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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/- per month Covered area 200 Sq. mtr

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6.1.1. Machinery and Equipments

(For women)

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

1 Rock climber 01

1,50,000 1,50,000

2 Ski machine 01

3 Body jacks 01

4 Tread mill 01

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

2,00,000 2,00,000

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

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.