Mumbai-based fitness chain company Talwalkars Better Value Fitness Ltd (TBVF) is exploring ways to expand its existing alliance with UK-based fitness and health firm David Lloyd Leisure (DLL), according to a stock market disclosure.
TBVF, which has an existing partnership with DLL that was entered into in 2012, said that the company is looking at various partnership options including “advisory involvement, co branding opportunities, possible investing in TBVF and other clubs, working on management contracts with third-party owned clubs were among the various ideas that were raised as part of brainstorming.”
Responding to a news report that DLL is picking a large minority stake in TBVF, the firm said it has not entered into any specific negotiations with the British firm yet, but discussed at a concept level to set up a separate undertaking for its clubs with land developers who may be interested in availing of DLL or TBVF expertise as a mode of growth, it said in the disclosure.
DLL is a sports, health and leisure company that runs health clubs and gyms across Europe. TBVF owns and operates a chain of health centres and also offers a suite of services including gyms, spas, aerobics and health counseling.
TBVF operates through over 145 branches across 75 cities with over 1.5 lakh members. In the year ended March 31, 2014, Talwalkars posted 23.7 per cent increase in revenue to Rs 188.35 crore with net profit rising 22 per cent to Rs 36.5 crore.
Shares of TBVF closed at Rs 222.30 per share, up 6.80 per cent on the BSE compared with their previous close in a weak Mumbai market on Thursday.
(Edited by Joby Puthuparampil Johnson)