GYMNASIUM

SERVICE CAPACITY (Value) : Rs. 10,92,000/-

MONTH AND YEAR : July, 2014

OF PREPARATION

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. The unit proposes to work at least 300 days per annum on single shift basis.
ii. The wages for skilled workers is taken as per prevailing rates in industry.
iii. Interest rate for total capital investment is calculated @ 14% per annum.
iv. The entrepreneur is expected to raise 20-25% of the capital as margin money.
v. 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
ix. Commissioning, trial run & commercial operation 1 month
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) Rs. 20,000/-
Covered area 200 Sq. mtr per month

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6.1.1. Machinery and Equipments

(For women)
S.No Particulars Nos. Rate(Rs.) Value(Rs.)
1 Rock climber 01
2 Ski machine 01
3 Body jacks 01
4 Tread mill 01
1,50,000 1,50,000
5 Recumbent bike 01
6 Rowing machine 01
7 Step tech. 01
8 Double burner 01
Total 1,50,000

(For men)
S.No Particulars Nos. Rate(Rs.) Value(Rs.)
1 Bench press 01
2 Single pulley pull down 01
3 Leg press 01
4 Arm wrestling machine 01
5 Bicep machine 01
6 Hip flexer with parallel fans 01 2,00,000 2,00,000
7 Walker machine 01
8 Cycle 02
9 Dumbels 200
10 Abdominal Board 01
11 Twister 01
Total 2,00,000

G. Total 3,50,000
Installation/Electrification @10% 35,000
Total 3,85,000

S.No Particulars Nos. Rate(Rs.) Value (Rs.)

1 Furniture & interiors LS LS 50,000
2 Preoperative Expenses - - 5,000
Total 55,000

Total Fixed Capital Rs. 4,40,000/-

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6.2. Working Capital (per month)

6.2.1. Personnel
S. No. Designation No Salary (Rs.) Total (Rs.)
1 Manager/ Trainer 01 Self -
2 Assistant Trainer 01 11,000 11,000
3 Helper 01 8,000 8,000
Total 19,000
Perquisites @ 15% of salary 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 Rs. 4,000
2. Water Rs. 500
Total Rs. 4,500

6.2.4. Other Contingent Expenses

S. No. Description Value (Rs.)
1 Rent 20,000
2 Telephone/Internet 2,000
3 Advertisement/publicity 3,000
4 Miscellaneous Expenses 2,000
Total 27,000

6.2.5. Total Recurring Expenditure (per month) Rs. 60,850/-

6.3. Total Capital Investment

Fixed Capital Rs. 4,40,000/-
Working Capital (for 3 months) Rs. 1,82,550/-
Total Rs. 6,22,550/-

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7. FINANCIAL ANALYSIS
7.1. Cost of Operation (per annum)
S.No. Description Amount (Rs.)
1 Total Recurring Cost per year 7,30,200
2 Depreciation on Machinery & Equipment @ 10% 35,000
3 Depreciation on Office Equipment & Furniture @ 20% 10,000
4 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) (Rs.)
Rent 2,40,000
Total Depreciation 45,000
Total Interest 87,157
40% of salary and wages 1,04,880
40% of other Contingent expenses (Excluding rent) 33,600
Total 5,10,637

B.E.P
Fixed Cost
= X 100
Fixed Cost + Net Profit

= 69 %

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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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