The company plans Rs 39.88 crore Bhiwandi games unit

The company plans to use up to Rs 39.88 crore of net issue proceeds to establish in-house assembly, integration, testing and customisation operations at its Bhiwandi warehouse. Gaming equipment accounts for Rs 37.45 crore of the allocation, and assembled products are intended to be sold under The company’s own name and brand.

Why is The company setting up a Bhiwandi games unit?

The company is pursuing partial backward integration through the Bhiwandi games unit, meaning it intends to undertake an earlier stage of the supply chain rather than only source fully assembled equipment from third-party suppliers. The board approved the capital expenditure on June 30, 2026, with up to Rs 39.88 crore proposed from the net proceeds.

The company’s current activities include sourcing, trading and distributing amusement and leisure equipment, as well as installation, commissioning, maintenance and consulting services. Its product portfolio includes traditional and duckpin bowling lanes, arcade games, soft-play structures, trampoline parks, laser-tag systems, bumper cars, go-karting systems, debit-card and cashless gaming systems, spares, consumables and accessories. The proposed operation would add assembly and integration after components are procured and before equipment is supplied to customers.

The company says in-house assembly is expected to provide greater control over product specifications, quality inspection, inventory and supply-chain management. It also intends to use in-house technical personnel to customise products to customer and site requirements. These benefits depend on the company obtaining components, completing assembly and testing, and delivering finished equipment under its own name and brand.

The company cites a D&B estimate of about Rs 5,090 crore for the Indian indoor amusement-centre market in fiscal 2025. The offer document connects the proposed Bhiwandi games unit with demand for arcade gaming zones, bowling solutions and multi-activity entertainment centres, but that market estimate does not represent a forecast of The company’s revenue or profitability.

How will The company use its Bhiwandi warehouse space?

The company plans to house the Bhiwandi games unit within Warehouse 2, an existing 7,700-square-foot facility at Bhumi World Industrial Park in Pimplas, Bhiwandi, Maharashtra. Assembly operations are proposed for Gala Nos. 19 and 20, which have an aggregate built-up area of approximately 6,487.32 square feet, while Gala No. 18 will continue to support existing operations.

Of the 6,487.32 square feet in Gala Nos. 19 and 20, approximately 3,000 square feet is proposed for inventory storage, including gaming equipment, components and raw materials. The remaining approximately 3,487.32 square feet is earmarked for assembly, integration, testing, quality inspection, packing and related work. The proposed layout therefore separates inventory holding from the activities required to prepare finished products for customers.

The company operates two warehouses in Bhiwandi as of the Red Herring Prospectus date. Warehouse 1 has 7,845 square feet and is used for inventory storage, while Warehouse 2 has 7,700 square feet and is used for storage and proposed assembly operations. The capital expenditure is consequently directed at adapting an operating warehouse, not at purchasing or constructing a separate factory.

The procurement plan spans games and components for products including Human Claw, Hang & Win, Maze Rush, Big Hit, air hockey, basketball and Pedal Power. For example, the proposed list includes 160 Human Claw Pro or XL electrical control assemblies and 190 Hang & Win Solo or Dual control assemblies. These quantities are based on vendor quotations and do not constitute disclosed customer orders.

What will The company buy with Rs 39.88 crore?

The company will direct Rs 37.45 crore of the Rs 39.88 crore Bhiwandi allocation to gaming equipment, making that category the principal use of funds. The remaining allocation comprises Rs 1.45 crore for computers, printers and software, Rs 94.29 lakh for equipment and tools, and Rs 3.94 lakh for closed-circuit television, or CCTV, and safety equipment.

The proposed gaming-equipment expenditure includes Rs 14.85 crore for fabricated steel frames, structural assemblies, support structures and mounting brackets quoted by Gulf Enterprises. Sri Ramanujam Controls quoted Rs 10.55 crore for electrical control assemblies for Human Claw and Hang & Win products, while RMH Control Systems quoted Rs 4.59 crore for control panels and electronics across nine product types, including Maze Rush, Big Hit, air hockey, basketball and Pedal Power.

The Rs 1.45 crore allocation for computers, printers and software includes Rs 1.35 crore for 190 sets of computer components and accessories intended to be incorporated into gaming equipment. It also includes Rs 10 lakh for five ready central processing units, two colour printers and four gaming laptops for administrative, design, engineering and operational purposes. The company says the proposed systems will support three-dimensional game animation, two-dimensional engineering drawings, layout plans, electrical schematics and system-flow drawings.

The Rs 94.29 lakh equipment-and-tools budget includes Rs 65.35 lakh for 545 units of 43-inch light-emitting diode televisions intended to serve as interactive display interfaces in gaming equipment. It also includes Rs 24.94 lakh for 70 AC-type single-inlet centrifugal fans that are proposed as components of equipment including air-hockey products. The Rs 3.94 lakh CCTV and safety budget includes 26 dome cameras and two 32-channel network video recorders.

When will The company deploy Bhiwandi games unit funds?

The company proposes to deploy Rs 19.94 crore for the Bhiwandi games unit in fiscal 2027 and another Rs 19.94 crore in fiscal 2028. The disclosed schedule makes the assembly initiative a two-fiscal-year plan rather than an expenditure expected to be completed in fiscal 2027 alone.

The company has also earmarked Rs 8.09 crore for another Duckpin – The Bowling Bistro entertainment centre in Mumbai and Rs 11.50 crore for repayment or prepayment of certain borrowings from banks and financial institutions. The company began operating its first Duckpin – The Bowling Bistro venue, Duckpin Malad, on July 24, 2026, but had not identified the location of the proposed additional Mumbai outlet as of the Red Herring Prospectus date.

The company states that it had not entered into definitive agreements or placed purchase orders for Bhiwandi project expenses as of the Red Herring Prospectus date. The budget relies on vendor quotations, meaning actual procurement costs and supplier identities may change with market conditions and commercial negotiations. Applicable goods and services tax and other incidental costs are proposed to be funded from internal accruals.

The company also states that the fund requirements and deployment schedule have not been appraised by a bank, financial institution or independent agency. It may accelerate, reschedule or revise the use of proceeds because of its financial condition, market conditions, business strategy, access to capital, interest rates, exchange-rate movements and other external factors, subject to applicable law.

What must happen for The company’s own-brand model to operate?

The company’s own-brand model requires it to procure gaming equipment and components from suppliers, assemble and integrate them at Bhiwandi, and sell the completed products to customers under its own name and brand. The disclosed process includes fabrication, assembly, testing, calibration, installation support, quality inspection, packing and maintenance activities, with specific functions varying by product.

The largest proposed procurement categories show the model’s dependence on third-party inputs despite the planned backward integration. Gulf Enterprises’ quoted Rs 14.85 crore of fabricated frames and structures, Sri Ramanujam Controls’ quoted Rs 10.55 crore of electrical assemblies, and RMH Control Systems’ quoted Rs 4.59 crore of control-panel systems together account for Rs 30 crore of the Rs 37.45 crore gaming-equipment plan. The company would still need supplier deliveries and workable component integration for the unit to produce finished equipment.

The company expects assembly operations to reduce dependence on purchasing fully assembled equipment, but the offer document describes assembly and integration rather than full manufacturing. The proposed use of 3,487.32 square feet for production, testing and packing also limits the planned operating footprint to part of Warehouse 2. The company has not disclosed definitive procurement agreements or purchase orders for the project as of the Red Herring Prospectus date.

Conclusion

The company’s Rs 39.88 crore Bhiwandi games unit plan would expand its role from sourcing and distributing amusement equipment to assembling, integrating and selling selected products under its own name and brand. With Rs 37.45 crore assigned to gaming equipment, the project’s central commercial mechanism is converting externally procured frames, electronics, displays and other inputs into finished customer-ready systems.

The next disclosed milestones are deployment of Rs 19.94 crore in each of fiscal 2027 and fiscal 2028, the conversion of vendor quotations into procurement commitments, and the use of internal accruals for applicable taxes and incidental expenses. The company has stated that it may accelerate, reschedule or revise allocations when its funding requirements or external conditions change, subject to legal requirements.