Veteran value investor and academician Shivanand Mankekar-backed fitness company Talwalkars Better Value Fitness Ltd has raised its holding in Denovo Enterprises and Aspire Fitness Private Limited to make them its subsidiaries. This is part of its strategy of making all joint ventures and associates of the company a part of the firm i.e, owning over 50% stake that allows it to consolidated their earnings with itself.

In both the companies, Talwalkars held 50% stake. While Aspire was incorporated as a 50:50 JV along with Life Fitness India Pvt Ltd, Denovo was a company running Talwalkars branded fitness outlets as a franchisee.

For the year ended March’09, Denovo had total income of Rs 4.4 crore with net profit of Rs 24.7 lakh. It also owns 66.6% in another fitness company Equinox Wellness.

The question  is whether the strategy of owning over 50% in its associates or JVs will also cover Talwalkars venture with Future Group that runs under the name of Talwalkars Pantaloon Fitness Pvt Ltd. The equal equity joint venture with the country’s largest retail firm Pantaloon Retail (India) Limited had last year acquired beauty and hair salons chain operating under the brand ‘Star and Sitara’ for an undisclosed amount.

Star & Sitara was owned by Pantaloon Group that had earlier also launched private label beauty products such as nail paints under the brand.

Pursuant to this transaction, Talwalkars’ stake in the JV, that is primarily in the business of setting up health clubs and allied business in malls under the sub brand ‘Fit & Active’, diluted significantly making it a minority partner.

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