Malpani Group plans aggressive expansion of Imagicaa with new theme parks

Mumbai: Sangamner, Maharashtra-based Malpani Group, a ₹3,000-crore diversified business house with interests in renewable energy, FMCG, amusement and water parks, real estate, and hotels, has outlined an aggressive expansion plan for Imagicaaworld Entertainment.

The group acquired Imagicaaworld in June 2022 after lenders decided to auction off the company owned by Bollywood film producer Manmohan Shetty’s Adlabs Entertainment.

One theme park every year for the next five years

The new owners aim to add one theme park every year for the next five years, said Jai Malpani, managing director of Imagicaaworld Entertainment, a listed company.

“We plan to add one new park every year for the next 5-8 years. These will include a mix of tier-1 and tier-2 cities. tier-1 will feature large parks, while tier-2 will have smaller parks, combining water and amusement features,” Malpani told Mint.

Malpani said that the cost of setting up a park ranges from ₹150 crore to ₹450 crore. “With a strong foothold in western India, we are now looking at central and northern India. The market has huge potential, and we currently have approval to raise ₹600 crore,” he said.

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Stock of Imagicaaworld Entertainment was up 6.6% at ₹83.82 on the BSE.

The Malpani Group, which opened India’s largest water park in Lonavala under the brand Wet’nJoy in 2005, began the process of acquiring the cash-strapped Imagicaa in 2019. However, it was only in June 2022 that an out-of-court settlement was reached with the lenders.

Since the acquisition, the company has invested an additional ₹25 crore in existing parks to add new slides and attractions, and will continue to innovate.

The privately held group has also consolidated its existing water parks—Wet’nJoy and Sai Teerth—under the Imagicaa brand this fiscal year, along with Surat’s Amaazia Water Park, which it acquired from the Rajgreen Group of Companies.

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“We now own 74% of Imagicaaworld Entertainment. From two parks—one amusement and one water park in Khopoli, near the Mumbai-Pune highway—the company now has seven operational parks, one Novotel hotel, and an 11-acre land parcel at the Sabarmati riverfront in Ahmedabad for developing a new park. We are also building a park in Indore, Madhya Pradesh,” Malpani added. “The capital expenditure for the Indore park is projected to be under ₹200 crore.”

With the consolidation of all the parks, the group now includes water parks, amusement parks, and a devotional park (Sai Teerth) all under one company.

“We are also open to acquiring properties that are not performing well or are distressed assets if they meet our criteria of quality and catchment potential. There are a few such theme parks we have identified,” Malpani added, declining to provide further details.

As part of the consolidation, Imagicaaworld will pay ₹630 crore to the Malpani Group over two-and-a-half years, after Wet’nJoy and other brands, originally part of the Malpani Group, were placed under Imagicaa.

Malpani said that the company aims for a revenue of ₹400 crore and an Ebitda of ₹175 crore in FY25, marking a 75% increase over FY24.

Going forward, the Malpani Group will also explore a public-private partnership (PPP) model, where state governments can offer incentives for setting up theme parks.

“We are exploring a public-private partnership (PPP) model. The state government can offer long-term leases at favourable prices, benefiting from anchor tenants like us," Malpani explained.

“By consolidating our assets, we’ve built a comprehensive portfolio that sets a benchmark for entertainment destinations in India,” he added. “Not only will we double our footfall through cross-park engagement, but we will also significantly increase revenue and profitability by activating cost synergies.”

The Malpani Group sees India’s changing economic landscape as a strong growth driver, with infrastructure development and rising discretionary spending. "Our 3C strategy—centered on urban clusters, catchment expansion, and connectivity—meets the shifting needs of our audience and drives sustained success," Malpani stated. "In today’s fast-paced world, we offer the perfect destination for families and friends to unwind and connect.”