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Proposal For Setting Up Commercial Fun Park in Locality Z: VSP Enterprises

VSP Enterprises proposes to set up a commercial fun park called The Spirituequal in Locality Z. The park will feature modern amusement park facilities like rides and a water park as well as religion theme areas to educate visitors about various Indian religions. Targeting families, the park aims to employ 200 people locally and generate tourism in the area. With a capital expenditure of 200 crore Rs on 300 acres of land, the project is expected to break even within 5-6 years and have an internal rate of return of 25%. It will be eligible for various government grants and subsidies and plans to fund the project with a 70:30 debt to equity ratio. Even if the project is not approved, sunk costs would only be 20

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Nitesh Bansal
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100 views5 pages

Proposal For Setting Up Commercial Fun Park in Locality Z: VSP Enterprises

VSP Enterprises proposes to set up a commercial fun park called The Spirituequal in Locality Z. The park will feature modern amusement park facilities like rides and a water park as well as religion theme areas to educate visitors about various Indian religions. Targeting families, the park aims to employ 200 people locally and generate tourism in the area. With a capital expenditure of 200 crore Rs on 300 acres of land, the project is expected to break even within 5-6 years and have an internal rate of return of 25%. It will be eligible for various government grants and subsidies and plans to fund the project with a 70:30 debt to equity ratio. Even if the project is not approved, sunk costs would only be 20

Uploaded by

Nitesh Bansal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd

VSP Enterprises

Proposal for Setting up


Commercial Fun Park in
Locality Z

Nitesh Bansal , VSP Enterprises

2010
Table of Content
Cover Letter ……………………………………………........ (i)
Executive Summary ………………………………………… (ii)
List of Figures ……………………………………………….. (iii)
List of Tables ………………………………………………… (iv)

1. Business Introduction …………………………………. (1)


1.1 Company Introduction …………………………… (1)
1.2 History and Current Status ……………………… (2)
1.3 Goals and Objectives ……………………………. (2)
1.4 Company Ownership …………………………….. (3)

2 . Project Introduction ……………………………………. (4)


2.1 Industry Overview ………………………………... (4)
2.2 Market ……………………………………………… (4)
2.3 Trend ………………………………………………. (5)
2.4 Opportunity ………………………………………… (6)
2.5 Technology ………………………………………… (6)
2.6 Competition and Competitive Advantage ……… (7)
2.7 Project Description ………………………………… (9)

3 . Marketing Proposal ………………………………………. (15)


3.1 Introduction ………………………………………… (15)
3.2 Targeting Strategy ………………………………… (16)
3.3 Positioning Strategy ……………………………….. (17)
3.4 Service Strategy …………………………………… (18)
3.5 Pricing Strategy ……………………………………. (19)
3.6 Promotion and Advertising Strategy …………….. (20)
3.7 Sales Forecast ……………………………………... (21)

4. Operation Proposal ………………………………………….. (22)


4.1 Operation Strategy …………………………………… (22)
4.2 Location ………………………………………………. (24)
4.3 Personnel …………………………………………… (25)
4.4 Operations Expenses ………………………………. (28)
4.5 Legal Environment ………………………………….. (36)
4.6 Inventory …………………………………………….... (40)
4.7 Suppliers ……………………………………………… (42)

5 . Financial Proposal …………………………………………… (46)


5.1 Start-up Fund ………………………………………… (46)
5.2 Major Capital Asset ………………………………….. (50)
5.3 Financing Constraint ………………………………… (60)
5.4 Financing Approach …………………………………. (64)
5.5 Grant and Subsidies …………………………………. (70)
5.6 Taxes and Duties …………………………………….. (74)
5.7 Contract with Parties ………………………………… (78)
5.8 Operation Forecast …………………………………. (80)
5.9 Break even Analysis …………………………….. (81)
5.10 Balance Sheet Propose …………………………… (82)
5.11 Income Statement Propose ……………………….. (84)
5.12 Cash Flow Statement Propose ……………………. (86)
5.13 Valuation of Business Propose ……………………. (88)
5.14 Exit Analysis ………………………………………… (90)

6 . Implementation Schedule …………………………………… (94)

7 . Appraisal Timeline and Procedure of business ………… (100)

8 . Conclusion …………………………………………………… (101)

9 . Appendix …………………………………………………… (106)


Executive Summary

We introduce ourselves as pioneer in commercial fun park establishment and operation


and name the requested park in Locality Z as The Sprituequal (the Edutainment Park)
which will be one of it’s kind in world. It will host not only the modern fun park fascility
(ride, Water Park, resort etc. ) but also have religion theme base park which will educate
visitor on various religion in India.

Its target consumer will be each member of family as it will host entertainment and
education for whole family. We will introduce our new product line up in this project
which is eco friendly, cheap, take less time to install and less maintenance than
conventional Fun Park.

It is expected to be implemented within 2 year from date of implementation. Going by


land availability which is around 300 acres it will be win - win situation for both visitor
and operator of park. It’s payback period is 5 – 6 year with IRR of 25 %. It will have
capex of around 200 crore Rs. This park will be eligible for various grant and subsidy
from government due to tourism development in area. It is likely to be funded with mix of
debt and equity in ratio of 70:30. It will have unique feature in which modification of each
part can be done without much cost.

It will employ around 200 people and majority of workforce will be employed in day to
day operation. Hiring of these people will be done on basis of locality and talent so it will
be generating huge employement opportunity.

Even if Project is turndown then propose sunk cost is around 20 % of capex cost.

Going by benefit, unique feature of park synchronized with VSP Enterprises, it will be
huge success and earn name for it not only in locality Z or country but in Whole world.

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