Talwalkars Better Value Fitness Ltd.

COMPANY AND FAMILY HISTORY

Talwalkars Better Value Fitness Ltd, popularly known as Talwalkars, is India's largest chain of health clubs. It
has 152 Health Clubs across 80 cities in India on a consolidated basis, with over 200,000 members. The
company was established in 1932 by Late Vishnu Talwalkar. His eldest son, Madhukar Talwalkar, further
continued under the name "Talwalkars Gymnasium" in Mumbai in 1962. In March 2014, UK based David
Lloyd Leisure group begun talks with the management of Talwalkars to acquire around 20 per cent stake in
the company. In June 2015, Talwalkars Better Value Fitness and David Lloyd announced their intention to
create a joint venture (JV) establishing and managing leisure clubs in India

GOALS AND OBJECTIVES OF TALWALKARS

1. To offer a diverse suite of services, including gym, spas, aerobics, and health counselling.
2. To shift more focus towards family gyms and not towards bodybuilding gym.
3. To design the fitness centers by keeping customers view in mind so that Talwalkars’ culture in all the
gyms.
4. To provide better infrastructure and equipment for their customers.
5. To design company’s personal training program with the understanding that a person needs to
combine exercise and proper food to achieve perfect health and fitness.

CORPORATE GOVERNANCE

Talwalkars is committed to conducting business in a responsibly and ethically. The company believes that
governance must start from the top, which forms the core of its company culture. At the same time, they
believe in governance through actions, not words. Corporate governance at Talwalkars outlines expectations
with regard to how employees interact with each other and the customers.
The working environment of Talwalkars Fitness has been geared towards the optimization of a better culture
in line with its values of respect and excellent service to its employees. This has enabled the company create
a good working environment, where employees feel valued.
Talwalkars Better Value Fitness Ltd. has three chaired committees, including: Audit Committee;
Compensation Committee; and Nominating and Corporate Governance.
The Board members are given an official letter of appointment to their position. Accordingly, their term to
serve is fixed. However, they can be reappointed to another term if their work is satisfactory and they are still
needed.
The Board of Directors of Talwalkars is committed to insuring that all business practices of the company
conform to the highest ethical levels while serving the interests of all customers. Additionally, the company
understands that sound corporate governance practices results in consistent and better communication with
employees and the clients.
FINANCIAL ANALYSIS

 Operating income during the year rose 16.6% on a year-on-year (YoY) basis.
 The company's operating profit increased by 25.2% YoY during the fiscal. Operating profit
margins witnessed a rise and up at 67.0% in FY18 as against 62.4% in FY17.
 Depreciation charges and finance costs increased by 41.6% YoY and 31.5% YoY, respectively.
 Other income grew by 65.5% YoY.
 Net profit for the year grew by 43.2% YoY.
 Net profit margins during the year grew fro 12.3% in FY17 to 15.1% in FY18.
 The company's current liabilities during FY18 down at Rs 133 million as compared to Rs 286
million in FY17, thereby witnessing a decrease of -53.4%.
 Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY17, a growth of 69.5%.
 Current assets rose 103% and stood at Rs 792 million, while fixed assets rose 9% and stood at Rs
3 billion in FY18.
 Overall, the total assets and liabilities for FY18 stood at Rs 5 billion as against Rs 4 billion during
FY17, thereby witnessing a growth of 19%.

FAMILY MEMBERS IN THE BUSINESS

"If you take my blood test, you will see dumbbells and plates,” jokes Prashant Talwalkar, 55, managing
director and CEO of Talwalkars Better Value Fitness Limited.
The third-generation member of the Talwalkar family—whose name has been synonymous with fitness in
India since the 1930s—is comfortable with the weight and expectations of running a ₹286-crore (by revenue
in FY17) business along with his paternal uncle Madhukar Talwalkar, 84, and cousin Girish, 56.

MR. MADHUKAR VISHNU TALWALKAR - DIRECTOR

Mr. Madhukar Talwalkar has over 5 decades of experience in the health and fitness industry. He holds a
Bachelor’s degree in Textile Engineering from Veer Jijamata Technical Institute, Mumbai, and was the
Founder President of Greater Bombay Body Builders Association. He currently serves as the President of
Maharashtra State Body Builders Federation.

MR. PRASHANT SUDHAKAR TALWALKAR - DIRECTOR

With a Bachelor’s degree in Science from University of Mumbai and over 25 years of experience in health
club marketing, Mr. Prashant Talwalkar has spearheaded the Talwalkars brand evolution as our Managing
Director & CEO. He spearheads gym expansions across India and Sri Lanka. He has been honoured as one of
the Top 30 Most Innovative CEOs of the country by Inc. Magazine, 2015. Under his leadership Talwalkars has
also been awarded as the “Best Under a Billion” by Forbes Asia, 2013.
MR. GIRISH MADHUKAR TALWALKAR - DIRECTOR
Mr. Girish Talwalkar holds a Masters degree in Physiotherapy from Mumbai University and has over 2
decades of experience in establishing and operating health clubs. Handling strategic planning, Human
Resources function, corporate tie ups and other promotional activities, his expertise in project management
and execution has taken Talwalkars a step ahead.

BUSINESS EVALUATION AND COMPETITION

Talwalkars has expanded from 63 gyms in fiscal 2010 to 144 this year, and its membership has risen from
59,000 to over 1,33,000 for the same period. The Talwalkars believe they have an edge in the business
because of their long-standing presence in the Indian market. India may not be top of mind for the fitness
sector but, according to the international Health, Racquet & Sportsclub Association, its 1,200 clubs are more
than what Indonesia and Malaysia have combined and account for $510 million in industry revenues.
Although the market is highly fragmented and dominated by mom-and-pop players, Talwalkars faces its
biggest competition from Gold’s Gym of the US and Sportsfit owned by Indian cricketer Mahendra Singh
Dhoni. Through 10 years of franchising Gold’s Gym has set up 92 gyms in India—its largest foreign presence.
 Family Business Management

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