US-based Snap Fitness plans to invest around Rs 350 crore to open 300 health clubs in India in the next three years as part of its expansion plans in the country.
"As India is a priority market for us we are targeting to open 300 centres in India by end of 2017 and will be investing approximately Rs 350 crore for this," Snap Fitness India CEO B M Vikram told PTI.
As per the current plans, out of new centres planned, 30 would be company owned while 270 will be through the franchise, he added.
The company that follows the 'fast-convenient-affordable' health clubs model, has 50 clubs operational currently and over 10 clubs have been signed, Snap Fitness said.
When asked how the company planned to raise funds for the expansion, Vikram said: "The first phase will be through a combination of debt, from franchise partners and internal accruals."
In the first phase that will last up to a year and half the company will open 100 to 120 centres, he added.
In the second phase, Vikram said "the company will look at funding from the parent company, through equity or through an IPO."
The company is looking at expansion in location such as Delhi-NCR, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, Vadodara, Nashik, Raipur, Kochi, Salem, Lucknow among others.
"All our health clubs will be no frills with an area of 3,000 square feet or 4,000 sq feet or 5,000 sq feet. In a unique concept these gyms will have 24 hours exercise facilities," he said.
Snap fitness is currently present in US, Canada, Mexico, Australia, New Zealand, England, Egypt and India with more than 2,500 clubs signed and 1,450 locations opened.
