Fitness First to roll out 30 new premium fitness clubs at an investment of Rs. 160 crores

Fitness First Group has announced plans to expand rapidly in India, where it has seven clubs, investing upwards of Rs.160 crores [£16.4m] to open to 30 new premium fitness clubs in Delhi, Mumbai and Bangalore over the next 5 years. The expansion drive will take its membership to over 45, 000 and create 1250 new professional fitness roles.

PWC forecast the Indian health and well-being market to grow by 50% over next five years as growing awareness of the benefits of fitness, healthier lifestyles and rising incomes change consumer behaviour.

Vikram Aditya Bhatia, MD, Fitness First India commented, "We project revenues to reach Rs.300 crores [£30m], with healthy profit margins as we expand our portfolio. Our total investment of Rs.160 crores [£16.4m] over the next 5 years, funded internally, also brings hi-tech fitness innovation, new insights into the science behind motivation to exercise anddevelopment opportunities for employees so we keep pushing the boundaries of fitness in India."

Every year will see an addition of 4-5 clubs across the 3 major cities, with the focus remaining primarily on Delhi and Mumbai in the medium term of the next 3 years. Delhi is projected to have the largestportfolio with about 15 clubs and Mumbai will grow to about 10-12 clubs.

Fitness First India will open both Premier and Platinum tier clubs and will have an equal split between the two categories. The clubs will be in different sizes and formats, based on the unique real estate challenges of India. The Company is looking at opening 12-14 compactclubs, 8-10 mid-sized clubs and about 10 big box clubs over the next 5 years.

Andy Cosslett, Chief Executive of Fitness First Group said, "A new generation of Indian consumers are waking up to the benefits of fitness and well-being. But they want something more from a gym and are looking for state of the art clubs, innovative new workouts and support and inspiration from expert staff. Our new club design and brand, launched in Maker Maxity in Mumbai and today's announcement to open up to 30 new fitness clubs reflects our confidence in the exciting Indian fitness market and theopportunity for Fitness First to lead it into a new era."

Fitness First India plans to build on its leadership position by further pushing the boundaries of fitness with new technology, exercise science and customer service. Coupled with a brand newfitness philosophy, the vision is to motivate members to get the maximum from their workouts than ever before and go further in life.

The Fitness First clubs in India have already launched exclusive Signature fitness programs including Pro Cycling, developed by Fitness First in consultation with Olympic cycling champion, Victoria Pendleton and Freestyle Group Training, a dynamic workout that is 50% more effective that traditional training.

As part of its promise to provide their memberswith the best expertise and support, Fitness First staff in the region haveundergone specialist-training programmes deploying elements of behavioural psychology, sports science and emotional quotient training*.

Fitness First India is committed to offering consistently high standards of personalised service, motivating workouts and fitness expertise providing members with the best choice, wherever they are and whenever they choose to workout.

*Training refers to the Fitness First Raise the Bar Training modules as well as Signature Program master and instructor training modules.

Source : Equity Bulls

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