Wonderla Holidays, the Kochi-based amusement park chain, is preparing to mark 25 years of operations next April. Since its inception, the company has expanded its footprint to include four parks and one resort and, according to its managing director, Arun K Chittilappilly, Wonderla would soon add six more.
Currently, Wonderla operates parks in Kochi, Bengaluru, Hyderabad, and Bhubaneswar, along with a resort in Bengaluru. A fifth park is slated to open in Chennai next December, with plans to introduce distinctively new rides. Recently, the company raised Rs 540 crore through private placement, with a significant portion allocated for the development of the Chennai park.
Despite ongoing expansion, Wonderla Holidays remains a debt-free company, according to Chittilappilly. He attributed this to the capital-intensive nature of the business and a cautious approach to avoid excessive debt, which could potentially impact the company’s share price. However, he acknowledged that future expansions might necessitate some reliance on loans, given the high costs associated with establishing new parks.
Operational profitability timelines vary across parks. For instance, the Kochi park reportedly became profitable in its first year, while the Bengaluru and Hyderabad parks achieved profitability in their third and second years, respectively. The Bhubaneswar park is expected to follow a similar trajectory, turning profitable in its second year.
Wonderla Holidays has set a target to expand its portfolio to 10 parks shortly. However, the significant investment required poses a challenge. Arun Chittilappilly indicated that while a new park currently costs around Rs 500 crore to establish, rising costs make it difficult to replicate this in other locations.
Discussions are reportedly underway for projects in Delhi, with additional parks being considered in Madhya Pradesh, Ahmedabad, Goa, and Mumbai. There have also been exploratory talks about setting up a park in Ayodhya, as states like Uttar Pradesh are increasingly promoting tourism-related investments.
Chittilappilly noted a shift in visitor behaviour, with guests increasingly prioritising food options during their visits. In response, Wonderla has introduced new dining facilities. To attract visitors during the holiday season, special online ticket discounts are being offered.
