Talwalkars Fitness Solutions Pvt LTD

- -Rahul Battulwar (F 04)

- Abhilash Jadhav (M 45)

- Ashwani Sharma (M 35)

- Darshan Shah (M 31)

Indian Fitness Market

Indian Health Club market

In a nascent stage but high growth

Current market size USD 113mn

As of 2008, 765 fitness clubs in India with total

membership of 0.23 million

Highly underpenetrated market as compared to

other developed and developing countries

Indian Health Club market

Shortage of talent w.r.t personal trainers,

nutritional consultant, professional managers

High scope for consolidation

Age group of 20-44 is identified as the prime

markets – projected to go up to 39% (+4.6Cr)

2011 and 40% (+4.2 Cr) in 2016

Indian Health Club market

Huge opportunity in 80 towns with population of

more than 5 lakhs

Lack of product differentiation

Growing awareness with high disposable income

as catalyst

Market share of top five clubs is just 14%

Indian Health Club market

Comparison of Indian market with others

Industry Analysis – Porters 5 Forces Model

7

SUPPLIER POWER Low supplier power• Equipments sourced as per estimates • Low cost and quality equipments from overseas

suppliers

BUYER POWER High• Price sensitive market• Large number of fitness clubs in every • High disposable – easy switch• Inversely proportional to distribution

BARRIERS TO ENTRYLow• Highly underpenetrated market• Assortment of Services• Lack of standardization

Only High setup cost is a potential barrier for this industry

Lack of training institutesLack of government focus

THREAT OF SUBSTITUTES AND COMPLEMENTS

Moderate to HighPersonality development

institutes

COMPETITIONNo listed company in this sector• Personalized services and competitive pricing• Fragmented and unorganized• Few organized gym chains both domestic and

international

7

Growth drivers

Change in demographic profile

Increasing incidences of lifestyle diseases

Growing realization of a need for healthy

life style

Higher disposable income

Growth drivers

Growth Drivers

Growth Drivers

Key success factors

Location

Facilities

Quality gym staff

Viral marketing

Price

Trends of the health Industry

Emerging health clubs formats

Focus on corporate sector

Individualization

Focus on personality

Competitive strength

Brand equity

Standardization and quality offering

Market leadership

Pan India presence

Promoters experience and expertise

Proven track record

SWOT analysis

Strengths

Service assortments

Quality Instructors and working staff

Weakness

Operating in a highly competitive market

Brand name and its extension

Gaining a competitive advantage is difficult

Opportunity

Growing awareness among the population for

healthy life style

High growth in disposable income

Severely under penetrated market

Threats

Poaching of instructor’s and working staff

Trade related dynamics Change in leasing terms

Business strategy

Geographic spread and penetration

Expand service offering

Location entry strategy

Increased customer satisfaction and member

base

Brand promotion and enhancement

Talwalkars

The Company

The first gym was setup in the year 1932 by late Mr. Vishnu Talwalkar in Mumbai

Mr. Madhukar Talwalkar, eldest son of late Mr. Vishnu Talwalkar, carried on with the legacy and started his first gym in Bandra, Mumbai in the year 1962 by the name “Talwalkars Gymnasium”

Mr. Madhukar Talwalkar has been instrumental in creating the brand “Talwalkars” over the past several decades

Company, Talwalkars Better Value Fitness Limited, was co-promoted in the year 2003 by the Talwalkar Group and the Gawande Group

Sales growth trajectory

Earnings

Profitability

Cost of Set up

Set up Strategy

Rollout phase

Set up Strategy

Planning phase

Set up Strategy

Execution phase

Product/Service Offerings

Fitness Training

Personal Exercise Program (PEP)

Individualized attention as well as

workout on specialized equipment

Body Sculpting / Body Shaping

Strengths of body building

Cardiovascular exercises

Product/Service Offerings

Nutrition Centre

Diet consultants

Weight Loss / Maintenance Program

Daily diet counseling, gym, steam/sauna, etc

Weight Gain Program

Diet counseling, natural high protein power

packed food supplement, massage and

steam/sauna

Product/Service OfferingsValue Add-ons Spa / Massage

Therapeutic facilities and beauty correctionaltreatments

A suitable mix of gym, beauty and Ayurveda Aerobics

Low impact aerobics, bench workout, circuit training, interval

Training and cross training Spinning

Done in a fitness studio, with various light and music settings to create an energized atmosphere

Instructors guide participants through workout phases like warm-up, steady uptempo cadences, sprints, climbs and cool-downs

Geographic Spread and Penetration

58 health clubs in 27 cities from 11 states

Serving 60,000 members

Strong presence in the south and west of India

Multiple health clubs in metro cities like Mumbai

Trying to tap the lucrative business opportunities

presented by several Tier I and Tier II cities

Growth Strategy

Location strategy

Distribution Strategy

• 58 health clubs

– Directly own 43 health clubs

– 9 health clubs are operated through our Joint

Venture and Associate Companies

– Rest 6 operated through Franchisee route

Distribution Strategy

Distribution Strategy

Joint Venture and Associate Companies

Pantaloons Retail (India)

o For leveraging on footfalls in mall

Denovo Enterprises Private Limited

o For expanding into the Central Indian market

Franchisees

Partnering with strong local players with good

management record in entering newer areas

Human Resources Strategy Residential training academy at Thane

Gym staff undergoes intense six week training in soft skills and service delivery

Permanent Employees Core team of managers which is involved in identifying

potential new locations Overall project management of the expansion projects

Contractual Staff The staff at the gym is on the payrolls of various agencies

with exclusive arrangement for sourcing the manpower Fitness Experts

Professionals for add-on services like spa, massage and personal training, etc., on revenue sharing basis

KEY INDUSTRY REGULATIONS AND POLICIES

Shops and Establishments Acts

Intellectual Property

Contract Labor (Regulation and Abolition) Act

Fiscal Regulations

Competition Act

Promotional Startegy

Promotion through Standard Chartered Marathon

and Miss India Contest 2009

Competition from organized and unorganized

sector including foreign entrants

Pricing factor, service and operational efficiency

are very important

Promotional strategy

Uncertainties about consumer response

Growth will depend on the ability to sustain the

brand and any failure to do so will have a

negative impact on the ability to compete in this

industry

Competitor Analysis

Gold’s Gym

Established in 1965

Today has 680 facilities across the globe

Largest international GYM chain across the world

Entered India in 2002, at Napean Sea, Mumbai

Currently owns 18 gym facilities across India

Powerhouse Gym

Product of Q fitness studio

Launched in India in 2005, Juhu, Mumbai

Aggressively growing

References

Marketing Intelligence report – IMS ORG

Red herring prospectus - Talwalkars

http://www.talwalkars.net

Talwalkar’s Investor presentations

Thank you