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| Core Wellness to set up 20 spas across India | |
| BS Reporter / Mumbai/ Pune September 22, 2009, 0:40 IST | |
To set up 12 units in five-star hotels
Core Wellness Ltd plans to set up 20 spa facilities across the country over next 18 months, mostly through franchisee models.
Operated under the brand Sohum Spa and Wellness Sanctury, the company would set up atleast 12 units at five-star hotels while the rest would come up as stand-alone facilities, according to company officials.
Sohum Spa and Wellness Sanctury launched its stand-alone unit in Pune recently. It already operates spas at three hotels and one stand-alone facility is operational in Mumbai. "As the spa industry is catching roots in India, we are looking at launching 20 facilities in prominent Indian cities over next 18 months. apart from the first two facilities, rest would necessarily operate on franchisee model," said Sohum Spas president Rajesh Srinivas.
A recent study by FICCI has suggested, the Indian wellness industry is growing at a rate of approximately 20 per cent annually and currently stands at Rs 1,500 crore. "We are looking at investing anything around Rs 2 crore to set up a unit of 3,000 squarefoot. The costs would remain same even if done through a franchisee," Srinivas stated.
Apart from five-star hotels, the company is looking at hi-profile clubs in cities like Ahmedabad, Indore and Gwalior to have a setup each. "The first franchisee agreement should be signed soon and the unit would be operational in six months. The required workforce would be generated through a training academy set up by the company in Juhu in Mumbai," added Core Wellness global operations director Beheram Mehta.
The spa business generated Rs 6 crore revenues during the 2008-09 financial year for the company while its other activities posted Rs 3.5 crore revenues over the same period.
"We expect to generate Rs 2.5 crore revenues from Pune unit annually. The facility should, hence break-even over 36 months," Srinivas stated.
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