Beach king On shore Ecstasy
A Business plan report on “Beach king” a Sea sports business as a profitable project in the state state of Andhra Pradesh Pradesh 1
S.no 1
Contents
Page numbers
Executive summary
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2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Keys to success Company profile Company ownership Start up summary Company locations and facilities Industry overview Service Service description Target market Competitive analysis Marketing mix Marketing trends and need Strategy Pricing, positioning and promotion Value proposition and positioning Revenue model Operations suppliers SWOT analysis Human resources Management Safety Financial plan Investment opportunities Corporate social responsibiliti responsibilities es
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1. Executive Summary Consumer enthusiasm is an undeniable advantage for entrepreneurs interested in breaking into the water sports industry. In the right area, a thriving water sports business can serve as an epicenter of commercial tourist activities. But demand isn't the only potential benefit water sports businesses have to offer. o ffer. Water sports businesses are also extraordinarily diverse. From an entrepreneurial perspective, this gives you a high degree of latitude in choosing specific business activities that hold the most promise for profitability. profitability. Rather than being tied down to a specific concept, it's possible to design a successful water sports business around geographic limitations, available resources and your personal preferences. To get the ball rolling, we are launching a water sports business with a reliable powerboat and a handful of pull-behind attachments. Inflatable banana rides, tubes, skis, wakeboards and other pull behind options aren't exorbitantly expensive, yet they are fun and (most importantly) extremely visible. Our services will be positioned very carefully: they will be of extremely high quality, comfortable, informative and tailored to the client’s needs such that they will enable individuals to have a greater appreciation of the natural environment and its intricacies. Our marketing strategy will be based mainly on ensuring customers know about our existence and the service(s) we fulfill. Hence our intention is to make the right information available to the right target customers. This will be done through implementing a market penetration strategy that will ensure that we are well known and respected in the Beach sports industry. We will ensure that our prices take into consideration peoples' budgets, that these people appreciate the service(s), know that it exists, and how to contact us. The marketing will convey the sense of quality in every picture, every promotion, and every publication. Our promotional strategy will involve integrating advertising, events, personal selling, public relations, direct marketing and the Internet, details of which are provided in the marketing section of this plan. In a nutshell, we do not just intend to market and sell our service, but to market and sell Beach sports experience and a total-quality environment. This will ensure we establish a reputable corporate image. We would also like to mention that with the Beach sports that we are dealing with, we will ensure that the safety factor is the most important one which will be taken care of.
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Objectives
Our business strategy will revolve around the need to provide quality service to our various target customers, in the process fully satisfying their needs. This shall be undertaken through recruitment of a professional team and the provision of good quality custom-designed Entertainment Beach sports and a travel agency to help few who are far away to reach the place as the main line of business catering to the client's particular needs. With time our marketing campaign will increase the awareness of our services in the various market segments we shall be targeting. This is particularly so with the organization looking at establishing a clear advantage(s) in an increasingly competitive market. We will provide people with Entertainment in the Beach sports area as well as a good and a hitch-free travel experience in their holidays. Marketing material shall be professionally done so as to be reflective of our intended image and reputation. We shall position ourselves as a quality commercial transportation operator that provides customer-need fulfillment, enjoyment, reliability and a good image. Also introduce to the people of our country sea sports which are only seen in the movies but not participated much due to lack of availability. We intend to establish a good rapport with all the relevant stakeholders, especially travel agents, Boating contractors and other people who serve on a contract basis in our venture. We intend to establish and continue a long-run business partnership. We also intend to have well-designed brochures and other promotional material that will enable clients to have an understanding of the types of services we offer and advantages of utilizing them. In addition well-done, informative brochures, fact sheets and business cards often have a triggering effect on clients contemplating utilizing our services. Hence this will undoubtedly generate increased sales of our service. In summary we intend to attain the following objectives: Continuously provide enjoyable, thrilling and relatively inexperienced quality Beach Sports on time and on budget. Develop enthusiastically satisfied customers all of the time. Establish a market presence that assures short-term and long-term profitability, growth and success. We are fully committed to supporting growth and development in the tourism and overall economy of state and Nation Contribute positively to our communities and our environment.
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Mission
Internally we intend to create and nurture a healthy, exuberant, respectful, and enjoyable environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the service we intend to provide. In addition follow-up will be mandatory so as ensure customer satisfaction and make any improvements as recommended by the customers in future. We seek fair and responsible profit, enough to keep the company financially healthy for the short and long term, and to fairly remunerate employees for the work and effort.
2. Keys to Success The keys to Beach king success will undoubtedly be effective market segmentation through identification of several niche markets and implementation strategies. Along these lines the company intends to implement advertising, personal selling and direct marketing strategies to the target markets. Our personal selling marketing strategies will rotate around keeping in touch with MNCs, travel agencies, Local Associations, Communities for major customers, and advertising for more individual customers. Hence our ke y success factors will include the following:
Excellence in fulfilling the promise: We intend to offer completely enjoyable, thrilling and Safe
Beach water experience that will ensure that customers are thoroughly satisfied and appreciative at the end of the day.
Timely response to customers: We cannot afford to delay our customers for whatever reason, as
people come very excited ex cited to the place and if they are made to wait for the service, it will have h ave a negative bearing on our image and reputation, including future business. Hence we need to be transparent and expanding the services to manage increasing customers. We also need to have tie-ups with food vendors and arrange stalls in the place so as to ensure that we provide complete holiday experience to customers and exceed their expectations.
Solid and fruitful strategic alliances: Considering the nature of our services and our relative
infancy on the market, we realize the importance of establishing and maintaining fruitful strategic alliances with various stakeholders, including Boaters, Skateboarders, food vendors,
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and travel agencies, amongst others, so as be assured of a constant flow of customers, fulfilling their needs at every opportunity.
Marketing know-how: As a relatively new company on the market there will be a need to
aggressively market our business and the services we provide so as to be continuously at the top of our prospective clients minds. This will also act as a temporary deterrent for companies contemplating entering our market. Advertising shall be undertaken on a regular basis.
3. Company Profile Beach king intends to provide individual as well as group a new thrilling and relatively inexperienced Beach Sports. Services and products provided by Beach king will include Boating, swimming, fishing, surfing, water skiing and Beach volley ball. In addition to this Beach king also provides training by professionals for the beginners who wants to learn any of these Sports as most of them are relatively new to the people. Apart from the sports we also have Temporary washrooms for people and also food courts as well as children games so as give a complete holiday experience for the customers. Beach king seeks to differentiate itself as the premier adventure travel company in the state of Andhra Pradesh and the neighboring states As it grows it will take on people and expand into related markets and services. It will also look for additional leverage by establishing relationships and representations with appropriate strategic allies.
4. Company Ownership Beach king is a Private Limited company incorporated at the Registrar of Companies through the foresight and vision of Mr. X and Mrs. Y. It is a 100% wholly owned.
5. Start-up Summary We intend to start off as a small venture and then gradually expand according to the demand expectations and market growth, the details about the costs and purchases are mentioned in the financials of the plan later, So initially we would require a capital of 30lakhs.
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6. Company Locations and Facilities The company’s corporate office is located at Hyderabad, the capital of Andhra Pradesh. The business is carried out at the Vishakapatnam beach initially and as the business grows it would also be expanded to the Machilipatnam beach. If we also have good prospering business in the time will also look at expanding the service base and also venturing into new states and areas depending upon the capability and feasibility.
7. Industry Overview Beach resort is a thrust area. Many of the beach resorts are again under private participation. If you look at the figures, these are in the ascending order. When in 1997 it was 3.6 lakh, 2001 5.2 lakh is the figure, it is going up. Foreign tourist arrival significantly has also gone up. Whereas it was 1 lakh in 2001, in 2002 it is 1.55 lakh. It is not our figure, it is the immigration customs figure. But then obviously because of more connectivity a number of airlines have started, especially with the Middle East, Malaysia, Singapore. We are getting a good number of foreign visitors. As regards water sports, there are a number of lakes and water bodies in the state and some of those have been chosen for water sports. There are recreation parks and many other such things. We cannot talk just about four or five categories. They being unique, they come in from the imagination of the investors, from the conceptualization by the architect. So, the basket is very big, varied and vast. So, we have taken up in Visakhapatnam and Machilipatnam the most vibrant Beaches in the state.
8. Service Services We intend to provide five main services to service our target market. We have tried our best to offer broad level of services so that we can capture as much as that target ta rget that we can. These services include: Swimming (Training is also given). Fishing (Training is also given). Water surfing (Training is also given). 7
Boating Beach Volley ball (Training is also given). Food courts Children games
9. Service Description Swimming (Training is also given): Most of the people want to learn swimming and it is rate is growing rapidly. It is mostly evident in youth. We at Beach King have professional trainer who train people to swim ensuring their safety. Swimming is offered a service as well as a training program for which it will be charged.
Fishing (Training is also given): Fishing is the value added services which is provided by Beach King. Most of the people has an interest towards fishing but only few of them regularly do it as a hobby. People when they go on a holiday that too to a beach would definitely like to do fishing. So, we are basically providing Fishing to people who wanted to fulfill their desire. This gives a complete holiday experience.
Water Surfing (Training is also given): Surfing is a sport which is relatively new to the Indian people but in the globalised world even local people come to know about the international as well as fashionable sports. So, they are developing interest towards such sports which gives a thrilling experience to them. This service is mainly directed towards the growth and most of the middle aged employees.
Boating: Boating is the most common and popular water sport and a must be in such places which are near water bodies. So, we also provide boating with a very quality of boats as well as we also ensure safety with the latest equipments available.
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Beach Volley Ball (Training also given): It is outdoor game and it is popular throughout the country but as the beach game it is played in only some of the area unlike in foreign countries. So we provide the service of Beach Volley Ball where people can come, play and enjoy themselves we also provide trainer for them who wants to learn the game.
Food Courts: We provide small Food Courts which service different types of food for variety of customers ranging from chat to some North-Indian snacks and some other local dishes which include vegetarian and non-vegetarian.
Children Games : Our Beach King provides children games for the children who come to the beach to enjoy with their families. We provide See-saw, sliding, Swing etc, and we intend to expand with many more games.
10. Target Market Our Business as is in the entertainment sector should target all the markets and people of all age groups. There is no such barrier which separates entertainment from anyone, however we have to target some customer groups in the initial stages of the business to promote it and to make effective use of marketing funds. Such markets include Employees in the Multinationals and other organizations, Associations, Communities, Local people and mainly local youth as the services that we provide will be best enjoyed by them, they give the best publicity by mouth and they help in our business growing at a rapid rate. We provide special packages to them which includes travelling also to give them a complete holiday experience.
11. Competitive Analysis There are presently few competitors offering services similar to ours. However considering the pace of change and current growth rate of the tourism industry luring many companies into the sector, this may be short-lived. Hence there will be a need to not only firmly establish ourselves on the market, but also strongly differentiate ourselves from these other businesses. However on a broader scale our competition comes in several forms: 9
The most significant competition are similar Amusement parks on the riversides which offer much more services to their customers. They undertake this service in order to establish a competitive advantage over their competitors. However, instead of directly competing with them we intend to establish good working relationships in the form of strategic alliances such that we are able to offer the service for their clients and thus enabling them to concentrate on their core activities whilst ensuring customers are fully satisfied. Our key advantage in this regard will be our specialty of the service(Sea sports) as we offer children children games and training programs for surfing, fishing, swimming and volleyball most of these are relatively new to the market.
Existing business like those may identify the opportunity to diversify into our intended services
utilizing their current client database. Naturally, existing clients will be inclined towards utilizing these familiar companies due to the fact that a good relationship may have already been nurtured over the years during their business dealings. This presents a potential challenge to us, as we need to aggressively market our services and expertise in the field.
12. Marketing mix Marketing our Business is undoubtedly one of the most important and critical aspect for our success as it is entertainment provider and concentrating on public in general, marketing can make or break our business. Segmentation
We will be focusing mainly on Local people and youth, Employees who will be taken on outings by the companies, Associations, Communities as well as tourists to an extent. Though we know that local people, Employee trips and big associations form a big part of our market share, we would also like to concentrate on mass reaching throughout the state as well as the other ones. Hence we shall be mainly targeting them by making this as a preferred holiday destination and creating a brand value. Hence the need to professionally market ourselves and the services we provide, offering a service of unc ompromised nature.
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Sales
Employee trip Associati local market tourists & com munities
13. Market Trends an Need Of all the uncertainty surroundi g this industry, one fact is certain: it is here t o stay. The only question is how large the industry will become and whether it can sustain, if not exceed, its current growth rate. However large the market ultimately becomes, the c mpany strongly believes that travel will be an im ortant component of this market place. Statistics from the government tself provide a reliable guide as to the size of the market. The Andhra Pradesh (AP) Government has signed an agreement with tourism comp ny, Vizag Beach Resorts Pvt Ltd, for the imple entation of the Rs2,000-crore `Destination Vi aq' project. The project will attract 45,000 mor foreign tourists into the State once it is c mpleted earning foreign exchange of Rs550 cror e per annum. It will generate revenues of Rs1 12 crore for the local economy. APSTDC is adding 24 suites to the existing 33suites at Punna i Beach Resort near Visakhapatnam. Source: APSTDC statistics 200 – www.ibid.informindia.co.in
14. Strategy Initially Beach king will focus o the local market specially in the youth, the E ployee trips and associations present in the stat e. The target customers will mainly include local youth and
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families, Employees of organizations associations and communities who have interest towards Beach Sports. Our marketing strategy will emphasize focus. We are a relatively new company on the market and hence must focus on certain kinds of services with certain kinds of clients. Initially the business will focus on the local market and MNCs, expanding into the regional market as time progresses, and as we gain the necessary experience. Therefore the initial aim will be to instill awareness and confidence in our services. In order to achieve its goal of becoming the premiere mobile operator, Beach king intends to adopt the following strategies: Establish Beach kings’ reputation as a differentiated, specialty provider of quality and adventurous Sea sports. This will be accomplished through a diverse marketing communications programme directed at Beach kings’ target market, utilizing various media as well as the establishment of strategic allies. Provide unparalleled service to the local people and international tourists, of AP , in order to gain repeat business and build trust. This will include providing superior service in all phases of the transaction, including timely follow-through. Aggressively promote excursions as healthy, eye-opening and exciting activities with those who participate in them as appreciative appreciative of the finer things in life. We intend to build image and awareness through consistency and distinctiveness in our service provision. Our strategy is to grow the business by nurturing clients, differentiating the service from our competitors, particularly through service and staff behavior. All criteria from customer satisfaction, service provision, price competitiveness to staff attitudes are to be looked at thoroughly in the initial stages as areas for improvement. Training will be conducted on a regular basis to ensure that our staff is fully meeting customer expectations. Through the implementation of a fair, effective and competitive remuneration policy we intend to optimize our human resource output and advancement. We need the right people in the right place at the right time if we are to ensure optimum growth. We intend to develop our team so that our people can grow as the company grows - a mutually beneficial relationship. We are currently vigorously searching and recruiting the right people for our organization.
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15. Pricing, Positioning and promotion
Our pricing would be as follows: Boating.
300/trip (1N-mile)
Swimming.
50/head/hrs[for equip. & assist]
Fishing.
50/head/hrs[for equip. & assist]
Surfing.
400/head/hrs[for equip. & assist]
Wind surfing.
450/head/hrs[for equip. & assist]
Beach volleyball
30/head/hrs.
Children games
30/head
Promotional activities would mainly include most of the marketing strategies discussed and also giving special packages to organizations, Associations, Communities and also local youth as well as families. These would help us in capturing most of the market . Promoting through Travel agencies Promoting through credit card bills of various banks Reaching out to elite clubs Sponsoring and Organizing various events where there are potential customers Allowing film shooting offers Local promotion and Publicity Emails, Sms, Social Networking
We also want to give allowances and discounts with seasonal coupons by large stores and also discounts on bulk orders as well as offering low cost products as a package with high cost products.
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A National Level Volley ball competition is conducted every year for men and women prestigiously prestigiously in order to attract more people and also increase the awareness of the brand, this is done as a part of Brand building process.
16. Value Proposition and Positioning
We intend to create value to our customers through: •
Differentiated products(new sports and Training given for them)
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New thrilling experience
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Customer retention
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Packages
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All under one roof
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Training given to sports
By this, we want our customers and also the other people to view Beach Bea ch king as: •
Recreation
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Refreshing
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Thrilling
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Value for money
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Common Hangout place
17. Revenue Model 14
18. Operations Supplie rs
Operations such as ours are sold mainly on a word of mouth, Package offeri gs and referral basis with relationships and p evious experience being, by far, the most important factor. Relationships in this regard eans establishment of links with the vari ous Associations, Communities, Organizations in the state who often come into contact with our target customers. Invariably the experience a cust mer has with us will go a long way toward inf luencing them in whether they should refer their riends to use our service(s). To this end we int nd to ensure we provide a enjoyable, thrilling nd unforgettable experience to our customer s that will only encourage them to pass on a goo word about us In the medium term we intend to be connected on the World Wide Web so th t we can market ourselves on the Internet, as well as enabling potential customers to make pre-bookings over the Web, helping save time and m ney. This will also assist in widening our cus omer catchment area increasing customers. At the same time we should lso establish relationships with suppliers wh equipment for us at low costs. So we have identified suppliers from:
can supply the
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Mumbai for some of the Equipment Goa also for the equipment and skilled labor Vishakapatnam shipping yards for the supply of marine fuel for us
Apart from these we also intend to have back-up suppliers from gujarat and other places
19. SWOT Analysis We intend to enter a highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability to respond timeously to the market dictates and to provide custom designed travel excursions to travelers. Our key personnel will have a wide and thorough knowledge of the areas we intend to take travelers, which will go a long way towards penetrating the market. Below are the summarized strengths, weaknesses, opportunities and threats.
Strengths
Relatively new service: the services which we are providing are of very new nature i.e you don’t find this service in most of the beaches in India except those in Goa. Diversified client base: This will reduce our dependenc y on one particular market. Combination of skills in employees: The directors di rectors intend to engage enga ge well-qualified and experienced employees to jointly develop business strategy and long-term plans, plans, so as to attain company objectives. Extensive advertising and marketing: The company will undertake extensive advertising ad vertising and marketing, promoting both its name as well as service/product awareness. Hence an aggressive and focused marketing campaign with clear goals and strategies shall be one of our ou r mainstays.
Weaknesses
Lack of a reputation in comparison to our competitors. This is due to the fact that we are still new on the market. However this shall be addressed as shown in the marketing section of this plan. The introduction of new organizational practices and personnel who have not previously worked together presents a challenge to the organization. A limited financial base compared to the major players in the industry. 16
Lack of clear strategic allies.
Opportunities
Current drive by government towards encouraging the participation of indigenous entrepreneurs in Beach resorts presents an opportunity which we may fully utilize. Current growth rate of interest towards new Beach sports presents an opportunity for ourselves which we may take advantage of. This is further supported by the current marketing campaigns by both the government and regional tourism body. Presently there is no quality provider of adventurou s and diverse Sea sports New ways to market products and responsive customers.
Threats
New marketing strategies and tactics by established companies aimed at providing entertainment parks of our intended nature. Existing competition.
20. Human Resources
Beach king management team has a dedicated Human resource wing which is intended to recruit and train the most talented, energetic and passionate people. We intend to have a right mix of young as well as talented people in our employee base. We want to recruit experienced professionals in various sports from Goa, Chennai, Mumbai. Beach king management looks after its employees with utmost care and they will be given the good remuneration based on the work so as to keep them motivated and customer support centric.
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21. Management
The management style we prefer to use is Delegative one. As we are first going to recruit some of the local Boaters in and around AP and train them regarding the sports, treating of the customers and security issues.
These fishermen have a very good knowledge and are almost very accurate about the intensity of sea tides and climate conditions, they are the best judges at the end of the day. Each of the employees will be given equal number of opportunities daily. During the period of better seasons, employees need to work for extra hours and they are paid accordingly.
Employees are personally trained to develop their communication skills, to communicate effectively with the local and foreign tourists. Employees are also encouraged to give the feed-back about the organization and any improvements that can be made for better productivit y. All the employees will be covered under unde r Insurance policies.
Risks involved in this kind of mgmt are: giving too much importance to the employees.
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Partners : 2(tentative)
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Manager(Supervisors) : 2
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Employees
– Trainers : 5 – Life Guards : 4 – Health Care : 1 – Maintenance : 2 – Workers : 2 18
– Counters : 2
HR Policies:
As dealing with people and taking the their responsibility, during sea sports is a very serious one, the people are recruited through several steps. Each person whoever is interviewed is also examined about his health conditions. Only if they pass pass through all the tests, tests, they will be recruited and given training in all the sea sports, so that they can work as substitutes in case of urgency. As we are dealing with the entertainment field, we expect more traffic on holidays and weekends so we want our employees to be the most active then. However we give one holiday for the employees on the weekday of their choice. Holidays during peak season also may be restricted. Regular feedbacks are taken from costumers about the behavior of employees and a 360 degree feedback is taken and each employees is given training respectively. We at Beach king intend to conduct various employee engagement activities so as to bridge the gap between the employees and make all of them to work as a single unit towards a common goal. There should be a minimum of a week notice before resigning or terminating the job or else their paychecks may be effected. An extra 2-3 persons are scheduled to be present at any time and mostly during peak times, so that all the tou rists are taken care simultaneously.
Control:
Strict rules should be followed during each trip and it is the duty of the supervisor as well as the rider to check for the security of the boat and sufficient life-jackets. The riders should be calm and speed limit should be maintained. Any aggressive behavior or exceeding speed limit is taken up very seriously b y the authority.
22. Safety “Prevention is better than cure”
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As we are dealing with water sports and especially on beaches, Safety becomes our most important area of concentration. We take utmost care to ensure safety of all the customers as well as employees, this being the reason why wh y we need to hire h ire most professional Lifeguards. Apart from that we want to establish other rules to ensure safet y such as: • •
Boating, surfing or any other sport should not go more than one kilometer into the sea We have water resistant alarms with the sporters which on click gives signals and the location to the lifeguards in case of emergency
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We have scheduled checks every 2hours
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We also have a nurse who looks after the first-aid requirements
23. Financial Plan
The financial plan shall be essential if we are to meet our objectives. The intention is to finance growth through cash flow and equity. A fundamenta fundamentall respect respect for for giving giving our customers customers value, and for for maintaini maintaining ng a healthy healthy and congenial workplace.
Cash flow as first first priority, priority, growth growth second, second, profits profits third. third.
Respect Respect for for realist realistic ic forecast forecasts, s, and conservativ conservativee cash flow and and financial financial management. management.
Important assumptions
We assume assume a strong strong economy, economy, without without major recession. recession.
We assume, assume, of course, course, that that there there are are no unfores unforeseen een changes changes in economic economic policy policy to make make our service immediately obsolete or unwanted.
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Cost Structure
Cost Category
Estimated Cost
License
1,50,000
Land Lease
3,50,000
Infrastructure Costs
Iron rods and Hoardings
Other furniture
Equipment Material
Boats, surfing skates, Children games, loose tools
Volley balls, lifejackets
Total
1,50,000
computers,
Tubes
and
5,50,000
12,00,000
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Projected Expenses per month Expense Category
Expense Cost
Supervisors,
Labor
Counters,
Cleaners,
Maintenance
Trainers(volley
ball,
swimming,
surfing,
skiing, fishing)
Children monitoring, Life guards
Healthcare, Receptionist
1,05,000
Diesel
25000
Other miscellaneous expenses
5000
Total
1,35,000
Others Particulars
Amount(Rs)
Adv & insurance Expenses Total
1,00,000 1,00,000
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Monthly Income – 1,80,00
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Net Profit – 47,000*12mo ths = 5,64,000
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Tax 30% = 1,69,200
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Interest = 62,500
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Net profit after Tax after I terest = 3,32,300
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Depreciation = 30,000
Break Even
months
With this break even poi t, we should be able to break even in 1.5 – 2 ye rs
24. Investment Opportunities
As we are a start-up com pany and an d so we need to utilize all the resource available to the fullest extent to capture t e market share and to ensure success of our bu siness, hence we will be returning our inv estors with a handsome rate of 15% - 25% of the profits every 23
year in proportionate of their share in the capital invested after the Break even point is reached.
25. Corporate Social Responsibility Responsibility “Sea is an irreplaceable treasure” and is the heart and soul of the venture. The most important responsibility of beach king would be that we don’t damage or spoil the sea in any way • •
We want to use only marine fuel for our purposes to ensure a clean sea We take utmost care and specify our suppliers that the boating and the other sea equipment is of very new technology and minimum amount of wastage and its very green in nature
Come play and feel the sea
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