Established in 1931, Bata India Limited is the largest retailer and manufacturer of footwear in the country. Their four state-of-the-art production facilities are located strategically across India, producing all kinds of footwear. They have a strong pan-India retail presence with 1,558 stores across cities, including franchisee stores.
Note: Excerpts and images in this article are from Bata’s annual report.
Bata in Numbers
- 3.23 M Sq Ft of retail space
- 30534 M INR Turnover FY19-20
- 4 Strategically Located Manufacturering Units
- 9762 Employees
- 1552 Retail Stores
- 21 Mn footware pairs production capacity per annum
- 49.39 Mn Footware sold last year
- Best Loyalty programme in Retail Sector’2019 Awarded by Customer Fest Award
- Best Customer Retail Experience’2019 Awarded by Customer Fest Awards
- Most Influential Brand of The Year’2019Awarded by Images Fashion Awards
- Winner ‘Zero Defect Manufacturing’ Case Study Awarded at 12th CII National Competitiveness & Cluster Summit 2019
- Bronze Kaizen for“Productivity” Awarded at12th CII National Competitiveness & Cluster Sumit 2019
Industry structure and developments
India is the second-largest producer of footwear and third-largest footwear consumer globally. The footwear market in Indiawas seeing an upsurge since past many years and was poised to continue its momentum in coming years on the back ofgrowing demand for trendy, fancy and comfortable footwear among the youth of the Country.
Company is taking necessary steps such as expanding its e-commerce footprint allowing deliveries in over 1,300 cities, rolling out its omni-channel home delivery across 900+ stores and giving customers the option to shop from homes via WhatsApp chat with their neighbourhood stores.
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Segment wise or product wise performance
- During the financial year ended March 31, 2020, Company opened 66 new retail stores in addition to 19 relocations, 52 Franchisee stores and renovated 49 stores across India.
- Company closed 37 stores during the year under reviews.
- Company is working towards a vision of 500 Stores through franchise network in the Country by increasing reach in towns with population of less than 2 lac.
- These spacious new stores are built in new Global Red Design which are true to their “Surprisingly Bata” campaign & with its clean design thinking & focus on Red & White color, gives a delightful shopping experience to their consumers.
Digital Multi-Channel Business
- Bata sold more than 1.8 Million pairs of footwear through online channels and achieved a turnover of Rs. 1250 Million.
- Bata India now ships more than 95% of orders received from Bata.in through its stores. Tools like WMS & Marketplace integration were put in place to scale up their market place operations.
- Advancing to Auto Replenishment lets the online stocks replenished for e-commerce the way retail stores are replenished with inventory on a regular basis.
- In addition, Launch of Bata Home Delivery Services in over 900 stores allows store staff to place orders on customer’s behalfif the article of their choice is not available in the store. This has helped retaining 100K+ customers in 2019, who otherwise would have walked out of their stores due to non-availability of size and color.
- In 2019, Bata.in focused on Women centric campaigns to bring a paradigm shift in their women segment sale and it resulted inminimizing the gender ratio gap to 9%.
- In addition, Amazon observed a slight shift in audience group to a younger section as 42% of Bata customers shopped under the age band of 15-24 years vs last year, when it was 25-34 years
Company’s non-retail business division comprises of urban wholesale, industrial and institutional business divisions andexports. In 2019, Bata changed the look, feel and quality of their lead brand Remo in Mens Dress, which received very good response.
The revenue of this brand also grew handsomely in second half of the year. Bata availability in MBO have grown to more towns. They added about 175 new towns in 2019 and focus is to grow it further in 2020.
- Return on equity : 17.24%
- Earning per share: 25.24 rs
- Dividend : 80%
- Book value per share : 147.56 rs
- Debt Equity Ratio : NIL
- Current Ratio : 2.5/1
- Fixed Assets to Shareholders’ Funds: 0.19/1
Impact of COVID
Impact of the CoVID-19 pandemic on the business; In view of the lockdowns across the Country due to Covid- 19, the store operations got suspended temporarily in compliance with the directives/orders issued by the relevant authorities.
Subsequent to the financial year end, the Company’s stores have resumed partial operations as per government guidelines and prescribed directives. Revenue from operations for the quarter ended 31st March 2020 of Rs. 6197.03 million have decreased by 9% over the corresponding period last year primarily due to suspension of the Company’s stores towards second half for the month of March 2020 as per government directives for Covid- 19