FitnessOne to invest Rs 30 crore to expand Propel chain

May 11, 2011

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 present, 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.

Pressto on mega expansion mode; seeks franchisees

Dry-cleaning and laundry service chain Pressto plans to reach the 100-store mark in the next 2-3 years via franchise model. It plans to invest around Rs 20 crore to fuel its expansion plans, reports IndiaRetailing.

Esther Lennaerts, executive chairperson, Pressto, said, “We would invest around Rs 20 crore for expanding retail footprint.” It currently has 12 stores -- eight in Mumbai and four in Delhi.

In this calendar year, Pressto plans to double the store count to 25 and to expand to cities such as Pune and Bangalore.

Green Trends opens franchise salon in Chennai

Green Trends Hair & Style Salon, owned by Trends In Vogue Pvt Ltd, a CavinKare Group company, has recently launched its exclusive unisex franchise salon in Chennai. Located at Shanthi Colony, Anna Nagar, this is Green Trends' 43rd outlet in India and 23rd in Chennai. Spread across an area of 1,200 square feet, the salon has seven haircut zones, three spa/facial zones, two hair wash and one pedicure section.

The interiors in the salon are serene with ample lighting, giving customers a relaxed atmosphere. The salon is furnished with modern, stylish and comfortable equipment and seating zones.

Green Trends is a pioneer in offering a full range of grooming solutions for value-conscious consumers. It offers trendy haircuts and colour services, complete skin care solutions and bridal packages at affordable rates.

Uninor to open 25 new retail outlets in AP; seeks franchisees

Announcing further expansion in Andhra Pradesh, mobile telephone company Uninor said that it would open 25 new retail outlets which would take the total number of outlets in the state to 90. The company is seeking franchisees to expand its footprint across the state.

These stores serve as a one-stop service point for existing and prospective Uninor customers across majority of district and taluk headquarters in Andhra Pradesh and reinforces Uninor's commitment to extend its reach and services to both urban and rural customers, a Uninor press release said.

Satish Kumar Kannan, (business head) AP Circle, Uninor, said, "Uninor has always been committed to extend its reach and services to our customers whether they are settled in the rural areas or the biggest cities of the state. At present, we have 65 Uninor branded stores across three different innovative retail formats and we look forward to a 90 store footprint by June end."

BEAUTIFUL BRANDS TO EXPAND

TULSA — Beautiful Brands International is opening branch offices in India, Kuwait and Canada to support its franchise growth worldwide. “These three regions are absolutely essential to seeing the growth of BBI and its opportunities skyrocket,” said Shahab Bakhtiar, general manager over the Canadian and Middle Eastern offices. Beautiful Brands has a portfolio of restaurant concepts including Camille’s Sidewalk Cafe and FreshBerry Frozen Yogurt.

From staff reports

Choice Hotels to bring two new brands to India next year

Global hospitality chain Choice Hotels International today said it will introduce two of its global brands into India by next year to cater to rising consumer demand in the country.

While the company has not disclosed the names, it is understood that the two brands that the hospitality chain plans to introduce are budget hotel 'Econo Lodge' and 'Cambria Suites', which caters to upscale customers.

The company, which currently operates 27 hotel properties in India, mostly through franchise agreements, aims to have 40 hotels in its portfolio by the end of the next year.

"We have conducted market research and realised a need to bring in an upscale brand and an economy brand into the country, possibly by the end of next year," Choice Hospitality India Sales and Marketing Vice-President Shivali Sharma told PTI without disclosing the names.

Industry sources, however said the two brands are Econo Logde and Cambria Suites.

Globally ,the company has over 800 Econo Logde hotels positioned as 'an affordable and convenient place to stay'. On the other hand, Cambria Suites is positioned as an upscale full service brand.

At present, Choice Hotels operates 27 hotels with a total capacity 1,800 rooms are operational under the Comfort, Quality and Clarion brands in India.

Of the entire portfolio, three hotels in India are currently managed by the company and the rest are franchisee operated.

"By the end of next year, we intend to operate 40 hotels with a total capacity of 2,200 rooms, mostly franchised and some under management contract, if required," Sharma said.

Besides the existing three brands, Choice Hotels is also set to launch the economy brand 'Sleep Inn' India, for which a property is currently under development in Faridabad.

"The Sleep Inn hotel in Faridabad will open later this year," she added.

The locations for the future expansion include Ahemadabad, Rajkot, Delhi, Ludhiana, Manesar and Rameshwaram.

While the investment for setting up new properties will be made by respective franchise partners, the company will invest in technology support and marketing initiatives.

"Choice Hotels India, which is a wholly owned subsidiary of Choice Hotels International, is currently self-funded, but going ahead, the parent company will make need-based investments in certain areas of marketing and technology," Sharma said without giving financial details.

Globally, Choice Hotels International has more than 6,000 hotels, representing more than 4.85 lakh rooms in the United States and more than 35 other countries, according to the company's website.

Source : Business Standard

Vadilal on expansion mode; seeks franchisees

Ice cream maker Vadilal Industries is targeting sales growth of 40 per cent in 2011-12, with plans to capture 25 per cent market share in the next 2-3 years. The firm is also looking to increase the number of exclusive 'Hapinezz' outlets to sell its ice creams from 200 at present to 400 in the next 18 months. Most of the new outlets would be owned and run by franchisees, according to its top official.

"Currently, Vadilal is the second largest ice cream player in India, with 20 per cent market share. In the next 2-3 years, we are targeting 25 per cent share," Vadilal Industries M D Rajesh Gandhi told reporters.

According to Gandhi, the total ice cream market is estimated at Rs 2,500 crore, with the organised segment contributing Rs 1,500 crore. “The industry has been growing at a CAGR of 15 per cent in the last five years. As against the industry average, we are working hard to achieve a sales growth of 40 per cent in 2011-12," Gandhi said.

The company has also launched a range of new products targetting premium ice cream segment of the market. "In the next 2-3 years, we expect our premium products under Badabite, Flingo and Gourmet brands to contribute around 10 per cent to the company's total sales," Gandhi said.

Besides selling ice creams, the company also offers a range of ready-to-eat food items primarily catering to 45 countries outside India. For the 2009-10 fiscal, the company had registered revenues of Rs 188.91 crore and net profit of Rs 5.75 crore.