BATA INDIA LIMITED

2

INTRODUCTION

Bata is a family-owned global footwear and fashion accessory manufacturer and retailer

Headquarters located in Lausanne, Switzerland.

Organised into three business units: Bata Europe, based in Italy; Bata Emerging Market (Asia, Pacific, Africa and Latin America), based in Singapore, and Bata Protective (worldwide B2B operations),

based in the Netherlands. Retail presence in over 70 countries Production facilities in 26 countries.

3

INDIAN FOOTWEAR INDUSTRY

India ranked second among the footwear producing countries next to China.

Labour intensive. India produces more of gent’s footwear while

the world’s major production is in ladies footwear.

In the case of sandals and chappals, use of non-leather material is prevalent in the domestic market.

The major production centers in India are – Chennai, Ranipet, Ambur in Tamil Nadu Mumbai in Maharashtra Kanpur, Jalandhar, Agra and Delhi in the North

4

EARLY HISTORY

The company was founded in 1894 in Zlín (Czech Republic) by Tomas Bata whose family had been cobblers for generations.

Large order from the army, military shoes and rising demand for them, during World War I started rapid growth.

Small manufacturing unit turned into modern industrial concern, one of the first mass producers of shoes.

5

A JOURNEY FROM

To

6

FOUNDER : TOMAS BATA Tomas Bata was recognized for his social conscience,

establishing housing, cinemas and advancement programs for his employees.

He saw technology as a means of progress, and wanted to make the shoes as cheaply as possible so that the greatest number of people could access them.

He employed 16,560 people, maintained 1,645 shops and 25 enterprises.

The total international contribution to the Bata organization at the time of Tomas' death consisted of

20 international enterprises, 132 shops, and 790 employees.

7

SUCCESSOR : JAN ANTONIN BATA

After Tomáš Baťa's plane crash his half-brother Jan Antonín Baťa becomes head of the company

at this time the company continues the diversification into the production of tires, aircraft, bicycles, machineries.

Under Jan Antonín Baťa the company grew quickly, continued its expansion throughout Europe, North America, Asia, and North Africa.

8

AFTER WORLD WAR-II

After the Second World War the Bata Shoe Organization was led by Thomas J. Bata (Tomáš Baťa Junior), son of Tomáš Baťa

the company grew significantly under Thomas J. Bata's driving leadership.

In 2002 the headquarters was moved to Lausanne Switzerland

the Organization has now been led by Thomas G. Bata, grandson of Tomáš Baťa.

9

KEY DATES 1894: The Bata family establishes a company in Zlin,

located in what is now the Czech Republic. 1931: The Company was incorporated in India. 1932: Founder Tomas Bata dies in an airplane accident. 1939: The Company relocates to Canada after the

movement of German military forces into Eastern Europe.

1945: Czechoslovakia business operations are nationalized by the new communist government following World War II.

1991: Bata returns to the Czech Republic following fall of the communist regime.

1994: Thomas J. Bata, the son of the company's founder, retires.

2001: Thomas J. Bata, Jr., becomes chairman and CEO.

10

MILESTONESTimeline Milestone / Event

2003-2009

-  Enters into retailing alliance with Lee Cooper

-  Unveils new flagship store in Mumbai

-  Sets up new flagship store in Thiruvananthpuram

1990-1999

-  Installs injection moulded plant

-  Sets up export oriented unit at Hosur in Tamil Nadu

-  Ties-up with Nike for marketing the latter’s products through its retail outlet

-  Launches new ladies range ‘Sundrop’

1973-1988

-   Goes public, listed shares on BSE and NSE

-   Enters into agreement with Adidas for manufacture and marketing of sports goods and sportswear in India

-   Launches marketing of `Star' clothings designed by Murjani International, New York, U.S.A. and sourced through Inmark  Brands Pvt. Ltd.

-   Introduces a new brand “Tigre”

1942-1952

-   Sets up machinery department to manufacture shoe making machine

-   Sets up factory in Patna, Bihar

-   Sets up factory in Faridabad

1931-1937-   Incorporated at Kolkata

-   Tanning introduced at the new factory at Batanagar in Kolkata

11

SHARE HOLDING PATTERN

Foreign Corporate Bodies 52.958%

Public Shareholders (Institutions) 29.961%

Public Shareholders (Individuals) 17.081%

12

MISSION

To provide its products and services to all the age

groups in the community while maintaining the finest

quality through customer involvement.

13

VISIONTo ignite spark that can

inspire and energize people to do better.

The focus of vision is to reach out hungrily for the future and drag it

into the present.

14

VALUES OF BATA

Constant innovation in design and product development

Superior customer service Excellence in operational and commercial

execution Entrepreneurial spirit and passion to win Teamwork in international environment Trust and respect for our employees Adding value to the community Delivering on our commitment to

shareholders

15

PRODUCTS

Leather Footwear Rubber / Canvas Footwear Plastic Footwear Accessories, Garment & Others Bags and Luggages Belts

16

BRANDS

Bata Bata Comfit (comfort shoes) Ambassador (classic men's shoes) North Star (urban Shoes) Weinbrenner (premium outdoor shoes) Marie Claire (women's shoes) SunDrops (women's shoes) Bubblegummers (children's shoes)

17

BRANDS (CONT.)

Baby Bubbles (children's shoes) Safari (desert shoes) Power (athletic shoes) Patapata (flip flops) Toughees (school shoes) Verlon (school shoes) Teener (school shoes) Bata Industrials (work & safety footwear)

18

CUSTOMER SERVICE

o Wide product assortment

o Personalized service 

o Clear product merchandising

o Guaranteed customer satisfaction

19

CUSTOMER SERVICE

20

BATA INDIA LIMITED

Sells approx. 50 Million pairs of footwear every year

Sells through more than 1400 retail stores Operates 5 manufacturing facilities Employees more than 7000 people.

21

ORGANISATION STRUCTURE Employees of the Company are categorized along the

following grades, in descending hierarchical order: 1) Directors 2) Senior Managers (Senior Vice President, Vice President,

General Manager) 3) Middle Managers 4) Junior Managers 5) Selling personnel 6) Shop Managers 7) Shop Employees

Additionally, the Company employs direct and indirect workmen on its factory sites.

The number of permanent employees currently on the payroll of the Company are around 7000 as on 31st March 2014.

22

PLANTS & LOCATIONS

1) Batanagar , West bengal2) Bataganj , Bihar3) Faridabad , Hariyana4) Peenya , Karnataka5) Hosur , Tamil Nadu

23

ADVERTISING STRATEGY

1) Tag-lines2) Print Ads3) TV-Ads4) Road Side Advertising5) Celebrity Endorser 

24

SALES PROMOTION

1) Price Promotion2) Discounts3) Stock Clearance Sale4) Gift With Purchase5) ‘99’ Magic Formula

25

SUBSIDIARIES Bata Properties Ltd. Incorporated on August 14, 1987 To carry on the business as dealers, owners and

investors in land and building. Engaged in the business of development, improving,

and effectively utilizing the properties of Bata in a planned manner

To acquire further properties for development of retail business of Bata throughout India.

Coastal Commercial & Exim Ltd. Incorporated as on October 11, 1991. To carry on business as Exporters, Importers, buyers,

traders, suppliers, and merchants.

26

FINANCIAL REVIEW

27

MEASURES OF PERFORMANCE

28

MEASURES OF FINANCIAL STATUS

29

ANALYSIS USING 4 P’S

Product: Bata sells all the range of footwear from shoes,

canvas, belly, leather shoes, sandals, school shoes, flipflops etc.

Price: The pricing of bata has been very nominal and user

friendly for the customer which bata targeted. Place:

Bata is located in all the prime areas of the city and also exists in almost all the cities of india. People look for bata as A reliable place for their footwear requirements.

Promotion: Bata mainly promotes by providing “sale” in their

existing product lines.

30

SWOT ANALYSIS

Strengths• Largest footwear retailer in India.• Largest market share in the organized footwear

segment.• Strong Brand Image.

Weaknesses• ROE decreased over the last one year due to a

threefold increase in tax outgo.

31

SWOT ANALYSIS (CONT.)

Opportunities• The nation's consumption of leather products is

expected to grow at around 10% per annum• The unorganized segment constitutes 80% of

this market, indicating a significant marketing opportunity for organized players.

Threats• Increased competition from leading multinational

players in the sports segment.• Threat from non-specialist' retailers like apparel

retailers diversifying into footwear and discount hypermarkets and retailers introducing and promoting their own brands at competitive prices.

32

STRATEGIES ADOPTED TO COMPETE

Reasonable quality at low or reasonable price.

Footwear for the entire family. Footwear catering to various functional needs

e.g. sports, casual footwear, formal-semi formal.

Conveniently accessible outlets in various parts of the country.

33

CSR INITIATIVES

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.

Joined hands with World Wide Fund (WWF) to protect the natural environment and its wildlife.

Planting of trees is routinely carried out at all Bata Units.

The factory at Bangalore was considered the best maintained garden in Peenya Industrial Area.

34

FUTURE PLANS Bata India Ltd plans to add around 60 stores every year. Trying to reach out to the rural market through their

dealer network . The major improvement in the shoe line by introducing

shoes with some additional features to target more premium distribution channels .

Restructured of wholesale division into four independent distribution channels –

urban, safety, institutional and branding each with its own sales teams to create more impact and result in better sales.

Bata has also invested in building its technology backbone and systems

35

COMMENTS

Over a period of time Bata has –• Improved its distribution network, • Generated skilled manpower, • Integrated itself backward as well as forward,• Resolved problem with trade unions, • Lower down the input cost,• Created good physical infrastructure and

technological advancements. It is continuously increasing its distribution

network and cutting cost through manpower reduction.

36

COMMENTS (CONT.)

Now, Bata has no more considered as only a production company which produces footwear.

They have now created an image of fashion driving, market oriented manufacturer.

Such reositioning has been done in very passionate way to change a stable image of company over a period of time.

They back their campaign through several TVC’s, print media and word of mouth. Collaboration with several big players is giving an edge to Bata India Limited.

37

REFERENCES

1) Bata – A Company Survey , Rakesh Gakare , Praxis Business School , 2011

2) Bata India Annual Report 2013-143) Company Analysis of Bata ,Suraj KR

Satpathy , Regional College of Management , 2013

4) Bata Repositioned , V.K.Dubey ,V.Singh, Kohinoor Business School, 2013

5) www.bata.in6) www.bata.com

THANK YOU

Hard to Resist