Bata India’s shares surged by 5.46 percent, reaching Rs 1,737.05 at 12.49 pm on August 17. This rise followed a news report indicating discussions between the shoe and leather goods manufacturer and Adidas for a potential partnership in the Indian market.
However, the stock remains considerably lower than its 52-week peak of Rs 1,989, reached precisely a year ago on August 17, 2022. Trading activity was notably higher, with approximately 1.5 million shares exchanged on the stock exchanges, a fivefold increase compared to the company’s average monthly trading volume.
The Tie Up and Trends
This development coincides with Bata India’s initiation of trials for sports apparel. Ashwini Windlass, Chairman of Bata India, expressed optimism about the company’s future growth prospects based on market trends. He emphasized that Bata India is actively focused on retaining a robust growth trajectory, which includes plans for expanding its distribution reach.
In the fiscal year 2023, Bata India achieved a notable increase in net profit, soaring to ₹319 crore from the previous year’s ₹100 crore. The company’s revenue for the same period amounted to ₹3,451.5 crore. Windlass shared these figures with shareholders during the company’s 90th Annual General Meeting held on August 10th.
Bata India’s revenue primarily derives from its retail sales, contributing 75% of its overall revenue. Additionally, the company dedicated over ₹6 crore to research and development expenses during the last fiscal year.
Chairman Windlass highlighted that Bata India plans to invest around ₹100 crore during the year, with a strategic focus on both “casualization” and “premiumization.” This approach includes the growth and expansion of franchisee and multi-brand stores. The company successfully crossed the 2,000-store milestone across various formats in FY2023, with intentions to further expand its presence in smaller towns and cities. Bata India aims to collaborate with small and medium entrepreneurs to increase the number of franchisee stores to 500 by 2025.
Bata India, which boasts a workforce of 9,800 employees, is committed to gender diversity, with 15% of its staff being female. The company has introduced an innovative concept of all-women stores as part of its initiatives.