FitnessOne, a fitness services and equipments provider, would invest Rs 30 crore to expand fitness centres and fitness equipment stores, branded as Propel, in the next two years. The company has announced a tie-up with Shriram Finance to provide EMI option for their propel fitness equipments.
The company, which runs 37 fitness centres across south India, is planning to strengthen its presence through expanding the number of centers to 100 in next two years, said Vivekanand, managing director, FitnessOne.
“We will be investing Rs 30 crore for the expansion projects, mainly using internal accruals,” he said. Currently, it is focusing on reaching out to the tier-1 and tier-2 cities of south India, as fitness consciousness is on the rise in the region, he added.
The company would also increase the number of Propel fitness equipment stores from current 10 to 50 by the period. Almost 75 per cent of the new stores would be company owned, while the rest would be managed through franchise model. At presnt, it has eight franchise outlets.
Through its tie-up with Shriram Finance, meant for customers in Tamil Nadu, it would offer five EMI schemes to choose from depending on their convenience. Propel stores, established in 2008, currently provides fitness equipments ranging from Rs 300 to Rs 3 lakh including fitness cycle, yoga mat, treadmill, benches, stretchers and strength equipments.
The company has clocked in around Rs 35 crore turnover in the last fiscal and expects to reach a turnover of Rs 50 crore by the end of current fiscal year, he added.
Source : Business Standard