- Country: India
- Industry: Tourism, Recreation
- Stage: Start-up
- Investment size: $11,000,000 / min. $1,500,000
This project is about setting up and expanding holiday resorts at different locations in India and marketing them in a revolutionary way.
Basic aim is to set up 8 holiday resorts in 8 selected tourism destinations across India and to have 10 sales offices in different metros. Funding required for the purpose is US$5,520,00,000/-.
Holidaying has come to be a major and serious business in India. Government is also supporting its level best to promote tourism as a major revenue source. Further, the number of foreign travelers coming to India has increased substantially during these years.
Cost of Operation for competitors is very high. Our targeted customer base is the growing traveler among the middle class Indian community.
This advantage is sustainable for the fact that existing players cannot scale down their operations. However an attempt by competition to repeat our success would be considered as a recognition of our project and its advantages.
Rationale for the deal
The opportunity is huge - upfront revenues from Time Shares, recurring revenues from One Time Guest Stay, recurring revenues from other activities related to travel and tourism.
79% of the investment in this model is majorly on Fixed Assets (Real Estate) which is currently booming in India. Time Share Sales will ensure instant Return of Investment and current rate of One Time Stay is highly encouraging.
There are other players existing on similar models.
Use of financing
To set up 8 holiday resorts at selected tourism spots across India and to have 10 administrative offices in different metros in India to cater to sales, marketing and administrative needs.
We need finance to generate working capital for setting up 8 resorts, 10 sales offices and cover a 6 month initial gestation period.
We need INR 20,00,00,000/- upfront as 1st instalment, INR 10,00,00,000/- after 6 months as 2nd instalment, INR 10,00,00,000/- after 12 months as 3rd instalment and INR 15,00,00,000/- after 18 months as 4th instalment.
Opportunity for the investor
The investor has an opportunity to make fixed revenues @ 7% per annum as Interest towards Debt Investment of up to US $ 5,520,00,000/-.
The investor will also have 10% revenue share from profits towards the Debt Investment. Dividends towards 10% revenue share post first 24 months will be approximately INR 1,50,00,000/- per annum.
We are looking for a silent Investor.
Minimum lock in period is 7 years.
We need INR 20,00,00,000/- upfront as 1st instalment, INR 10,00,00,000/- after 6 months as 2nd instalment, INR 10,00,00,000/- after 12 months as 3rd instalment and Need INR 15,00,00,000/- after 18 months as 4th instalment.
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