American Fitness Chain to Expand Business in India

Posted on 15th Jan 2015 by mohit kumar

Chennai, Jan 14 (IANS) Sensing a good potential for fitness business in India, the American gym chain Anytime Fitness is planning to have 45 outlets by the end of this year and 100 by 2018 across the country, said a top official.

"We are planning to have 45 outlets by the end of this year and 100 by 2018 in India," Vikas Jain, managing director, House of Fitness Pvt. Ltd., the master franchisee for Anytime Fitness in India, told IANS here.

According to him, the company is interested in expanding its operations only through fresh franchisee route and not opening outlets on its own or converting an existing gym.

Currently there are eight Anytime Fitness centres in India.

"Converting has its own problems. Our gyms use American equipments whereas most of the stand alone fitness centres in India use equipments from China, Taiwan and other countries," Jain said.

"Our USP (unique selling proposition) is that fitness centre members can use them anytime as people are hard pressed for time. Secondly, it is no frills gym," Jain added.

"Members of Anytime Fitness will be given a swipe card which can be used at any of our centres in the world," John Kersh, vice president of international development, told IANS.

Both the officials were here to inaugurate the first Anytime Fitness centre.

According to Jain, a franchisee may have to invest anything between Rs.1 crore to Rs.1.5 crore excluding the lease rentals.

"The fitness centre should be around 3,000-4,500 sq.ft and have sufficient car parking space. We are looking at tier-II and III cities," Jain said.

Jain agreed about the challenges faced by the industry like high membership churn, increasing rentals and other cost which cannot be passed on to the members and the availability of qualified trainers.

"Our renewal ratio is around 50 percent. And there is good potential. People join a gym with a goal and when that is achieved, they do not return," Jain said.

He said there is good potential as people are more conscious of their wellness and shape and the industry is logging around 40 percent growth annually.

Though all may not want six pack body, they certainly do not want "family pack" or a bulging tummy, he said.

Apart from the membership fee, the chain looks at other revenue streams like group activities, personal training and others.

On the availability of trainers, Jain said it used to be a challenge earlier, but now many are taking up the profession.

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