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Seizing an opportunity in the burgeoning health and fitness market, the Indian arm of German firm Fitness First said it will invest Rs 150 crore over the next five years. The company said it has no intention of becoming a mass market brand but is looking at setting up corporate gyms and tying up with universities with smaller format outlets.
“We are a metro-centric brand. We have positioned ourselves as a premium fitness club and will continue our current expansions only in the metros. We have no intention of becoming a mass market brand,” Stefan Tilk, Managing Director, Fitness First Germany, said.
The company currently operates about six fitness clubs. “We will be adding three more in the current year,” he said adding that all the clubs are company-owned and managed.
Fitness First India said it has a membership base of over 11,000 members in six clubs. Tilk said the market for fitness is growing in India. “In all emerging markets, fitness is becoming important in the scheme of priority. The number of people currently training in gyms is very low. This represents a huge potential,” he added.
Vikram Aditya Bhatia, Managing Director of the Indian arm, said that the company will largely concentrate its future expansions in Delhi, Mumbai and Bangalore. “Our fitness clubs are spread over 15,000-20,000 sq ft but we have just started with smaller corporate gyms sized about 5,000 sq ft.”
Bhatia said that it is in talks with IT firms, banks and universities to expand its presence. “Companies have approached us to set up gyms for them. We have started with one and will be adding more such in near future.”
The company said it has already invested close to Rs 100 crore since its launch in 2008.
The Indian fitness market is estimated around Rs 2,000 crore with players such as Gold Gym, Talwalkar’s in the fray along with a host of smaller regional brands.
A Technopak study said that the organised fitness market is concentrated in NCR, Mumbai, Bangalore, Chennai, Kolkata, Pune, Hyderabad, Ahmedabad, with more than 60 per cent of outlets of top 12 chains located in these cities.
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