The actor, who is known to be vegetarian, famously appeared shirtless in PETA adverts last year.
He told The Times of India: "I want to introduce the gym culture to the people, especially those who are underprivileged and can't afford a proper health club.
"I want them to understand the importance of having a healthy body and mind. Exercising rejuvenates our system. So I have started this gym for the benefit of the people of Moga. This is my way of doing something for my people."
In February, it was reported that Sood is replacing Vivek Oberoi in the prequel Shootout at Wadala.
The star said afterwards that he wanted to continue taking on roles with substance.