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Mumbai-based physical fitness chain Talwalkars is expanding to become a mass market player and is looking to raise funds through private equity to finance it, reports Mumbai Mirror. The company plans to dilute some 20 per cent for Rs 20-25 crore, and a part of it will be raised from PE firms.

In order to fund its expansion plans, the company is planning a private equity placement among other avenues. The company needs around Rs 20-25 crore and, of this, Rs 4-5 crore would be raised through a private placement. “This will dilute our equity by around 20 per cent,” said Rahul Talwalkar, the third-generation entrepreneur in the family business founded by his grandfather.

Talwalkar wants to become a volume player now. “I would not like to call it low-cost,” says Talwalkar. “These centres are for clients who are price-sensitive.” At present, a membership fee to a Talwalkar Centre in Mumbai comes at a cost of Rs 18,000-Rs 20,000 per annum. This includes the fees for all the facilities in the gym, including sauna or a steam bath. The low-cost centres being planned would have member fees below Rs 10,000 per annum. The company’s intention is to be a volume player and attract customers who opt for other gyms which are not so heavy on the pocket. (Via Mumbai Mirror; In the pic: Madhukar Talwalkar, Director, Talwalkars - courtesy: The Hindu)