GYMNASIUM

SERVICE CAPACITY (Value)

: Rs. 10,92,000/-

MONTH AND YEAR

OF PREPARATION

: July, 2014

PREPARED BY

: Ms. Vanshi Uniyal

Investigator (Chemical)

1. INTRODUCTION
Health and beautiful body is desired by everybody. From ancient times, many
techniques have been in use to achieve this objective. Earlier, akhadas (traditional
wrestling centres) were the local point of body building and similar activities but as
time changed, health clubs and gymnasiums have replaced them. Men have been
attracted towards health clubs/gyms mainly for body building purpose while
women seek a slim and trim body that is fit in all sense. Not only have women
become more and more health conscious but they are also viewing obesity as a major
problem these days, which leads to other major health problems. With the urge to
look beautiful and healthy, increasing health clubs and gyms are here to stay.

2. MARKET POTENTIAL
Today fitness has attained a scientific approach, with machines and exercises
being prescribed for different parts of the body. Individual attention and
personalized treatment according to the needs by professionally trained instructor
and glitter to this service industry. Customers are not only told and shown the right
way to use machines and exercise, they are also prescribed the right kind and
amount of exercises depending upon individual needs and capacity. Since the
objective of health clubs of men and women are different, men need health clubs for
body building while women go to health clubs for weight reduction, the machinery
used in both are different. Entrepreneur can establish a health club for men or
women depending upon the local demand.

3. BASIS AND PRESUMPTIONS

i.
ii.
iii.
iv.
v.

The unit proposes to work at least 300 days per annum on single shift basis.
The wages for skilled workers is taken as per prevailing rates in industry.
Interest rate for total capital investment is calculated @ 14% per annum.
The entrepreneur is expected to raise 20-25% of the capital as margin money.
Costs of machinery and equipment are based on average prices enquired from
machinery manufacturers at the time of preparation of the project profile.

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4. IMPLEMENTATION SCHEDULE
i.

Scheme preparation

1 months

ii.

Entrepreneurs Memorandum

1 month

iii.

Acquisition of rented premise

2 months

iv.

Clearance from various Authorities

1 month

v.

Arrangement of loan for working capital/fixed capital

3 months

vi.

Placement of order & delivery of machines

2 months

vii.

Installation of machinery, electrification, staff recruitment

1 months

viii.

Power connection

2 months

Commissioning, trial run & commercial operation

1 month

ix.

Some activities may be initiated simultaneously and the project may come to
the stage of commercial production within 5 months.

5. TECHNICAL ASPECTS
5.1. Service Target
The revenue from this unit will be generated through the fee paid by
customers in lieu of services rendered/provided. Generally monthly fee is charged
with a onetime registration fee or security deposit charged at the time of admission.
People coming to the club will be divided into 8-10 batches, each having a maximum
time of 1-2 hours at the machines; Rs. 700/- per month will be charged per person
for this. Total receipts of Rs. 91,000/- are expected if 130 customers are given
admission every month with a security of Rs. 500/- which will be returned when the
person leaves the gym.

5.2. Pollution Control

There is no major pollution problem associated with this industry. The
entrepreneurs are advised to take "No Objection Certificate" from the State Pollution
Control Board.

5.3. Energy Conservation

There should be no power leakage and adequate attention should be
provided. Control is maintained over consumption of electricity light so that
extravagance expenditure can be checked.

6. FINANCIAL ASPECT
6.1. Fixed Capital
Land &Building:
Land & Building (Rented)
Covered area

200 Sq. mtr

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Rs. 20,000/per month

Gymnasium

6.1.1. Machinery and Equipments

(For women)
S.No
1

Particulars
Rock climber

Nos.
01

Ski machine

01

Body jacks

01

Tread mill

01

Recumbent bike

01

Rowing machine

01

Step tech.

01

Double burner

01

Rate(Rs.)

Value(Rs.)

1,50,000

1,50,000

Total

1,50,000

(For men)
S.No

Particulars

Nos.

Bench press

01

Single pulley pull down

01

Leg press

01

Arm wrestling machine

01

Bicep machine

01

Hip flexer with parallel fans

01

Walker machine

01

Cycle

02

Dumbels

200

10

Abdominal Board

01

11

Twister

01

S.No
1
2

Rate(Rs.)

Value(Rs.)

2,00,000

2,00,000

Total

2,00,000

G. Total
Installation/Electrification @10%
Total

3,50,000
35,000
3,85,000

Particulars
Furniture & interiors
Preoperative Expenses

Nos.
LS

Rate(Rs.)
LS

Value (Rs.)
50,000

5,000
55,000

Total

Total Fixed Capital

Rs. 4,40,000/-

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6.2. Working Capital (per month)

6.2.1. Personnel
S. No.
1

Designation
Manager/ Trainer

No
01

Salary (Rs.)
Self

Total (Rs.)
-

Assistant Trainer

01

11,000

11,000

Helper

01

8,000
Total
Perquisites @ 15% of salary

8,000
19,000
2,850

Total

21,850

6.2.2. Raw Materials (PM)

Powder, Oil, juice, water bottles, towels/napkins etc Rs. 7,500

Total

Rs. 7,500

6.2.3. Utilities
1. Power @ Rs. 8/- (20 units per day) 25 Days
2. Water

Rs. 4,000
Rs. 500

Total

Rs. 4,500

6.2.4. Other Contingent Expenses

S. No.
1
2
3
4

Description
Rent
Telephone/Internet
Advertisement/publicity
Miscellaneous Expenses

Value (Rs.)
20,000
2,000
3,000
2,000

Total
6.2.5. Total Recurring Expenditure (per month)

27,000
Rs. 60,850/-

6.3. Total Capital Investment

Fixed Capital
Working Capital (for 3 months)

Rs. 4,40,000/Rs. 1,82,550/-

Total

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Rs. 6,22,550/-

Gymnasium

7. FINANCIAL ANALYSIS
7.1. Cost of Operation (per annum)
S.No.

Description

Amount (Rs.)

Total Recurring Cost per year

7,30,200

Depreciation on Machinery & Equipment @ 10%

35,000

Depreciation on Office Equipment & Furniture @ 20%

10,000

Interest on Total Investment @ 14%

87,157

Total

8,62,357/-

7.2. Turnover (per annum)

Revenue from fee paid by 130 customers @ Rs. 700/- per month = Rs. 91,000/Revenue per annum
Rs. 10,92,000/-

7.3. Net Profit (per annum)

=
=

Turnover Cost of Operation

Rs. 2,29,643/-

7.4. Net Profit Ratio

=

Net profit per year

X 100
Turnover per year

= 21.0 %

7.5. Rate of Return

=

Net profit per year

X 100
Total Capital Investment

= 36.9 %

7.6. Break-even Point

Fixed Cost (Per Annum)
Rent

(Rs.)
2,40,000

Total Depreciation
Total Interest
40% of salary and wages
40% of other Contingent expenses (Excluding rent)

45,000
87,157
1,04,880
33,600

Total
B.E.P
=

Fixed Cost
X 100
Fixed Cost + Net Profit

= 69 %
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5,10,637

Gymnasium

Address of Machinery & Equipment Suppliers

1. Grandslam Fitness Pvt. Ltd.
C-58, Sector-58, Noida-201301
2. Perfect Fitness Technology Pvt. Ltd
Electronic Sadan, No. 1, Unit No. B - 51, M. I. D. C., T. T. C., Mahape,
Navi Mumbai - 400710
3. Health Line
A - 38/1 - A, Phase - 1, Maya Puri Industrial Area, New Delhi - 110064
4. Medical India Controls
No. 30/14A , Basement, West Patel Nagar , New Delhi - 110008

Address of Raw material Suppliers

Raw materials are available in local market.

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