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Bata in partnership talks with Adidas for Indian market

Bata IndiaAgencies
Bata India
Bata India is in talks with footwear giant Adidas for a strategic partnership for the Indian market, CNBC-TV18 reported on Thursday, citing sources.

ET Online has reached out to Bata India for their response. As of 11:10 am, the share of Bata India was trading with gains of 1.80 per cent, while the benchmark indices were trading down nearly 0.3 per cent.

The company’s net profit tumbled by 10 per cent in Q1FY24. The company posted a net profit of Rs 119.3 crore in the corresponding quarter of the last year. Revenue from operations for the quarter stood at Rs 958.1 crore, a growth of 2 per cent over Q1FY23. Expenses were higher during the quarter under review to Rs 826.9 crore vs Rs 792.6 crore.
That was the slowest revenue growth since the March-quarter of 2021 as the company, which is better known for its formal shoes, grapples with a growing consumer preference for casual wear. Bata has lagged its peers due to a slow pace of innovation and ebbing brand pull, while its lower-price products have grown at a slower pace, brokerage Ambit Capital had said in a note in May. As a result, say analysts, it has struggled with high inventory, which forced it into an early end-of-season sale.
The company’s retail network expanded by 70 stores during the quarter, taking the total store count to 2,100 across the country.

In an interview with news agency PTI, Bata India’s Managing Director and CEO Gunjan Shah said that the company is re-entering the premium price points with fresh portfolios while it increases spending on advertising and promotions to connect with young digital savvy consumers.

Bata is also pushing for offline sales growth and expects a major chunk of growth to come from its expansion under the franchise model, where it plans to add another 125 stores in FY24 and increase its presence at multi-brand outlets (MBOs).

As part of its strategy, Bata is investing in front-end operations, stores to back-end infra, technology, design, R&D etc. Besides, Bata is bringing new collections at a rapid pace to compete with its rivals.

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