Actor Randeep Hooda, co-owner of Body Building India (BBI), a fitness and supplements company, has launched ‘Gym 99’, a unique concept where customers can pay just Rs 99 to use gym facilities across all the centres.
The fitness sector in India is growing at a rapid rate of over 18 per cent and is expected to touch Rs 7,000 crore by 2017. Riding on this growth, BBI is targeting the upper middle class and middle class youth. The gym chain has aggressive expansion plans to open 50 gyms across the country by 2017 with an investment of Rs 25-35 crore.
The investment would be funded by internal accruals, including by franchisee owners.
Talking to BW Businessworld, Ankush Sabharwal, CEO, Body Building India, said, “We are targeting a revenue of around Rs 70 lakh per gym, with each gym having 600 members.”
He also added that all the franchise owners will get their return on investment within 15 months after the launch.
BBI is offering their gym chains in three different segments. The first segment will be Rs 99 value gym chains for Tier-III cities, with an investment cost of Rs 40 lakh per gym. The premium gym chains will be in cities like Jaipur and Bhopal, with an investment of around Rs 60 lakh. The third segment will be targeted at metro cities with gold premium gyms.
Sixty percent of the gyms will be of premium category and 20 per cent will be of value and gold category each. The first gym chain will be in New Delhi with nine more to open in the capital city.
Each gym enrols 500- 600 members, with per gym targeting a revenue of Rs 60-70 lakh.
Apart from the gym chains, BBI India plans to scale up its supplement stores to 100 from existing 30 stores across India in the next one year.
It has signed contracts of another 70 stores which are in pipeline. Each store takes about Rs 20-25 lakh investment. On an average, the target revenue for each store is Rs 16-20 lakh per month for Tier-II cities and in Tier-I cities it is Rs 22 lakh.
“This new line of supplements under the brand name Ros Nutrition is our own product which will be available pan India through our BBI retail stores and websites. The UK-based Ros Nutrtion will provide fantastic results to sportspersons, professional bodybuilders, fitness lovers and anyone who wants to supplement their workout,” Sabharwal said.
BW Reporters
The author is a journalist with BW Businessworld. He primarily covers Retail, Media & Entertainment and Travel & Tourism sectors
