Talwalkars, the health and fitness centre chain, has acquired 50 percent stake in Force Fitness.
Shares of Talwalkars Better Value Fitness gained over 3 percent intraday on Wednesday as investors cheered its decision to acquire Force Fitness India, the holder of master franchisee of ‘Snap Fitness’ gyms.
Commenting on the news, Anant Gawande, CFO & Wholetime Director, Talwalkars, said, “The deal will reduces our cost of acquisition or setting up of gyms by 35-40 percent.”
Talwalkars have been setting up gyms for about Rs 2-3 crore each, but now the company is moving towards lower capex model.
“Over the last couple of years, we have moved from 150 gyms to 260-280 gyms. And, this we have done with two-third capex utilised for the first 150 gyms,” he said in an interview to CNBC-TV18.
Force Fitness aims at expanding its footprint in markets where Talwalkars is strong.
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