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May 23, 2012

The Business of Parking

Businessworld has an article featuring VC-backed Central Parking Services and other local and international players (like Australia's Secure Parking, Malaysia's Tenaga Parking, etc) who have entered this market.
Setting up a parking lot for around a 1,000 cars costs nearly Rs 1 crore, of which Rs 70 lakh goes towards the technology (sensors, cameras and security systems, parking software, etc.) while the rest is used to put up signage, speed breakers and ground-level offices, etc. Besides the fixed costs, the major operating expenses for these companies include staff salaries, training and maintenance.

On an average, 45 people are employed in the parking space of a 1.2 million sq. ft mall. But some malls rely more on technology and less on people. For instance, the Number One MG Road mall in Bangalore has completely auto-pay stations, and employs fewer than 20 people in the parking lot.

On the revenue side, on average, a mall charges Rs 20 per hour, which goes up to Rs 50 on weekends. So if a mall has 1,000 bays and 800 of them are occupied for eight hours every day, the parking company will earn a revenue of Rs 128,000 daily. On an average a parking company nets 9-10 per cent profit after tax. “If the mall or airport is successful, we make our money,” says Mayar of Secure Parking.

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