Conducting a market analysis of wayside amenities for India's highways

For the first time, National Highway Authority of India (NHAI) released tenders for the construction and operation of Wayside Amenities (WASAs) at various locations on Indian National Highways.

In response to the tender, the client evaluated a potential bid for two of the tenders including a total of 63 such locations.

We were initially commissioned to carry out data collection and analysis across 13 WASA locations for one of the tenders. We were subsequently commissioned to carry out a market overview and benchmarking exercise. The overall scope of the market review was:

• Structure of the industry
• Demand-supply dynamics
• Key demand drivers
• Regulatory framework
• Competitive scenario
• Comparable with a global story: (UK – Moto service sale, Germany – Tank & Rast)
• Data collection of 6 existing WASAs which could be considered successful roadside food and retail facility.

Being first of its kind, we did a thorough study of the market research, regulatory policies, benchmarking against domestic and international standards and the demand-supply dynamics for the project.

There were three main components of the WASA to be studied and analysed:

• Food & Beverage Outlets
• Fuel Outlets
• Other Amenities like dormitories, toilets, parking, lodging.

NHAI’s tenders aimed at integrating all these aspects to provide a one-stop facility for all highway users.

We studied all these services and the relation to revenues generated from them by analysing:

• The traffic volumes
• Shares of passenger and commercial vehicle traffic
• Proximity to an urban settlement
• Levels and extent of services provided