COMPANY PROFILE

INDUSTRIAL BACKGROUND

To identify the period when the footwear was made is not an easy job. The

ancient carving and drawing depicts the use of footwear which suggests its

origin thousands of years ago.

The early shoe design was often taken from nature and in addition to

sandals; the Egyptians also wore a shoe with an upturned modeled on the

elephants tusk. The Romans carried there shoes style through out the

ancient world as they conquered. The Moors who conquered Spain in the 8 th

century introduced beautiful soft dyed leather known as cordovan. Their

shoes covered the foot and ankle. They came to be called Babylonian

Shoes.

This history of shoe varies apart of all history. In the beginning

necessary dictated style and then through conquest travel and trade styles

were exchanged among the people of the world. Materials varied decoration

in footwear popular to points of becoming excessive and ludicrous.

Once shoes were produced by craftsmen, shoemakers in single pairs,

each cut, stitched and tacked by hand in time consuming, laborious method

has now changed into vast industry in which footwears, thanks to modern

technological machines.
 GROWTH AND DEVELOPMENT OF THE INDUSTRY

1900s:

The year 1900 was not as exciting as the 19 th century millennia lists might

have hoped. The end of the world did not come. Shoe fashion did not change

a whole lot either. The prim black boots of Queen Victorias era did not fade

away with her death in 1901. they continued with unabashed popularity for

several more years. Skirts were after all still brushing the tops womens feet.

However hemlines began to rise a few years into the new century as the rest

as they say as the history The period between 1900 to 1910 is often called

as the Edwardian Era after Queen Victorias successor. King Edward VII.

Sophisticated of the day also referred to this time as the Bello poque, or

beautiful age as there was definite learning towards classical aesthetics.

Day shoes were typically boots. Evening shoes were more diverse with the

popular style for women a court shoe with a small Louis heel. These were

often embellished with embroidery or metallic thread and glass or jet

beading on toes often the only part peeking out from a voluminous skirt.

Evening boots were often made from soft kid or stain with rows of beaded

straps embellishing the skin.

1920s:

Mass production and the development of affordable synthetic fabrics

granted everyone to access to beautiful clothing and shoes. The foot became

a focal point of fashion. Shoe styles were influenced by crazes like the

Carleton, a dance that demanded a security fastened shoe with a low heel

and a closed toe. A single bar pump with a pointed toe high waisted heel

and one tiny covered button was the most common style. High tongued

cutaway decorated cross over and t strap were most popular elements.

Bright fabrics and brilliantly dyed leather including metallic were used to

create some of the most exiting shoes ever seen. Fabulous harem slippers

and slides were among the favorites. A number of luxury materials

including rich brocades, satin, silk and velvets often embellished with

metallic overstitching, embroidery or beading were employed. The heels were

often works of art in themselves made of such materials as Bakelite,

Wedgwood, Jasperware or leather. They were often decorated with lace,

rhinestone and other pretty shiny things.

1930s:

Designers began to experiments with shoe fashion. Plan form shoes made

their first 20th century appearance in the late 1930s. Created by designer
such as Salvotore Ferrogamo and Andre Perugia these platforms were

created from wood, cock and other materials due to shortage of leather and

a war ban on rubber.

Shoes were also higher in a vamp, making them look chubbier. Sandals

were increasingly popular reflected in the strappy evening shoes with open

toes revealing sheer, silk hose. Men were beginning to wear more spectators

loafers and fewer boots. Women seeking sensible, low heeled footwear.

1940s:

By 1940, the average American women owned five pairs of shoes. But the

1941 bombing of Pearl Harbor thrust the country into war and created a

wave of nationalism. The democratic world was truly in peril and everyone

banded together to fight against fascism.

Overseas leather was now restricted to military use, so shoe designers were

forced to be increasingly clever. Every imaginable material was incorporated

into shoes, but reptile skins and mesh were most successful substitutes.

Cork or wood soled wedgies were such advertising as Vogues Make Do &

Mend campaign. Factories were converted for consumers goods production

military production. U.S rationing rule limited the height of shoe heels to

one inch and allowed for only six color choices: stockings were also

unavailable. Magazines and beauty salons helped out by offering tips on

how to paint legs with black sea and tans using makeup. This being

unpractical as an ongoing ritual, ankle socks became increasingly popular.

1990s:

Is there anything new under the sun? The 90s are an amalgamation of this

centurys style. Diversity has a concept in the 1990s and its influence is

reflected very obvious in fashion. Shoes are no longer confined to handful of

styles; they are available in every conceivable style and make for any

occasion.

Today footwear industry through the assimilation of scientific methods

and function of research has undergone drastic change.

INTRODUCTION:

The organization is the worlds largest manufacturer and marketer of

footwear. It has 83 companies spread all over the globe both in developed

and developing countries. The organization is a leader in the use of modern

technology and the latest management and marketing techniques. It

operates 6300 company owned stores all over the world. These include Bata

family, Athletes world, Bubble gummers, Myers, Rizzi, Heyraud and Marie

Claire stores. In addition Bata has over 50000 independent retailers. The
combined production and sales 270,000,000 pairs of shoes per year. The

Bata Shoe Organization has 67,000 employees on its rolls today.

CORPORATE PROFILE:

Today Bata ltd has become a legend; behind it is a saga of determination

and pursuit of excellence. A spirit of enterprise that has made Bata ltd a

complex, multidimensional giant, over at the service of million of people in

India. How did it all begin?

Origin:

It was January 1934, pre independence era, when the Bata shoe company

purchased 155 acres of land from the port commissioners and small land

holders at a place in the outskirts of Kolkata. This land was filled with deep

ditches, remnants of burn and companys brick fields. So thick were the

forests surrounding the place that wild animals roam about? Within a few

months the Consul General of Czechoslovakia laid the foundation stone of

the first building and named the township Batanagar. Serious construction

work began in 1935 under the direction of Mr. Martinee, the architect of the

company. By 1936, shoes were being manufactured in the factory and soon

by 1939 the Batanagar factory became self sufficient in many ways. During

the World War II, the factorys production was geared enough to meet war
requirements. Thereafter growth and progress was steadily soaring

upwards.

New installation and new schemes for the workers gradually made Bata Ltd

a household name in the country since its operation began in 1931 the

modest factory in Konnagar of West Bengal representing Bata Ltd has

mushroomed into a corporate giant in Indias industrial map.

The biggest footwear marker has a wide wing span; it covers the entire

length and breath of the country. The company prides itself in having 4

manufacturing units, 2 tanneries and a number of ancillary units pursuing

and active policy of encouraging exports since 1935. Bata India exports the

largest number of canvas shoes from the country.

Environment:

Thinking Green..... It has been Bata India's Endeavour to preserve the

environment. Saving the Ganga is a project that has made a significant

contribution in this direction. Bata at a considerable cost has ensured that

the effluents from the tanneries are treated in a state-of-the-art effluent

treatment plants so that they do not pollute the river at Batanagar and

Mokamehghat. Bata was one of the first companies to come forward to

preserve nature, when it joined hands with World Wide Fund (WWF) to

protect the natural environment and its wildlife. Through an arrangement

with the apex body of WWF, a part of the sale proceeds from "Power WWF"
collection T-shirts were donated to the WWF. Afforestation programme along

with "Save the Ganga Project" brought many laurels and kudos to our

Mokamehghat Tannery. Planting of trees is routinely carried out at all Bata

Units.

The factory at Bangalore was considered to be the best maintained garden

in Peenya Industrial Area.

GROWTH AND DEVELOPMENT OF THE ORGANISATION

Bata was originally promoted as Bata Shoe Company Pvt. Ltd in 1931 by

leader A.G, Switzerland a member of the Toronto based multinational Bata

Shoe Organization (BSO). It became a public limited company in 1973 and

the name was changed to Bata India Ltd. BSO increased its stake in Bata in

1993 to 51% through rights issue. At present Bata is the largest

manufacturing unit belonging to the BSO and it enjoys strong financial and

managerial support from its parent. BSO is one of the largest manufacturer

and marketer of footwear in the world with a presence in over 60 countries

spread all over the world.

Bata manufactures different lines of footwear at its five manufacturing units

at Batanagar in Kolkata, at Faridabad in Harayana, at Bataganj near Patna

and at Peenya in Bangalore and an export oriented unit (EOU) at Hosur in

Tami Nadu. It also has a tannery at Mokamehghat in Bihar. The company

has however converted the Hosur EOU into a domestic tariff area unit

through rebounding it in March 1999. The company markets its products

under the brand name Bata, with more than 1050 retail outlets managed

by the company in addition to a large number of other outlets served by the

various Bata dealers spread over 1000 cities/towns in India.

Bata first established itself in India in 1931 and commenced

manufacturing shoes in Batanagar in 1936. At that time the Bata Shoe

Organization was headquartered in the Czechoslovakia town of Zlin the

residence of Thomas Bata, the founder of the organization. Operations were

expanded throughout India with the establishment of factories in different

states and the rapid growth of the distribution channels to allow the

companys product to reach customers in every town across India. Bata

India remains today Indias biggest manufacturer and marketer of footwear

started operating as a private company Bata India is today traded on the

Kolkata and Mumbai Stock Exchanges. From its head office in Kolkata Bata

India manages a network of five factories, two tanneries, over 1500

showrooms, 27 wholesale depots and 8 retail distribution centers located

across all states in the union.

PRESENT STATUS OF THE ORGANISATION

Asias largest footwear company strives to maintain its lead with an image of

superiority, professionalism and round-the-clock efficiency. A visit to any

factory or office in the country bears testimony to that; Bata is gearing itself

with the latest technology and a forward looking approach to human

resource development. In sheer number, a staggering 16,000 people work at

various functions centers in Bata India, while another 200,000 is indirectly

employed.

The Bata Philosophy:

To recognize, at all stages in the production and distribution processes that

our prime objective is to provide customer with outstanding quality footwear.

To improve constantly our ability to produce and sell efficiently, applying the

latest techniques to the production and sales of footwears.

To employ people of integrity and ability to encourage them through

continuous training opportunities, both within the company and elsewhere.

The Bata shoe organization develops human resources to their full potential

in order to give everyone the opportunity for promotion. Bata Company

respects each individual and promotes on merit, pay according to their skills

and responsibilities and provide a safe and pleasant working environment.

To contribute the well being of all communities and countries in

which Bata do business by being productive and loyal corporate citizens.

Indian Bata world:

There are four factories: at Batanagar in Kolkata, at Faridabad in Harayana,

at Bataganj near Patna and at Peenya in Bangalore. Taking stock of them all

means accounting for thousands of trained men and million of pairs of

footwear on the production line. Of the two tanneries the biggest and the

Asias largest is situated at Mokamehghat. Tanning 10 million hides per

annum at Mokamehghat and the one at Batanagar are fitted with modern

machineries to produce top class leather for the domestic as well as

international market.

People our asset:

The company firmly believes that giving its people the right

encouragement adds incomparable rewards. Even with technology and

progress man does not take second place at Bata India. Emphasis is given

to man management and every opportunity is given so that people can grow

with the organization. Every year a large number of regional, national and

international courses are held to train Bata employees. It is a Bata policy to

provide awards for merit and to stimulate its people into thinking globally.

Always abreast with current trends and technology, Bata India brings latest

in-line technology into factory after factory and the workers too. Many

automated industries where work force shrink in direct proportion to their

rate of technological tuning Bata India keeps its employment level steady.
 This stability helps to nurture individual career goals and aspiration.

Whether it is a hobby or dream Bata India is always ready to stretch a

helping hand. Employees welfare is woven into the fabric of the companys

philosophy. Proper housing, modern medical facilities and a clean cheerful

environment where children can thrive and prosper are some of the Bata

Indias imperatives. This apart the corporate responsibility of promoting

professionalism is also a part of the companys credit. At every office factory

or shop quality and excellence are demanded and received.

Operation of Bata:

Once the footwear industry was a cottage industry. Today, Bata India

is proud to have elevated into a full-blown industry with considerable

volume and prestigious position. To remain at the top, Bata India invested

substantial amount of capital in developing and in keeping abreast with new

technology at current knowledge level. Training over 4000 employees every

year in different discipline. Pre-empting market needs the employees are

installed into thinking beyond today planning ahead for tomorrow.

Objectives of Bata:
 One word manifold is the catchword for describing its objectives.

From attaining peak professionalism to earning the trust of every probable

customer locally or globally that is what the company aims for:

In a sense it is multidimensional drive to

Maintain high quality at all time.

Create a peaceful and harmonious working environment.

Maintain leadership in the marketing through excellence in service

and product and

Gain trusts and respect as a socially responsible corporate citizen and

earn the confidence of customer and stockholders.

Retailing in Bata:

Recently there has been a tremendous change in the country retail

scene. The retail boom has hit India. Bata India a pioneer in retailing was

ready to meet the challenges of the 90s well located stores cater to the

needs of customers according to their expectation and lifestyles.

Bata India operates a unique chain of 1230 retail outlets, 100 franchise

stores and more than 300 wholesalers backed by 12 computerized

distribution centers and 4-franchise distribution centers located at strategic

places it operates in 23 depots that supply 300 wholesalers.

These in turn serve more than 10000 BSC retailers outlets literally in the

outback to meet the footwear need of the country. This dual servicing policy

has given the company a unique edge over others.

Quality, the key to better business has opened the doors to Bata India has

golden opportunity, Adidas, selected the company for collaboration venture

in India. Bata

India is the owner of his brand in the country. The shoes are being

produced at Batanagar and at Bangalore.

Bata Exports:

The unequivocal leader, Bata India exports 80% of the total canvas

and rubber footwear from the country. Besides it has won accolades and

contract from famous companies like British Shoe Corporation, Benson,

Olivers, Marlow, Kidderminister, F.H Wills in the UK, shoe city Inc and Pic N

Pay stores in the USA as well as Meldgaard and Peasted in France.

In the last five years more than 19 million pairs of footwear were

manufactured and exported by Bata India. International giants such as

Germany, USA, Holland, Denmark, New Zealand, France and Canada have

recognized and given the company international status for quality

excellence. And at home the company continued to win the prestigious

achievements year after year.

Mission Statement:

With footwear marketing and manufacturing as its core business to achieve

success and become the biggest and most skillful multiple retailing and

distribution organization with a dynamic, flexible and market responsive

approach to present and future opportunities for profitable growth. Success

in the companys mission will be measured by excellence in service to

customers, the integrity and ability of the employees confidence of the

shareholders and the suppliers and by being respected by the community as

a responsible corporate citizen. Thus the pursuit of excellence continues.

Future:

Bata will remain a household name to the people. It produces

footwear for the family, with a chain of modern stores all around the country

and bringing in new trends and brands extension to suit the needs of

traditional and trendy. But there is also the unseen facet of the company.

Its giant infrastructure and the network of people working towards one

common goal: to give to the customer, service and value that he deserves

through relentless search for quality and pursuit of excellence. Looking

towards the next century Bata India dreams bigger dreams, with its feet

firmly placed on reality. Even with optimism, this is the golden profile of

Bata India.
 Always ahead in new designs, new features, new products. A

relentless search will continue for better quality and pursuit of excellence.

Bata aims to provide new shoes for its customers at every step of their lives,

everyweek.

Bata will remain a household name to the people of India. Making

footwear for the family with a chain of ultra-modern retail outlets all around

the country and bringing in new trends and designs to suit the needs of the

trendy and the traditional. Today, Bata has repositioned itself as a

marketing-driven company with emphasis on quality service and

production.

Awards:

Bata India is one of the top 10 brands according to the recent survey by A

and M. The company has won the third annual Images Fashion Award for

the most admired footwear company in 2003. Super brand council,

comprising captains of industries has selected BATA as one of the super

brands in India. The selection was largely based on criteria such as the

brands mind dominance, goodwill, loyalty, trust and emotional bonding.

Meeting customer demands.

The Company today operates more than 1500 Retail outlets spanning the

entire length and breadth of the country. It has 26 Wholesale depots,

serving more than 500 wholesalers. It sells around 60 million pairs of shoes

annually and markets international brands, like Weinbrenner, Hush

Puppies, Dr Scholls, Reebok, Nike, Azaleia. The other most popular Bata

brands are Power, Marie Claire, Bata School shoes, Sandal, Bubble

gummers, Bata Hawai and Bata Industrial.

Popular brands

Bata is a household name in India and is the undisputed leader in footwear

technology. It manufactures and markets footwear for every walk of life. It is

the first Indian company to introduce shoes using latest technology under

its brand "Bata Tech". Among its newest collection of technogy in Men's

shoes are "Wind" with in-built air-circulation technology, "Antishox" with

shock absorbing technology and "Flexible" the most bendable shoe with in-

built comfort feature and "Comfort" for women have become breakthrough

products in footwear industry.

Bata brands:
With more than eight renowned brands, which include Hush Puppies,

Marie Claire, Bubble Gummers, Power, we cater to a wide range of choices

all over the country. Hush Puppies are one of the world's most comfortable

shoes designed for both men and women. Marie Claire is for today's fashion

conscious women who love shoes, which match their colorful and vibrant

wardrobe. That's not all. For those who want a tough shoe that can weather

any storm, we have Sandak to suit their needs. Weinbrenner is simply

meant to take you outdoors. With them on you can be rest assured about

their rugged character and durability. Kids can take their pick from Bubble

Gummers. Power is all about athleticism, for those who love sports and

enjoy sporting activities.

BATA STORES:

Flagship stores:

With over 4700 company owned retail stores spanning almost every

continent and over 100,000 independent retailers and franchisees

distributing Bata banner footwear the Bata banner is one of the worlds most

familiars sights.
STORE CONCEPTS

Bata Retailer Stores:

Bata operates almost 4,700 stores around the world. Our goal is simple: to

consistently be the most satisfying store to shop for well priced and

fashionable footwear, everywhere in the world. Bata operates four core

formats: City stores, Superstores, Family stores and Value stores.

Bata City Stores:

Bata operates stores in many of the worlds fashion capitals. Bata City

stores offer urban customers the best in todays fashion footwear and

accessories. These stores are in prime locations and provide a high level of

customer service, exclusive fashion shoe lines with complementary

accessories and contemporary shopping environment to discerning

shoppers. Stores are usually opened from Monday to Friday, from 9.30 to

20.30 and on Sunday closed.

Bata Superstores:

Bata Superstores offer a wide assortment of fashion, casual and athletic

footwear for the entire family. Located primarily in urban and suburban
shopping malls, these offer high value by providing good quality shoes at

great prices in an assisted service shopping environment.

Bata Family stores:

Bata is the worlds leading family footwear chain. Whether Prague or

Singapore, customers have learned to depend on Bata for a wide assortment

of comfortable, durable and fashionable footwear for the entire family at

reasonable prices. The products are primarily the Bata brand, with carefully

selected assortment of articles from both local and international brands.

Footwear, handbags, hosiery, shoe care products- Bata Family stores are the

trusted source around the world.

Bata Value Stores:

Bata has build the reputation on providing high value to the consumer

wherever they operate. Bata Value Stores outlet centers, Bata Bazaar

stores and depots- offers an incredible wide assortment of very affordable

footwear for the entire family. The shopping environment is a self-service

format for ease of shopping. Footwear is attractive and durable and

specifically selected and sourced to meet the needs of the value conscious

customers.
 SWOT ANALYSIS
STRENGTH:

1. Largest retailer network of 1300 outlets, 4000 franchises and another

10000 dealers.

2. Brand awareness was established in the early 30s. People associated

Bata for quality and real value for money.

3. Brand loyalty: Bata has got its own brand of customers who swear by the

name Bata from medium class to premium class.

4. Bata is restructuring the retail operation where by it is closing loss

making stores and is planning of opening new stores which are more viable.

WEAKNESSES:

1. Lagging in innovation: Bata has not been able to keep pace with the

latest changes taking place in the footwear market.

2. Cost structure: Cost structure is a big concern to Bata. Raw material

cost has increased mainly due to increase in price of natural rubber by

44%. This is something that the industry players are not being able to

control. However employee cost was as high as 26% of sales as compared to

10% for the industry. Bata has not been able to control this cost.
3. Competition: with the entry of the big international brands like NIKE,

LOTTO, WOODLAND, LEE, COOPER, etc Bata found it very difficult to hold

its market share.

4. Cash tied up in inventories: Bata invested a lot of money in the

inventories and fixed assets in the form of unused land extensive network of

dealer showroom for which maintenance and up keeping is paid out which

in return reduces profitability.

5. Low motivations among retailers outlets and sloppy showrooms.

OPPORTUNITIES:

1. Rapid growth of consumerism in state: With the rapid growth of middle

class in the state, the purchasing power of the average person has

increased. The awareness for the quality footwear has created a rise in

demand for quality footwear affordable prices.

2. Even changing tastes of customer: The fashion conscious customers

always look for new styles and designs in favor. The Indian footwear market

is highly dynamic nature.

3. Bata expects to touch the 100 million pair mark from the present 60

million pairs mark.

4. Tie-up: The tie-ups with Nike may attract more customers to Bata

showrooms.

5. Distribution Network: Batas distribution strength ensures higher

success profitability for new product segments.

6. Scope for mobilizing of funds widened.

7. Being an essential commodity the company can target all types of income

groups.

THREATS:

1. Global competition: In the premium segment Bata has to fuse stiff

competition with global players like Lotus Bawa and Woodlands.

2. Raw-materials: Raw materials used by the company are leather

hides and chemicals: high quality raw materials are very critical to produce

international standard finished products.

3. Future outlook: The Company has launched a joint venture, Mid

East Integrated Steel Ltd (MISH) with China metallurgical import and export

Corporation to its leather segments; it has entered into the domestic

shoe market and is also likely to own retail in the domestic shoe market as

well as in the global market. Export is its major thrust area.

MILESTONES OF BATA IN INDIA

1990- A highly versatile sample 18 station bicolour injection moulding plant

as installed in the Bangalore factory for production of State of the art

injection moulded shoes with synthetic and textile uppers and

specially developed PVC compounds as soleing material.

1995- 13,114,000 no. of equity shares allotted to Bata (BN) BV Amsterdam,

the Northlands the holding company.

The Long Term Agreements with the Bata Mazdoor Union

representing employees of Batanagar and Kolkatta Offices was

signed at bipartile level satisfactorily without any disruption of work.

1996 The company has received a notice in writing from a member of the

Company under Section 257 of the Companies Act, 1956 signifying

his intention to purpose the appointment of Mr Thakur as a Director

of the Company.

1997- Indias largest shoe company Bata India Ltd has performed admirably

to stage a remarkable turnaround for the year ended December 1996.

Bata has entered into a marketing tie up with Nike wherein the

latters products will be offered from select Bata outlets.

The companys debt- equity ratio is also set to improve dramatically to

0.60:1 from 1.90:1 in December 1996 and 2.06:1 in December 1996.

Bata India, a 51 per cent subsidiary of Canada based Bata Shoe

Organization, had last revalued its buildings in 1969, and the latest

exercise which will cover all fixed assets is expected to substantially

prop up its reserves.

1999- Bata needs to launch new products on a regular basis by expanding

its womens range, and moving into the premium segments it had

vacated.
 The company will launch the Sun drops line at New Delhi on August

16.

2003- Bata India (Bata) is the largest footwear manufacturer and

producers a wide range of footwear such as canvas, rubber,

leather, plastic and so on.

The company has lifted the lock-out at its Peenya factory in

Karnataka. The lock out was declared on March 8th following

a strike by the employees union.

2005-Bata India has decided to appoint brand managers for each

product group. Each of these managers will be assisted by a

dedicated team who in a new- found aggression will tackle

dwindling sales. This also coincides with Batas decision to

recast its retail outlets along four customer segments, into

Bazaar, Family, City, and Flagship stores, abandoning its

earlier territory based focus. At the same time the company is

also planning to raise its advertising budget to 5% of turnover

against 2% of turnover now.