Savera Industries Board Approves Fitness Studio Expansion Under '02 Health Studio' Brand
Savera Industries Ltd announced that its Board of Directors approved a strategic expansion into the fitness studio business following a meeting held on April 18, 2026. The company plans to operate the new venture under its own brand name, '02 Health Studio'.The board resolved to establish the fitness studio through a partnership with related parties, involving both the leasing of necessary equipment and the use of a leased property.
Details of the Agreements
The expansion requires the company to enter into agreements with two related parties: M/s. Shyam Investments (Partnership Concern) and M/s. Ruchi Agro Products Pvt Ltd. The agreements cover the lease of a building and the leasing of existing equipment for the commercial operation of a Fitness Studio (GYM).
Both transacting parties are related to the company, as four promoters of Savera Industries Limited are partners in both M/s. Shyam Investments and M/s. Ruchi Agro Products Pvt Ltd. The company confirmed that the transaction is deemed to be conducted at 'arm's length'.
A table summarizes the key transaction details and financial terms approved by the board:
| Aspect | Details |
|---|---|
| Transacting Entities | M/s. Shyam Investments (Partnership Concern) and M/s. Ruchi Agro Products Pvt Ltd |
| Scope of Business | Lease of building and equipment for a commercial Fitness Studio (GYM) |
| Lease Term | 5 years for the building |
| Financial Consideration | |
| Rent (Land and Building) | INR 12 lakhs per annum |
| Security Deposit (Building) | INR 6 lakhs (Interest free) |
| Equipment Leasing | INR 1.80 lakhs |
| Escalation Clause | 5% enhancement of the then existing lease rent every year |
Operational Scope and Rationale
The fitness studio is scheduled to commence commercial operation upon obtaining all necessary regulatory approvals.
The board stated that the primary rationale for this expansion is to capture benefits of expansion, with the expectation of improving both the company's turnover and profits.
For context, the size of the transacting entities for FY 2024-25 was reported as follows:
| Entity | Turnover (FY 2024-25) |
|---|---|
| M/s. Shyam Investments (Partnership Concern) | Rs. 1.48 crores |
| M/s. Ruchi Agro Products Pvt Ltd | Rs. 59.50 lakhs |
Stock Price Movement
Savera Industries Ltd shares settled at ₹170.25 on Friday, climbing 4.48% for the session. Throughout the day, the stock action ranged between a low of ₹156.50 and a high of ₹171.00.Source:
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