Investment required for 50% stake: 4 cr.

Company’s expected monthly income: 50-60 lakh

Project mission

To be a landmark in highway tourism @ the busiest highway in India To be on the international tourist map for providing the most authentic village life experience

The concept
Highway amenities with a fast food restaurant & punjabi dhaba (like “Haveli” at Karnal & Jalandhar) +  Rustic look village with cottages (like chokhi dhani)

Pictures of Haveli - best highway eatery in India – India Today 2006

Village resort 1

Village resort 2

Village resort 3

Success matters!
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More than 5000 people each day at each of the Haveli restaurants in Jalandhar & Karnal – Best highway eatery in India Average spending : 40 Rs./person Rs. 2 lakh sales/day i.e 7-7.5 crores/year Profitability: 40%

+
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More than 5 lakh tourist/year at chokhi dhani 350 Rs. entry Sales/year: 17.5 crores/year Profitability: 40% Combined revenues: 25 crores/year Estimated profit: 10 crores/year

Jaipur
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Urbanization growth rate 28.33% 70% of international tourist coming to India visit Rajasthan International airport Highest population growth decade among tier two cities (49% for decade 91-2001) Counter magnet to New Delhi Hub of domestic and foreign tourist SEZ by Mahindra GESCO with RIICO joint venture on 3000 bighas of land Emerging IT sector destination Located on Golden Quadrilateral which is proposed to be upgraded as “National Express Way” Fast emerging education center Excellent law and order situation Developed infrastructure

Site

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Expressway connecting Mumbai-Ahmedabad – Udaipur – Ajmer - Pushkar – Kishangarh – Jaipur – Delhi: Very busy highway Most promising area as lot of business activities coming up in vicinity More than 2 lakh people coming to work in Mahindra world city at 6 kms. from site Jyoti university – A 1500 girls college at 1 km. from site Proposed Manipal university on this road Tourists going to Ajmer and pushkar Gujarati tourists

Activities in vicinity
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3 IT Parks/ SEZs (M & M/Vatika/Mega City) Auto/Apparel/Handicrafts/Jewellery SEZ Medical tourism – Health city & super specialty hospitals Universities (Jyoti & Manipal) & education city Meetings/Incentives/Conventions/Exhibitions (MICE) Tourism – JDA’s convention center  Multi purpose conference hall of minimum 2000 people capacity  Hi-tech convention hall for 750 people capacity

Land

Land: 15 bigha = 45375 sq. yds. (agriculture status)
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100 ft. touching highway 100+600 ft. visible from highway

Permissions & approval: Rajasthan tourism policy 2007
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No CLU charges for tourism project (saving of 400 Rs./sq. yd.) No development charges (saving of 200 Rs./sq. yd.)

Location: Mahalan – 22nd milestone from Jaipur on main 6 laned Jaipur-Ajmer expressway (NH8)
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Busiest highway in India On right hand while going from Jaipur to Ajmer

Demand and supply

Highway amenities: No good highway amenities on entire highway patch  Village resort: Chokhi dhani has become commercial & very expensive. There is a customer overflow as there is no place on weekends  Dhaba: Jaipurites like dhaba food a lot. One Sharma dhaba is very popular and its prices are truly 5 star! 

Clients
People traveling on highway More than 2 lakh people coming to live in vicinity & Jaipurites

Foreign & domestic tourists coming to Jaipur

Conferences and Marriages

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Toilets as good as in 5 star hotels Economical fixed menu thali for car drivers Fast food Prompt service Hygienic kitchen Take away facility of popular items Specialties of Jaipur

Key factors – Highway eatery
Ethnic AC Dhaba Actual feel of a dhaba Muddhas & khats Waiters in Punjabi uniform

Village

An opportunity to live in a village community
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Living and eating amongst villagers Drinking fresh cow milk and having fresh makhan Ladies getting water from well Bull doing actual agriculture Horse & camel riding Pottery maker making vessels Shopping at haat bazaar

3 sources of revenue
Highway amenities 5000 people each day Average spending : 40 Rs./person Rs. 7.2 crores/annum Profitability: 40% Net profit: 24 lakh/month Guests visiting village 1000 people/day 250 Rs. entry Rs. 9 crores/annum Profitability: 40% Net profit: 30 lakh /month Guests living in village 50 rooms in village 2000 Rs./night 60% occupancy Rs. 2.2 crores/annum Profitability: 40% 8.7 lakh/month

Revenues close to 18 crores/annum Profits close to 7.2 crores/annum i.e. 60 lakhs/month

Joint venture terms
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50-50% stake in the company Our equity initially: 6 cr. land Partner’s contribution: 4 crores
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2 cr. in development company 2 cr. for acquisition of our 25% equity

Extra cash (if required) to be raised by debt/equity against commercially converted 45375 sq. yd. land
6 cr. land (100% our Equity)

2 cr. to us and

2 cr. in company

50-50% equity in company

Key points
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Project of great name and fame Initial investment of 8 crores Income of 7-7.5 crores/annum Increasing income as traffic & population in the area increases Very unique property as highway land is too expensive now-a-days

Road map
Developing rooms Developing village

Construction of Highway amenities

Permissions

Layout and planning Signing a Join Venture agreement

Project timeline
Site inspection & signing JV agreement Layout development Approvals Construction of highway amenities Parking Toilets Dhaba & fast food restaurant Development of villas and village 15th day 16th – 30th day 90th – 120th day 270th – 300th day

400th – 450th day

Revenues to begin in 9 months

Thanks

Contact: info@jakon.in Madhur Singhal@9351393054 Ghanshyam Singhal@9314513675

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