group19_talwalkars
TRANSCRIPT
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