Date:10/12/2005 URL: http://www.thehindubusinessline.com/2005/12/10/stories/2005121001790800.htm

Back Talwalkars plans expansion, foray into new segments

Purvita Chatterjee

Mumbai , Dec. 9

GRADUATING from the business of health clubs, the Mumbai-based Talwalkars chain of fitness centres is extending its brand to apparel and organic food.

Having floated a company called Talwalkar Fitness Industries Ltd, the health club chain is arranging for funds to the tune of Rs 4 crore - Rs 5 crore through private placements to fund its future forays into new segments and expand the number of gyms across the country.

Speaking to Business Line, Mr Rahul Talwalkar, Director of Talwalkar Fitness Industries, said: "We intend to invest nearly Rs 20 crore in the first phase of expansion and part of the funds will be through private placements. From the 33 gyms that we already have, there are plans to have an additional 15 gyms across the country in States such as Gujarat and Madhya Pradesh. The intention is to have a substantial presence before we go to the public to ask for funds. There are plans to float an IPO in the future."

The family-run business of Talwalkars currently has a number of private companies under its fold. It now wants to transform its identity from a family-run set-up to a corporate house.

The health club chain has also decided to launch its own brand of organic food in association with a local company called Urja, which already makes such foods under its own brand.

"We will initially be selling the co-branded organic food under the Talwalkar Urja brand at our gyms and depending on the response, the brand would be rolled out to the retail stores," Mr Talwalkar said.

Besides, there are further plans of launching an apparel brand under the brand of Talwalkars. The products would include gym wear, sportswear and casual wear, and would be initially sold at its own gyms before being made available to other retailers.

Talwalkars is also planning to approach companies to get into the area of consultancy and corporate gym management.

"The corporate set-up is changing and there are companies which accept the fact that employees need to add value to their jobs. With high attrition rates, there are companies which are looking at employing professionals to run their gyms and we are already talking to a few such companies," said Mr Talwalkar.

It also has plans to launch `more affordable' gyms. "We will be launching our less expensive gyms in areas that are price-sensitive and have already identified three centres in Mumbai," said Mr Talwalkar.

From a single gym in Mumbai in 1932, the Rs 50-crore Talwalkars chain of fitness centres today has a network of 33 branches - 18 in Mumbai and the rest spread across cities including Bangalore, Chennai, Kolkata, Secunderabad and Ludhiana.