going into that. Uh beyond which of course, you know, the marketing cost uh you know, we have a 50 people uh required for the marketing. So, that is and then the expenditure.

[00:32:42]>> Okay.

[00:32:43]And sir, Shalimar G, one thing which all people would like to know, see the security and the safety of the park is very important. So, 25 years is a very big achievement, sir. In these 25 years, how has been the journey in terms of safety? You know, are we perfectly safe in the sense there have been no major accidents or no major issues? Anything which you can tell us, you know, because obviously the safety part is important, you know, people obviously like to be ensured that they are safe in the park, they enjoy you know, the environment there. So, any kind of quality checks you normally do regularly and what has been the record as far as the safety norms are concerned?

[00:33:20]>> Yeah, sir, very good question.

[00:33:22]Sir, a fantastic question.

[00:33:23]Sir, last 15-20 years when I visited in abroad, one of my close friend is a very big businessman in Oman.

[00:33:32]I saw some of the very senior, at least say one uh two to around 20 our Indian army or air force or military seniors are working under him.

[00:33:44]He advised me.

[00:33:45]They have more discipline, they have more systems, they are their their safety standards are excellent, you know. That's why last 15-20 years we are so using at least eight or 10 senior persons from the Indian army and air force and they are they are they are taking the operations and security and safety officers.

[00:34:09]Like that we are That's why they have a highly disciplined staff, you know.

[00:34:14]>> Yeah, training >> And the water quality, water quality we have to daily we have to monitor uh before handover to the operation team and every 1 hour they will check the chlorination, pH level, like that. We have a in-house laboratory and the chemist and all here. The maintenance part we have we usually we have a preventive maintenance system.

[00:34:38]We we have a half a dozen engineers and around 25 technicians.

[00:34:42]They will take care of all the mechanical rides properly.

[00:34:45]>> Okay.

[00:34:47]Uh sir now just wanted to you know reiterate that FY26 numbers if you can share for our viewers because earlier you mentioned I want to know the revenue and the profit after tax as compared to last year. I think uh September numbers have been provided but if you can give us the revenue and the PAT what we have achieved for March 26.

[00:35:06]>> Now it is available in the website also.

[00:35:10]As our revenue is 44.85 crore on consolidated basis.

[00:35:14]Uh and we have uh the PAT level we have 19.1 crore.

[00:35:21]Uh and this profit before tax 26.59 crore.

[00:35:27]Okay. 44.85 on top line uh profit before tax 26.59 and the profit after tax 19.1 crore and the EPS level it is 12.6 uh rupees per share of rupees 10.

[00:35:42]Okay.

[00:35:43]Uh Shalimar ji now since you have started this company from scratch you are the promoter of the company. Sir tell us you know in what way are we adding value? Of course competitive pricing is there more rides are there but in this business what is it that is very important to ensure that the client's interest remains he comes back to the park he enjoys the atmosphere. So two three qualitative points if you can tell us that we are doing a much better job than you know maybe other people in the industry and that is why business is growing you are rapidly uh putting up snow parks our waterfall our water park resort is also popular. Two three things which you think are unique for our company and which you know we have built over a period of time.

[00:36:21]>> See yes very good sir.

[00:36:24]Uh first of all is in our in in our business now the people are coming in a year 6 to 7 lakhs people are coming here. We are not even not given giving any chocolate for them.

[00:36:34]Only thing we have to give we have to give the service.

[00:36:37]That is most important. And we have a dedicated guest relation staff and trained operators and lifeguards from 2000 onwards.

[00:36:48]And institutions we have we we are the one of the best park to maintain. That's why institutions repeatedly they have we have a some schools last 25 year regularly visiting to our park. Because institutions know they have a huge responsibility if they are today bringing 100 children from their institution or 200. They have to answerable for the parents of 100 parents know. That's why from once they reach here we will take care them properly. We'll that's a package includes the lunch and we have a organized security staff, guest relation staff. That's why institutions preferably come to our places.

[00:37:29]>> Okay.

[00:37:30]>> So I would say that the kind of food we serve, the quality food with affordable pricing and you know every one year two year we keep on adding rides. We know that because of we we are hearing we also have a excellent feedback system. So every every visitor after our park then our guest relation executive take the feedback and seriously we look at it. So the service plus the feedback plus the quality food with affordable price all this together you know it gives a great experience for them. Finally you know it's a customer satisfaction. So they have to feel good then they will come back.

[00:38:09]>> Yeah.

[00:38:09]>> Sir one more thing very nicely put out sir.

[00:38:12]>> Yeah one more thing one more thing sir.

[00:38:14]I told to my entire staff in our in our park anywhere we should never tell to any customer no.

[00:38:22]We cannot use no. The maybe customer will ask lot of things, no.

[00:38:26]>> [clears throat] >> Some of them we can give, some of them we cannot give. If you can give that one, you tell you you never tell no. You tell sorry sorry, sir, I don't have that freedom or eligibility to give you what you asked. That's all.

[00:38:41]We will never tell no. We will never tell no to anybody.

[00:38:44]>> Yeah.

[00:38:45]I think nicely put out, sir.

[00:38:47]Sir, now just to come on the working capital cycle, since I believe you know ticket sales are paid up front. Sir, normally what's the working capital cycle? Like are we well funded? Like for example, do we have maybe you know no you know major funding from the banks or do we require a little bit of working capital funding from the banks? How does the working capital cycle operate?

[00:39:08]>> So, actually our you know as you mentioned, this is end of the day all collections are in the box. So, therefore there are no receivables, but of course we need to maintain a sufficient F&B provision and merchandise. So, therefore we need to have the some of the inventories where we keep no current asset. For which we have a very small 5 crore working capital from the bank. So, we are using it and it's more than enough for us to take care of our inventories, all the expenses side, 1 month expenses.

[00:39:45]All that is taken care of. So, otherwise usually we don't need a big working capital This is always under the working capital limit is always under utilized.

[00:39:56]>> Okay. Okay. Okay, understood. Sir, we are going public, so it's a big achievement now for user, I mean for your entire team. So, tell us now what is the main purpose of this public issue and how much money are we going to raise from the capital market?

[00:40:10]>> Sir, we have some understanding with the our merchant banker. Somewhere around 80 or 82 82 crores we are planning to for an IPO. The main capex is to setting up a new snow park and indoor amusement at Lucknow. That is somewhere around 26 crores we are allocated for them.

[00:40:33]And 15 crore in our snow park most of the season time it's overloaded.

[00:40:39]>> Uh-huh.

[00:40:39]>> Yeah, because that's why we are increasing the size of the snow park.

[00:40:42]Right now we have only 2,000 persons per day. That we are going to 3,000. And in Cochin there is a lot of corporates is lot of dealer meet corporate meet.

[00:40:53]That's why we are setting up a banquet hall and the dining dining facilities now. That's a and everywhere most of the company was every every year they are going same five-star hotel. That's why they want a different They can take up their family also for the meetings now. Family can enjoy in the park.

[00:41:12]>> Yeah.

[00:41:12]>> And 15 crore is a capex for the Silver Storm existing some attractions.

[00:41:18]And then we have some debt that we are going to reduce the debt. We are using 24 crores for the debt reduction.

[00:41:26]>> Okay. So, 24 crores is going to be repaid. The debt is going to be repaid, right?

[00:41:30]>> Yes, sir.

[00:41:31]>> [snorts] >> Sir, for the cable cable car project what is the expense? I mean, has this already been funded or it will be funded out of the public issue?

[00:41:39]>> Sir, that I have to we have to tell you, sir. The cable car we decided three years before we estimated around 65 crore rupees for a cable car.

[00:41:47]60 crores for the cable car and building, land.

[00:41:51]And 5 crore we are we are creating a forest of something around 2 acres of land.

[00:41:56]Well, just going and coming back the cable car will not be a much attraction.

[00:42:01]There is an opposite station. They can get down there.

[00:42:04]They can spend two to three hours with the bird sanctuary, pets and pets, ornamental fishes and there is a cafeteria, shopping, lot of activities, lot of activities there.

[00:42:16]>> Okay.

[00:42:16]>> Then last year we took a decision to this is 25th year we have to go grow the park also. Once a cable car comes, naturally the footfall also another 20% will increase in Silver Storm. That's why we have a sufficient land. We are going to expand the 25 new rides that surrounds something around 35 crore.

[00:42:35]This entire 100 crores is we we have we we managed from the debt from the financial institution, little pre-IPO and our internal approvals now.

[00:42:46]That is a bonus that is a bonus for the new investors. It is going to open next month.

[00:42:51]>> Okay. I think very nice. Sir, tell me one thing like typically you know, do you expect this cable car project to become profitable right from the first year of operations?

[00:43:02]Like you cover up everything and still remain profitable?

[00:43:05]>> Yes. Sir, in anywhere in any any family or any group in Kerala or domestic tourist almost 6 million tourists coming to Kerala.

[00:43:14]When they are going for an outing, we are sure once we open the cable car and forest will be amazed. Silver Storm will be the first choice of any family or any group planning a trip.

[00:43:25]>> Okay. I think very >> Multiple attractions in one location and very close to famous Athirappilly waterfalls. That's very Sir, you have seen in the Bahubali movie, same waterfall.

[00:43:37]>> Yeah.

[00:43:38]>> All all Mani Ratnam sir movies also shooted here for >> Sir, one thing I wanted to clear sir, we have got 17.5 acres at Athirappilly water park. Sir, do we have sufficient land where we can add another 25 rides?

[00:43:51]I just wanted to know.

[00:43:52]>> Sir, cable car is traveling on top of CJ's. We have to fix the tower only.

[00:43:58]>> Correct.

[00:43:59]>> So we got a sufficient land because of the cable car.

[00:44:02]>> Okay.

[00:44:03]>> That's why that's why there we are putting the land rides and water slides in the ground.

[00:44:08]Cable car is traveling 40 m above.

[00:44:10]>> Ah, okay. Okay. Understood.

[00:44:12]>> And then we have also provided ample parking for cable car because that is one thing something lacking. So, one cable car we need. So, huge parking is also arranged for cable car.

[00:44:24]>> Understood. I think very well planned.

[00:44:25]Shalimar ji, now tell me one thing like you started the company, you are the main promoter. Sir, on a functional role basis, sir, what is your main responsibility? Because of course you have a very good team, you know, for finance, for marketing. But sir, what is the main functional role you do? Do you ensure that new >> Yeah.

[00:44:42]>> uh the site the plant for marketing sales is taken care by you. What exactly is your functional role?

[00:44:48]>> I am spending more time on the uh project work is now last 2-3 years projects and I will spend more time on the sales now.

[00:44:57]Sales and marketing, identifying the new location, all these things.

[00:44:59]>> Okay.

[00:45:00]>> Here the park has been functioning, you know, the operations here are taken care of by a set of people, disciplined people. So, he don't have to worry about what is happening and we have a general manager who is in our CFO. He is with him for last 25 years. So, he knows in and out.

[00:45:15]So, all operational sides are taken care of by him. So, MD is more specific to the project scheduling and implementing the project on time and of course marketing is bread and butter of this company. So, naturally >> Very nice. The last question now wanted to understand. Sir, typically what is the major risk in our business? Like everything sounds very good, you know, we have been doing very well for last 25 years. By God's grace I think future also will be good. But sir, in our business what is the main risk?

[00:45:46]I'll tell you one or two things, you know, where data I have collected. Sir, again I was seeing that Kerala is a place which you know you know attracts heavy monsoon. So, there are a lot of floods. In fact, in the year 2025, you know, I think there was a lot of floods. Again, you know, at that time visibility and mobility gets affected. So, do these factors have any impact on our business if at all?

[00:46:10]>> Sir, in 100 years the major flood was happening 2018.

[00:46:16]See, our our location is slightly from the river and slightly about only 20 m above from the sea level, no. In even not even a single bucket of water never came to in the 2018 massive flood all over Kerala.

[00:46:31]I think that way 34 dams are open forced to open. That's why the flood was very serious, no.

[00:46:38]And see, sir, this is a preventive maintenance system is we should be very careful.

[00:46:45]And we should maintain all the mechanical rights in the right in time. And we last year we removed some seven eight rights because we used almost 15 16 years, no.

[00:46:56]After 50 50 60 years we should never use the same right, no.

[00:47:01]And definitely risk factor is this one risk factor is the any pandemic.

[00:47:06]Any pandemic will in the COVID pandemic we we definitely we are we are the most affected. We shopping mall, convention center, public transport are the first affected.

[00:47:20]>> No, that is fine. That is understood, sir. Pandemic >> Yeah, on a usual usual business, uh no, it is basically the seasonality. That is the risk which we know as we mentioning is 2 years almost 70% like that. So, therefore, that is that is a I know idea why the company want to geographically expand to other location. When it is raining here, it elsewhere it will be summer. So, in Jammu and Kashmir it will be good revenue and in Noida it will be good revenue. So, when we actually expand into Pan India, all this seasonality will be taken care of round the year cash flow can be managed. So, therefore, this is only not only, you know growing big and also it ensure the seasonality will not get affected the company in a big way. So seasonality is a is a you know kind of a challenge and every amusement park of course in Jamshedpur it will be winter will be the non season. So like that every every location will have a non season. So we have to manage by expanding into different locations. So this is the one risk which we know and we have to mitigate.

[00:48:24]>> And I think uh very nicely mentioned by you sir. I think I personally would say that you know your company has got very big triggers from the cable car project from the Jamshedpur facility and of course from Lucknow. And all this I'm quite sure will get reflected you know in your numbers in the next two years.

[00:48:39]So investors would definitely look at your company >> Yeah sir this year this year itself will be a big jump.

[00:48:46]>> Well I think it was very nice sir to talk to you and Shalimar ji my pleasure and sir thank you for your time. Uh best wishes to you your entire management team and sir best wishes for your public issue also. Thank you very much.

[00:48:58]>> Thank you thank you very much thank you thank you very much. Nice to talk to you. Thank you.

[00:49:06]>> [music]