Talwalkars aims for Rs 130 cr revenue in FY11

Fitness chain operator, Talwalkars Better Value Fitness, which today listed on both the bourses, is aiming for a revenue of Rs 125-130 crore in FY11.

"In FY09, our revenue was Rs 59 crore and we expect at least Rs 70 crore in FY10. We are growing fast and aiming for a Rs 125-130 crore revenue this fiscal," the company's Managing Director & CEO, Prashant Talwalkar, told reporters here.

The company is presently in the process of declaring its FY10 result, Talwalkar said. The company has grown at a compounded annual growth rate of 80 per cent over the last three years and sales turnover has shot up from Rs 10 crore in 2006 to Rs 59 crore in 2009.

Talwalkars presently has 58 health centers with more than 55,000 members pan-India. The company plans to open 32-35 more centers by the end of this fiscal (FY11). "We will invest Rs 50 crore to set up 27 more health clubs in Tier-I and II cities by the end of the current fiscal," he said.

"We have built a strong brand equity and market leadership in the fitness industry in the country. Our success over the decades leads us to believe that we can replicate our business model and take our health clubs to overseas market as well," Talwalkar said.

The company raised Rs 78 crore through its IPO. Of this, Rs 50 crore will be used for setting-up health clubs while the remaining Rs 20 crore for repaying loans.

"The IPO proceeds will be used to set up 27 more health centers at an estimated cost of Rs 50 crore and for repaying loans of about Rs 20 crore," he said. The company currently has a debt of around Rs 50 crore, he said.

The company today listed at a premium of over 15 per cent over its issue price of Rs 128 on the Bombay Stock Exchange. On the NSE, the stock jumped nearly 16 per cent to Rs 148. The company has listed with 2.41 crore shares on both the bourses.