Bata in partnership, discusses with Adidas for the Indian market

Bata India is discussing with footwear giant Adidas for a strategic partnership for the Indian market. The share of Bata India was trading with develops of 1.80 percent, while the benchmark indices were trading down nearly 0.3 percent. The firm's net profit tumbled by 10 percent in Q1FY24. The business 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 percent 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 behind 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 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. 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, digitally 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 invests 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.