O2 Spa, one of Asia’s largest day spa chain and India’s first organised day spa chain, has announced acquisition of Zazen Spa. This acquisition comes at the heels of O2 Spa’s recent announcement of expansion plans to cement its position in the industry by investing US$ 15 million in order to enable growth to 150 outlets across 30 cities from the current presence of 60 centres in 17 cities.
With this acquisition, a total of 18 outlets will become a part of O2 Spa and would be known as Zazen Spa from the house of O2 Spa. These outlets will be present in hotels, resorts and standalone formats. All the therapists from Zazen Spa have undergone training of the service standards and customer experience at O2 Skills, the in-house training facility of O2 Spa based in Telangana.
Commenting on the acquisition, Ritesh Mastipuram, founder and managing director, O2 Spa, said, “O2 Spa has always been at the forefront of driving the shift towards making the wellness industry organised. This shift has become even more critical as the Indian consumer is slowly, but surely waking up to the concept of wellness and spa. This acquisition of Zazen Spa gives us a wide reach to our current and prospective clients in prime locations in Bengaluru, Mumbai and Pune and is a progression for O2 Spa to deliver on our vision to bring wellness as close as possible to the customer”
A PWC Industry report pegs the Indian wellness industry to cross US$ 15 billion in 2016, growing at the rate of 15 per cent CAGR. Acquiring Zazen Spa facilitates O2 Spa to continue to capture the opportunity available in the estimated US$ 200 million Indian spa industry, which is expected to grow at 25 per cent annually.
Darshan Rawal, director, Zazen Spa, stated, “We are pleased to merge in with O2 Spa that will play a front-end role in upping our offerings and thus be able to continue to bring best of services to our current and prospective clients”
The expansion plans include addition of about 30 outlets in Tier I and 60 outlets in Tier II cities in India and more than 50 outlets abroad. O2 Spa operates in five different formats that include airports, malls, luxury hotels, standalone properties and luxury trains.