The steadily growing Indian economy seems to have opened doors for new sectors, which were never heard of, say five or six years ago. As global players in the hospitality sector are spreading fast across Indian cities, accompanying them are the spa and body treatment firms that expect an immense growth potential in the country.
Though, the spa and body treatment segment is still in an infant state in India, the industry projections suggest this segment to be worth Rs 4,000 crore over next five to eight years.
And eyeing this segment, global players like MSpa International from Thailand, Aman Resorts from Singapore, XpresSpa from the US and South America-based Acqua Hotels are all set to enter India, either as standalone players or through tie-ups with various star hotels. XpresSpa is exploring the possibilities to set up a centre each at all the international airports in the country.
While body treatment and massage, which are integral aspects of spa, are not new for Indians as they have known similar techniques from ayurveda, the very concept of spa is expected to boost the ayurveda massage segment as well.
MSpa International recently launched its first centre in India in Alibaug (Maharashtra), which it claims to be the largest spa centre in Asia.
“Spa treatment sector has more potential than even real estate and hospitality sectors in India. That is why, probably a leading spa firm like MSpa International has come to India,” said Vinay Phadnis, managing director, Sahil Group, which has brought MSpa International to India.
The Thailand-based firm, which runs centres under Anantara and Mandara brands, has operations in all major tourism and business destinations in Asia.
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“Countries like China, Japan, Korea, Malaysia and Thailand have considerable number of spa centres run by various international firms. However, these players are now exploring India as their market,” Phadnis added. MSpa International is planning to have a number of spa centres in cities like Pune, Mumbai and New Delhi over the next five years.
The country’s real estate major DLF and retail group Franchise India Holding (FIH) too are looking at joining the bandwagon. DLF plans to set up a chain of spa treatment centres across the country with Aman Resorts-Singapore. “Aman Resorts has 18 spa centres in Indonesia, Cambodia, Sri Lanka, Morocco, Bhutan, Philippines, France and the USA,” sources disclosed. FIH will set up 120 centres under the brand name ‘Spa Siam’ in India.
The spa segment is expected to grow at an annual rate of 60-70 per cent in India over the next decade. The Indian spa industry is estimated to be around Rs 100 crore. However, this does not include the thousands of ayurveda and Kerala massage centres operational in almost every state.
“We expect to draw more customers as spa industry grows in India. Foreigners as well as Indians would definitely try out Kerala massage therapy once they are aware of body these treatments. Spa firms are popularising body treatment and massage therapies and we are benefiting out of it,” said P K Raman, who runs four ayurveda massage centres in Pune and few more in Bangalore and Mumbai.
“Ayurveda therapies are cheaper than spa treatments and are unique in their own way. As spa segment grows, the Indian body treatment segment will also grow eventually,” added Sanjaya Sinha, who is involved in body massage business.
“While most of the international spa players are joining hands with five-star or seven-star category hotels, we have decided to establish ourselves as a stand-alone brand,” said Sunil Rao, Director, Four Fountains Spa. Launched by CMYK Health Boutique, Four Fountains Spa will set up 300 centres in prominent cities over next four years. “An average spa centre needs investment between Rs 60 lakh to Rs 1.40 crore to be operational. With a considerable occupancy, the centre breaks even in a year’s time. Some centres might break even in 18 months if set up costs are higher due to prominent locations,” Rao added.
Top executives and corporates, businessmen, software professionals, consultants and non-resident Indians comprise the spa visiting community. “Tourists opt for spa treatment as well. Spa treatment is looked at as a leisure and relaxing activity, which obviously draw tourists and corporates to spa centres,” added body treatment expert Rajendra Sinde.
As of now, around 70 per cent of the spa business is run by local brands, while the rest is taken over by international spa firms. The Swedish massage, German body treatment and Thai massage are the most popular therapies across all spa centres. The spa industry is expecting a cut in customs duty on various products required for spa therapy. The same is expected to boost the growth of this segment.
However, experts say since this segment is very new in India, spa professionals and therapists are not available. They say, the industry is expected to require around 3,00,000 therapists by 2012. Hence, a number of spa firms are planning to set up academies in India to train youngsters.