The Hindu : Business : Bata India to manufacture specialised footwear

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Friday, Jun 20, 2008
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Bata India to manufacture specialised footwear

To open 240 outlets in three years; looks for space at malls and other key locations

— PHOTO: ARUNANGSU ROY CHOWDHURY

IN EXPANSION MODE: P.M. Sinha (right), Chairman, and M. Villagran, Managing Director, Bata India, addressing the company’s 75th annual general meeting in Kolkata on Thursday.

KOLKATA: Footwear major Bata India will open 240 new outlets across the country over three years. The company will utilise the surplus cash for expansion and upgrade 60 to 80 existing outlets, Chairman of Bata India P. M. Sinha told reporters after the company’s annual general meeting here on Thursday.

Mr. Sinha said whether the company would adopt the franchisee model in opening the new outlets was yet to be decided. At present, out of the 1,200 outlets, 143 were franchisee owned. The cost of a new outlet would typically vary between Rs. 1.50 crore and Rs. 2 crore. He said the company has targeted the institutional business for increasing sales. The company would manufacture specialised footwear for defence, para-military, hospitality, airlines, and mining. He said institutional sales would be a main revenue earner for the company. The company was also looking for space at malls and other key locations.

Focus on quality

To a query, Mr. Sinha said the company was looking at the domestic market for growth. He said the focus was on improving quality and design. “After that, the company will look at the export opportunities,” he said. The export market was highly competitive with China controlling key markets, he said.

On the 74 loss-making shops, Mr. Sinha said the company was making efforts to revive them. The company would close them down if they were found to be unviable. On growth projections, he said the company was looking at higher revenue and profits during the current financial year.

Speaking about joint venture company Riverbank Holdings which Bata India had entered into, he said 50 per cent of the earnings of the entity would be given to Bata India. The joint venture was in talks with a company for setting up a hospital inside the township. The company was also in discussions with overseas firms for selling major international brands through its stores. — PTI

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