Wonderla Holidays Begins Construction On 5th Theme Park In Chennai

Wonderla Holidays has officially commenced the construction of its fifth theme park in Chennai after a seven-year delay. The amusement park and resort company, headquartered in Bengaluru, had earlier signed an MoU with the Tamil Nadu government during the first edition of the Global Investors Meet (GIM) in September 2015, committing to invest Rs 500 crore in the Chennai project. In 2018, Wonderla acquired a 60-acre site on the Old Mahabalipuram Road (OMR) in Chennai.

However, progress on the project was hindered by disputes over the local body tax (LBT) imposed by the Tamil Nadu government.

Wonderla, known for its three existing amusement parks in Bengaluru, Hyderabad, and Kochi, began construction on its fourth park in Odisha in March, with completion expected within the next two years.

Ravikumar Chittilappilly, Managing Director of Wonderla Holidays, mentioned that the company is simultaneously working on two projects: Chennai and Odisha, ensuring that their capital expenditures are covered for the next two years.

The company had invested nearly Rs 100 crore in land in Chennai. However, Chittilappilly explained that they plan to adopt an asset-light approach moving forward by leasing land from state governments, similar to their approach in Odisha. This strategy is expected to reduce capital expenditures from Rs 350-400 crores to less than Rs 150 crores.

Chittilappilly also revealed that Punjab and Madhya Pradesh have shown interest in hosting a Wonderla project in their respective states. Furthermore, discussions are underway with Goa and potentially Gujarat for future initiatives.

Meanwhile, the shares of Wonderla Holidays reached a 52-week high in this weak market with huge volumes.