Adventure Tourism in India

We have tried to analyze the adventure tourism market in India. This is a solution to the General Championship Case Study Competition of IIT Kharagpur where teams had to analyze the scopes and opportunities for an Adventure Sports Company

1. General Championship Technology- Case Study TEAM-9

2. Adventure Tourism, climbing new heights Tourism industry is one of the key players accounting for 10.2% of global GDP and accounts for one in every 1 out of 11 jobs Tourism Industry, in particular the Adventure Sports industry has seen tremendous growth. From $89 million to $236 million in 2013 it has seen a growth of 195%. In India it has market potential of INR 1800 crores and it is still growing. 173% growth in last 3 years with a increment of 42% travellers in Himalayas in particular is very optimistic results. Apart from traditional adventure sports like Trekking, Skiing, Rafting; other adventure sports like River Cruising and Microlite are also become popular very fast.

3. Changing customer trends, a promise of better future Growing Middle class in terms of populations, disposable income, customer confidence and spending is promising for almost every industry and recreational industry are in particular more benefitted from this growth in economy.

4. Expenditure of Tourist

5. Various government initiatives have helped Adventure Tourism and personal employed in this industry. Opening of new routes and infrastructure development like roads and airports have increased the influx of tourists on both domestic and foreign fronts.

6. Threats to the Adventure

7. Taking the Opportunity

8. Uniqueness of Our Product

9. Uniqueness of Our Product

10. Financial Plan Year Cash Flow(in Rs crore) Year 0 -4.5 Year 1 -1.5 Year 2 3.11 Year 3 3.27 Year 4 3.43 Year 5 3.68 Expense Cash(in crores) Equipment 3 Lease 0.3 Marketing 0.20 Training and Recruitment 1 Total 4.5 In Table 1, we have made a phase wise plan of expected Future Cash Flows. In Table 2, Expenses mentioned are the breakdown of the investment for the zero year and it also provides an idea about the future expenses Table 1 Table 2 Year 0

11. The Income Statement of the Company (All fig. in crores) Year 5 Year 4 Year 3 Year 2 Year 1 Revenue from Operations 7.37 6.86 6.28 6.2 Cost of Sales (1.81) (1.69) (1.62) (1.52) (0.40) Overheads (1.04) (0.97) (0.91) (0.85) (0.50) Other Income 1.74 1.68 1.61 1.55 Depreciation and Amortization (0.60) (0.60) (0.60) (0.60) (0.60) Profit/Loss before income tax 5.66 5.28 5.03 4.78 -1.50 Income Tax (1.98) (1.85) (1.76) (1.67) Profit/Loss after income tax 3.68 3.43 3.27 3.11 -1.50 The detailed income statement helps us to judge the direction of the growth of company. In case of some problems the deviation from the expected values will helps to take measures to increase revenue or decrease cost of sales.

12.   Common size ratio Current Assets 52.78% Non-Current Assets 47.21% Total Assets 100% Current Liabilities 51.20% Non-Current Liabilities 2.16% Total Liabilities 53.36% Net Assets 46.64% Total Equity 46.64% Expected Balance Sheet: At the end of 5 years, this is our expected Balance Sheet:

13. Thank You