Pre-feasibility Study

INDOOR
AMUSEMENT
PARK
December 2022

The figures and financial projections are approximate due to fluctuations in

exchange rates, energy costs, and fuel prices etc. Users are advised to focus on
understanding essential elements such as production processes and capacities, space,
machinery, human resources, and raw material etc. requirements. Project
investment, operating costs, andrevenues can change daily. For accurate financial
calculations, utilize financial calculators on SMEDA’s website and consult financial
experts to stay current with market conditions.

Small and Medium Enterprises Development Authority

Ministry of Industries and Production
Government of Pakistan
Pre-Feasibility Study Indoor Amusement Park

Table of Contents
1. DISCLAIMER .................................................................................................. 5
2. EXECUTIVE SUMMARY ................................................................................. 6
3. INTRODUCTION TO SMEDA ......................................................................... 7
4. PURPOSE OF THE DOCUMENT ................................................................... 8
5. BRIEF DESCRIPTION OF PROJECT &products .......................................... 8
5.1. Kiddie Rides ................................................................................................. 9
5.2. Arcade Games ........................................................................................... 15
5.3. Bumper Cars .............................................................................................. 26
5.4. Trampoline Jumping .................................................................................. 27
5.5. Process Flow for Indoor Amusement Park ................................................. 28
5.6. Installed and Operational Capacities ......................................................... 29
6. CRITICAL FACTORS ................................................................................... 37
7. GEOGRAPHICAL POTENTIAL FOR INVESTMENT ................................... 37
8. POTENTIAL TARGET MARKETS/Customers ............................................ 37
9. PROJECT COST SUMMARY ....................................................................... 38
9.1. Initial Project Cost ...................................................................................... 39
9.1.1. Land................................................................................................................. 39
9.1.2. Building/ Infrastructure ................................................................................. 40
9.1.3. Machinery and Equipment ........................................................................... 41
9.1.4. Office Equipment ........................................................................................... 42
9.1.5. Tools & Equipment ........................................................................................ 43
9.1.6. Furniture and Fixture .................................................................................... 43
9.1.7. Vehicles .......................................................................................................... 44
9.1.8. Pre-Operating Costs ..................................................................................... 44
9.1.9. Security against Building .............................................................................. 44
9.2. Breakeven Analysis ................................................................................... 45
9.3. Revenue Generation .................................................................................. 45
9.4. Variable Cost Estimate .............................................................................. 47
9.5. Fixed Cost Estimate ................................................................................... 50
9.6. Financial Feasibility Analysis ..................................................................... 51
9.7. Financial Feasibility Analysis with 50% Debt ............................................. 51
9.8. Human Resource Requirement.................................................................. 52
10. CONTACT DETAILs ..................................................................................... 53
11. USEFUL LINKS ............................................................................................ 54
12. ANNEXURES ................................................................................................ 56
12.1. Income Statement ...................................................................................... 56

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12.2. Balance Sheet............................................................................................ 57

12.3. Cash Flow Statement ................................................................................. 58
13. KEY ASSUMPTIONS .................................................................................... 59
13.1. Operating Cost Assumptions ..................................................................... 59
13.2. Revenue Assumptions ............................................................................... 59
13.3. Financial Assumptions ............................................................................... 59
13.4. Debt Related Assumptions......................................................................... 60
13.5. Cash Flow Assumptions ............................................................................ 60

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Table of Tables
Table 1: Annual Operational Minutes................................................................................. 31
Table 2: Service Capacity of Kiddie Rides ........................................................................ 31
Table 3: Service Capacity of Arcade Games .................................................................... 33
Table 4: Service Capacity of Bumper Cars ....................................................................... 35
Table 5: Service Capacity of Trampoline Jumping .......................................................... 36
Table 6: Initial Project Cost estimates................................................................................ 39
Table 7: Breakup of Space Requirement .......................................................................... 39
Table 8: Building Renovation Cost ..................................................................................... 40
Table 9: Machinery Cost Details ......................................................................................... 41
Table 10: Office Equipment Cost Details .......................................................................... 42
Table 11: Tools & Equipment .............................................................................................. 43
Table 12: Furniture & Fixtures Cost Details ...................................................................... 43
Table 13: Office Vehicle Cost Details ................................................................................ 44
Table 14: Pre-Operating Cost Details ................................................................................ 44
Table 15: Security against Building .................................................................................... 44
Table 16: Breakeven Analysis ............................................................................................. 45
Table 17: Revenue – Kiddie Rides ..................................................................................... 45
Table 18: Revenue – Arcade Games................................................................................. 46
Table 19: Revenue – Bumper Cars .................................................................................... 47
Table 20: Revenue – Trampoline Jumping ....................................................................... 47
Table 21: Rental Income Refreshment Area .................................................................... 47
Table 22: Variable Cost Estimate ....................................................................................... 47
Table 23: Direct Labor .......................................................................................................... 48
Table 24: Generator Diesel Cost ........................................................................................ 49
Table 25: Variable Cost Assumption .................................................................................. 50
Table 26: Fixed Cost Estimate ............................................................................................ 50
Table 27: Management Staff ............................................................................................... 50
Table 28: Fixed Cost Assumptions..................................................................................... 51
Table 29: Financial Feasibility Analysis ............................................................................. 51
Table 30: Financial Feasibility Analysis with 50% Debt .................................................. 51
Table 31: Human Resource................................................................................................. 52
Table 32: Contact Details ..................................................................................................... 53
Table 33: Useful Links .......................................................................................................... 54
Table 34: Operating Cost Assumptions ............................................................................. 59
Table 35: Revenue Assumptions ........................................................................................ 59
Table 36: Financial Assumptions ........................................................................................ 59
Table 37: Debt Related Assumption .................................................................................. 60
Table 38: Cash Flow Assumptions ..................................................................................... 60

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Table of Figures
Figure 1: Motor Kiddie Ride ................................................................................................. 10
Figure 2: Horse Racing Kiddie Ride ................................................................................... 10
Figure 3: Rotating Cup Kiddie Ride .................................................................................... 11
Figure 4: Swing Car Kiddie Ride......................................................................................... 11
Figure 5: Jeep Swing Kiddie Ride ...................................................................................... 12
Figure 6: London Bus Kiddie Ride ...................................................................................... 12
Figure 7: Kiddie Electric Train ............................................................................................. 13
Figure 8: 3 Player Mini & 6 Player Carousel Kiddie Ride ............................................... 14
Figure 9: Space Airship Kiddie Ride .................................................................................. 14
Figure 10: Pirate Ship Kiddie Ride ..................................................................................... 15
Figure 11: Subway Parkour Racing Game ....................................................................... 16
Figure 12: 2-Seat Egg VR Game ........................................................................................ 17
Figure 13: Candy Crane Claw Game ................................................................................. 17
Figure 14: Adult Car Racing Game .................................................................................... 18
Figure 15: Clown Hitting Game ........................................................................................... 19
Figure 16: 2-Player Hoop Shootout Basketball Game .................................................... 19
Figure 17: Moto GP Racing Simulator Motorcycle Game............................................... 20
Figure 18: Bowling Ball Game............................................................................................. 21
Figure 19: Tekken 7 Cabinet Game ................................................................................... 21
Figure 20: Pac Man Game................................................................................................... 22
Figure 21: Donkey Kong Game .......................................................................................... 22
Figure 22: Hammer Punch Game....................................................................................... 23
Figure 23: Electronic Dart Board Game ............................................................................ 24
Figure 24: Gun Shooting Simulator Game ........................................................................ 25
Figure 25: Boxing Game ...................................................................................................... 25
Figure 26: Air Hockey Table Game .................................................................................... 26
Figure 27: Bumper Cars ....................................................................................................... 27
Figure 28: Trampoline .......................................................................................................... 28
Figure 29: Process Flow for Indoor Amusement Park .................................................... 28

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1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a general
idea and information on the said matter. Although, the material included in this
document is based on data/information gathered from various reliable sources;
however, it is based upon certain assumptions, which may differ from case to case.
The information has been provided on, as is where is basis without any warranties or
assertions as to the correctness or soundness thereof. Although, due care and
diligence has been taken to compile this document, the contained information may
vary due to any change in any of the concerned factors, and the actual results may
differ substantially from the presented information. SMEDA, its employees or agents
do not assume any liability for any financial or other loss resulting from this
memorandum in consequence of undertaking this activity. The contained information
does not preclude any further professional advice to be obtained by the user. The
prospective user of this memorandum is encouraged to carry out additional diligence
and gather any information which is necessary for making an informed decision,
including taking professional advice from a qualified consultant/technical expert before
taking any decision to act upon the information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk

Document Control
Document No. 289
Prepared by SMEDA-Punjab
Preparation Date December 2022
For information [email protected]

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2. EXECUTIVE SUMMARY
Throughout history, humans have always craved for a sense of thrill and a liking for
entertainment and amusement. Means of amusement have continuously evolved, as
per the entertainment needs of people living through different periods of the history.
The concept of the amusement park first emerged in Europe in 1583, when in,
Denmark, a pleasure garden was opened with live entertainment, fireworks, dancing,
games and some early rides. In 18th century, more pleasure gardens were opened in
different parts of the world as a mean of entertainment for people. With the passage
of time, the pleasure garden concept declined in popularity and the current forms of
amusement parks started gaining popularity. The amusement park industry gained
huge popularity in the early 1900s, when hundreds of theme parks were established
around the world.
In Pakistan, Aladdin Park was the first amusement park which was established in
Karachi in 1995. However, joyland was the oldest recreational park that was
established in Lahore in 1977.
Visiting amusement is fun and helps release stress. It helps increase socializing and
enhance one’s mood. Such activities lead to release of adrenaline and endorphins in
the body, which nourishes positive emotions and gives a natural high; like the one gets
from strenuous physical exercise.
This “Pre-feasibility Document” provides details for setting up a “Indoor Amusement
Park” which features various attractions, such as rides and games for entertainment
of general public. The unit is proposed to be ideally located in metropolitan cities like
Karachi, Lahore, Islamabad, and other cities with sizeable shares of affluent
population, such as Faisalabad, Rawalpindi, Peshawar, Quetta, Hyderabad, Multan,
Gujranwala, Sialkot, Mardan, Bahawalpur, Sukkur, Sahiwal, Gujrat, etc. These cities
are suitable due to the presence of large urban populations with good average per
capita income to make such activities affordable for them. These cities also offer
availability of required resources, good infrastructure and qualified and skilled
manpower.
The proposed indoor amusement park will operate in a single shift of 12 hours a day
(12:00 noon to 12:00 midnight) in a day for 330 days in a year. Further, it is assumed
that the operational capacity utilization of the proposed indoor amusement park will be
60% during the first year of its operations. The capacity will increase at the rate of 5%
per annum to reach the maximum capacity of 90% in the 7th operational year. The
indoor amusement park will provide four different kinds of amusement and
entertainment services, including kiddie rides, arcade game, bumper cars and
trampoline jumping. Capacity of such businesses is defined in term of the number of
rides which depend on the times allocated per ride. People have to buy tokens to avail
the rides, with one token required for each ride. Thus the capacity can be expressed
in terms of number of tokens. As per the assumptions of the project, at the maximum
capacity, the project can offer 313,632 kiddie rides, 386,496 arcade games turns,
95,040 bumper car rides and 63,360 trampoline jumping turns per annum.

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The initial year service capacity of the proposed indoor amusement park is assumed
to be 60% which translate into 188,179 kiddie rides, 231,899 arcade games turns,
57,024 bumper car rides and 38,016 trampoline jumping runs per year.
The proposed indoor amusement park will be set up in a rented building with an area
of 4,050 square feet (18 Marla). The proposed business requires a total investment of
PKR 25.57 million. This includes capital investment of PKR 24.32 million and working
capital of PKR 1.26 million. The project will be established using 100% equity
financing. The Net Present Value (NPV) of project is PKR 47.28 million with an Internal
Rate of Return (IRR) of 62% and a Payback period of 2.02 years. Further, this project
is expected to generate Gross Annual Revenues of PKR 38.85 million during 1st year,
Gross Profit (GP) ratio ranging from 61% to 76% and Net Profit (NP) ratio ranging from
18% to 38% during the projection period of ten years. The proposed project will
achieve its estimated breakeven point at capacity of 38% (326,238 tokens) with annual
breakeven revenue of PKR 24.61 million.
The proposed project may also be established using leveraged financing. At 50%
financing at a cost of KIBOR+3%, the proposed business provides Net Present Value
(NPV) of PKR 56.23 million, Internal Rate of Return (IRR) of 61% and Payback period
of 2.10 years. Further, this project is expected to generate Net Profit (NP) ratio ranging
from 18% to 38% during the projection period of ten years. The proposed project will
achieve its estimated breakeven point at capacity of 38% (329,026 tokens) with
breakeven revenue of PKR 24.82 million.
The proposed project will provide employment opportunities to 28 people, working in
a single shift of 12 hours each during 330 days in a year. High return on investment
and steady growth of business is expected to the entrepreneur having some prior
experience or education in the related field of business. The legal business status of
this project is proposed as “Sole Proprietorship” or “Partnership “concern.

3. INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was established
in October 1998 with the objective to provide fresh impetus to the economy through
development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the national
income, through development of the SME sector, by helping increase the number,
scale and competitiveness of SMEs", SMEDA has carried out ‘sectorial research’ to
identify policy, access to finance, business development services, strategic initiatives
and institutional collaboration and networking initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment has
been a successful hallmark of SME facilitation by SMEDA.
Concurrent to the prefeasibility studies, a broad spectrum of business development
services is also offered to the SMEs by SMEDA. These services include identification

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of experts and consultants and delivery of need-based capacity building programs of

different types in addition to business guidance through help desk services.
National Business Development Program for SMEs (NBDP) is a project of SMEDA,
funded through Public Sector Development Program of Government of Pakistan.
The NBDP envisages provision of handholding support / business development
services to SMEs to promote business startup, improvement of efficiencies in existing
SME value chains to make them globally competitive and provide conducive business
environment through evidence-based policy-assistance to the Government of
Pakistan. The Project is objectively designed to support SMEDA's capacity of
providing an effective handholding to SMEs. The proposed program aimed at
facilitating around 314,000 SME beneficiaries over a period of five years.

4. PURPOSE OF THE DOCUMENT

The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs
in project identification for investment. The project pre-feasibility may form the basis
of an important investment decision and in order to serve this objective, the
document/study covers various aspects of project concept development, start-up, and
production, marketing, finance and business management.
The purpose of this document is to facilitate potential investors in setting up a “Indoor
Amusement Park” by providing a general understanding of the business with the
intention of supporting them in investment decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes such
reports reveal certain thumb rules; best practices developed by existing enterprises by
trial and error, and certain industrial norms that become a guiding source regarding
various aspects of business setup and its successful management.
Apart from carefully studying the whole document one must consider critical aspects
provided later on, which form the basis of any investment decision.

5. BRIEF DESCRIPTION OF PROJECT &PRODUCTS

An amusement park is a place that features various attractions, such as rides and
games, as well as other events for entertainment purposes. Unlike temporary and
mobile funfairs and carnivals, amusement parks are established at a fixed place and
built for a permanent and long-lasting operation. Just like city parks and playgrounds,
amusement parks also offer attractions to cater to the needs of people from diverse
age groups.
Amusement parks fall under Tourism Sector, which has been given the status of
Industry by the Government of Pakistan in the recent past. The amusement park is a
facility that provides physical entertainment to people by offering an exciting and fun

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atmosphere. The rides' layout, the buildings' decor, and the music played in the
amusement park all contribute to building this atmosphere.
An indoor amusement park is an attraction in which the rides and games are installed
indoors. This may be set up in a large building which allows the visitors to enjoy the
amusement park during all kinds of weathers and all seasons of the year. For families
or people of all ages, an indoor amusement park can be a great way to spend some
time in a fun environment. Indoor amusement park does not actually feature any of the
larger rides found at traditional outdoor amusement parks, and have smaller games
and amusement facilities. Video games are also common in such indoor amusement
parks. These parks may be a less expensive option for the people since they usually
typically do not charge an admission ticket, and instead require tickets to play
individual games. The main appeal of an indoor amusement park over an outdoor one
is a comfortable environment and pleasant condition for every single day throughout
the year.
In the proposed project, the refreshment area is outsourced within the indoor
amusement park premises and the park charges rent from the owner of the
refreshment area.
In the proposed project of indoor amusement park, business will provide the following
four kinds of entertainment facilities:
1. Kiddie Rides
2. Arcade Games
3. Bumper Cars
4. Trampoline Jumping
Details of each of these facilities are given below:
5.1. Kiddie Rides
A kiddie ride is a coin-operated amusement ride for young children. Kiddie rides are
commonly seen in amusement parks, arcades, malls, hotels’ game rooms, outside
supermarkets and departmental stores. Less commonly, these may also appear in
other venues such as restaurants, food courts, grocery shops and auto dealerships.
When activated by a coin, a kiddie ride entertains the rider with motion, depending on
the ride type. Most rides are accompanied by sounds and music, and some also
feature flashing lights, pedals and buttons. The term "kiddie ride" can also be used for
an amusement park ride that mainly fulfills of the interests of the young children. In
some kiddie rides, the children may also use their arms and legs to push, pull, pedal
and kick. Just like riding a kid’s bike, they learn how to control his/her body
movements. They also learn to steer, grasp and grip. They are able to improve on their
gross motor skills while enjoying their ride-on toy. Most 5-year-olds are mature enough
to handle kiddie rides, but market pressure has brought height limits down so low on
some of these machines that children who cannot yet talk and have barely learned to
walk are also allowed to ride alone.

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In the proposed indoor amusement park, the category of kiddie rides includes 15
different types of ride for entertainment of children. These are described as follows:

Motor Kiddie Ride

Motor kiddie ride is a luxury and popular kiddie ride game machine which has popular
music and colored lights, with 5 game scenes. It is suitable for children over three
years of age. From this video and game show, along with colored lights, the children
can also learn while enjoying the game. It has ABS1 quality material and has safety
belt to protect the young riders. It requires an electric power of 180 watts. Figure 1
shows motor kiddie ride.
Figure 1: Motor Kiddie Ride

Horse Racing Kiddie Ride

Horse Racing Kiddie ride has a 17-inch-high-definition liquid display screen with 3D
colorful scenes. There is a language learning software with the function of voice and
video teaching. This ride has 8 optional and changeable little games. Seven colors
LED shining functions. It uses an electric power of 400 watts. Figure 2 shows Horse
Racing Kiddie ride.
Figure 2: Horse Racing Kiddie Ride

1
ABS or Acrylonitrile Butadiene Styrene is a common thermoplastic polymer.

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Rotating Cup Kiddie Ride

Rotating Cup Kiddie Ride is a child theme machine, equipped with rich colors and a
variety of interactive game modes. There is a proactive ring, safety belts and safety
doors around the machine to protect the children. It has built-in exquisite toy display
with LED lighting effects to create machine theme for children. It has a seating
arrangement of 2 persons and has an electric consumption of 100 watts. Figure 3
shows Rotating Cup Kiddie ride.
Figure 3: Rotating Cup Kiddie Ride

Swing Car Kiddie Ride

Swing Car Kiddie Ride is a rocking car the body of which is designed in cartoon style.
The body color is warm and eye-catching. The front of the body is a pair of cute smiling
eyes, which makes people feel good at first glance. A pair of buttons act as ears. The
children sit in it, swing up and down with the music, see interesting pictures on the big
screen, which makes them happy. This ride has large game screen, body light flash
effect, 3D graphics and gameplay and a racer design. It has an electric consumption
of 180 watts. Figure 4 shows swing car kiddie ride.
Figure 4: Swing Car Kiddie Ride

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Jeep Swing Kiddie Ride

Jeep swing kiddie ride is an innovative design of kiddie ride with 3D HD screen. This
jeep comes with an interactive sound package and spectacular lighting effects to
please children. It has two dimensional up and down movements. Two people can sit
in it and the game time of this ride is adjustable. With popular music and dynamic
games, it become children's favorite. It requires an electric power of 400 watts. Figure
5 shows Jeep Swing Kiddie ride.
Figure 5: Jeep Swing Kiddie Ride

London Bus Kiddie Ride

London Bus Kiddie Ride is a red color bus kiddie rides, seats up to 3 riders, for two
passenger’s seat and one driver seat, operated with one steering wheel. It is a popular
family ride featuring in schoolchildren footprint, interactive sound effect and eye-
catching lights. It plays fun music to keep kids entertained and features an interactive
game where kids can take control of the toy bus. The electric consumption of this ride
is 135 watts. Figure 6 shows London Bus Kiddie ride.
Figure 6: London Bus Kiddie Ride

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Kiddie Electric Train

Kiddie electric trains have 4, 6, 8, 12, 14 or even more seats with different designs of
train carriages. The electric riding trains imitate the real steam trains and are powered
by electricity. Small electric trains are environment friendly, safe, less noisy and energy
saving. The proposed kiddie electric train has 6 seats having three train carriages.
There is also a mini track for train. It has an electric consumption of 280 watts. Figure
7 shows Kiddie Electric Train.
Figure 7: Kiddie Electric Train

3 Player Mini & 6 Player Carousel Kiddie Ride

Carousel kiddie ride is a classic amusement equipment. The appearance,

lights and wonderful music are the attractive features of carousel. When
device turns the wheel up and down over time. It feels like riding on a real
Carousel has two modes of transmission up drive and down drive. Carousel
8, 12, 14 or even more horses (players) with different design. The proposed
use 3 players mini carousel kiddie ride with an electric consumption of 110
players carousel kiddie ride with an electric consumption of 200 watt.

Figure 8 shows 3 player mini & 6 player carousel kiddie ride.

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Figure 8: 3 Player Mini & 6 Player Carousel Kiddie Ride

Space Airship Kiddie Ride

Space airship kiddie ride is widely popular in children. It has dynamic music with LED
energy saving lights which gives a rich feeling. It has surround type security desk and
chair which provides the child a comfortable and safe driving environment. Double
flashing headlights, with energy saving lamp, are very colorful and attractive. Stirring
wheel high simulation design can upgrade the game experience. Safety seat use high
quality ABS material, wear resistant and crashworthy. It requires an electric power of
100 watts. Figure 9 shows Space Airship Kiddie ride.

Figure 9: Space Airship Kiddie Ride

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Pirate Ship Kiddie Ride

Pirate Ship Kiddie ride, with 8 push buttons controlling, is a unique boat-shaped kiddie
ride game machine. It is different from a regular kiddie ride because it is not only the
funny ride but also has with 8 push buttons to control mini game with animals. This
kiddie ride is a beautiful and cartoon boat shape, and the console designs a steering
and 8 push buttons, corresponding to 8 different animals. It features with the motion
platform from where the player enjoys the interesting and exciting kiddie ride and a
press button to interact with the animated animals. The child sits on the seat, fastens
the seat belt, starts the game, and the motion platform starts working and the boat
begins to swing. Player presses the buttons on the console to make the animal move
up and down, each button corresponding to one animal, and different animal sounds
add to the fun atmosphere. It requires an electric power of 100 watts. Figure 10 shows
Pirate Ship Kiddie ride.
Figure 10: Pirate Ship Kiddie Ride

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5.2. Arcade Games

An arcade game is a gaming machine typically found in public places like malls,
restaurants, amusement arcades and is usually coin operated. An arcade video game
takes player’s input from its controls, processes it through electrical or computerized
components, and displays the output on an electronic monitor or similar display. Most
arcade video games are housed in an arcade cabinet, and located in amusement
arcades, alongside other kinds of arcade games. Arcade games often have short
levels, which increase in difficulty with simple and intuitive controls. Arcade games
boost decision making and multi-tasking abilities. Much of the time as a player, both
hands are busy working, which creates brain activity, and helps in developing decision
making skills. No one under 8 years is permitted to play arcade games.
In the proposed indoor amusement park, the category of arcade game includes 25
different types of machines for entertainment. These are described as follows:
Subway Parkour Racing Game
Subway Parkour Racing game is played on an electrical machine, which contains
screen and works like a video game. The player has to choose the game mode for
initiating the game. With the help of installed joy stick and buttons, the machine and
game can be controlled. It has an electric power of 250 watts. Figure 11 shows Subway
parkour Racing game.
Figure 11: Subway Parkour Racing Game

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2-Seat Egg VR Game

This machine usually contains two electrical motions and VR glasses.2
chairs and VR glasses are used to play the game. The player sits in the chair
glasses to watch the video in 3D. Chair also simulates according to video
the same feeling, as the person is actually inside the video game. It has an
power of 2,500 watts.

Figure 12 shows 2-Seat Egg VR game.

Figure 12: 2-Seat Egg VR Game

Candy Crane Claw Game

It is a machine which provides facility of playing a game of picking candies from inside
the machine. The jaw of the small bucket on the top of the crane sways downward,
closes automatically when it touches the candies, starts to rise, and then puts the
grabbed dessert into a recoverable chute. In this way, the operation process of the

2
(Virtual Reality headset/glasses) A head-worn apparatus that completely covers the eyes for an immersive 3D
experience. A virtual reality headset is a head-mounted device that provides virtual reality for the wearer. VR
headsets are widely used with VR video games.

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claw crane machine is completed. It has an electricity consumption of 250 watts.

Figure 13 shows candy crane claw game.
Figure 13: Candy Crane Claw Game

Adult Car Racing Game

Adult Car Racing gaming machine is an electrical machine, which contains screen and
works like a video game to play car racing game. Initially, the person has to choose
the game mode and starts playing the game by using installed steering, gear and
buttons. It also contains chair a seat for the player, which gives feeling of a driving seat
of real car. It has an electric consumption of 500 watts Figure 14 shows Adult Car
Racing game.
Figure 14: Adult Car Racing Game

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Clown Hitting Game

Clown hitting game is one of the most popular games. This game is perfect for
of all ages and was designed to allow two players to play side by side or
against each other. Players toss balls at the different sized clowns for points,
certain clowns adds bonus points as the players attempt to hit the interactive
bonus. As the players successfully knock down the clowns, a mechanical arm
clowns back up after being hit, creating a truly interactive, and family
toss game. This gaming device features a life-like carnival canopy top,
carnival clowns, flashing LEDs and an optional deluxe bonus marquee that
mounted between 2 units. Just like walking the indoor amusement park, clown
game incorporates a fun and quirky carnie voice that attracts and engages and
encourages players of all ages. It requires an electric power of 200 watts.

Figure 15 shows Clown Hitting game.

Figure 15: Clown Hitting Game

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2-Player Hoop Shootout Basketball Game

The aim of this game is to shoot as many hoops as possible and this eye-catching
machine is designed to offer maximum interactivity and fun. The Basketball machine
consists of two raised sides to keep the ball in play. Players shoot the ball through the
hoop; some games also cause the hoop to move for more excitement and fast-paced
action. An LED scoreboard keeps track of progress, and the player must keep shooting
before the time counter reaches zero. If the player achieves a high enough score, he
advances to the next level of the game. It requires an electric power of 200 watts.
Figure 16 shows a 2-Player Hoop Shootout Basketball game.
Figure 16: 2-Player Hoop Shootout Basketball Game

Moto GP Racing Simulator Motorcycle Game

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Pre-Feasibility Study Indoor Amusement Park

A racing simulator takes the idea of driving a bike. Designed to replicate real world
physics variables, such as tire grip, traction, suspension geometry, aerodynamics and
more, a simulator creates the most accurate representation of driving dynamics. This
is an electrical gaming machine which contains simulating seat just like that of a bike
for the sitting of a gamer and a screen, through which player can play and control the
game. There are different verities of game. Driving simulators places the driver in an
artificial environment, believed to be a valid substitute for one or more aspects of actual
driving experience. It has an electrical consumption of 250 watts. Figure 17 shows
Moto GP Racing Simulator Motorcycle game.
Figure 17: Moto GP Racing Simulator Motorcycle Game

Bowling Ball Game

Bowling ball is an indoor arcade machine with 42 inch LCD The players have the option
to play single player and double player matches. This game is very exciting and the
player can play up to five levels. It has an electric consumption of 150 watts. Figure
18 shows Bowling Ball game.

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Figure 18: Bowling Ball Game

Tekken 7 Cabinet Game

Tekken 7 is a 3D action fighting arcade game. It is the latest sequel to the popular
fighting arcade game series Tekken, the 7th version Tekken series. Tekken 7 is with
the new systems called Rage Arts and Power Clash which relates to the health of
game characters when they compete. If the health value drops to a certain value, the
character becomes a state Enraged State. It increases their defense power and
releases Furious Art. In addition to jumping, squatting, forward and backward, the
game also allows left lateral and right lateral movements. It has an electric
consumption of 200 watts. Figure 19 shows Tekken 7 Cabinet game.
Figure 19: Tekken 7 Cabinet Game

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Pac Man Game

Pac Man is an action maze chase arcade game in which the player controls the
character through an enclosed maze. The objective of the game is to eat all of the dots
placed in the maze while avoiding four colored ghosts. It has an electric consumption
of 300 watts. Figure 20 shows Pac Man game.
Figure 20: Pac Man Game

Donkey Kong Game

Donkey kong is a 1981 arcade video game. As Mario game, the player runs and jumps
on platforms and climbs ladders to ascend a construction site and rescue Pauline from
the giant gorilla Donkey Kong. It is the first game in the Donkey Kong series as well
as Mario’s first appearance in an arcade game. It has an electric consumption of 100
watts. Figure 21 Donkey Kong game.
Figure 21: Donkey Kong Game

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Hammer Punch Game

A high striker, also known as a strength tester, or strongman game, is an attraction
used in funfairs, amusement parks, fundraisers and carnivals. It operates by utilizing
the lever where one end holds a puck attached to the tower and the other end is struck
by the person or contestant using a hammer or mallet. It has an electric consumption
of 150 watts. Figure 22 shows Hammer Punch game.
Figure 22: Hammer Punch Game

Electronic Dart Board Game

Darts or dart-throwing is a competitive sport in which two or more players bare-
handedly throw small sharp-pointed items known as darts at a round target known as
a dartboard. Points can be scored by hitting specific marked areas of the board.
Though a number of similar games using various boards and rules exist, the term
"darts" usually refers to a standardized game involving a specific board design and set
of rules. The most common objective is to reduce a fixed score, commonly 301 or 501,
to zero with the final dart landing in either the bullseye or a double segment to win.
Player sets the game and it automatically tracks the scoring according to the game is
playing. The game automatically records and calculates scores and show points
balance. It has an electric consumption of 20 watts. Figure 23 shows electronic dart
board game.

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Figure 23: Electronic Dart Board Game

Gun Shooting Simulator Game

Shooter arcade games are a subgenre of action games where the focus is almost
entirely on the defeat of the character's enemies using the weapons given to the
player. Usually, these weapons are firearms. common resource found in many shooter
games is ammunition, armor or health, or upgrades which augment the player
character's weapons. It has dynamic gun with two player design which is a good
simulation of shooting. It has a high quality high-definition LCD screen and metal firm
cabinet with beautiful LED lighting. It has 4 types of guns with different guns have
different killing ability. It has an electric consumption of 300 watts. Figure 24 shows
Gun Shooting Simulator game.

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Figure 24: Gun Shooting Simulator Game

Boxing Game

In this game, the players hold two boxing gloves and stand in the middle of a motion
sensing environment. The puncher has to punch the mechanism as hard as he can.
When punched, the bag is knocked back up into its tucked-away position, and the
force of the punch that puts it there is recorded and displayed as an electronic score.
It has an electric consumption of 250 watts. Figure 25 shows boxing game.
Figure 25: Boxing Game

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Air Hockey Table Game

Air hockey is one of the more competitive arcade games. Air hockey is a Pong-like
tabletop sport where two opposing players try to score goals against each other on a
low-friction table using two hand-held discs ("mallets") and a lightweight plastic puck.
Air Hockey pucks are discs made of Lexan Polycarbonate resin. Each air hockey table
is drilled symmetrically with tiny holes across the entire surface, creating an even and
frictionless playing field. Underneath the table, a fan blows air through these holes.
The air pressure is what keeps the puck floating, making it appear as though the puck
is levitating. Air hockey tables come with a digital scoreboard that keeps track of points.
It has an electric consumption of 460 watts. Figure 26 shows air hockey table game.
Figure 26: Air Hockey Table Game

5.3. Bumper Cars

Bumper cars are the generic names for a type of amusement ride consisting of multiple
small electrically powered cars, where bumper cars run on electric batteries. These
new bumper cars avoid the requirement of conductive floor/ceiling of the traditional
bumper car setup. These are easy to move to other places, easy to maintain and had
a remote control unlike the traditional bumper car setup which are operated in a
protected area, require key management of dedicated control cabinet and a stronger
power. These are for the kids of 2-5 years of age. The car has a parental speed control
feature. Riding in these cars teaches kids about collaboration. There are flashing lights
and a Bluetooth music option. Back support is included to keep kids secure. Bumper
cars arrive fully assembled. With a ring of lights surrounding the frame, this car looks
beautiful. In the proposed indoor amusement park project, the category of bumper cars

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includes eight bumper cars. The proposed project uses two kinds of bumper cars, one
is mini bumper car which has an electric consumption of 50 watts and the other one
the big bumper car which has an electric consumption of 350 watts. Figure 27 shows
bumper cars.
Figure 27: Bumper Cars

5.4. Trampoline Jumping

Rebounding is a type of aerobic exercise that is performed while jumping on a
trampoline. Jumps can be fast or slow and can be mixed with rest or aerobic
Rebounding can help work the muscles in the legs, increase once endurance
strengthen bones. Light bouncing and rebounding can help kids tune their
improve their coordination in different ways. Trampolines can also help
posture and balance of body, giving more control of bodies and helping
physical limits and possibilities. Most people believe that it is the fabric that
a person into the air, but actually, it is the system of springs attached to the
When a person jumps on a trampoline, his weight forces the springs to coil
This kinetic energy of jumping is applied to the springs, forcing the trampoline
downward. The proposed project will use trampoline (14 Feet) with net which
for 4-5 kids to have fun at the same time. It is important to note that playing on
trampoline can be dangerous and may cause injuries. So it is important to
safety advice and children should be at least six year of age before they
allowed to use a trampoline. In the proposed indoor amusement park, the
trampoline jumping includes two trampolines.

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Figure 28 shows trampoline.

Figure 28: Trampoline

5.5. Process Flow for Indoor Amusement Park

A general process flow of an indoor amusement park is shown in Figure 29.
Figure 29: Process Flow for Indoor Amusement Park

Procurment Installation of Test

of Machines Machines Operations

Customer Sale of
Payment
Reception Tokens

Brief description of process flow is as follows:

Procurement of Machines
All the gaming machines, to be used in the four different kinds of amusement and
entertainment facilities will be imported. In Pakistan, machines are commonly imported
from USA, UK, China, Japan and Taiwan. These machines are procured from trusted
suppliers having a good reputation of supplying quality products at competitive prices.

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Installation of Machines
After procurement of machines, the engineers and technicians will do the installation
and commissioning of the machines. Usually, the imported machines are ready for
operations after unpacking and the only requirement is to put the machine in place
and provide electric connection.
Test Operations
Once the machines are installed, the engineers and technicians carry out test
operations to see that the machines operate efficiently as per the specifications. All
the features of machines are checked to ensure that they work properly. Safety
features of the machines are especially chcked to ensure that the customers remain
protected from any accidient during the use of those machines.
Customer Reception
Once the technical team is satisfied with the machines’ operations, the park is opened
for the customers. The customer enters the park after fulfilling necessary protocols
(luggage scanning, sanitizing, etc. and chooses the amusement facility she/he wants
to avail on the basis of her/his interest and guided to ticket counter.
Sale of Tokens
Customer comes to token provider counter where the counter staff will provide token
of the specific ride/game to the customer for the specified time during which the
customer will enjoy the ride/game.
Payment
Customer make the payment of game token on cash basis. Token charges for playing
different games are different. For playing each additional game, customer has to
purchase additional tokens.
Maintenance
During the routine operations of the park, the engineers and technicians regularly carry
out the preventive and breakdown maintenance of the machines to ensure that they
remain in efficient working condition. In case of a fault in any machine, it is resolved
on timely basis to avoid any machine downtime.
5.6. Installed and Operational Capacities
The proposed indoor amusement park operates in a single shift of 12 hours a day
(12:00 noon to 12:00 midnight) in a day for 330 days in a year. The park offers four
different kinds of amusement and entertainment services, including kiddie rides,
arcade game, bumper cars and trampoline jumping. Capacity of such businesses is
defined in term of the number of rides which depend on the times allocated per ride.
The total available time also includes a waiting time which is the time between the
completion of a ride/game and the start of the next ride/game. That waiting time has
to be subtracted from the total available time. A waiting time of 5 minutes for kiddie
rides and arcade games, and 10 minutes for bumper cars and trampoline jumping has
been assumed for the purpose of the calculations.

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People have to buy tokens to avail the rides, with one token required for each ride.
Thus the capacity can be expressed in terms of number of tokens. As per the
assumptions of the project, at the maximum capacity, the project offers 313,632 kiddie
rides, 386,496 arcade games turns, 95,040 bumper car rides and 63,360 trampoline
jumping turns per annum.
It is further assumed that the operational capacity utilization for the indoor amusement
park is 60% during the first year of its operations. The capacity will increase at the rate
of 5% per annum attaining a capacity of maximum of 90% of its total service capacity
during the projected period of 7 years.
The initial year service capacity of the proposed indoor amusement park at 60%
translates into 188,179 kiddie rides, 231,899 arcade games turns, 57,024 bumper car
rides and 38,016 trampoline jumping turns per year.
Table 1, Table 2,
Table 3,

Table 4 and Table 5 shows service capacity calculations of the proposed indoor
amusement park.

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Table 1: Annual Operational Minutes

Working Days Working Hours Per Day Annual Operational Minutes

330 12 237,600

Table 2: Service Capacity of Kiddie Rides

Total
Annual Time
Maxiumu Annual Annual
Annual Operation Specified Wait Time Specified m No. of No. of No. of
Particular Operation No. of al Minutes Time Per Per Game Per game Players/T Token Token
al Minutes Machines for Game (Minutes) in one okens per Sold Sold
@100% Machine (Minutes)
token Game @100% @60%
@100%
(Minutes)

Motor
Kiddie 1 237,600 15 5 20 1 11,880 7,128
Ride

Horse 15 5 20
Racing
237,600 2 475,200 1 23,760 14,256
Kiddie
Ride

Pirate Ship 15 5 20
Kiddie 2 475,200 1 23,760 14,256
Ride

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Rotating 15 5 20
Cup Kiddie 1 237,600 2 23,760 14,256
Ride

Swing Car 15 5 20
Kiddie 1 237,600 1 11,880 7,128
Ride

Space
Airship
1 237,600 20 5 25 1 9,504 5,702
Kiddie
Ride

Jeep 20 5 25
Swing
2 475,200 2 38,016 22,810
Kiddie
Ride

London 20 5 25
Bus Kiddie 1 237,600 3 28,512 17,107
Ride

Kiddie
Electric 1 237,600 25 30 6 47,520 28,512
5
Train

3 Player 25 5 30
Mini
Carousel 2 475,200 3 47,520 28,512
Kiddie
Ride

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6 Player 25 5 30
Carousel
1 237,600 6 47,520 28,512
Kiddie
Ride

Total 15 3,564,000 313,632 188,179

Table 3: Service Capacity of Arcade Games

Total
Time
Annual Specifi Wait Maxium
Specifi
Annual Operatio ed Time um No. Annual Annual
ed Per
Operatio No. of nal Time Per of No. of No. of
Particular nal Machin Minutes Per game Players/ Token Token
Game
Minutes es for Game in one Tokens Sold Sold
(Minut
@100% Machine (Minut token per @100% @60%
@100% es) e) Game
(Minut
es)

Subway Parkour Racing Game 2 475,200 20 5 25 1 19,008 11,405

Tekken 7 Cabinet Game 2 475,200 20 5 25 2 38,016 22,810

Pac Man Game 237,600 1 237,600 20 5 25 1 9,504 5,702

Donkey Kong Game 1 237,600 20 5 25 1 9,504 5,702

Gun Shooting Simulator Game 2 475,200 20 5 25 2 38,016 22,810

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2 Player Hoop Shootout

1 237,600 20 5 25 2 19,008 11,405
Basketball Game

Bowling Ball Game 2 475,200 20 5 25 2 38,016 22,810

Air Hockey Table Game 2 475,200 20 5 25 2 38,016 22,810

2 Seat Egg VR Game 1 237,600 20 5 25 2 19,008 11,405

Adult Car Racing Game 1 237,600 20 5 25 1 9,504 5,702

Moto Gp Simulator Motorcycle

4 950,400 20 5 25 1 38,016 22,810
RaceGame

Candy Crane Claw Game 2 475,200 10 5 15 1 31,680 19,008

Clown Hitting Game 1 237,600 10 5 15 2 31,680 19,008

Hammer Punch Game 1 237,600 10 5 15 1 15,840 9,504

Electronic Dart Board Game 1 237,600 10 5 15 1 15,840 9,504

Boxing Game 1 237,600 10 5 15 1 15,840 9,504

Total 25 5,940,000 386,496 231,899

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Table 4: Service Capacity of Bumper Cars

Total Time
Maxiumu
Annual Wait Specified Annual Annual
Annual Specified m No. of
Operational Time Per Per game No. of No. of
Particular Operationa No. of Time Per Players/
Minutes for Game in one Token Token
l Minutes Facilities Game Tokens
Facility Sold Sold
@100% (Minutes) (Minutes) token per
@100% @100% @60%
(Minutes) Game

Bumper
Electric Car 4 950,400 20 10 30 2 63,360 38,016
Ride
237,600
Mini Bumper
Electric Car 4 950,400 20 10 30 1 31,680 19,008
Ride

Total 8 1,900,800 95,040 57,024

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Pre-Feasibility Study Indoor Amusement Park

Table 5: Service Capacity of Trampoline Jumping

Total Time
Maxiumu
Annual Wait Specified Annual Annual
Annual Specified m No. of
Operational Time Per Per game No. of No. of
Particular Operational No. of Time Per Players/
Minutes for Game in one Token Token
Minutes Facilities Game Tokens
Facility Sold Sold
@100% (Minutes) (Minutes) token per
@100% @100% @60%
(Minutes) Game

Trampoline
237,600 2 475,200 20 10 30 4 63,360 38,016
Sky Jump

Total 2 475,200 63,360 38,016

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Pre-Feasibility Study Indoor Amusement Park

6. CRITICAL FACTORS
Before making the decision to invest in indoor amusement park, one should carefully
analyze the associated risk factors. The important considerations in this regard
include:
 Indoor amusement parks should be located in areas with a high population
density, as this will result in more visitors and more revenue.
 Indoor amusement parks should have good space to accommodate the
expected number of visitors.
 The theme of the indoor amusement park should reflect the general theme of
the surrounding area.
 The indoor amusement park should have ample amenities to accommodate
the needs of its visitors.
 To ensure safety for both guests and employees, indoor amusement parks
must have tight security measures in place.
 Appointment of trained, highly skilled and professional staff should be
ensured.
 Regular feedback and follow up of the customers should be received.
 Continuous inspection of machinery and equipment should be performed by
technical experts.
 Advanced machinery should be used to save cost and time.

7. GEOGRAPHICAL POTENTIAL FOR INVESTMENT

The unit is proposed to be ideally located in metropolitan cities like Karachi, Lahore,
Islamabad, and other cities with sizeable shares of affluent population, such as
Faisalabad, Rawalpindi, Peshawar, Quetta, Hyderabad, Multan, Gujranwala, Sialkot,
Mardan, Sukkur, Gujrat, Muzaffarabad, Sahiwal, etc. These cities are suitable due to
the presence of large urban populations, with good average per capita income to make
such entertainment activities affordable for them. These cities also offer good
availability of required resources, good infrastructure and qualified and skilled
manpower. The indoor amusement park should be located near public transportation,
shopping areas and malls which would be in excess in all these cities.

8. POTENTIAL TARGET MARKETS/CUSTOMERS

The project aims to target a diverse range of visitors. The mix of amusement services
will ultimately determine the kind of guests who will visit the park. The proposed park
offers a balanced mix of rides, with various thrill and entertainment factors and should

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Pre-Feasibility Study Indoor Amusement Park

be able to the attract good number of customers. The proposed park offers attractions
for all age groups including, young children, school going children, teens and adults.
The global indoor amusement parks and arcades market reached a value of nearly
$62.0 billion in 2018, having grown at a compound annual growth rate (CAGR) of 8.3%
since 2014 and is expected to grow at a CAGR of 8.8% to nearly $87.2 billion by 20223
and projected to reach $94.20 Billion by 2030,4 growing at a CAGR of 6.10% from
2023 to 2030.
As per State bank of Pakistan, under HS code 9504 and 9503 Pakistan has reported
21% growth in total import of arcade machines with a value of $1.61 million in 2021 as
compared to $1.33 million in 2020. Growth in indoor amusement parks depends on
disposable incomes of people, travel & tourism activities and the overall economic
growth.
As per current statistics, in Pakistan, each metropolitan city has 10 to 20 number of
indoor amusement parks which are well established and organized. Looking at the
number of parks in Pakistan and 1.91%5 increase in population from 2021 as well as
the import of arcade machines there is a great potential to establish indoor amusement
parks in Pakistan.
In terms of visitor demographics, the market is fragmented into families with children
(up to 8 years), families with children (9-12 years), teenagers (13-19 years), young
adults (20-25 years), and adults (Ages 25+ years). Teenagers (13-19 years)
represents the largest segment of the family/indoor entertainment. However, the
families with children (9-12 years) segment is expected to grow at the highest rate
during the forecast period, as the families with children of age between 9 and 12 years
are more focused on shaping their children’s future through numerous activities,
whether it is fun or education. Use of social media and popularity of gaming industry
is increasing due to technological advancement in developed countries. The growing
inclination of the young population towards gaming could propel the growth of this
market in future is home entertainment.

9. PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the commercial viability of
indoor amusement park. Various assumptions relevant to revenue and costs along
with the results of the analysis are outlined in this section.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as annexures of this document.

3
https://www.thebusinessresearchcompany.com/report/amusement-parks-and-arcades-market
4
https://www.verifiedmarketresearch.com/product/amusementparksmarket/#:~:text=Amusement%20Parks%
20Market%20size%20was,6.10%25%20from%202023%20to%202030.
5
https://datacommons.org/place/country/PAK?utm_medium=explore&mprop=count&popt=Person&hl=en

December 2022 39
Pre-Feasibility Study Indoor Amusement Park

All the figures in this financial model have been calculated after carefully considering
the relevant assumptions and target market.
9.1. Initial Project Cost
Table 6 provides fixed and working capital requirements for establishment of indoor
amusement park.
Table 6: Initial Project Cost estimates
Particulars Cost (PKR) Reference

Land - 9.1.1

Building / Infrastructure 1,439,330 9.1.2

Machinery & equipment 15,180,000 9.1.3
Office equipment 3,037,000 9.1.4
Tools & Equipment 1,851,600 9.1.5
Furniture & fixtures 943,000 9.1.6
Office vehicles 236,000 9.1.7
Pre-operating costs 730,924 9.1.8
Security Against Building 900,000 9.1.9
Total Capital Cost - (A) 24,317,854

Equipment spare part inventory 455,400

Upfront building rent 300,000
Cash 500,000
Total Working Capital 1,255,400
Total Project Cost - (A+B) 25,573,254

9.1.1. Land
The proposed unit will be established in a rented building having an area of 4,050
square feet (18 Marla). Total rental cost has been estimated as PKR 300,000. The
breakup of the space requirement is provided in Table 7.
Table 7: Breakup of Space Requirement
Production Area Number Length Width Area (Sq.
Ft.)

Reception Counter Area 1 6 10 60

Refreshment Area 1 10 15 150

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Pre-Feasibility Study Indoor Amusement Park

Staff Area 1 14 25 350

Sitting & Waiting Area 1 12 15 180

Area for Kiddie Rides 1 25 30 750

Area for Arcade Games 1 35 40 1,400

Area for Bumper Cars 1 20 25 500

Area for Trampoline 1 15 20 300

Pavement Area 1 10 15 150

Kitchen 1 5 10 50

Washrooms 4 5 8 160

Total 4,050

9.1.2. Building/ Infrastructure

There will be no cost of building construction since the indoor amusement park will be
started in a rented building having an area of 4,050 square feet. However, there will
be a renovation cost required to make the building usable for the business. Building
rent of PKR 300,000 per month has been included in the operating cost as well as it
is also included in the capital investment. The proposed project requires electricity load
of around 66 KW for which an industrial electricity connection will be required. Table
8 provide details of building renovation cost.

Table 8: Building Renovation Cost

Cost Item Unit of Total Cost/Unit Total Cost

Measurement Units (PKR) (PKR)
Paint Cost Liter 107 800 85,680
Labour Cost Sq.Feet 10,710 15 160,650
Tile Cost Sq.Feet 4,050 120 486,000
Labour Cost-Tile Sq.Feet 4,050 40 162,000
Carton Wallpaper Units 30 1,500 45,000
Decoration 500,000
Total 1,439,330

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9.1.3. Machinery and Equipment

Table 9 provides details of machinery and equipment for the proposed project.
Table 9: Machinery Cost Details
Number of Unit Cost Total Cost
Cost Item
Items (PKR) (PKR)
Kiddie & Fun Rides
Motor Kiddie Ride 1 200,000 200,000
Horse Racing Kiddie Ride 2 110,000 220,000
Pirate Ship Kiddie Ride 2 110,000 220,000
Rotating Cup Kiddie Ride 1 140,000 140,000
3 Player Mini Carousel Kiddie Ride 2 330,000 660,000
Swing Car Kiddie Ride 1 180,000 180,000
Space Airship Kiddie Ride 1 70,000 70,000
Jeep Swing Kiddie Ride 2 300,000 600,000
London Bus Kiddie Ride 1 330,000 330,000
Kiddie Electric Train 1 390,000 390,000
6 Player Carousel Kiddie Ride 1 550,000 550,000
Sub-Total (PKR) 3,560,000
Arcade Games
Subway Parkour Racing Game 2 180,000 360,000
2 Seat Egg VR Game 1 1,130,000 1,130,000
Candy Crane Claw Game 2 550,000 1,100,000
Adult Car Racing Game 1 490,000 490,000
Clown Hitting Game 1 490,000 490,000
2 Player Hoop Shootout Basketball 1 150,000 150,000
Game
Moto Gp Racing Simulator Motorcycle 4 660,000 2,640,000
Game
Bowling Ball Game 2 440,000 880,000
Tekken 7 Cabinet Game 2 550,000 1,100,000
Pac Man Game 1 130,000 130,000
Donkey Kong Game 1 110,000 110,000
Hammer Punch Game 1 150,000 150,000
Electronic Dart Board Game 1 220,000 220,000

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Gun Shooting Simulator Game 2 220,000 440,000

Boxing Game 1 110,000 110,000
Air Hockey Table Game 2 350,000 700,000
Sub-Total (PKR) 10,200,000
Bumper Cars
Bumper Electric Car Ride (4 Cars) 1 800,000 800,000
Mini Bumper Electric Car Ride (4 Cars) 1 320,000 320,000
Sub-Total (PKR) 1,120,000
Trampoline Sky Jump
Trampoline Sky Jump 2 150,000 300,000
Sub-Total (PKR) 300,000
Total (PKR) 15,180,000

9.1.4. Office Equipment

Table 10 shows details of equipment cost required for the indoor amusement park.
Table 10: Office Equipment Cost Details
Cost Item No. Unit Cost Total Cost
(PKR) (PKR)
1.5 ton Inverter Air Conditioners 3 105,000 315,000
2 ton Inverter Floor Standing AC 9 140,000 1,260,000
Laptop 5 150,000 750,000
Desktop Computer 3 75,000 225,000
Printer 1 52,000 52,000
Water Dispenser 2 25,000 50,000
Security System (6 Cams , 2 MP) 16 2,500 40,000
DVR 2 14,000 28,000
LED/LCD TV 1 40,000 40,000
WI-FI/ Internet Connection 1 3,500 3,500
Ceiling Fan 19 8,000 152,000
Bracket Fan 9 10,500 94,500
Exhaust Fan 6 4,500 27,000
Total 3,037,000

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9.1.5. Tools & Equipment

Table 11 provides details of tools and equipment for the proposed project.
Table 11: Tools & Equipment
Cost Item Number of Unit Cost Total Cost
Items (PKR) (PKR)
142 Pcs Combination Tool Set 2 41,000 82,000
Cordless Drill Machine with Accessories 2 7,800 15,600
Handle Wrench Screwdriver Set 2 1,200 2,400
Digital Multimeter Clamp Meter 2 4,000 8,000
Soldering Iron Kit 2 6,800 13,600
Cash Register 1 30,000 30,000
Generator 50 KVA 1 1,700,000 1,700,000
Total (PKR) 1,851,600

9.1.6. Furniture and Fixture

Table 12 provides details of furniture and fixtures.
Table 12: Furniture & Fixtures Cost Details
Cost Item Number of Items Unit Cost (PKR) Total Cost (PKR)

Executive Table 1 60,000 60,000

Executive Chair 1 30,000 30,000
Staff Chairs 28 13,500 378,000
Staff Table 5 30,000 150,000
Visitor Chairs 8 15,000 120,000
Sofa Set 2 45,000 90,000
Reception Counter 1 40,000 40,000
Steel Racks 5 15,000 75,000
Total Cost (PKR) 943,000

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9.1.7. Vehicles
Table 13 provides details of the vehicles required along with their cost for the proposed
project.
Table 13: Office Vehicle Cost Details

Registration Fee
Number of Unit Cost Plus Number Total
Cost Item
Vehicles (PKR) Plate Charges per (PKR)
vehicle
Motorcycle 2 111,500 6,500 236,000
Total Cost (PKR) 236,000

9.1.8. Pre-Operating Costs

Table 14 provides details of estimated pre-operating costs.
Table 14: Pre-Operating Cost Details
Hiring Months Unit Cost (per
Costs Item Cost (PKR)
Beforein Year 0 month) (PKR)
Diploma Holder Electrical 1 60,000 60,000
Technician
Diploma Holder 1 60,000 60,000
Electronics Technician
Diploma Holder 1 60,000 60,000
Mechanical Technician
Maintenance Helpers 1 35,000 35,000
Sales & Marketing Officer 1 60,000 60,000
Office Boy 1 25,000 25,000
Security Guard 1 25,000 25,000
Sweeper 1 25,000 25,000
Utility expenses 380,924
Total Cost (PKR) 730,924

9.1.9. Security against Building

Table 15 shows details of security against building.
Table 15: Security against Building
Particular Months Rent per month (PKR) Total (PKR)
Security against building 3 300,000 900,000
Total (PKR) 900,000

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9.2. Breakeven Analysis

Table 16 shows calculation of break-even analysis.
Table 16: Breakeven Analysis
Profitability
Particulars Amount First Year (PKR)
Ratio

Sales (PKR) – A 38,852,490 100%

Variable Cost (PKR) – B 16,814,048 43%

Contribution (PKR) (A-B) = C 22,038,442 57%

Fixed Cost (PKR) – D 13,957,554 36%

Contribution Margin 57%

Breakeven Analysis

Breakeven Revenue (PKR) 24,606,355

Break-Even (Tokens) 326,238

Breakeven Capacity 38%

9.3. Revenue Generation

Table 17, Table 18, Table 19, Table 20 and Table 21 provides details regarding
revenue generation from the indoor amusement park and other income generated
from refreshment area during the first year of its operations.
Table 17: Revenue – Kiddie Rides
Total
Annual No. of Token Price per
Particular Revenue
Token Sold @60% Game (PKR)
(PKR)
Motor Kiddie Ride 7,128 50 356,400
Horse Racing Kiddie 14,256 50 712,800
Ride
Pirate Ship Kiddie Ride 14,256 50 712,800
Rotating Cup Kiddie 14,256 50 712,800
Ride
Swing Car Kiddie Ride 7,128 50 356,400
Space Airship Kiddie 5,702 70 399,140
Ride
Jeep Swing Kiddie Ride 22,810 70 1,596,700

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London Bus Kiddie Ride 17,107 70 1,197,490

Kiddie Electric Train 28,512 100 2,851,200
3 Player Mini Carousel 28,512 100 2,851,200
Kiddie Ride
6 Player Carousel Kiddie 28,512 100 2,851,200
Ride
Total 188,179 14,598,130

Table 18: Revenue – Arcade Games

Annual No. Token Price
Total Revenue
Particular of Token per Game
(PKR)
Sold @60% (PKR)
Subway Parkour Racing Game 11,405 60 684,300
Tekken 7 Cabinet Game 22,810 100 2,281,000
Pac Man Game 5,702 60 342,120
Donkey Kong Game 5,702 60 342,120
Gun Shooting Simulator Game 22,810 100 2,281,000
2 Player Hoop Shootout 11,405 60 684,300
Basketball Game
Bowling Ball Game 22,810 60 1,368,600
Air Hockey Table Game 22,810 100 2,281,000
2 Seat Egg VR Game 11,405 120 1,368,600
Adult Car Racing Game 5,702 80 456,160
Moto Gp Racing Simulator 22,810 100 2,281,000
Motorcycle Game
Candy Crane Claw Game 19,008 60 1,140,480
Clown Hitting Game 19,008 60 1,140,480
Hammer Punch Game 9,504 60 570,240
Electronic Dart Board Game 9,504 60 570,240
Boxing Game 9,504 60 570,240
Total 231,899 18,361,880

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Table 19: Revenue – Bumper Cars

Annual No. of
Token Price per Total Revenue
Particular Token Sold
Game (PKR) (PKR)
@60%
Bumper Electric Car 38,016 80 3,041,280
Ride
Mini Bumper Electric 19,008 50 950,400
Car Ride
Total (PKR) 57,024 3,991,680

Table 20: Revenue – Trampoline Jumping

Particular Annual No. of Token Price per Total Revenue
Token Sold Game (PKR) (PKR)
@60%
Trampoline Sky Jump 38,016 50 1,900,800
Total (PKR) 38,016 1,900,800

Table 21: Rental Income Refreshment Area

Monthly Rent Annual Rental Income

Particulars
(PKR) (PKR)

Rental Income Refreshment Area 50,000 600,000

Total 600,000

9.4. Variable Cost Estimate

Variable costs of the project have been provided in Table 22.
Table 22: Variable Cost Estimate
Description of Costs Amount (PKR)

Direct Utilities Cost 717,848

Direct Labor 8,640,000
Machinery Maintenance Cost 1,821,600
Depreciation Expense Machines 2,277,000
Generator Diesel Cost 1,821,600
Communications expense (phone, mail, internet, etc.) 576,000
Office vehicles running expense 384,000
Office expenses (stationery, entertainment etc.) 576,000
Total Variable Cost (PKR) 16,814,048

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Table 23: Direct Labor

Salary per Annual

Number of
Personnel Salaries
Personnel Head (PKR)
(PKR)
Manager 1 80,000 960,000
Diploma Holder Electrical 1 60,000 720,000
Technician
Diploma Holder Electronics 1 60,000 720,000
Technician
Diploma Holder Mechanical 2 60,000 1,440,000
Technician
Maintenance Helpers 2 35,000 840,000
Human Cartoon Clown 3 30,000 1,080,000
Customer Attendent 8 30,000 2,880,000
Total 18 8,640,000

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Table 24: Generator Diesel Cost

Generator Total Diesel Total Diesel

Diesel Total Diesel
Diesel Price Consumption Consumption
Machine Consumption Usage Hours Consumption
per Liter Liter/Day Liter/Year
per Liter/Hour per Day Liter/Day
(PKR) (PKR)
50 KVA Generator 8 3 24 230 5,520 1,821,600
Total 1,821,600

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Table 25: Variable Cost Assumption

Description of Costs Rational

Machinery Maintenance Cost 20% of Cost of Machinery

Communications expense (phone, mail, internet, 15% of Management staff
etc.) expense
Office vehicles running expense 10% of Management staff
expense
Office expenses (stationery, entertainment etc.) 15% of Management staff
expense

9.5. Fixed Cost Estimate

Table 26 shows the estimated fixed cost of the project.
Table 26: Fixed Cost Estimate
Description of Costs Amount (PKR)

Management Staff 3,840,000

Building rental expense 3,600,000
Indirect Electricity 3,374,672
Promotional expense 1,942,625
Depreciation expense 1,054,073
Amortization of pre-operating costs 146,185
Total Fixed Cost 13,957,555

Table 27: Management Staff

Salary per Annual
Number of
Personnel Head Salaries
Personnel
(PKR) (PKR)

Receptionist 1 25,000 300,000

Accountant 1 60,000 720,000
Sales & Marketing Officer 1 60,000 720,000
Office Boy 1 25,000 300,000
Security Guard 4 25,000 1,200,000
Sweeper 2 25,000 600,000
Total 10 3,840,000

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Table 28: Fixed Cost Assumptions

Description of Costs Rational

Promotional expense 5% of revenue

Depreciation

Building & infrastructure 10% of cost

Machinery & equipment 15% of cost

Office equipment, Furniture & Fixture, Office vehicles 15% of cost

Tools and Equipment’s 15% of cost

9.6. Financial Feasibility Analysis

The financial feasibility analysis provides the information regarding projected Internal
Rate of Return (IRR), Net Present Value (NPV) and Payback period of the study, which
is shown in Table 29.
Table 29: Financial Feasibility Analysis
Description Project

IRR 62%

NPV (PKR) 47,283,130

Payback Period (years) 2.02

Projection Years 10

Discount rate used for NPV 25%

9.7. Financial Feasibility Analysis with 50% Debt

The financial feasibility analysis provides the information regarding projected IRR,
NPV and payback period of the study on the basis of Debt: Equity Model (50:50), which
is shown in Table 30.
Table 30: Financial Feasibility Analysis with 50% Debt
Description Project

IRR 61%

NPV (PKR) 56,228,908

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Payback Period (years) 2.10

Projection Years 10

Discount rate used for NPV 22%

9.8. Human Resource Requirement

The proposed services shall require the workforce as provided in Table 31.
Table 31: Human Resource

Number of Salary per Annual Salaries

Personnel
Personnel Head (PKR) (PKR)

Manager 1 80,000 960,000

Diploma Holder Electrical 1 60,000 720,000
Technician
Diploma Holder 1 60,000 720,000
Electronics Technician
Diploma Holder 2 60,000 1,440,000
Mechanical Technician
Maintenance Helpers 2 35,000 840,000
Receptionist 1 25,000 300,000
Accountant 1 60,000 720,000
Sales & Marketing Officer 1 60,000 720,000
Human Cartoon Clown 3 30,000 1,080,000
Customer Attendent 8 30,000 2,880,000
Office Boy 1 25,000 300,000
Security Guard 4 25,000 1,200,000
Sweeper 2 25,000 600,000
Total 28 12,480,000

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10. CONTACT DETAILS

The contact details of all the major suppliers of machinery and equipment are given in
Table 32.
Table 32: Contact Details
Name of Supplier Contact Website/Email

Guangzhou Sunflower 86- http://www.sunflowegame.com

Amusement Equipment 15918658300
Co. Ltd
Guangzhou Dreamland 86- http://dreamlandplay.com/
Technology Co Ltd. 15217929250
Guangzhou Tongwei 86-
Shizu Trading Co. Ltd 18502024999
Guangzhou Riteng 86- http://ritenggame.dtllamp.com/
Electronics Co. Ltd 13794363386
Guangzhou Dinibao 86- http://www.dinibao.com
Animation Technology 18588670485
Co. Ltd
Guangzhou Childhood 86- https://www.gzchildhood.com/service.html
Amusement Equipment 13726853408
Co. Ltd
Guangzhou Ifun Park 86- https://www.ifunamusement.com/
Technology Co. Ltd 13360551904
Guangzhou EPARK 86- https://eparkgames.com/
Electronic Technology 13903079263
Co. Ltd

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11. USEFUL LINKS

Table 33: Useful Links
Name of Organization E-mail Address
Small and Medium Enterprises Development Authority www.smeda.org.pk
(SMEDA)
National Business Development Program (NBDP) www.nbdp.org.pk
Government of Pakistan www.pakistan.gov.pk
Ministry of National Health Services Regulations and www.nhsrc.gov.pk
Coordination
Ministry of Federal Education and Professional www.mofept.gov.pk
Training
Specialized Healthcare and Medical Education health.punjab.gov.pk/
Department Lahore

Government of Punjab www.punjab.gov.pk

Government of Sindh sindh.gov.pk/
Government of Balochistan balochistan.gov.pk/
Government of KPK kp.gov.pk/
Government of Gilgit Baltistan gilgitbaltistan.gov.pk/
Government of Azad Jammu & Kashmir ajk.gov.pk/
Trade Development Authority of Pakistan www.tdap.gov.pk
Securities and Exchange Commission of Pakistan www.secp.gov.pk
State Bank of Pakistan www.sbp.gov.pk
Federal Board of Revenue www.fbr.gov.pk
Federation of Pakistan Chambers of Commerce and www.fpcci.com.pk
Industry (FPCCI)
Pakistan Stock Exchange (PSX) www.psx.com.pk
Pakistan Standards and Quality Control Authority http://www.psqca.com.pk
(PSQCA)
Punjab Small Industries Corporation https://www.psic.gop.pk/
Sindh Small Industries Corporation https://ssic.gos.pk/
KP Small Industries Development Board https://small_industries_d
e.kp.gov.pk/
Government of Balochistan Industries and Commerce https://balochistan.gov.pk/
departments-
download/industries-and-
commerce/

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Pakistan Tourism Development Corporation (PTDC) https://tourism.gov.pk/

Tourism Department Punjab https://tourism.punjab.gov
.pk/
KP Culture & Tourism Authority https://www.kptourism.co
m/
Sindh Tourism Development Corporation https://stdc.gos.pk/
Culture, Tourism and Archives Department https://balochistan.gov.pk/
Balochistan departments/culture-
tourism-archives/
AJ&K Tourism Department https://ajktourism.gov.pk/

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12. ANNEXURES
12.1.Income Statement

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12.2.Balance Sheet

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12.3.Cash Flow Statement

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13. KEY ASSUMPTIONS

13.1.Operating Cost Assumptions

Table 34: Operating Cost Assumptions
Description Details
Operating costs growth rate 10.1%
Electricity growth rate 9.0%
Water price growth rate 9.0%
Gas price growth rate 9.0%
Wage growth rate 9.7%
Office equipment price growth rate 9.6%
Office vehicles price growth rate 6.2%

13.2.Revenue Assumptions
Table 35: Revenue Assumptions
Description Details
Sale price growth rate 10.1%
Capacity utilization 60%
Capacity utilization growth rate 5%
Maximum capacity 90%

13.3.Financial Assumptions
Table 36: Financial Assumptions
Description Details
Project life (Years) 10
Debt: Equity 0:100
Discount Rate 25%

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13.4.Debt Related Assumptions
Table 37: Debt Related Assumption
Description of Cost Details
Project Life (Years) 10
Debt: Equity 50:50
Discount Rate 22%

Debt Grace Period 1 Years

Interest Rate (KIBOR+3%) 19%

13.5.Cash Flow Assumptions

Table 38: Cash Flow Assumptions
Description Details
Accounts receivable cycle (in days) 0
Accounts payable cycle (in days) 0

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 Small and Medium Enterprises Development Authority
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road, Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
www.smeda.org.pk, [email protected]

REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE

PUNJAB SINDH KPK BALOCHISTAN

3rd Floor, Building No. 3, 5TH Floor, Bahria Ground Floor Bungalow No. 15-A
Aiwan-e-Iqbal Complex, Complex II, M.T. Khan Road, State Life Building Chaman Housing Scheme
Egerton Road Lahore, Karachi. The Mall, Peshawar. Airport Road, Quetta.
Tel: (042) 111-111-456 Tel: (021) 111-111-456 Tel: (091) 9213046-47 Tel: (081) 831623, 831702
Fax: (042) 36304926-7 Fax: (021) 5610572 Fax: (091) 286908 Fax: (081) 831922
[email protected] [email protected] [email protected] [email protected]