Bata India and Adidas Reportedly Exploring Strategic Partnership for Indian Market

17 Aug 2023 , 01:04 PM

Recent reports cited by CNBC-TV18 suggest that Bata India and global footwear giant Adidas are engaged in discussions regarding a potential strategic partnership targeting the Indian market.

Despite the benchmark indices experiencing a decline of nearly 0.3%, Bata India’s share price saw a 1.80% increase around 12:10 am. The company’s Q1FY24 results indicated a 10% decrease in net profit compared to the same quarter in the previous year. The operating income for the quarter reached Rs 958.1 crore, marking a 2% growth from Q1FY23, while costs rose to Rs 826.9 crore from Rs 792.6 crore.

Challenged by a shift in consumer preferences towards casual wear, Bata India’s revenue growth was reportedly its weakest since the March quarter of 2021. In response, the company added 70 new outlets during the third quarter, expanding its nationwide network to 2,100 locations.

Gunjan Shah, Bata India’s Managing Director and CEO, revealed in an interview with PTI that the company is venturing back into premium pricing tiers with new portfolios. Additionally, the company is increasing advertising and promotional efforts to connect with digitally-savvy young consumers.

Bata’s expansion strategy includes enhancing offline sales and leveraging the franchise model to open 125 new stores in FY24. The company also aims to strengthen its presence in multi-brand outlets (MBOs). Bata is actively investing across various aspects of its operations, including infrastructure, technology, design, R&D, and swift collection releases to remain competitive.

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