Leading spa chain O2 Spa has announced the acquisition of Zazen Spa, a chain operating in the western region of the country.
This acquisition comes in the backdrop of O2 Spa’s $15 million expansion plan that seeks to add about 30 outlets in tier 1 and 60 outlets in tier II cities in India and over 50 outlets abroad.
The Hyderabad-based operator of chain of spas is working to set up 150 outlets across 30 cities from their current presence of 60 centres in 17 cities.
With this acquisition, 18 outlets of Zazen will become a part of O2 Spa located in hotels, resorts and standalone formats.
Ritesh Mastipuram, Founder and Managing Director, O2 Spa, said: “O2 Spa has always been at the forefront of driving the shift towards making the wellness industry organised. This shift has become even more critical as the Indian consumer is slowly but surely waking up to the concept of wellness and spa.”
“This acquisition of Zazen Spa gives us a wide reach to our current and prospective clients at prime locations in Bengaluru, Mumbai and Pune,” he said.
A PWC report pegs the Indian wellness industry to cross $15 billion in 2016, growing at 15 per cent CAGR.
Acquiring Zazen Spa facilitates O2 Spa to continue to capture the opportunity available in the estimated $200 million Indian spa industry which is expected to grow at 25 per cent annually.
Darshan Rawal, Director, Zazen Spa, said: “We are pleased to merge with O2 Spa that will play a role in upping our offerings.”
All the therapists from Zazen Spa have undergone a training at O2 Skills, the in-house training facility and Asia’s largest skill development centre based in Telangana.