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Table of Contents

Overview of Indian Footwear Industry Introduction Background Distribution Network Organisational Structure Product Segmentation Shareholding Pattern MOUs with other companies Internal Initiatives to improve the product Awards received in 2009 The Road Ahead References

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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 footwear industry 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 Zln region 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 1922 while 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 as Bata 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 of Incorporation 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 receive the 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 Mr. P M Sinha Mr. N Sankar Mr. J Carbajal Mr. Fadzilah Bin Mohd Hussein Mr. Atual Singh Mr. M Villagran Mr. U Khanna Mr. Jack G N Clemens Mr. Rajeev Gopalakrishnan Mr. Akshay N Chudasama Designation Chairman / Chair Person Director Director Director(Finance) Independent Director Managing Director Director Director Additional Director 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 of products 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 1100 products and is segmented under various categories.

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Daily Hawaii chappal Sparx

Kids School Sports Bata in house shoes Power Canvas

Trendy Bubble Gummers

Women Daily Hawaii Chappal Sparx Comfit Bata in house products Luxury Hush Puppies Marie Claire Nauralizer North Star Scholl Sports Power Reebok

Men Daily Hawaii Chappal Sparx Comfit Bata in house products Luxury Weinbrenner Maccasino Hush Puppies North star Comfit (high_range) Bata in house products ( high range) Ambassador Scholl Sports Power Reebok

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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 in Japan 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

Naturalizer Price 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

Ambassador Price 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 present Bata 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 Puppies Price 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 wear Price Range: Rs.489 Rs.1699 Power Brand is built on the motto that The Power customer is a smart consumer not just a 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 wear Price 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 Gummers Price 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 1 2 3 4 5 6 7 Shareholder Category BATA B.N (Promoter) Mutual Funds & UTI Financial Insti. / Banks LIC FII Corporate Bodies Retail Investors %age Share Holding 52.01 11.55 0.02 4.7 13.8 3.8 13.7

EPS
16 14 12 10 8 6 4 2 0 2005 2006 2007 2008 2009 2010 EPS

Profit (In lakhs)

16000 14000 12000 10000 8000 6000 4000 2000 0 2005 2006 2007 2008 2009 2010 Profit

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Sales (In Lakhs)

140000 120000 100000 80000 60000 40000 20000 0 2005 2006 2007 2008 2009 2010 Sales

MOUs with other companies

An agreement was made with Adidas of West Germany in 1988 for manufacture 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' clothing designed by Murjani International, New York, U.S.A. and sourced through Inmark Brands Pvt Ltd. The Company successfully launched `Adidas' collection of hi-tech sports footwear in 1989. Bata entered into a marketing tie-up with Nike in 1997, wherein the latter's products would be offered from select Bata outlets. Bata Forged into a retailing alliance with Lee Cooper Shoes in 2003, to retail their shoes.
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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 BATA India Ltd Lakhani Footwear Pvt. Ltd Liberty Shoes Ltd. Mirza International Ltd. Relaxo Footwear

Year Ended Dec '09 Mar '10 Mar '10 Mar '10 Mar '10

Sales (Rs. Cr.) 1112.85 281.96 266.36 378.89 555.7

EPS (Rs.) 10.46 2.4 5.4 2.03 31.41

Awards received in 2009

Awarded Amity Corporate Excellence Award 2009 in a ceremony held in Amity 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 Innovative Companies 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 by Wolverine 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 Most Admired 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 Fashion Forum in 2009, the ceremony was held in Mumbai on January 28, 2009 Bata India is selected as a POWERBRAND in the POWERBRANDS 2010. The selection 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 on producing 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 220 stores by 2012. The size of stores to as much as 10000 sq ft. With most of the stores owned by Bata, 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 on premium offerings to increase margins. Bata as the mass brand and less investments on the advertising, its the tough task for Bata to compete with the Big brands established in the market. Bata India is planning to introduce cricket boot in domestic market and also working on improvement of abrasion resistance property of PVC air blow sole increase durability. Introduction of improved mould design technique to reduce cracking in PVC soles 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/

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