Bata India has launched two new initiatives to tap the rural and semi-urban, Tier-III and Tier-IV markets, where 70 per cent of India stays, Rajeev Gopalakrishnan, Group Managing Director of Bata Emerging Markets, Bata India, said.
Talking to the media after the company’s 81st annual meeting here on Wednesday, he said that the franchisee model would be developed for tapping Tier-III and Tier-IV cities with a population of around 5,00,000.
He said that while no sub-brand would be launched for tapping the small towns, 20 pilot stores under the franchisee model would first be tried out. “The plan is to have 100 stores in rural areas in two years,” he said. Mr. Gopalakrishnan said that Bata had also recently started a rural marketing division. “We plan to put in these markets, different products at different price-points” he said.
Bata was looking to set up around 130 new stores this fiscal, he said. The company, which breached the Rs.2,000-crore mark for the first time in 2013 (Rs.2,098 crore as at December 2013), reported a Rs.190-crore profit. He said together with the retail initiative, the investment would be Rs.100 crore (Rs. 50 crore for retail and Rs.50 crore for modernisation of its units at Batanagar in West Bengal, Patna and Bangalore). Productivity was set to increase by around 15 per cent on completion of the modernisation project within 18 months. Bata has a capacity to make 22 million pairs annually, selling around 50 million through 1,400 retail stores in 500 cities.
Uday Khanna, Chairman, Bata India, said that the Mokammeh tannery in Bihar had been shut down. The company was evaluating its option to utilise the 33 acres, he said. He, however, ruled out putting up any real estate project.
