Himadri Buch & Krishna Karwa Moneycontrol News
Talwalkars Better Value Fitness today announced its international foray into South East Asia, through a master franchise tie-up with US-headquartered Snap Fitness at an initial investment of about USD 10 million.
The fitness chain will operate in Singapore, Malaysia, Vietnam, Thailand, Sri Lanka and Bangladesh, through its Singapore subsidiary, the company stated.
However, the company initially plans to focus on managing the Snap fitness brand in Kuala Lumpur and Singapore. They would extend to other countries subject to the response garnered.
"We are excited to partner with Snap Fitness in our quest for transition from an Indian company to a global one," Prashant Talwalkar, Managing Director and Chief Executive Officer of Talwalkars said.
With this expansion, the company believes that the topline and bottomline may grow in the range of 12-15 percent and 18-20 percent, respectively.
Talwalkars presently has over 211 outlets in 85 cities and towns in the country, and Sri Lanka. Talwalkars claims it presently has a member base of over 2 lakh.
"We took a long time to reach the 100-mark and then the 200-mark. We will ensure that our journey overseas is also sustainable and efficient," he said.
Snap Fitness is among the largest fitness chains globally, and is present in over 24 countries through different franchise partnerships. It is spread across US, Canada, Mexico, Australia, New Zealand, England, Egypt and India with over 2,500 clubs in 1,450 locations.
"We are looking to open about a 100 outlets at least in the next 5-6 years in Asia through this partnership," Peter Taunton, Founder of Snap Fitness and CEO of Lift Brands said.
As of 2015, Snap Fitness launched over 60 clubs in India across Bengaluru, Delhi-NCR, Chennai, Hyderabad, Mumbai, Pune, Lucknow, Vadodara, Guwahati and a few smaller cities.
They have a vision to open over 300 clubs across the country in the next 5 years.
GST will help Talwalkar gain market share from their unorganised peers who currently constitute around 70-80 percent of the industry size.
The company's focus will largely be on keeping its free cash flows positive in the long run.
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