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Table of Contents

Overview of Indian Footwear Industry 1

Introduction 1

Background 1

Distribution Network 2

Organisational Structure 3

Product Segmentation 3

Shareholding Pattern 9

MOUs with other companies 10

Internal Initiatives to improve the product 11

Awards received in 2009 1

The Road Ahead 13

References 15


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Overview of Indian Footwear Industry

The Indian economy has shown a positive growth with gross domestic product

expected to grow at a rate of over 9 per cent in 2011-12. The leather and footwear

industry is expected to grow at 20% during 2008 -2011. Currently the Indian footwearindustry is worth Rs.18, 400 Cr. and employs 3.4 million people.

India is the second largest producer of footwear in the world. The organised and

unorganised sectors together produce 2,065 million pair of shoes. This accounts for

14% of the 14.52 billion pair world market.

Introduction

Bata has been Indias favourite footwear brand since last seven decades. The

company prides itself in providing great shoes at great quality. With a focussed

approach to create specialized division to cater to the needs of different segments, it

offers an unmatched product range.

Background

The Shoe-maker giant Bata was founded in the Zlnregion of the Czech Republic by Tom Bata in 1894.

When Nazis invaded Czechoslovakia in 1960, Batas

headquarter shifted to Toronto.

The first Bata shop was opened in Netherlands in 1922while the first Bata Shoe Factory was setup in Best,

Dutch province of Brabant in 1933.

Bata India Ltd. was setup in 1931 at Calcutta. It was originally promoted asBata Shoe Co Pvt Ltd by Leader AG, Switzerland which was a member of the

Toronto-based multinational, Bata Shoe Organisation (BSO).

Bata changed its name to Bata Shoe Company Private Ltd vide Certificate ofIncorporation dated April 6, 1956. It was also called Bata Shoe Company

Limited for some time. The name was finally changed to Bata India Limited on

April 23, 1973.

Bata has setup 5 factories at Batanagar (West Bengal, 1936), Bataganj (Bihar,1942), Faridabad (Haryana, 1951), Peenya (Karnataka, 1988) and Hosur (Tamil


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Nadu, 1994). It also has two tanneries at Batanagar and Mokamehghat in

Bihar.

Batanagar factory became the first Indian shoe manufacturing unit to receivethe ISO 9001 certification in 1993.

Bata Shoe Factory in Czechoslovakia

Distribution Network

Bata has all India strong distribution channel comprising of 12 depots which supplies

the product through 180 distributers and over 20,000 independent shoe dealers. It

sells 45 million pairs of footwear annually through 1200 retail stores. Bata serves

over 120,000 customers every day and employs 6800 people.

Bata offers unique DSP-Dealer Support Program so that independent dealers can

buy an assorted product mix of low to medium priced shoes.

Global presence of BATA


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Organisational Structure

Name Designation

Mr. P M Sinha Chairman / Chair PersonMr. N Sankar Director

Mr. J Carbajal Director

Mr. Fadzilah Bin Mohd Hussein Director(Finance)

Mr. Atual Singh Independent Director

Mr. M Villagran Managing Director

Mr. U Khanna Director

Mr. Jack G N Clemens Director

Mr. Rajeev Gopalakrishnan Additional Director

Mr. Akshay N Chudasama Independent Director

Product Segmentation

Bata India Ltd boasts of being the first company in India to introduce the franchise

model and continuous to be a business model for many upcoming franchise

businesses. One of the main reasons Bata India Ltd has been a success for so long is

its versatility and ability to cater to the needs of varied customers. Unique Range ofproducts and Quality continues to be the driving factor for Bata and the company has

been continuously upgrading its technology to provide the best quality possible to its

consumers

One of the examples of how technology is used by Bata is the PU soling technology;

this has resulted in producing trendy casual shoes. The new products are customized

to have light weight flexible soles, soft leather uppers with full padding which add

extra comfort to the footwear.

Talking of Product segmentation at Bata India Ltd, the company has over 1100products and is segmented under various categories.


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Kids

Daily School Sports Trendy

Hawaii chappal Bata in house shoes Power Bubble Gummers

Sparx Canvas

Women

Daily Luxury Sports

Hawaii Chappal Hush Puppies Power

Sparx Marie Claire Reebok

Comfit Nauralizer

Bata in house products North Star

Scholl

Men

Daily Luxury Sports

Hawaii Chappal Weinbrenner Power

Sparx Maccasino Reebok

Comfit Hush Puppies

Bata in house products North star

Comfit (high_range)

Bata in house products ( high range)

Ambassador

Scholl


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Some popular products available exclusively for Women at Bata:

Marie Claire:Price Range: Rs.599 Rs.2499

The Bata Group owns the Marie Claire trademark for shoes worldwide except inJapan and Korea.

The Brand is recognized as a trademark in international

fashion for footwear for Women.

Marie Claire shoes stand for:

Contemporary and modern styles Adaptive yet elegant Simple design with subtle fashion trend details Quality product with a clean finish

NaturalizerPrice Range: Rs.2499 Rs.3599

Naturalizers are a popular brand not without a reason they are related with the

below attributes

Strong reputation for making quality shoes Non-slip soles Major selling point comfort and availability in wide range of sizes


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Some popular products available exclusively for Men at Bata: Weinbrenner

Price Range: Rs.699 Rs.2199

Outdoors is yours is a tagline commonly used by

Weinbrenner.

The brand intends to be a casual yet elegant

outdoor wear and boosts of the below highlights

Wide range of leather shoes and boots, low mid and high cuts Styled with laces and eyelets making them attractive Truly loyal to its tag line Goodyear welt construction, rugged moccasin and other strongly outdoor

associated cuts but always in casual style

AmbassadorPrice Range: Rs.1699 Rs.2799

A brand famous for its formal wear and the price range starting from Rs1600/- makes

it affordable to people who want to have branded and long lasting shoes. At presentBata India Ltd have over 12 different designs in Ambassador Brand.

Elegant and formal in style The Range of prices cover economic to high end price range Long lasting shoes Quality products with a sophisticated finish.

Some popular products available for Men and Women at Bata:

Hush PuppiesPrice Range: Rs.699 Rs.5499

In 1958, Wolwerine Company created the world's first casual shoe and provided a

new alternative in footwear. This unique invention changed the way people

perceived shoes. Hush Puppies till date continues to be a sought out brand for many


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people .The desire for a fashionable and casual life, a young idea in 1958 is now the

aspiration of generations of people worldwide.

Emerged as a brand of soft, breathable and comfortable shoe The brand continues to be a sought out brand Embraced for its authentic style and casual flair. Products updated with time with use of modern technology

Power Sport wearPrice Range: Rs.489 Rs.1699

Power Brand is built on the motto that The

Power customer is a smart consumer not justa value consumer

In the year 1972 Power was introduced in to

the market and the brand continues to

connect emotionally with the masses for the below stated reasons

Athletic Footwear at affordable price Diversified range catering to running, training, court, basketball and other

outdoor activities

The brand ranges over young, casual and trendy collection of shoes.

Scholl Foot wearPrice Range: Rs.1249 Rs.1599

The heart-felt fascination with feet, dedication and drive made Dr.Scholl a very

popular brand among the consumers

A brand synonym with concept of foot care. Unique Anatomic insole adds extra cushion to the footwear Drives away stress and discomfort in feet.


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Some popular products available for kids at Bata:

Bubble GummersPrice Range: Rs.299 Rs.899

Bubble gummer is the leading children's footwear brand and has an

extensive presence in Latin America, Asia and Europe. All shoes of Bubble Gummers

are produced with state-of-art technology to ensure healthy foot growth, and

parents can be assured that their children will enjoy these shoes in total comfort and

safety.

Leading Brand for Childrens foot wear.

Quality, comfortable, funny and colourful shoes. Developed to the strictest standards of quality. School Shoes

Price Range: Rs.119 Rs.999

The most important segment of Bata India Ltd is its Wide

range of School Shoes starting from Canvas shoes to the

Leather shoes Bata India Ltd had it all.

Till date many people refer to school shoes as Bata

shoes and the brand is the top of mind brand when

people talk about school shoes. The prices range from Rs

119 to Rs 999 thus making it affordable to all classes of

society.

Market leaders in the School Shoe Domain. Top of the mind Brand for school shoes.


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Shareholding Pattern

Sr. No Shareholder Category %age Share Holding

1 BATA B.N (Promoter) 52.012 Mutual Funds & UTI 11.55

3 Financial Insti. / Banks 0.02

4 LIC 4.7

5 FII 13.8

6 Corporate Bodies 3.8

7 Retail Investors 13.7

0

2

4

6

8

10

12

14

16

2005 2006 2007 2008 2009 2010

EPS

EPS

0

2000

4000

6000

8000

10000

12000

14000

16000

2005 2006 2007 2008 2009 2010

Profit (In lakhs)

Profit


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MOUs with other companies

An agreement was made with Adidas of West Germany in 1988 formanufacture and marketing of sports and special application footwear, sports

goods and sportswear in India and the products were expected to be launched

in December, 1989.

Bata India signed an Agreement in 1988 for marketing of `Star' clothingdesigned by Murjani International, New York, U.S.A. and sourced through

Inmark Brands Pvt Ltd.

The Company successfully launched `Adidas' collection of hi-tech sportsfootwear in 1989.

Bata entered into a marketing tie-up with Nike in 1997, wherein the latter'sproducts would be offered from select Bata outlets.

Bata Forged into a retailing alliance with Lee Cooper Shoes in 2003, to retailtheir shoes.

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010

Sales (In Lakhs)

Sales


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Internal Initiatives to improve the product

Over the years, the Company with the collaboration of Bata Development, Ltd.,

London, U.K., and its association with Bata, Ltd., Toronto, has been building up its

own well-equipped and up-to-date R&D organisation.

Tanning was introduced at the new factory at Batanagar in 1937, along with the

introduction of leather products towards the end of the year.

As a result of the R&D activities, special leather board was developed as a substitute

for insole leather.

In 1991, a promotional brand `Tigre' was launched to keep the factories full at all

times and thereby reduced losses due to under recovery of overheads

The company launched the `Sundrops' line at New Delhi on August 16, 1999.

Bata commands around 35% of market share in footware retail sector in India.

Around 98% revenue comes from domestic operation. Bata faces competition on

two fronts. It faces competition from new players in the organized sector who are

focusing on advertising and publicity for promoting their brands. The Company also

faces competition from low cost products from the unorganized sector. The

Company is facing competition by leveraging on its existing brands, promoting new

brands, improving product quality and making its products cost competitive.

Major Competitors in the Organised Sector:

Lakhani Footwear Pvt. Ltd Liberty Shoes Ltd. Mirza International Ltd. Relaxo Footwear


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Company Year Ended Sales (Rs. Cr.) EPS (Rs.)

BATA India Ltd Dec '09 1112.85 10.46

Lakhani Footwear Pvt. Ltd Mar '10 281.96 2.4

Liberty Shoes Ltd. Mar '10 266.36 5.4

Mirza International Ltd. Mar '10 378.89 2.03

Relaxo Footwear Mar '10 555.7 31.41

Awards received in 2009

Awarded Amity Corporate Excellence Award 2009 in a ceremony held inAmity Business School, NOIDA on February 27th 2009. Bata received the award

for the third time.

Business Week lists Bata India in list of The worlds 25 Unsung InnovativeCompanies in its May 2009 issue. The report was compiled by Boston

Consulting Group, Business Weeks partner in Annual Most Innovative

Companies Special.

Awarded Outstanding Sales performance for Year 2008 for Hush Puppies byWolverine Group- Announced in May 2009 in Michigan

Brand Equity recognized Bata in the TOP 50 Most Trusted Brands in June 2009.Bata is the only lifestyle retailer in the top 50 brands.

Bata India awarded the prestigious Images award of the year for the MostAdmired Retailer of the Year Fashion & Lifestyle in Mumbai on September 16,

2009.Other nominees in the category were Levis, Benetton, Wills Lifestyle,

Bata, Louis Phillipe and Titan

Bata India awarded the Most Admired Footwear Brand by Images FashionForum in 2009, the ceremony was held in Mumbai on January 28, 2009

Bata India is selected as a POWERBRAND in the POWERBRANDS 2010. Theselection is done after an extensive pan India research conducted by Indian

Council for Marketing Research to select The Most Powerful Brands in India in

the year 2009.


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A World Class Retail Store of Bata India Pvt Ltd.

The Road Ahead

Bata was considered as manufacturing oriented company who concentrate onproducing footwear and sell them in market at anyhow. Bata wanted to change this

image of production oriented company to affordable, market driven, fashion

conscious, lifestyle brand. Thats why Bata wanted to reposition itself.

Bata said that the company is focusing on the expansion of the large format stores

with different shoe designs and value pricing.

Bata India is focusing on to the expansion of its retail stores along with the change in

looks of its retail stores across country to match the standard to any other Bata

store in the world.

Bata India Ltd plans to add around 60 stores every year and to open over 220stores by 2012.

The size of stores to as much as 10000 sq ft. With most of the stores owned byBata, company will also open over 40 franchise stores.

To grow sales by 15% and reach 1600 Crores mark.


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Generate revenue from it 200 acre land in Kolkata by commercialising the land.Construction work of estimate INR 1300 Crores which include Shopping Mall,

School and Hospital has already begun early 2011.

Plan to close around 100 unviable stores across country and focus more onpremium offerings to increase margins.

Bata as the mass brand and less investments on the advertising, its the toughtask for Bata to compete with the Big brands established in the market.

Bata India is planning to introduce cricket boot in domestic market and alsoworking on improvement of abrasion resistance property of PVC air blow sole

increase durability.

Introduction of improved mould design technique to reduce cracking in PVCsoles and upgrading the quality of TPR Unit Sole to have more comfort in

wearing are also on the agenda.


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References

http://money.rediff.com/

http://www.moneycontrol.com/

http://www.bata.in/

http://web.ebscohost.com/

http://www.indiainfoline.com

http://profit.ndtv.com/
http://money.rediff.com/http://www.moneycontrol.com/http://www.bata.in/http://web.ebscohost.com/http://www.indiainfoline.com/http://profit.ndtv.com/http://profit.ndtv.com/http://www.indiainfoline.com/http://web.ebscohost.com/http://www.bata.in/http://www.moneycontrol.com/http://money.rediff.com/

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