Amusement-equipment distributor plans ₹39.88 crore Bhiwandi assembly

Amusement-equipment distributor plans to deploy up to ₹39.88 crore of net issue proceeds at its Bhiwandi warehouse for in-house assembly of gaming and amusement equipment. Gaming equipment and components represent ₹37.45 crore of the budget, and the proposed model would sell assembled products under the distributor’s own name and brand.

Why is the amusement-equipment distributor investing in Bhiwandi assembly?

Amusement-equipment distributor is pursuing partial backward integration by adding assembly and integration to its sourcing, trading and distribution activities. The board approved the proposed ₹39.88 crore capital expenditure on June 30, 2026, covering gaming equipment, computers, printers, software, tools, closed-circuit television, or CCTV, and safety equipment at the Bhiwandi Warehouse in Maharashtra.

Backward integration means bringing an earlier supply-chain stage into the company’s operations. Amusement-equipment distributor proposes to buy gaming equipment and components from suppliers, assemble and integrate them at Bhiwandi, then sell the finished equipment under its own name and brand. The plan is intended to improve control over specifications, quality inspection, inventory and supply-chain management while allowing product customisation for customer requirements and site specifications.

The Bhiwandi assembly proposal would extend, rather than replace, Amusement-equipment distributor’s existing activities. Its portfolio covers traditional and duckpin bowling, arcade games, soft-play structures, trampoline parks, laser tag, bumper cars, go-karting systems, debit-card and cashless gaming systems, spares and accessories, alongside installation, commissioning, maintenance and consulting services. The proposed assembly work is intended to be carried out by in-house technical personnel.

How will the ₹39.88 crore Bhiwandi assembly budget be used?

Gaming equipment represents ₹37.45 crore, or about 93.9%, of Amusement-equipment distributor’s ₹39.88 crore Bhiwandi assembly allocation. Computers, printers and software are allocated ₹1.45 crore, equipment and tools ₹94.29 lakh, and CCTV and safety equipment ₹3.94 lakh. Goods and services tax and other applicable incidental costs are to be funded from internal accruals.

The product procurement plan includes 160 Human Claw Pro or XL units estimated at ₹5.48 crore and 190 Hang & Win Solo or Dual units estimated at ₹4.98 crore. A quotation from Gulf Enterprises dated August 6, 2026 covers fabricated steel frames, structural assemblies and mechanical components estimated at ₹14.85 crore for products including Hang & Win, Maze Rush, Human Claw, Big Hit, air hockey, rope courses, basketball and racing equipment.

The computers, printers and software allocation includes ₹1.35 crore for 190 sets of components intended for incorporation in finished gaming equipment, including processors, graphics cards and 24-inch monitors. Another ₹10 lakh is planned for five ready central processing units, two colour printers and four gaming laptops for administration, design and engineering. The tools allocation also includes 545 43-inch LED televisions costing ₹65.35 lakh, which are intended to serve as interactive displays in assembled gaming products.

What Bhiwandi capacity will support the assembly plan?

Amusement-equipment distributor plans to use 6,487.32 square feet in Gala Nos. 19 and 20 at Warehouse 2 in Bhiwandi. About 3,000 square feet is proposed for inventory comprising gaming equipment, components and raw materials, while 3,487.32 square feet is earmarked for assembly, integration, testing, quality inspection, packing and ancillary operations.

Warehouse 2 has 7,700 square feet and is already operational for inventory storage and proposed assembly work. Amusement-equipment distributor separately operates Warehouse 1, a 7,845-square-foot Bhiwandi site used for inventory storage. Gala No. 18 in Warehouse 2 remains allocated to the existing business, so the assembly plan uses two specified units within an operational warehouse rather than a new industrial location.

The proposed ₹94.29 lakh tools allocation covers fabrication, prototyping, product development, testing, installation, calibration and maintenance. It includes 70 AC-type single-inlet centrifugal fans costing ₹24.94 lakh, inclusive of customs duty and freight, for air-hockey equipment. The planned tools also include storage racks, workbenches, drill machines, angle grinders, pallet equipment, welding machines and digital measuring equipment.

What remains uncertain in the Bhiwandi assembly plan?

Amusement-equipment distributor has not signed definitive procurement agreements or placed purchase orders for the Bhiwandi assembly project as of the red herring prospectus date. The ₹39.88 crore cost estimate is based on vendor quotations, meaning that the actual procurement cost and the identity of suppliers may change with market conditions and commercial negotiations.

The quotations also have stated validity periods. Quotations dated August 11, 2026 from Sri Ramanujam Controls and RMH Control Systems are valid for 120 days, while Industrial Marine’s May 19, 2026 quotation is valid for 180 days. The August 6, 2026 Gulf Enterprises quotation is also valid for 120 days, so delivery, pricing and supplier selection will need to be settled when orders are placed.

The proposed capital expenditure has not been appraised by a bank, financial institution or independent agency. Amusement-equipment distributor says the allocation reflects its business plan, management estimates, prevailing market conditions and commercial and technical factors. If costs exceed the stated allocation, it may use internal accruals, additional equity or debt; if an object costs less, the balance may be applied to other disclosed objects or general corporate purposes, subject to applicable requirements.

When will the amusement-equipment distributor deploy the funds?

Amusement-equipment distributor plans to deploy ₹19.94 crore of the Bhiwandi assembly allocation in Fiscal 2027 and ₹19.94 crore in Fiscal 2028. The two-year assembly schedule contrasts with the proposed ₹11.50 crore repayment or prepayment of bank and financial-institution borrowings, which is scheduled entirely for Fiscal 2027.

The Bhiwandi proposal is the largest identified use of proceeds. Amusement-equipment distributor has earmarked ₹8.09 crore for another Duckpin - The Bowling Bistro entertainment centre in Mumbai, against ₹39.88 crore for assembly and ₹11.50 crore for debt repayment or prepayment. The general corporate-purpose amount remains unspecified and cannot exceed 15% of gross fresh-issue proceeds or ₹10 crore, whichever is lower, under Securities and Exchange Board of India regulations.

Amusement-equipment distributor may accelerate, defer or revise the Fiscal 2027 and Fiscal 2028 deployment schedule under its disclosed plan. If the planned use of proceeds is not completed in a scheduled fiscal, remaining funds may be used in subsequent fiscals in accordance with applicable law. A variation in use of proceeds would be subject to applicable compliance requirements, including prior shareholder approval where required.

Conclusion

The ₹39.88 crore Bhiwandi proposal would change Amusement-equipment distributor’s role from distributing completed amusement equipment to assembling and integrating selected products internally. Its outcome depends on converting purchased frames, controls, displays, fans and other components into customised equipment while operating within the 6,487.32-square-foot area proposed for storage, assembly, testing and packing.

The next disclosed milestones are procurement orders, final supplier selection and the planned ₹19.94 crore Fiscal 2027 deployment. The central unresolved matter is that no definitive procurement agreements or purchase orders had been placed as of the red herring prospectus date, leaving final cost, suppliers and implementation timing dependent on later negotiations and market conditions.