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FITNESS FIRST TO INVEST OVER RS 160 CRORE

FITNESS FIRST TO INVEST OVER RS 160 CRORE

25 November, 2014

Fitness First to invest over Rs 160 crore

Vikram Aditya Bhatia with Andy Cosslett

New Delhi, 21st November 2014

FITNESS FIRST BUILDS STRENGTH IN INDIA

More than `160 Crores [£16.4m] to be invested opening up to 30 new premium fitness clubs in Delhi, Mumbai and Bangalore over the next five years

 - Substantial investment in new fitness techniques, hi-tech innovation and staff training

 - Fitness First India adapts global Fitness First brand to suit local health and lifestyle needs

 - Fitness First Group today announces plans to expand rapidly in India, where it has seven clubs, investing upwards of `160 crores [£16.4m] to open to 30 new premium fitness clubs in Delhi, Mumbai and Bangalore over the next 5 years.   The expansion drive will take its membership to over 45, 000 and create 1250 new professional fitness roles.

PWC forecast the Indian health and well-being market to grow by 50% over next five years as growing awareness of the benefits of fitness, healthier lifestyles and rising incomes change consumer behaviour.

Vikram Aditya Bhatia, MD, Fitness First India commented: “We project revenues to reach `300 crores [£30m], with healthy profit margins as we expand our portfolio.  Our total investment of `160 crores [£16.4m] over the next 5 years, funded internally, also brings hi-tech fitness innovation, new insights into the science behind motivation to exercise and development opportunities for employees so we keep pushing the boundaries of fitness in India. ”

Every year will see an addition of 4-5 clubs across the 3 major cities, with the focus remaining primarily on Delhi and Mumbai in the medium term of the next 3 years. Delhi is projected to have the largest portfolio with about 15 clubs and Mumbai will grow to about 10-12 clubs.

Fitness First India will open both Premier and Platinum tier clubs and will have an equal split between the two categories. The clubs will be in different sizes and formats, based on the unique real estate challenges of India. The Company is looking at opening 12-14 compact clubs, 8-10 mid-sized clubs and about 10 big box clubs over the next 5 years.

Andy Cosslett, Chief Executive of Fitness First Group said: “A new generation of Indian consumers are waking up to the benefits of fitness and well-being.  But they want something more from a gym and are looking for state of the art clubs, innovative new workouts and support and inspiration from expert staff.  Our new club design and brand, launched in Maker Maxity in Mumbai and today’s announcement to open up to 30 new fitness clubs reflects our confidence in the exciting Indian fitness market and the opportunity for Fitness First to lead it into a new era.”  

Fitness First India plans to build on its leadership position by further pushing the boundaries of fitness with new technology, exercise science and customer service. Coupled with a brand new fitness philosophy, the vision is to motivate members to get the maximum from their workouts than ever before and go further in life.

The Fitness First clubs in India have already launched exclusive Signature fitness programs including Pro Cycling, developed by Fitness First in consultation with Olympic cycling champion, Victoria Pendleton and Freestyle Group Training, a dynamic workout that is 50% more effective that traditional training.

As part of its promise to provide their members with the best expertise and support, Fitness First staff in the region have undergone specialist-training programmes deploying elements of behavioural psychology, sports science and emotional quotient training*. 

Fitness First India is committed to offering consistently high standards of personalised service, motivating workouts and fitness expertise providing members with the best choice, wherever they are and whenever they choose to workout.

-Ends-

For Further information or interview, please contact:

Email: [email protected] or Mark Hutcheon, Director of Communications, Fitness First Group: 0044 7739 191 352

About Fitness First

 - Fitness First is one of the largest fitness brands in the world with over 377 Fitness First clubs worldwide (including MENA and franchise) reaching over 990,000 members in 16 countries. Founded in 1993 in the UK, where it operates 82 clubs with 2,000 staff and 189, 000 members

 - In January, Fitness First Group revealed the re-engineering of the business based on the principles of behavioural psychology and announced its new fitness philosophy, enhanced staff expertise and a new state of the art club design, backed by a global £225m investment.

 - The fitness industry in India is expected to reach US$2.4 billion by 2015 and is stated to grow at a compounded annual growth rate (CAGR) of 50%. Revenue for the India gym and fitness club industry, comprising 440,000 members and 1,200 health clubs is estimated at US$535mn with revenue growth reported in 2013 of 5%.

 - As on 31 August, 2014, Fitness First India serves 9038 members in a total of 7 clubs and 1 corporate club in Bangalore, Mumbai and Delhi/NCR broken down as follows:

 - Bangalore - 2

 - Mumbai - 2 

 - Delhi/NCR - 3

 - Corporate Club(in Delhi) - 1 

 - Hours of PT per month: Over 10150 sessions

 - GX classes per month: 1520 +Participants in classes per month: Over 30400 members

 - Freestyle Floor classes per month: Over 500 workouts

 - Workouts per day across the portfolio: Over 2200 workouts daily

*Training refers to the Fitness First Raise the Bar Training modules as well as Signature Program master and instructor training modules.