Adlabs Imagica is all geared up to set up a theme park in new Andhra Pradesh capital Amaravati in the joint venture with local partner Riverbay Resort.

According to a PTI report, Adlabs and Riverbay Resort have signed an agreement to set up the entertainment park in Amaravati.

Adlabs joint chief executive Dhimant Bakshi told PTI that the company will have no equity investment in the project, which will be “developed in a public-private partnership model as Riverbay has entered into a PPP with the state authority building the capital city, but it will be based on licensing agreement.

“We will get the royalty, sweat equity, and revenue share, both of which are revenue accretive. The project will come under a new format,” Bakshi was quoted as saying.

The country’s first and the only theme park designed on the lines of international theme parks such as Universal Studio had Rs 20 crore of its Rs 256 crore revenue coming in from merchandise sales in FY18, taking its total ancillary sales, including food and beverages, at 30 percent of the total income.

The company is also licensing out its character IP to third parties, which is hoped to increase merchandise revenue from 10% to around 15 percent from next year.

According to Bakshi, the company has licensed out some of our character IPs to plastic homeware brand Cello, education institution Neltas and ice cream brand Havmor. These IPs include our popular characters Tubbby, Detective Bow wow, Rajasaurus, Hippy, Bloo, and Roberto. That apart, the company is also licensing out some of the animation activities.

Meanwhile, Adlabs had last late month submitted a comprehensive debt resolution plan to its lenders led by Union Bank of India, the response to which is awaited.

Bakshi said the debt resolution plan, submitted on August 21, mainly focuses on securing incremental cash generation on one hand and sustainability including asset monetization on the other, through selling its 287-key hotel near the theme park and also disposing of a 204-acre land in the adjoining area.

The company’s debt at the end of June quarter stood at Rs 1,050 crore. Radhakishan Damani, the founder of D-Mart retail chain, has signed a term sheet to buy the five-star luxury hotel Novotel inside the park, though the deal is now part of the resolution package and will consummate in due course.

On the heels of sewing up, an alliance for Chhota Bheem, the theme park in May had tied up with a 3D technology firm to launch a Bollywood park called the House of Stars in its bid to boost both footfalls and merchandise revenue. Adlabs has reported a 6 percent rise in pretax profit at Rs 34.14 crore in June quarter, helped by a 2 percent rise in footfalls.