Adlabs Imagica will open a new theme park in Amaravati, the capital of Andhra Pradesh, India in a joint venture with Riverbay Resort.
Park operators, Adlabs Entertainment Ltd, signed an agreement with Riverbay Resort to build the park in Amaravati – Zee Business reports.
Adlabs joint chief executive, Dhimant Bakshi, said the company will have no equity investment in the project. It will be “developed in a public private partnership model as Riverbay has entered into a PPP with the state authority building the capital city, but it will be based on licensing agreement.”
“We will get royalty, sweat equity and revenue share, both of which are revenue accretive. The project will come under a new format.”
Last month, Adlabs submitted a comprehensive debt resolution plan to its lenders led by Union Bank of India.
Incremental cash generation
The plan focuses on securing incremental cash generation and sustainability including asset monetisation. The company has plans to sell its 287-room hotel near the theme park and dispose of a 204-acre plot of land in the adjoining area.
The company is also licensing out its character IP to third parties, which is hoped to increase merchandise revenue from 10% to around 15 per cent from next year.
Bakshi said: “we have licensed out some of our character IPs to plastic homeware brand Cello, education institution Neltas and ice cream brand Havmor. These IPs include our popular characters Tubbby, Detective Bow wow, Rajasaurus, Hippy, Bloo and Roberto. That apart, we are also licensing out some of our animation activities.”
Image courtesy Adlabs Imagica