![]() Financial Daily from THE HINDU group of publications Thursday, Nov 24, 2005 |
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Marketing
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Strategy Fitness One bullish on business, plans major expansion R. Ravikumar
Chennai , Nov. 23
AFTER a hard day's work, we can't wait to do it," cries out a happy young couple from over 60 ft above. It's one of the series of ads from Fitness One, a 14-month-old Chennai-based health club. Though Mr Vivek Anand, Managing Director of Fitness One India Ltd, sounds confident of drawing good patronage, he feels the awareness to keep fit is still at a nascent stage in India. "We are now where the US was in the 1970s," he says. Fitness One offers programmes ranging from gym, aerobics, yoga and meditation to dancercise and weight management packages. "At Fitness One, programmes are designed to help people create a healthy relationship with food and build an active lifestyle," says Mr Anand. With six clubs at present three in Bangalore, two in Chennai and one in Coimbatore the company is planning one more in Chennai (at Kilpauk) and one in Hyderabad. "Our new Kilpauk club is being set up in 23,000 sq. ft. It will also have a swimming pool," says Mr Anand, who worked as a pilot and flight instructor with UPS cargo in the US for 18 years before giving up his job to set up Fitness One. He is also planning a national rollout soon with different business models, as the existing one may not be viable for all cities. The company is also keen on promoting captive gyms for corporates. Elaborating, Mr Anand says, "These captive centres will be funded by the respective corporate houses and we would lend expertise in setting up an in-house facility. The corporate houses will also get the benefits of qualified trainers, periodical nutrition counselling and stress relief packages." Fitness One offers to design customised packages to suit different organisations. It plans to open up to 25 centres every year. Out of this, 8-10 centres will be company owned, 8-10 centres will be franchised and the rest will be captive corporate gyms. The company's advertisement campaigns have made ripples across cities. The ad agency is Winds of Change. "Our first aim is to create awareness among the public on how important it is to keep fit." The company spends close to 25 per cent of its revenue on advertising. Mr Anand and other promoters have invested Rs 30 crore in the company. Overall, Fitness One is earning a revenue of Rs 1 crore per month. It has also tied up with other fitness centres around the globe to offer its members a chance not to discontinue their workouts even when they are away from the country. Mr Anand is planning to rope in a consultant to conduct a study on how much money corporates and the country will spend if enough health awareness is not created. "I am sure it will run into billions," he says.
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