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Bata India sets aside Rs 1 bn for expansion this year

31
May '12
Bata India Limited, India's leading footwear manufacturer and retailer, has set aside Rs. 1 billion for opening new stores and strengthening its manufacturing facilities this year.

The company plans to invest Rs. 700 million to launch at least 100 new stores across India this year.

It will also modernize its manufacturing facilities at Patna, Batanagar and Bangalore with an investment of Rs. 150 million for each unit.

The upgradation of machinery will be undertaken at Bata's Patna plant this year, Rajeev Gopalakrishnan, Managing Director of Bata India, said.

The modernization of machinery for better productivity will be carried out at Batanagar plant early next year, while it will be done towards the end of next year at the Bangalore facility, Mr. Gopalakrishnan said.

Bata expects the modernization programme to increase the production capacity at its plants by 15-20 percent.

For its stores expansion, Bata will focus on smaller cities. About 60 of the 146 stores the company opened last year were in Tier II cities. Similarly, 30 of the 73 outlets opened by Bata this year are located on the outskirts of cities.

The new stores would be large format outlets having more than 3,000 sq ft of retail area.

In 2011, Bata sold 17,000 pairs of shoes online and the company expects the figure to rise to 50,000 pairs this year.

Bata India is the largest footwear retailer in India, enjoying a large market share in the organized sector. It retails through over 1,250 Bata Shoe Stores located in over 500 cities across India.

Fibre2fashion News Desk - India


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