FIT AND FINE IT’S GYM TIME

Over the last decade fitness has become a priority for people from different walks of life, which has made fitness clubs and gyms a profit-making business proposition. Here’s how it works: Starting a decent gym requires an area of 1,200-2,000 sq. feet or more and an investment of Rs 50 lakhs and above. The initial investment comprises Rs 15-30 lakhs for equipment and Rs 8-12 lakhs for interiors, documentation and lease. For a franchise outlet, brands like Pink Fitness demand one-time franchise fee of Rs 7 lakhs, which covers support for hiring staff, marketing, leads, and committed enrolments of over 30 customers on inauguration.

“Revenues would increase to Rs 7-10 lakhs once you achieve membership of 400 and include fitness regimes like circuit training, yoga, aerobics, and zumba. This is achievable with aggressive marketing and call centre operations to provide local leads,” elaborates a spokesperson from Pink Fitness, a ladies-only gym. Adds Gurvinder Singh, CEO, 9Round, “In our franchise model, owners would be able to earn Rs 13-15 lakhs with initial investment of Rs 1.5-2 crore.”

MARKET SCENARIO

The fitness or gym industry is fragmented with majority of the market dominated by unorganised and independent players. The organised players account for roughly 30% and some of the top ones include Fitness First, Fitness One, Gold’s Gym, Ozone Fitness and Spa, and Talwalkar’s Gym. As per market experts, the share of organised players is increasing rapidly with high visibility, customer convenience and quality of services.

FRANCHISE PROSPECTS

Upscale fitness brands offer a blueprint for success and assist with the financing, selection of location, equipment leasing and marketing. Besides, a franchise not only gets revenue from member fees but from health and weight loss products and personal training classes as well. The margin in the business is anywhere between 33-35%. Further, Anytime Fitness has plans to open 100 franchise outlets by the end of this year, primarily in South and West India. “We have settled well in the India market and have good customer loyalty. Thus, we see immense growth opportunity for our brand,” says Vikas Jain, Managing Director, Anytime Fitness.

Further, Kris Gethin Gyms expects to have 100 centres across India over the next 3-5 years. “We provide the whole infrastructure from selecting the real estate to recruiting and beyond. We ensure that every invested rupee is calculated against value, thereby ensuring high profitability,” informs Jag Chima, Co-Founder, Kris Gethin Gyms. “We also intend to penetrate the UAE and Sri Lanka by next year,” he adds.

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