PROJECT REPORT ON
“FINANCE & ACCOUNTING OF BATA
INDIA LTD.”
F.B.M & F.R.M
FOUNDATION-B
2009-10
SUBMITTED TO:
Mr. Rahul Jain
Mr. S.C Kapoor
Faculty, Pearl Academy of Fashion
SUBMITTED BY:
ANKIT BEHL
SOURABH KUMAR
ADITI MALHOTRA
SAMAR RAJPUT
Bata India Pvt. Ltd
Page 1
ACKNOWLEDGEMENT
This report has been insightful and erudite experience that we have undergone. The credit for
the completion of this report goes to Mr. Rahul Jain and Mr. S. Kapoor who has taught us and
made us competent of understanding the intricacies. Without her help this report could not
have been possible.
ANKIT BEHL
SOURABH
SAMAR
ADITI
Bata India Pvt. Ltd
Page 2
CONTENT
PARTICULARS
Overview of Footwear Industry…
Export and Import Over view
Role of Government in Industry
Organizational Profile…
Company profile
Management Structure
History
Key Milestone
Product Profile
.
Page No.
6-8
9-11
12-13
14
15-19
20
21
22-25
26-31
Internal And External
Environments…
32
Human Resource Policy
33
34
Corporate social responsibility
Marketing Initiative of the company
Strategy of Company
Technology and Manpower
Distribution Channel
Award won and Expansion Plan
Government approvals in last decade
35
36-37
38
39
40
41
Manufacturing Process
42-43
Competitors
44-46
PEST Analysis
47-50
Bata India Pvt. Ltd
Page 3
Financial Condition…
51
Analysis of Bata Report (Charts and Graphs)
52-56
Competitor Analysis of Bata (Charts and Graphs)
57-58
Horizontal Analysis of Balance Sheet of Bata
59-60
Horizontal Analysis of Profit & Loss Account
61-62
Analysis of Economic
Environment…
63
Factor that will affect the organization demand
64-67
Factor that will affect the organization supply
68-72
Recent Trend in Industry
73
Implication of Fiscal Policy
74-77
Implication of Monentary Policy
78-81
SWOT Analysis
Recommendation
Competitor Profile…
82-83
84
85
 Lakhani
Company Profile
86
History
87
H R Policy and Products
88
 Liberty
Company Profile
89
History
90
H R Policy, Award Won and Products
91
Minimum wages Chart…
Bata India Pvt. Ltd
92-93
Page 4
Recent News Article
Annexure …
94-96
Product Profile of Bata
98-105
Balance sheet of Bata
106-107
Profit And Loss Account of Bata
108-109
Quarterly Result of Bata
110-111
97
Mutual Fund Activities of Bata
112
F I Activities of Bata
113
Profit & Loss Account of Lakhani
Balance sheet of Lakhani
Profit & Loss Account of Liberty
Balance sheet of Liberty
References…
Bata India Pvt. Ltd
114-116
117
118-120
121
122-123
Page 5
OVERVIEW OF Indian Footwear Industry
The Footwear Industry is a significant segment of the Leather Industry in India. India ranks
second among the footwear producing countries next to China. The industry is labour intensive
and is concentrated in the small and cottage industry sectors. While leather shoes and uppers
are concentrated in large scale units, the sandals and Chappals are produced in the household
and cottage sector. India produces more of gents’ footwear while the world’s major production
is in ladies footwear. In the case of Chappals and sandals, use of non-leather material is
prevalent in the domestic market.
The major production centers India are Chennai, Ranipet, Ambur in Tamil Nadu, , Mumbai in
Maharashtra, Kanpur in U.P. , Jalandhar in Punjab, Agra and Delhi.
The following table indicates concentration of units in various parts of the country:
Region
Tamil Nadu
Large & Medium
Scale
64
Delhi & up North
SSI
Household
31
7
4
8
2
Agra, Kanpur
9
34
14
Calcutta
1
3
19
Bangalore
6
3
4
Mumbai
3
11
Others
13
10
3
The estimated annual footwear production capacity in 1999 is nearly 1736 million pairs (776
million pairs of leather footwear and 960 million pairs of non-leather footwear).
Bata India Pvt. Ltd
Page 6
Region-wise share of total estimated capacities is as follows:
Region
Leather
Shoes
Non-leather Leather Shoe
Shoes
Uppers
Leather
Sandals
Non Leather
Sandals
Percentage
Tamil Nadu
26
5
54
1
0
Delhi & up North
10
77
4
1
60
Agra, Kanpur
45
0
32
62
0
Calcutta
12
0
2
3
0
Bangalore
3
3
4
0
0
Mumbai
4
2
1
32
0
Others
0
13
3
1
40
Total
100
100
100
100
100
Shoes manufactured in India wear brand names like Florsheim, Gabor, Clarks, Salamander and
St. Micheal’s. As part of its effort to play a lead role in the global trade, the Indian leather
industry is focusing on key deliverables of innovative design, consistently superior quality and
unfailing delivery schedules.
India in itself has a huge domestic market, which is largely untapped.
The Indian footwear industry is provided with institutional infrastructure support through
premier institutions like Central Leather Research Institute, Chennai, Footwear Design &
Development Institute, Noida, National Institute of Fashion Technology, New Delhi, etc in the
areas of technological development, design and product development and human resource
development.
The availability of abundant raw material base, large domestic market and the opportunity to
cater to world markets makes India an attractive destination for technology and investments.
Source:
Secretariat For Industrial Assistance
Department of Industrial Policy & Promotion
Ministry of Commerce and Industry
Govt. of India
Udyog Bhawan, New Delhi - 110 011
SIA Website : http://indmin.nic.in
(http://www.indianshoebazaar.com/ind_india.asp)
Bata India Pvt. Ltd
Page 7
Production capacity of Shoe Industry
The leather industry is spread in different segments, namely, tanning & finishing, footwear &
footwear components, leather garments, leather goods including saddlery & harness, etc.
The estimated production capacity in different segments is as under


Hides:64 million pieces
Skins:166 million pieces
Footwear & Footwear Components







Shoes:100 million pairs
Leather shoe uppers:78 million pairs
Non-leather shoes/chappals etc:125 million pairs
Leather Garments:6 million pieces
Leather Products:70 million pieces
Industrial Gloves:40 million pairs
Saddlery:6000 pieces
The major production centers for leather and leather products are located at Chennai, Ambur,
Ranipet, Vaniyambadi, Trichi, Dindigul in Tamil Nadu, Calcutta in West Bengal, Kanpur in Uttar
Pradesh, Jalandhar in Punjab, Bangalore in Karnataka, Delhi and Hyderabad in Andhra Pradesh.
Raw material supplies:
There exists a large raw material base. This is on account of population of 194 million cattle, 70
million buffaloes, 95 million goats. According to the latest census, India ranks first among the
major livestock holding countries in the world. In respect of sheep with 48 million sheeps, it
claims the sixth position. These four species provide the basic raw material for the leather
industry.
The annual availability of 166 million pieces of hides and skins is the main strength of the
industry. This is expected to go up to 218 million pieces by the end of year 2000. Some of the
goat/calf/sheep skins available in India are regarded as specialty products commanding a good
market. Abundance of traditional skills in training, finishing and manufacturing downstream
products and relatively low wage rates are the two other factors of comparative advantage for
India.
http://leather.indiabizclub.com/info/indian_leather_industry_overview
Bata India Pvt. Ltd
Page 8
Export and Import overview
India's export of Leather & Leather
Products has reached US $ 3.47 billion in
dollar terms and Rs.14,000 crore in rupee
terms. In dollar terms, there has been an
export growth of 13.67% and in rupee
termsl.13%Footwear alone holds a major
share of 42.44% in India's total leather
products export trade. As against the
export target of US $ 3042 million for the
financial year 2007-08, the achievement
was 114.32%
Footwear is the engine of growth for the entire Indian leather industry and India is the second
largest global producer of footwear after China, accounting for 14% of global footwear
production. of 14.52 billion Pairs.
India Produces 2065 million pairs of Different Categories of Footwear (Leather Footwear 909
million pairs, Leather Shoe uppers 100 million pairs and Non-leather footwear 1056 million
pairs)
India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own
domestic demand.
Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies,
Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other
materials.
MNC Brands sourced : Acme, Clarks, ColeHann, Deichmann, Ecco, Elefanten,
Florsheim, Gabor, Hasley, Hush Puppies, Double H, Justin, Marks
from India
& Spencer, Nautica, Nike, Nunn.
Bata India Pvt. Ltd
Page 9
MNC Brands Sold in India : Bally, Clarks, Hush Puppies, Lee cooper, Lloyd,
Marks&Spencer, Nike, NineWest, NewBalance, Reebok, StacyAdams
Indian Brands sold in India : Red Tape, Bata, Liberty , Khadims, Lakhani, Action

Nearly 75% of India’s Export of Footwear is to the European Countries and the USA.

The Indian Footwear Industry provides employment opportunities to a total of 1.1
million people, mostly from the weaker sections of the society. Out of this, about 0.2
million are employed in the organized sector, 40% of whom are women. Remaining 0.9
million people are engaged in unorganized footwear sector like rural artisans, cottage
and household units etc.

The Footwear Sector is now de-licensed and de-reserved, paving the way for expansion
of capacities on modern lines with state-of-the-art machinery. To further assist this
process, the Government has permitted 100% Foreign Direct Investment through the
automatic route for the Footwear Sector.
Footwear export has increased from US$40.15 million in 1977-78 to US$ 1475.83
million in 2007-08
Bata India Pvt. Ltd
Page 10
Chart showing Global Import of footwear Vs. Indian Export of Footwear
India ’s Exports of Footwear – Country-wise Share in Total Exports (2007-08)
Source: DGCI& S
The European Union and the USA are the major markets for Indian Footwear accounting for
79.95% and 9.22% share respectively in India’s total footwear export. The major markets for
Bata India Pvt. Ltd
Page 11
Indian Footwear are Germany 16.66%, UK 16.31%, Italy 15.32%, USA 9.22%, France 7.81%,
Spain 5.10%, Netherlands 4.91%, Portugal 2.50%, UAE 2.48% and Denmark 1.18%. These 10
countries together accounts for nearly 81.49% of India’s total leather products export.
(http://footwearsinfoline.tripod.com/export_import.htm)
NOTE:- 20% of total Indian shoe production come from Bata. i.e about 8crorte pairs.
ROLE OF GOVERNMENT IN SHOE INDUSTRY IN INDIA
Jairam Ramesh Minister of state for Commerce has announced Rs.1.6-billion (Rs.160-crore)
package to boost the local shoe industry, but the state government, chief minister opposed
this. Ramesh made the announcement on Saturday when he was inaugurating an international
fair on leather, footwear components and technology at the Kalakriti Grounds near the Taj
Mahal.
The package comprises of Rs.600-million Leather Park, Rs.200-million footwear design
development centre, Rs.100-million design studio, a testing laboratory and a permanent
exhibition ground to be developed on investment of Rs.500-600 million, on similar to Pragati
Maidan exhibition in New Delhi.
Local shoe manufacturers have been asked to look for land. But there’s a problem the land for
the projects has to be released by the state’s ruling party (which is the Congress’s opposition
party).
Agra’s old shoe industry directly and indirectly supports 100,000 families, mostly from the dalit
community. Mayawati of BSP opposed to Ramesh of Congress Party that heads the United
Progressive Alliance (UPA).
According to shoe industry sources, Mayawati won’t be in a hurry to release land for any of the
projects announced.
But the industry believes once the schemes starts, exports could reach Rs.30 billion (Rs.3000
crore) from the present level of around Rs.8 billion (Rs.800 crore).
More than 200 national and international components and raw materials manufacturers have
put up their stalls at the exhibition.
(http://www.thaindian.com/newsportal/politics/big-boost-for-agras-shoe-industry-if-state-governmenthelps_100116975.html#ixzz0XAkn7VPx)
Bata India Pvt. Ltd
Page 12
Design-cum-Resource Centre for Footwear & Leather Industry:
Leather goods and shoes as well as items of fur are being manufactured in the Small Scale
Industry/Tiny sector traditionally in Srinagar and Jammu. The Central Government would make
an initial contribution of Rs. 1.00 crore as grant for setting up a Design/Resource Centre and
National Leather Development Programme (NLDP) will provide assistance for machinery,
training and salaries of professionals. Under the National Leather Development Prograramme,
exclusive assistance will be provided to market finished leather products of the artisans of the
State in the form of buyer seller meets and exhibitions.
(jammu.gov.in/departments/.../Central-Policy%20and%20Procedures.pdf)
RAW MATERIAL FOR SHOES














Synthetic leather
Shoe leather
PU leather
Air blown PVC soles
PU welted sole
TPR soles for men
PU sleeper sole
PVC gents sole
PU shoe sole
Emulsion polymers (latexes)
Pell ethane thermoplastic polyurethane elastomers
Polyurethanes
Voralast polyurethane system
Microfiber leather
(www.tradeindia.com/seller...38/shoes-materials-accessories. html)
(www.dow.com/products-services/division/textiles.html)
Bata India Pvt. Ltd
Page 13
Organizational Profile
Bata India Pvt. Ltd
Page 14
COMPANY PROFILE
Business Type: Footwear
Main Market: India
Founder : Tomas Bata
Chairman:
P.M Sinha
Turnover: 1012 Cr.
Employees: 6800 approx.
Company Address: 22/4, Nukuleshwar
Bhattacharya Road,
Kolkata-700026
Phone:
033-24631657/8
Fax: 91- 124 4100883
Site URL: www.Bata.in
Face Value: 10
Share Price: Bata India listed on BSE and NSE
Current Price- NSE Price Rs 191.90 (As on 22/1/2010)
BSE Price Rs192.90 ( As on 22/1/2010)
Bata India Pvt. Ltd
Page 15
Share Holding Pattern:
Promoter Holding-51.02%
Non Promoter Holding-13%
Public and Other-23.06%
FII-11.50%
13%
Promoters
11.50%
Public and Other
51.02%
FII
Non Promoter Corparate
25.06%
(Bata India Ltd.)
Bata India Pvt. Ltd
Page 16
Board Of Director: As per company records, the board of directors of the company
presently comprises the following.
Name
Mr. P M Sinha
Mr. Marcelo Bravo
Mr. Pradip Kumar
Date Of Appointment
April 16, 2004
Feb 11, 2005
August 25, 2001
Mr. Jaswant Singh
Mr. A. K. Thakur
Mr. V. Narayanan
Mr. Constantin
Designation
Chairman
Managing Director
Deputy Managing
Director
Director Marketing
Nominee Director UTI
Director
Director
Mr. Shaibal Sinha
Mr. Amit Mitra
Mr. N. Sankar
Director Finance
Director
Director
Feb 2, 2005
Feb 2, 2005
Feb 2, 2005
August 1, 2002
December 11,, 1996
January 2, 1995
March 10, 2004
Brief Details of Board of Directors
Mr. P. M. Sinha
Mr. Sinha is the former CEO of Pepsi Cola International South Asia and was the Chairman of
Pepsico India Holdings and President of Pepsi Foods Limited. He was also on the Management
Committee & Director of Hindustan Lever Limited for eleven years, before he joined Pepsico in
1992. He is currently on the Boards of ICICI Bank, Wipro Limited, Indian Oil Corporation Limited,
Lafarge India Pvt. Limited.
Mr. Marcelo Villagran Bravo
Mr. Marcelo Villagran Bravo has more than 34 years of experience with the Bata group. Before
joining the Company as a Managing Director, he was working with one of the most successful
companies in the Bata group, i.e. Bata . Chile. He has wide operating and sales experience. He is
a commercial engineer and a Bachelor of Business Administration.
Mr. Pradip Kumar Nag
Mr. Nag graduated in Commerce with Honours from Goenka College of Commerce and Business
Administration under Calcutta University and is a member of All India Management Association.
Mr. Nag has a rich experience in multifarious areas of Accounting, Financial Management,
Taxation,Costing Principles and Methods and Administrative functions encompassing over three
decades. He held the position of Senior Vice President, Finance in the Company for over 5
years. Mr. Nag undertook training in Toronto, Chicago, Ottawa and Philadelphia in various areas
of Retailing, Financial Accounting and Management Reporting in connection with .SAP. Project
for North American BSO Companies. He was appointed by Bata Limited, Toronto, Canada (The
International Headquarters of Bata Shoe Organisation) as Director .Enterprise Controlling. for
Bata India Pvt. Ltd
Page 17
Integrated Business Systems and was closely massociated with successful implementation of
.SAP. Integrated Business Systems in Retail Canada and User Support Programme.
Mr. Jaswant Singh
Mr. Singh joined the Company in 1971 as a Management Trainee . Marketing and had also
undertaken training for 18 months in the Retail and Wholesale Departments. Mr. Singh started
his career with the Company way back in 1971, and in the year 2000, he was made Managing
Director, Bata Shoe Co. Uganda Limited, which position he held till his transfer to Bata India
Limited in the year 2004. Mr. Singh has wide experience in Retail, Wholesale, Brand
Management, Production, Merchandising and General Management. During his career he has
attended various courses being MARKETCO, Monssey, France, 1983, ADVANCO, Chicago,
Toronto, 1990, EMP (Executive Management Programme) NYC, Toronto, 1998, Company
Managers Programme Toronto, 2000 and has represented the Company at several Shoecons,
namely Milan, Padova, Prague and Chicago. Mr. Singh was awarded an Achievement Award by
Mr. Thomas G. Bata at Milan in 1990 for North Star.
Mr. A. K. Thakur
Mr. A. K. Thakur is a B.Com from Calcutta University and a Chartered Accountant. He is the
former Executive Director of Unit Trust of India. He has worked in almost all the key areas of
Unit Trust of India and actively participated in formulating various corporate policies,
procedures and strategic decisions.
Mr. V. Narayanan
Mr. Narayanan is the former Chairman and Managing Director of Pond.s (India) Limited. He is a
product of the Lawrence School at Lovedale and the Loyola College, Chennai. Mr. Narayanan
began his career in 1959 as a Management Trainee in Hindustan Lever Limited (HLL). In his ten
years with HLL, he specialised in Sales and Marketing, both in India and in the UK. He joined
Chesebrough Pond.s Inc in 1968 as its Marketing Director and became Chairman and CEO of
Pond.s (India) Ltd. in 1978. After his retirement from Pond.s (India) Limited, Mr. Narayanan is
on the Board of several leading companies.
Mr. Constantin Salameh
Mr. Salameh has worked for 19 years with Hewlett Packard, which he joined in 1984. He has
worked in a number of senior management positions in this company in sales, marketing and
financial services in Europe and Asia Pacific. The last two positions held in Hewlett Packard
were Vice-President and Managing Director of Financial Services in Asia Pacific (1996-1999) and
in Europe, Middle East and Africa (2000-2003) with full P & L responsibilities for a US$ 2.5
billion financing business. Mr. Salameh completed his University degrees from King.s College,
England (B.Sc Engg. with 1st class honours in 1979), M. Sc. Engg. from M.I.T. in 1980 and his
MBA from Stanford University (USA) in 1984. His board affiliations are with the American
University of Beirut and the University of Geneva. Mr. Salameh frequently addresses external
audiences . including the Management Centre Europe, Euromoney, International Technology
Management, Asia International and World Bank Conferences on operational aspects of captive
Bata India Pvt. Ltd
Page 18
finance entities, business planning and financial management practices from a global
perspective.
Mr. Shaibal Sinha
Mr. Shaibal Sinha qualified as a Chartered Accountant in 1986. He has worked with Eicher
Limited, Toyota (in Muscat) and with Shaw Wallace and Company Ltd. His last assignment was
with Reckitt Benckiser in U.K. and in India, where he has worked for the last eight years.
Dr. Amit Mitra
Dr Amit Mitra did his Masters in Economics from Delhi School of Economics in 1970 and further
attained the Doctorate Degree in Economics from Duke University, USA in 1978. Later he taught
in major Universities in the United States over a decade and received the prestigious SearsRoebuck Foundation Award for Distinguished Teaching, 1990. Furthermore, he has wide Post
Doctoral Research experience as senior consultant. In addition to the Company, he is also on
the Board of Directors of Steel Authority of India Limited (SAIL), GAIL (India) Limited and
Principal PNB Asset Management . He is also a Member on the Advisory Board of The India
Fund of The Unit Trust of India (UTI), Member of the Central Advisory Committee, Central
Electricity Regulatory Commission, Member of the Life Insurance Council, Member of the
"India-China Eminent Persons Group" from the Indian side, Member of the Central Listing
Authority constituted by SEBI, Member of the Advisory Committee to Union Commerce
Minister of India on International Trade (WTO), and Member of the "Indo - EU Roundtable"
from the Indian side (initiated by Government of India and the European Union (EU)). He is and
also has also been a part of several committees and sub-committees constituted by various
ministries in the Government of India.
Mr. N. Sankar
Mr. N Sankar (59) holds a Masters Degree in Chemical Engineering from the Illinois Institute of
Technology, Chicago, USA. He is the Chairman of The Sanmar Group and its associates, which
operates in diverse areas such as Chlorochemicals, Speciality Chemicals, Shipping, Engineering,
Insurance, and Cement. The turnover of the Sanmar Group (including its associates) is close to
Rs.30,000 million. The Sanmar Group has long-standing and well-established joint ventures with
leading international corporations like Emerson Electric, Tyco, Flowserve and Cabot of the USA,
and AMP of Australia. The Sanmar Group currently has nine joint ventures. Mr. Sankar also
serves on the Board of a few institutions outside the Sanmar group, such as F.L. Smidth
Limited. Over the years, Mr. Sankar has held office in several public bodies representing trade
and industry, such as the President of Assocham and the Chairman of the Indo-US Joint
Business Council. He has also received awards recognizing his services to business and industry,
including the ‘Lala Shriram National Award for Leadership in Chemical Industry. from the Indian
Institute of Chemical
Engineers.
Bata India Pvt. Ltd
Page 19
Management Organisation Structure:
Managing Director
M Velligran
Special Projects
Dy. Managing Director
H Vengali
P K Nag
Commercial
Internal Audit
Harpreet Singh
Human
Resources
Finance
Shaibal Sinha
Special Projects
P P Dasgupta
Sujit Sen
Corporate/Admin./
Legal/Tax
Personnel & H.R.
M J Z Mowla
S Ganguly
S Chakravarty
P Gupta
S D Singh
Finance, H.O.
Kisor Sen
Bataganj
T R Salaria
Mokamehghat
Finance
Hemant Sultania
S R Raha
Faridabad
S D Singh
Company
Secretary
A B Anand
Marketing &
Commercial
Family &
Bazaar Stores
Flagship & City
Stores
J Singh
R Hotte
E Tonolli
Wholesale
V Anand
Exports
S Dixit
Retail Flagship &
City
C C Ponnappa
Retail Flagship(West)
S K Dwivedi
Retail Family
(North)
Retail Flagship(West)
S K Dwivedi
G P Sahu
Retail Family
(South)
Retail Flagship (East)
A Nandy
R Sengupta
Retail Family (East)
& Bazaar
C Roy
Product
Development
F Ferraris
Merchandising
Insurance
Sandak
B S Das
Opender Singh
GGGFFFFF
Information
Systems BS
AHM
Ehsanuzzaman
Batanagar
Production
Merch.Coord
Special Projects
Production
Southcan
Retail Family
(West)
S Nagarajan
Vinesh Singh
Retail Analysis
S Chakraborty
S Maitra
K Raman
g
Advertising &
Comm.
Costing &
Efficiency
Tumpa Roy
S Ranjan
Bata India Pvt. Ltd
Page 20
HISTORY
All About Bata:
Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of
the Bata Shoe Organization.
Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as
a small operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation stone for
the first building of Bata's operation - now called the Bata. In the years that followed, the
overall site was doubled in area. This township is popularly known as Batanagar. It was also the
first manufacturing facility in the Indian shoe industry to receive the ISO: 9001 certification.
The Company went public in 1973 when it changed its name to Bata India Limited. Today, Bata
India has established itself as India's largest footwear retailer. Its retail network of 1250 stores
gives it a reach/ coverage that no other footwear company can match. The stores are present in
good locations and can be found in all the metros, mini-metros and towns
Bata's smart looking new stores supported by a range of better quality products are aimed at
offering a superior shopping experience to its customers. And the new face of Bata India is now
visible to the industry as well as its customers. Today, backed by a brand perception of
experience, the company is working towards positioning itself as a vibrant and contemporary
young brand. It has significantly transformed its retail formats to become more lifestyleoriented, which has helped change consumer perceptions to a large extent.
(http://www.sharekhan.com/MarketCorner/DetailedReport.aspx?Type=COMP-HIS&SSKICode=BATA)
Bata India Pvt. Ltd
Page 21
Key Milestones:
Date/Year
Event
1894
The Bata Shoe Organisation was founded by Tomas J. Bata, a ninth
generation shoe maker
1931
The Company was incorporated in India.
1933
The production of footwear commenced in a rented premises at
Konnagar, a few miles away from Kolkata, where for the first time rubber
and canvas shoes were manufactured in India.
October 28,
1934
The foundation stone was laid on land purchased from the Port
Commissioners and small landowners in the outskirts of Kolkata and the
first manufacturing unit was set up, at a place now known at Batanagar.
The factory shifted from Konnagar to Batanagar
The construction work at the Batanagar factory was completed, and
factory operation shifted from Konnagar to Batanagar. Towards the end of
1936, the factory produced leather footwear for the first time
1936
1937
Batanagar tannery became operational towards the end of 1937
1939
The Batanagar factory was complete in terms of every activity related to
footwear. The Batanagar township grew to become self-sufficient with the
acquisition of more land and the erection of schools, places of worship,
hospitals, entertainment and recreational centres.
1940-45.
During the World War II the factory’s production was geared to meet war
requirements.
1942
A footwear manufacture plant, a machinery department was set up at
Batanagar, which produced the first India-made major shoe machine.
Simultaneously, several auxiliary departments were started. This was
followed by the setting up of the factory at Bataganj, Bihar.
1950
Bata successfully launched the brand .Hawai..
1951
The rubber/canvas factory was set-up at Faridabad, Haryana.
1952
One of Asia’s largest tanneries was set-up at Mokemehghat, Bihar.
1988
The Bata factory was set-up in Peenya, Bangalore
Bata India Pvt. Ltd
Page 22
1994
The Company’s factory at Hosur in the State of Tamil Nadu became
operational, which was originally an Export Oriented Unit, but now caters
to the domestic Indian market
1993
Batanagar factory became the first Indian shoe-manufacturing unit to
receivethe ISO 9001 certification.
(http://www.sebi.gov.in/dp/bata.pdf)
Our Values
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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
(http://www.bataindia.com/page.php?kon=5_2_1)
Our commitments

Your Purchase Guarantee
In case of any problem, bring back the pair shoes with in the next 15 days from the date
of purchase and we will replace it with another pair. Condition apply.

Wide collection
With more than 1000 different designs to choose from, we have one of
the widest selection shoes, handbags and accessories.

Assured Quality
Strict quality measure are followed during and often the production of all our products.
We have our own factories and warehouse that are supervised by trained and
experience personas.
Bata India Pvt. Ltd
Page 23

Personalized Attention
In all our stores, our trained professional sales staff is at your service. In
case you have any query about Bata products or services, please feel
free to ask for any assistance.

Product Detail
We ensure that you get complete detail of all our products in the most convenient way.
Each item carries tags that clearly mention type, price, size or other necessary
information. It not only saves your time but also helps you in your selection.
(http://www.bataindia.com/page.php?kon=4_0)
Bata India - Today
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Sells over 45 million pairs of footwear every year
Serves over 120,000 customers every day
Sells through over 1200 retail stores
Operates 5 manufacturing facilities
Employs more than 6800 people
(http://www.bataindia.com/page.php?kon=5_2_1)
Bata India Pvt. Ltd
Page 24
bata
global
Subsidiary
Bata India Pvt. Ltd
Companys Of Bata India
Page 25
.
Products Profile
Bata India Pvt. Ltd
Page 26
PRODUCTS
Bata India Ltd. has a large variety of shoes for all the sections. They also make accessory for
men’s and women’s.
Bata India Ltd. make products of the following categories:
1.) Men`s Wear: They make products of preferably for service men and also have
Segment of sports shoes for young men under a different
company name POWER . they have a large
.
Variety of products such as:
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Closed dress
Closed casual
Sandals
Chappals
Sports wear
Closed dress range starts from 699 to 2699
Closed casual range starts from 399 to 1999
Sandals range starts from 399 to 1899
Chappals range starts from 169-1799
Sports shoes range start from 699-1799
Closed dress
.
Bata India Pvt. Ltd
(http://www.bata.in/catlist.php?catItem=11)
Page 27
Closed casual
(http://www.bata.in/catlist.php?catItem=21)
Sandals
.
.
.
(http://www.bata.in/catlist.php?catItem=31)
Chapels
(http://www.bata.in/catlist.php?catItem=41)
Bata India Pvt. Ltd
Page 28
2.) Women’s wear: They make products of preferably missy and have large variety Of products
such as:-
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Chappals
Closed
Sandals
Chappals range starts from 139 to 1249
Closed range starts from 299 to 1299
Sandals range starts from 299 to 1249
Chappals
(http://www.bata.in/catlist.php?catItem=12)
Closed
( http://www.bata.in/catlist.php?catItem=22)
Bata India Pvt. Ltd
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3.) Kid`s wear : they make products of the age group
6-17 years
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Infants
Closed
Sandals
Infant range from 199
Closed range from 159 to 699
Sandals range from 199 to 599
Infants
(http://www.bata.in/catlist.php?catItem=23)
Closed
(http://www.bata.in/catlist.php?catItem=33)
Bata India Pvt. Ltd
Page 30
Sandals
(http://www.bata.in/catlist.php?catItem=43)
order to increase their product offering, they are planning to add new variety of shoes. For
example, they proposing new technology of sports shoes to be in a competition from Rebook
and Addidas.
Bata India Pvt. Ltd
Page 31
.
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INTERNAL
AND EXTERNAL
ENVIRONMENT
Bata India Pvt. Ltd.
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Internal Environment
The Internal factors include strengths and weaknesses focuses of the firm . Strengths refer to
core competencies that give the firm an advantage in meeting the needs of its target markets.
Company strengths should be market oriented/customer focused because it assists the firm to
understand customer needs. Weaknesses refer to any limitations a company faces in
developing or implementing a strategy. Weaknesses should also be examined from a customer
perspective so that they can understand there weaknesses from customer point of view.
HUMAN RESOURCE POLICY:
when they set-up their factory in India, their approach
was to hire local labor and trained them making shoes.
As a technology advanced they trained their employees on machine. But , for special tasks they
hired person who were in occupation of shoe making. As the demand increased they develop
their vends in places like Agra, Noida, Gurgaon etc gave them their requirements to
manufacturers per their quality standard. The policy in this regard was to frame their vendor.
The company has lot of welfare schemes for their employs to encourage stability. Regular
training programs are held for the employs and the lower level minimum wages are given but
incentives are linked and outcome. Same way the company has their outlet for sale where the
employs are on the pay role of Bata.
The functions of any management are planning, organizing, staffing, directing and controlling.
The management of Bata performs these functions efficiently. All divisions of Bata are taken
care of by different set of managers.
The management at Bata knows the importance of customers to its business. It has a good
image in the minds of the customers. It caters to a large class of customer for middle class and
lower middle class customers. The management of the brand performs many functions e.g. it
takes up the work of brand repositioning very often.
It also works for social causes such as it employs physically challenged people and it is also
working towards women empowerment by employing more and more women. The
management also takes care of the environment.
The organization always gives importance to its employs. It provides many facilities to its
employees such as the crèche facility, medical facilities, transportation etc. the industry also
Bata India Pvt. Ltd.
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celebrates birthdays long service etc. All these motivates the employees to achieve the goals
and objectives of the organization.
Employee Categorisation: Employees of the Company are categorized along the following
grades, in descending heirachical order
• Directors
• Senior Managers (Senior Vice President, Vice President, General Manager)
• Middle Managers
• Junior Managers
• Selling personnel
• Shop Managers
• 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 is 9,969 as on January 31, 2005.
CORPORATE SOCIAL RESPONSIBILITY:
The following CSR activities were
undertaken by the Company during the year:
- Sponsorship of Rain Water Harvesting Project in Gurgaon.
- Donation to Bihar Flood Relief Fund.
- Free shoes to Orphans on Republic Day.
- Free medical camp for under privileged caretakers of Kolkata Maidan and physically
handicapped.
- lnauguration of Bata Cricket School in October 2008.
- The Company operates two Higher Secondary Schools, one for boys and one for girls and
three Primary level Schools " and also one Nursery School. The children of our employees and
neighbouring localities get educational facilities from these institutions.
- The Company encourages entrepreneurial spirit in the small scale businesses located in the
vicinity of its factories so that they become independent associates and partners in progress
with the Company. This generates large employment in the area and gives people the
opportunity to grow in their businesses.
Bata India Pvt. Ltd.
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- The Company maintains a temple, -a church and a mosque where employees and people from
the different communities in the neighbourhood participate in prayers.
- The Company actively participates in organizing Blood Donation Camps and distribution of
fruits and sweets to the ailing patients at the Batanagar Hospital and Ramakrishna Mission
Residential School at Batanagar.
(http://content.icicidirect.com/Research/DirectorsReport.asp?icicicode=BATIND)
Marketing Initiatives of the Company:
In addition to products manufactured by it, the Company also sells footwear, accessories,
garments etc. manufactured by international and domestic agencies/ entities. The Company
has entered into an arrangement with international shoe-manufacturers such as Reebok,
Adidas, M&B Footwear Private Limited, Tej International Private Limited, Sierra Industrial
Enterprise Private Limited for marketing their products though the Company.s retail outlets.
The Company has the entered into following keyarrangements:
• Reebok: Under this arrangement, the Company will purchase shoes from Reebok as per its
requirement and earn a gross margin of 36% of the retail price.
• Adidas Marketing Private Limited: Adidas Marketing Private Limited has agreed to provide
the Company with its products in footwear, apparel, accessories at a Gross margin of 40% for
footwear and 42% for apparel and accessories. Margins offered to Bata are subject to change in
event of changes in the tax structure and business scenario.
• M&B Footwear Private Limited: M&B footwear Private Limited to provide the Company on an
outright sale basis stocks of its brands .Lee Cooper. and .ID. at a margin of 40% of the retail
price. M&B Footwear would advertise and promote Bata as its business partner. The term of
this arrangement extend for three year starting April 30, 2003.
• Sierra Industrial Enterprise Private Limited: Sierra Industrial Enterprise Private Limited has
agreed to supply the Company their products .Lotto., which launched in almost 50 flagship
stores of Bata by mid-February 2005 and is expected to reach 250 stores by mid-August 2005.
Bata has agreed to purchase the products at an agreed Gross margin of 42% of the Retail price.
• Planet Sports Private Limited: The Company has entered into a Consignment Agreement
dated February 29, 2004 for a period of three year extending till February 29, 2007 with Planet
Sports Private Limited for supply of footwear, apparel and accessories by the brand name
Bata India Pvt. Ltd.
Page 35
.PUMA. at the maximum retail price or at a discounted price as provided by Planet Sports
Private Limited and Bata will be entitled to a commission of 35% on the sales net of taxes.
(http://www.sebi.gov.in/dp/bata.pdf)
Strategy of the Company:
The Company.s management has evolved the strategy of the Company after considering the
Company’s strengths and weaknesses. The Company believes that this strategy will enable the
Company to build on the opportunities in the market.
Cost optimization and margin improvement
The Company is focusing on margin improvement and cost effectiveness programmes which
have started yielding results. The Company has initiated strict control on costs in purchases and
outsourcing and is looking at global sourcing for raw materials to improve the net realization.
The Company has also been clearing old merchandize through discount sales, write-offs, etc.
which will enable it to focus on improving sales.
Logistics and demand based production
To optimize utilization of production facilities a new logistics team focuses on obtaining specific
orders from the market for best selling designs and sizes and ensures that all raw materials are
available in the factories well in time so that the Company can produce and place in shops the
products that consumers want. Thus the Company has been focusing on consumers and market
demand which will reduce inventories and improve sales-to-stock turnover. The Company has
closed five depots and converted them into C&F (carrying and forwarding) agents. It is also
renegotiating transport costs to ensure a competitive transportation cost of the Company.s
products to the sales outlets.
Tax-free zone manufacturing base
A part of the outsourcing of manufacturing is now routed by the Company from contract
manufacturers based in Himachal Pradesh and Uttaranchal which are both states offering
concessions in excise, sales tax and corporate tax. The Company is also looking at and
negotiating with third party manufacturing facilities in two other tax-free states of Assam and
Jammu and Kashmir. The Company is thus aiming to maximize its margin improvement
programme.
Rationalizing and re-engineering
As part of the rationalization of work practices, processes and modernization the Company
offered Voluntary Retirement Scheme (VRS) to its work force. 1520 employees have accepted
the VRS in year 2004. The Company plans to introduce a new VRS in year 2005. The VRS is
Bata India Pvt. Ltd.
Page 36
expected to reduce the Company.s employee cost in the medium term. The Company has
modernized seventeen stores, opened twenty new stores and closed down sixty unviable
stores.
Focus on collecting old outstanding dues
The Company.s sales team is fully focused on collecting old outstanding amounts from
wholesalers thus reducing working capital. The Company is adopting a dual policy to collect the
old outstanding. On one hand the Company is negotiating settlement with the wholesalers and
offering discounts to those willing to pay the reduced amount. At the same time the Company
is filing legal cases against those who are not willing to settle and pay.
Training and restructuring the frontline sales force
The Company has reorganized its front line sales force and has promoted its best performing
shop managers as district managers. It has undertaken an intensive training programme for its
shop assistants and managers to ensure excellence in service to the customers. The Company
has also undertaken a rural marketing thrust where the market is growing faster than the urban
markets. The Company is bringing in young managers with fresh ideas to inspire and empower
the workforce with the requisite skills.
Brands and designs
The Company is consistently trying to leverage on its established brands like Mocassino, Super
Stride, Quo Vadis, Jubliee etc. at the same time create a niche for its new brands like Azaleia,
Toppers, Bubblegummers, Weinbrenner and Power International. The Company has been
focusing on specialty value added products for better margins. It has been continuously
introducing new designs in shoes for men, ladies and children. The Company is endeavouring to
break the myth of the price factor, by Introducing an economy range of products that will
encompass both style and quality.
Borrowings of the Company
The shareholders of the Company have in the Annual General Meeting held on June 17, 2004,
given the authority to the Board of Directors to borrow up to Rs.1,000 mn against the security
of the Company.s assets. Details of the borrowing of the Company . Secured and Unsecured
loans is given in the Section tiled .Financial Performance of the Company. on page 60 of this
draft Letter of Offer.
(http://www.sebi.gov.in/dp/bata.pdf)
Bata India Pvt. Ltd.
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Manpower:
Bata have more than 65oo employs. Bata has a supportive manpower policy.
Bata received the “Great place to work award” on 9 June 2009. Bata does not indulge in human
right abuses. There is no form of forced or compulsory labor Bata. The industry has a labor
union and also has a mutual agreement with the union. Bata do not indulge in child labor and
also does not let its suppliers to do so. The company does not discriminate anyone on the basis
of sex, disability etc for employment as per Bata code of conduct. 4% of Bata workforce are
people with disability and measures are taken to take care of their special needs. Measures are
also taken to avoid any kind of bribery and extortion.
TECNOLOGY:
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They use “dynamic spring prods” that act as cushion for your feet.
They use “in- built-air circulation technology” that allows your feet to breath and ensure
that you stay fresh am to pm.
Use technology “built-in massage paints” , inspired by Chinese reflexology. In it shoe has
flexi sole with arch grip system.
(http://www.scribd.com/doc/15233456/bata-marketingproject)
The company has entered into an agreement with Bata Ltd of Toronto (Canada) for the supply
of technical know-how and services such as footwear technology and design, brand
development, product development, retailing and information system for a period of ten years
from January 1, 2001.
(http://www.sharekhan.com/MarketCorner/DetailedReport.aspx?Type=COMP-HIS&SSKICode=BATA)
Distribution Channels: Bata India markets its products through three distinct channels.
• Company operated retail outlets
The Company operates its own retail network of over 1,100 retail stores spread across the
country. These outlets are serviced through six distribution centres spread out geographically
and each responsible for a particular region The process flow begins with the transportation of
the finished products from the Company’s manufacturing units and contract manufacturers.
Bata India Pvt. Ltd.
Page 38
plants to the distribution centres through the services of third party carrying and forwarding
agents. The distribution centres in turn transport these products to the Company operated
retail outlets based on specific demand requirements. These retail outlets are manned by the
Company.s employees and exclusively market the Company.s footwear brands. As part of its
strategy to provide complete footwear solutions to customers, the retail outlets also market
accessories like shoes laces, socks, shoe polish.
In certain outlets, the Company also provides cosmetic services like pedicures, etc. Out of the
1,100 retail stores, the Company has designated 84 stores as factory outlets which are used to
sell merchandise at marked down prices. These factory outlets are used primarily by the
Company to sell surplus or non-moving products and factory seconds stocks. Institutional sales
as well as supplies to the civil and defence agencies are also taken care of through the
Company.s distribution network. The Company has designated specific senior managers to
oversee the marketing to this segment of buyers. The requirements are directly supplied from
the Company.s distribution centres.
• Dealer Network
The Company also uses the dealer network of the footwear industry to market its products.
Through this channel, the Company supplies its products to non-exclusive wholesale
distributors who in turn distribute the Company.s products to independent dealers across the
country. The dealers covered under this channel are non-exclusive Bata dealers and hence sell
footwear and related products of other companies also.
• Market Extension Programme
The Company is undertaking steps to generate volume business in semi-urban markets and
markets which are un-represented and under-represented footwear markets, pursuant to its
Market Extension Programme, through authorised Bata dealerships. Under this programme,
the Company appoints authorised dealers, subject to certain selection criteria who run outlets
which exclusively market the Company.s products and adhere to rules and regulations of the
Company. As on date, there are 470 such outlets in the country. The dealer outlets are not
manned by Bata employees but are manned by the employees of the private dealer.
(http://www.sebi.gov.in/dp/bata.pdf)
Bata India Pvt. Ltd.
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Award Won:
1.) The company bagged the Retailer of the year award for the year in footwear category as a
part of the Reid and Taylor Award for Retail Excellence which was presented during the Indian
Retail Summit 2006.
2.) They received the country`s most coveted Retail Award at the 4 th Images Retail Award (IRA)
2007
3.) Bata was honored with most admired brand of the year 2006-2007 in footwear category.
4.) They have been rated as one of the Top 10 super brand in India and Awarded Super Brand
award on April 12,2007.
5.) In February 21, 2008 , they have been given AMITY corporate Excellence Award 2008. This
award has been given for Bata`s excellent performance and retail growth during 2007.
( http://www.sharekhan.com/MarketCorner/DetailedReport.aspx?Type=COMP-HIS&SSKICode=BATA)
Expansion Plan and Future Plan:
Bata India, among the oldest organized retailers of the country, in a shift of retail strategy is
now focusing on opening large format stores.
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“Bata India has opened over 150 new large format stores since 2006 and will continue
to open 60 new stores every year
Bata India to focus on large format stores across tier II & III cities.
(http://www.indiaretailbiz.com/blog/2009/03/16/bata-to-focus-on-international-style-large-format-store)

Footwear major Bata India Limited has informed that it has sold-off its ‘Hawai’ brand to
Brazilian company 'Alpragatas' for Rs 3.90 crore. The reason behind selling off ‘Hawai”the popular brand was stated as its cheaper duplication in the unorganized sector.
(http://www.stockwatch.in/bata-india-sell-its-%E2%80%98hawai%E2%80%99-brand-brazilian-firm-rs-390crore-2882)

Add new machines to produce sophisticated new designs and comfortable shoes.
(http://content.icicidirect.com/Research/DirectorsReport.asp?icicicode=BATIND)
Bata India Pvt. Ltd.
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Governmental Approvals And Licensing Arrangements In Last Decade:
The Company has the following approvals from the Government authorities as required to carry
on the present business. However, certain approvals have expired in respect of which, the
Company has applied or is yet to apply for renewals, as indicated corresponding to the relevant
licenses. Licences/Permission/Approvals in respect of factory located at Sipcot, Batashatak,
Hosur, Tamilnadu.
1. Industrial Licence issued by the Department of Industrial Policy and Promotion, Ministry of
Commerce and Industry, Government of India vide letter dated July 27, 2000 bearing number
CLR- 4412000 for the purpose of establishing a new industrial undertaking for the manufacture
of leather footwear located at Plot No.73 & 74, SIPCOT, Industrial Complex Phase . I, District
Hosur (Dharampuri) in the State of Tamil Nadu. The date of expiry of this industrial license is
July 27, 2002, and the Company had to commence commercial production by that date. This
license was issued subsequent to the Hosur factory.s conversion from an Export-oriented unit
to a domestic producer, and the Company continued with commercial production in the
aforesaid period. Thus, renewal application in respect of the same is not applicable.
2. Registration Certificate issued under the Central Excise Rules, 1944 by the Registering
Authority dated November 29, 2001 for the purpose to cure, produce, manufacture, carry on
wholesale trade/business/broker or commissioner agent or otherwise deal in excisable good,
act as a user of excisable goods for special industrial purposes. This registration certificate is
valid until factory carries on the activity for which it is issued or until surrendered.
3. Authorisation and consent issued by Tamil Nadu Pollution Control Board dated September
12, 2003 bearing number 8179A for the purpose of operating the industrial plant in an Air
Pollution Control Area and to continue discharge of emission from the stacks under Section 21
of the Air (Prevention and Control of Pollution) Act, 1981. This authorisation/consent is valid
until March 31, 2005.
4. Renewal of consent order issued by District Environmental Engineer, Tamil Nadu Pollution
Control Board bearing number 11325 A for the purpose of discharge of sewage under Section
25 of the Water (Prevention and Control of Pollution) Act, 1974. This consent is valid until
March 31, 2005.
5. Factory Running Licence issued by Block Development Officer under the provisions of the
Tamil Nadu Panchayat Rules bearing number 1543 for the purpose of running the industry for
manufacture of leather footwear. This licence is valid until March 31, 2005.
6. Factory Licence issued by Deputy Chief Inspector of Factories bearing number 29290 for the
purpose of using premises at Sipcot Industrial Complex, Hosur as a factory. This licence is valid
until December 31, 2005.
(http://www.sebi.gov.in/dp/bata.pdf)
Bata India Pvt. Ltd.
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Manufacturing process: (Used in Faridabad plant),
Bata use batch production system.
Although it only manufacture canvas shoes but with in that it has various size variants. With in
the batch production system, assembly line process is followed. The plant has 2 assembly line
working simultaneously, one for the stitching of shoes upper and other is a semi-automated
conveyor belt for assembly of the shoes, at the end of which we get the shoe. Simultaneously,
there are other process like the production of adhesive cement and rubber latex, shoe binding
etc are done simultaneously at different workstations.
The plant in all has 6 conveyor belt and 6 stitching line but presently the management is
operating only 3 of them, in view of the low demand for their products in year.
One conveyor belt requires 35 people to work and 6 people are required on the stitching
conveyor. The factory employs 450 people. One set of conveyors (i.e both stitching and
assembly included) produces about 1800-1900 pairs of shoes in one day. The gross monthly
production of the plant average around 5 lack pairs.
(http://www.scribd.com/doc/21040194/production-and-operations-management-at-Bata)
Bata India Pvt. Ltd.
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Process flow chart
Raw Material Stock
compou
u
chemic
out
Threa
Binding
Make
Sole Pull
Cement
advresive
Folding
Rubber
Latex
Cutting
Make
Binding
Stamping
Stitching
Assemble
Vulcanizing
Controlling
Canvas Shoes
Bata India Pvt. Ltd.
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Boxe
EXTERNAL ENVIRONMENT
The External Analysis contains or examines opportunities and threats that exist in the company.
Opportunities and threats are independent factors of the firm. If we understand our
Opportunities properly it refer to add favorable conditions in the firm that could produce
rewards for the organization .Threats refer to conditions or barriers that may prevent the firms
from reaching its objectives. The following area analyses are used to look at all external factors
affecting a company:
Competitors:The
footwear manufacturing industry
globally and in India, is highly
fragmented, with a large number of small and medium sized manufacturers having a local
presence in China and India.
Their principal competitors in their manufacturing operations are:
Country
Competitor
India
India
India
India
India
India
Bata India Pvt. Ltd.
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PERCEPTUAL MAPPING
PRICE
HIGH
QUALITY
LOW
HIGH
LOW
In comparison to its competitors, Bata is a reasonably priced brand with reasonable product
quality. With respect to its international competitors, it is the most affordable as can be seen in
the above illustration. All the competitors have better quality with higher prices. woodland has
the highest price and quality in comparison to all the competitors of Bata. Whereas, relative to
its Indian competitors, it is the highest priced but also offers the highest product quality. In case
Bata India Pvt. Ltd.
Page 45
of Indian competitors, Relaxo and Lakhani is placed just a little below Benetton for its price and
quality, and Sparks is the lowest priced with lowest quality with respect to the Indian
competitors of Bata.
Bata India Pvt. Ltd.
Page 46
Pest Analysis
This is imperative that an organization considers its environment before beginning the
marketing process. In fact, environmental analysis should be continuous and feed all aspects of
planning. The organization's marketing environment is made up of:
1. The internal environment e.g. staff (or internal customers), office technology, wages and
finance, etc.
2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our
competitors, etc.
3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural
forces, and Technological forces. These are known as PEST factors.
 Political Factors
The political arena has a huge influence upon the regulation of businesses, and the spending
power of consumers and other businesses. You must consider issues such as:
1. How stable is the political environment?
2. Will government policy influence laws that regulate or tax your business?
3. What is the government's position on marketing ethics?
Bata India Pvt. Ltd.
Page 47
4. What is the government's policy on the economy?
5. Does the government have a view on culture and religion?
 Economic Factors
Marketers need to consider the state of a trading economy in the short and long-terms. This is
especially true when planning for international marketing. You need to look at:
1. Interest rates.
2. The level of inflation Employment level per capita.
3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on.
As we all are aware of the last FY in the globe, so there were many companies who suffer from
the market condition. Bata desperate and long overdue search to make a style statement in the
Indian shoe market for (formals shoe wear).
Exchange
52 Week High
52 Week Low
BSE
208
76
NSE
209.40
75
The last report by the company is showing the dynamic condition of the market and it shows the way
it climbs up and get down. Bata at BSE on Dec 7, 2009 Current: 191.40Rs; Volume: 30,363; Change
(%):+1.74.
Bata India Pvt. Ltd.
Page 48
 Sociocultural Factors
The social and cultural influences on business vary from country to country. It is very
important that such factors are considered. Factors include:
1. What is the dominant religion?
2. What are attitudes to foreign products and services?
3. Does language impact upon the diffusion of products onto markets?
4. How much time do consumers have for leisure?
5. What are the roles of men and women within society?
6. How long are the population living? Are the older generations wealthy?
7. Do the population have a strong/weak opinion on green issues?
Bata India has a clearly defined policy for Corporate Social Responsibility (CSR). As part of the
company’s CSR initiative, the manufacturing units of shoes
Divisions have acquired the
certifications ‘ISO 9001: 2000 Quality Management System Standards’ and ‘ISO 14001:2000
Environment System standard’ emphasizing the efforts to be an ecologically responsible
organization. The company’s diverse CSR initiatives include:
 Children’s education
 Enabling the disabled
 Women’s empowerment
 Environment management programmes
 Miscellaneous community initiatives
Bata India Pvt. Ltd.
Page 49
 Technological Factors
Technology is vital for competitive advantage, and is a major driver of globalization. Consider
the following points:
1. Does technology allow for products and services to be made more cheaply and to a better
standard of quality?
2. How is distribution changed by new technologies e.g. books via the Internet, flight tickets,
auctions, etc?
3. Does technology offer companies a new way to communicate with consumers e.g. banners,
Customer Relationship Management (CRM), etc?
Bata India Pvt. Ltd.
Page 50
FINANCIAL
CONDITION OF
BATA
Bata India Pvt. Ltd.
Page 51
Graphs and Charts
Analysis of Bata Reports
The following graphs made by referencing the Balance Sheet, Profit & Loss Account of Bata,
which is attach in the annexure of the report.
The following graphs show the year-wise growth of different category
 Total Income
1200
1012.85
934.06
1000
823.96
Figure in crores
800
600
400
200
0
2008
years
2007
2006
The total income of Bata in 2006 is 823.96 cr. which is less than from 2007 by 9.17% and
income of 2007 which is 934.06 cr. is less than income of 2008 by 6.57% and income of
2008 is 1012.85 which is the highest.
Hence, 2008>2007>2006
Bata India Pvt. Ltd.
Page 52
 Tax Paid
11.1
12
9.03
Figure In Crore
10
8
6
3.75
4
2
0
2008
2007
2006
year
Bata tax paid graph shows that in year 2006 Bata paid tax which is 9.03 cr. which is 44%
more than year 2007 and tax paid in year 2007 is 3.75 cr. which is 61.25% less than year
2008 and 44% less than in year 2006, and highest tax paid is 11.1 cr. in year 2008.
Hence, 2008>2006>2007
Bata India Pvt. Ltd.
Page 53
Figure in Crore
 Expenditure on the salary of employees
184
182
180
178
176
174
172
170
168
181.47
183.21
173.22
2008
2007
2006
year
Bata expenses on the salary of employees is 183.21 in 2006 which is more than 2007 by
0.94%, and expenses in 2007 is 181.47 which is more than year 2008 by 4.49% and
expenses.
Hence, 2008<2007<2006
Bata India Pvt. Ltd.
Page 54
 Profit Margin
70
60.74
Figure in Crore
60
47.44
50
40.15
40
30
20
10
0
2008
2007
2006
year
Bata profit margin in year 2006 is 40.15 cr. which is less than in year 2007 by 10.41%,
profit margin in year 2007 is 47.44 cr. is less than from 2008 by 19% and maximum
profit margin is in year 2008 which is 60.74 cr.
Hence, 2008>2007>2006
Bata India Pvt. Ltd.
Page 55
 Total Assets
400
350
335.78
303.18
300
Figure in Crore
272.52
250
200
150
100
50
0
2008
2007
2006
year
Bata total assets in year 2006 is 272.52 cr. which is less than 2007 by 7.67%, total assets in year
2007 is 303.18 cr. which is less than 2008 by 8.14% and total assets in 2008 is maximum which
is 335.78 cr.
Hence, 2008>2007>2006
Bata India Pvt. Ltd.
Page 56
Competitor analysis of Bata
By using the Balance sheet and Profit and Loss Account of Bata, Lakhani and Liberty which is
attach in annexure.
 Total Income
1200
1012.85
Figure in Crore
1000
800
600
400
230.98
152.36
200
0
Bata
Lakhai
Liberty
year
Bata has maximum total income rather than Lakhani and liberty and after Bata, liberty
has highest total income and then Lakhani’s total income which is 152.36 cr.
Bata India Pvt. Ltd.
Page 57
 Profit
70
60.74
60
Figures in Crores
50
40
30
20
8.42
10
3.5
0
Bata
Lakhani
Liberty
year
.
Bata has maximum profit. Bata record 60.74 cr profit and lakhani has 8.42 cr which is
.more than liberty
Bata India Pvt. Ltd.
Page 58
Horizontal Analysis of Balance Sheet (Bata)
PARTICULARS
(Current year)
2008
(Dec )
(Amt in
Crores)
(Base year)
2007
(Dec)
(Amt in
Crores)
291.15
ABSOLUTE
CHANGE
%
CHANGE
251.38
39.77
15.82
64.26
64.26
0
0.0
Reserves and
Surplus
226.89
187.12
39.77
21.25
Secured loans
Unsecured
loans
Total Debt
Total
Liabilities
35.91
8.72
45.07
6.73
-9.16
1.99
-20.32
29.57
44.63
335.78
51.80
303.18
-7.17
32.6
-13.84
10.72
349.33
324.88
24.45
7.53
Less:
Depreciation/
Amortisation
Net Block
232.31
220.96
11.35
5.13
117.02
103.92
13.1
12.60
Capital Work
in Progress
0.86
0.31
0.55
177.41
SOURCE OF
FUNDS
Total Share
holder's Funds
Share Capital
APPLICATION
OF FUNDS
Gross Block
Bata India Pvt. Ltd.
COMMENTS
There is no change in the
amount as compared to
previous year
Due to the increase in
firm's Reserves and
Surplus firm will be able to
run its business in
uncertain conditions
There is an increase in
company's fixed assets.
Therefore, outflow of cash
is taking place.
It is according to the total
amount of Fixed Assets
they own.
As there is an increase in
Net Block but the % is low
than Gross Block as there
will be more depreciation
due to increased value
There is an increase in
capital work in progress
because of purchase of
Fixed Assets so they
would be under
Page 59
construction
Investments
CURRENT
ASSETS , LOAN
& ADVANCES
Inventories
Sundry
Debtors
Cash & Bank
Balance
Loan and
Advances
LESS:
CURRENT
LIAB. & PROV.
Current
Liabilities
Provisions
Net Current
Assets
Miscellaneous
Eepenses not
w/0
Total Assets
Contingnet
Liabilities
Bata India Pvt. Ltd.
17.25
17.25
0
0
292.23
25.89
303.74
22.86
-11.51
3.03
-3.78
13.25
26.75
32.72
-5.97
-18.24
96.75
53.23
43.52
81.75
194.36
198.4
-4.04
-2.03
54.26
193
33.65
180.50
20.61
12.5
61.24
6.92
7.65
1.2
6.45
537.5
335.78
45.28
303.18
76.52
32.60
-31.24
10.75
-40.82
Page 60
Horizontal Analysis of Profit & Loss Account (Bata)
PARTICULARS
(Current year)
2008
(Dec )
(Amt in
Crores)
(Base year)
2007
(Dec)
(Amt in
Crores)
1012.33
11.2
10.68
INCOME
Sales Turnover
Other Income
Stock
Adjustment
Total Income
EXPENDITURE
Raw Material
Excise Duty
Power & Fuel
Cost
Other
Manufacturing
Expenses
Employs Cost
Selling and
Administration
Expenses
Miscellaneous
Expenses
Less:
Preoperative
Expenditure
Capitalized
Profit before
interest,
depreciation &
tax
Interest &
Financial
Charges
Profit Before
Tax
Depreciation
Profit Before
Tax
Bata India Pvt. Ltd.
ABSOLUTE
CHANGE
%
CHANGE
890.79
14
29.27
121.54
-2.80
-18.59
13.64
-20
-63.51
1012.85
934.06
78.79
8.43
455.33
22.86
28.22
437.63
23.58
25.74
17.7
-0.72
2.48
4.04
-3.05
9.63
29.22
29.74
-0.52
-1.74
173.22
184.71
181.47
141.73
-8.25
42.98
-4.54
30.32
16.45
16.41
0.04
0.24
0
0
0
0
102.08
77.76
24.32
31.27
11.24
10.56
0.68
6.43
90.84
67.2
23.64
35.17
19
71.84
16.01
51.19
2.99
20.65
0.18
40.34
COMMENTS
Page 61
Depreciation
Profit Before
Tax
Tax
Profit After
Tax
Adjustment
Below Net
Profit
P&L Bal.
brought
forward
Appropriation
P&L Bal.
Carried down
Equity
Dividend
Preference
Dividend
Corporate
Dividend Tax
Equity
Dividend (%)
Earning Per
Share
Bata India Pvt. Ltd.
19
71.84
16.01
51.19
2.99
20.65
18.67
40.33
11.1
60.74
3.75
47.44
7.35
13.3
196
28.03
0
0
0
0
69
40.15
28.85
71.85
24.87
104.87
18.59
69
6.28
35.87
33.78
51.99
16.07
12.85
3.22
25.05
0
0
0
0
2.73
2.18
0.55
25.22
25
20
5
25
9.03
7.04
1.99
28.66
Page 62
ANALYSIS
OF
ECONOMIC ENVIRONMENT
Bata India Pvt. Ltd.
Page 63
Factors That Will Affect The Organization Demand
The demand of products at Bata can be affected by various factors:
-Product: Shoes( Men’s and Women)
1. Price Of The Commodity:
If the prices of the shoes at Bata increases (decreases), then the demand for the shoes will
decrease(increase). This happens because the price of the shoes and its demand are inversely
related. It implies that lower the price of the commodity larger is the quantity demanded and
higher the price lesser quantity is purchased.
For example:- A closed dress category shoe of Bata
Style no: 801-6210
New price: Rs 979
Old price: Rs 1300
(http://www.bata.in/catdetail.php?&catItem=11&selId=&action=&techId=&brandId=&size=&price=&art_number=
&a_page=3&tipslist=)
In above example Bata reduce the price of shoe by 25%, it will lead to the increase in demand
of that shoe. Because the discount of particular item attract the customer.
Bata India Pvt. Ltd.
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2. Price Of Related Goods:
a) complementary Good- A change in the price of polish and socks will affect the demand of
the shoes. If the prices of the polish and socks will decrease(increase) then the demand for the
shoes will increase(decrease). Complementary goods are those goods which are
complementary to one another in the sense that they are jointly used or consumed together
like car and petrol ,leather and polish and gas and gas stoves. For instance if the price of leather
shoes increases then the demand for polish will decrease and vise a versa.
This happens because the price of the complementary good ( socks and polish0 is inversely
related to the demand of the shoes.
b) Competitive/ Substitute Goods- A change in the price of shoes at Action and lakhani will
affect the demand of the dresses at Bata.
An increase (decrease) in the price of shoes at Action and Lakhani will increase(decrease) the
demand of dresses at Bata. Substitute goods are those goods which satisfy the same type of
demand and hence can be used in place of one another.
This happens because the price of the substitute good (Shoes at Bata) is directly related to the
demand of the dresses at Bata. For instance if the price of lakhani leather shoes increases
consumers will prefer buying bata leather shoes as they will be cheaper therefore the demand
for bata leather shoes will increase.
3. Income Of The Consumer:
a) Normal Goods- They are those goods the demand for which increases with increase in
income of the consumers and decreases with fall in income. For instance a consumer may
increase his demand for clothes ,shoes, accessories etc. if his income increases.
Normally an increase(decrease) in the real income of the consumer will increase (decrease) the
demand of shoes.
This happens because the income of the consumer is directly related to the demand of the
shoes.
b) Inferior Goods- They are those goods the demand for which falls with increase in income of
the consumer. For instance if a consumers income increase he would prefer buying shoes from
woodland than bata.
In case of the inferior goods, such as shoes of very low cost an increase (decrease) in the real
income of the consumer will decrease(increase) the demand of such shoes.
Bata India Pvt. Ltd.
Page 65
See the following chart to understand the consumer expenditure capacity.
Per Capita Income
The Per Capita Income in India was Rs 19040.
The Per Capita Income in India was Rs 20982.
The Per Capita Income in India was Rs 23241.
The Per Capita Income in India was Rs 37490.
Year
2002-2003
2003-2004
2004-2005
2008-2009
( http://www.tradechakra.com/indian-economy/per-capita-income.html)
The above chart show that per capita income in India increase year by year. Since 2002-2003 to
2008-2009 there is a increasment of 50.78%, which is a very good growth in its self. It show the
buying power of consumer also increase. Hence the demand of shoes, normal goods and
inferior goods also increase.
4. Tastes And Preferences: These depend on social customs habits of people fashion
general lifestyle of people. For instance if converse shoes are in fashion then consumers will
prefer buying that to any other shoe.
If there is a favorable(unfavorable) change in the tastes and preferences of the consumer for
the particular type of shoes it will lead to an increase(decrease) in the demand of the shoes at
Bata.
This happens because the taste and preferences of the consumer is directly related to the
demand of the shoes.
The taste and preference of the consumer can be affected by many factors:
a) Advertisements.
b) Consumer Satisfaction
c.) Fashion Trend etc.
For example:- According to 2001 census male literacy rate is 86.9% and female literacy rate is
72.9%. Hence more males able to get the job, Bata is a company known for its closed dress
wear or formals. So they manufacture more men’s shoes compare to female’s shoes.
(http://www.censusindia.gov.in/census_data_2001/India_atglance/literates/aspx.)
5. Other Factors:
a) Size Of Population- Market demand for a commodity depends on the size of the population.
Larger the population larger the demand as they will be more consumers .
Bata India Pvt. Ltd.
Page 66
size of population in a way means the number of consumer.
Hence, as the size of the population increase(decrease) the demand for the shoes will also
increase(decrease).
For example:year
1981
1991
2001
Population
68,33,29,097
84,63,02,688
1.02,87,37,436
(http://www.censusindia.gov.in/census_Data_2001/India_atglance/variation.aspx)
According to the census of last three decade done by government of India, there is a
increasment in population. From 1981 to 1991; there is increasment of 20% in population and
from 1991 to 2001; there is a increasment of 18% in population . Hence the population
increases the demad of the shoes also increases because shoes are the part of daily need of an
human being.
b) Composition Of Populationcomposition of population relates to specifically either or male population from the total
population. Composition of population affects demand because the types of goods demanded
by different people are different.
For example if in a country the composition of working men is large then the demand for
leather shoes will be more.
Hence, if there will be an increase(decrease) in the female population it will lead to an
increase(decrease) in the demand for the shoes.
This happens because composition of the population and the demand for the shoes are directly
related.
c) Distribution Of Income--If the distribution of income in a country is unequal there will be
more demand for luxury goods and if the distribution of income is evenly distributed then the
demand for luxury goods will be less and more demand for necessities.
The way the income is distributed in the economy also affects the demand of the product,
which in our case is the shoes at Bata.
If the income will be distributed equally (unequally) amongst all the sections of the socity then
demand for the shoes will increase(decrease).
Bata India Pvt. Ltd.
Page 67
Factors That Will Affect The Organization Supply
The supply of the product at Bata can be affected by various factors:
Product: Shoes(Men’s and Women’s)
1. Price Of The Commodity:
If the price of the shoes at Bata increases(decrease), then the supply for the shoes will also
increase(decrease). This happens because the price of the shoes and its supply are directly
related. Given other things larger quantity will be supplied at a higher price and smaller
quantity at a lower price. This will be because higher the price given per unit cost of production
higher is the per unit profit .The higher profit would motivate the suppliers to supply more in
order to earn more profits.
2. Prices Of Factor Inputs:
This relates to the cost of production.
An increase (decrease) in one input of production will cause a consequent increase (decrease)
in the cost of production of that commodity which will lead to a decrease (increase) in the
supply of that product.
For eg:- Raw material, Transportation cost, etc.
So, an increase (decrease) in the price of raw material like leather and fabric will cause a
consequent increase (decrease) in the cost of production of the dresses which will lead to a
decrease (increase) in the supply of dresses.
This happens because the price of factor input is inversely related to the supply of the product.
Bata India Pvt. Ltd.
Page 68
3. Price Of Related Goods:
a) Complementary Goods- A change in the price of polish and socks will affect the supply of
the shoes.
If the prices of the polish and socks will decrease (increase) there will be a decrease (increase)
in the supply of the shoes too because this will lead to a decrease (increase) in the profit
margins of the supplier.
This happens because the price of the complementary goods ( socks and polish) is directly
related to the supply of the shoes.
b) Competitive/ Substitute Goods- A change in the price of the shoes at “Action” and “Libarty”
will affect the supply of the shoes at Bata.
An increase (decrease) in the prices of shoes at “Action” and “Liberty” will decrease (increase)
the supply of the shoes at “Bata” because this change in the price will tempt the suppliers to
divert their available recourse to the production of the substitute good i.e the shoes at “Action”
and “Liberty”.
This happens because the price of the substitute goods ( shoes at Action) is inversely related to
the supply of the dresses at Bata.
4. State Of Technology:
The supply of a commodity depends upon the state of technology.
Over-time if there is an increase (decrease) in the infrastructure and the technology i.e the
technology has become more advanced it result in low-production cost ( high production cost)
and hence will increase (decrease) the supply of the shoes.
For eg:-Better Machinery, up-to-date infrastructure, etc.
This happens because the state of technology is directly related to the supply of the shoes. For
instance new machines are invented to the bata factory then the supply would increase and
there is a chance of the profits increasing.
5. Expected Future Price:
If the future price of the shoes at Bata are going to decrease (increase) it will increase (
decrease) the current supply of the shoes at Bata because in the future the profit margins of
the supplier will decrease (increase). For instance if the suppliers of bata know that the demand
Bata India Pvt. Ltd.
Page 69
for leather shoes will increase next year then they will produce less this year in order to earn
more profits next year so the supply of leather shoes will increase next year.
This happens because the expected future price is inversely related to the supply of the shoes.
6. Number OF Firms Producing That Product:
If the number of firms producing increase (decrease) then Bata will get more (less) competition
from other firm and hence the supply of Bata will increase (decrease).
This happens because the number of the firms products a product is directly related to the
supply of shoes at Bata. For instance if bata is the only producer of leather shoes then they will
restrict their supply in order to earn more profits and if they have competition then there
supply would be more.
7. Goals OF The Firm:
The supply of a commodity depends upon the goals of firms producing that commodity. So, the
supply of shoes at Bata depends upon the goals of Bata.
Mostly all firms sell their products such that they attain maximum profits. But at times some
products are supplied not to attain more profit but because they are a source of status and
prestige for the company in the society. For example if the goal of Bata is to earn maximum
profits they would supply more in order to earn more profits.
8. Taxation Policy:
Imposition of heavy (less) taxes on a commodity decreases (increases) its supply.
So, if the government increases (decreases) the taxes on the production of shoes it will lead to a
decrease (increase) in the supply of the dresses.
Also, tax concession would help in stimulating the supply of shoes at Bata.
Foe eg:- a) Tax deduction for workers in the industry.
b) Exemption from consumption tax ( sales tax or V.A.T), etc
This happens because the taxes and the supply of the dresses are inversely related to each
other. If Heavy taxes are imposed on bata then there supply would be less but if the
government spends money on supplying bata machines etc then there supply would increase.
Bata India Pvt. Ltd.
Page 70
Recent Policy Initiatives:
Specific Industry Associations viz. Council for Leather Exports, Central Leather Research
Institute ,Footwear Design and Development Institute declares various schemes on an ongoing
basis to promote specific activities viz. Export promotion, Training Design Inputs , etc.
The States Governments of Himanchal Pradesh, Uttranchal , Jammu and Kashmir and Assam are
promoting manufacturing by offering Tax holiday for a period of ten years on full Excise duty
and Income Tax and a subsidy in sales Tax, Land/ Building and Plant/ Machinery.
9. Tastes And Preferences:
If there is a favorable (unfavorable) change in the tastes and preference of the consumer for
the shoes it will lead to an increase (decrease) in the supply of the shoes at Bata.
This happens because the taste and preference of the consumer is directly related to the supply
of the shoes.
The taste and preference of the consumer can be affected by many factors:
a) Advertisements.
b) Consumer satisfaction, etc.
10. Natural Factors:
a) Size of Populationsize of population in a way means the number of consumer.
Hence, as the size of the population increases (decreases) the supply for the shoes will also
increase (decrease)
This happens because the size of the population and the supply for the shoes are directly
related.
b) Composition Of PopulationComposition of population relates to specifically either female or male population from the
total population.
Hence, if there will be an increase (decrease) in the female population it will lead to an increase
(decrease) in the supply for the shoes.
Bata India Pvt. Ltd.
Page 71
This happens because composition of the population and supply for the shoes are directly
related.
11. Availability Of Labour :
there are times when labour has conflicts with the management, within themselves, they
might go on strike or even leave jobs for some reason, which effects work and hence reduces
productivity. Due to such reasons of scarcity of labour, supply gets affected.
12.Transpotation Cost:
As the transportation costs are to be beared by the supplier, his costs increase with the
increase in transportation costs. Hence, the supplier is not willing to supply at increased costs.
This is another factor that leads to decreased supply of Bata shoes.
13. Demand:
As the demand for Bata shoes decreases or increases, the supply also decreases or increases
respectively. When the consumer demands increase, the supplier needs to provide more
products to fulfill the demand. When the consumer does not need a particular product, then
there is no use of the supply as it will not sell. Hence, demand of Bata shoes is one of the major
reasons affecting its supply.
Bata India Pvt. Ltd.
Page 72
Recent Trends in the Industry
Role of Technology:Technology has expanded operations of the apparel and footwear
industries to a more global scale. It has also provided closer working relationships between
retailers and manufacturers. Technology has improved efficiency and has reduced the amount
of manual labor.
Computer Technology:-Rapid improvements in computer technology have helped to
shorten the new product development phase from years to practically months, especially in the
fashion/style/high- performance areas. apparel marketers who are linked with retailers through
quick-response programs and other technology go a long way toward making themselves
indispensable to their customers.
EDI Technology collects information (such as the bar code that is attached to each item sold,
the price of the product(s) sold, and details such as color and size) from the retailers’ checkout
counter and relays the information back to the manufacturer. The data is then used for
manufacturers to automatically reorder the stock of merchandise to replenish their shelves in a
timely manner. EDI also makes distribution and shipping information more efficient.
Bata India Pvt. Ltd.
Page 73
Implication of Fiscal Policy
Fiscal policy, also know as Keynesian economics proposed by British economist john Maynard
Keynes.
The theory basically states that government can influence macroeconomic productivity levels
by increasing or decreasing tax levels and public spending.
There are two main instruments of fiscal policy:1) Government spending
2) Taxation
The changes in both have impact on following variables in the economy:

Aggregate demand

Level of economic activity
To counter the negative fallout of global slowdown of Indian economy, government responded
by providing three focused fiscal stimulus packages in form of tax relief and increased
expenditure on public projects along with RBI taking a number of monetary easing and liquidity
enhancing measures.
GOVERNMENT SPENDINGS:
INFRASTRUCTURE: According to government budget 2009-2010, infrastructural development
will be given a big boost. IIFCL (INFRASTRUCTURE FINANCE CO.) will evolve a takeout financing
scheme in consultation with banks to facilitate incremental lending to the infrastructure sector.
A new scheme, Rajiv Awas Yojna will be introduced with the aim to make the country slum free
in next 5 years.
Footwear industry plans to raise fund from domestic and overseas economic sectors in form of
joint venture, association, establishment of shareholding companies, issuance of shares and
bonds in stock market.
Bata India Pvt. Ltd.
Page 74
Footwear industrial parks will be built, encompassing good infrastructure conditions and
environmental treatment facilities, in a bid to draw and facilitate investment in footwear
industry.
TYPICAL PROJECT PROFILES OF FOOTWEAR INDUSTRY:
PROJECT
COST (in millions)
COST (in Euros)
Leather Shoes
50.00
0.898
Polymer shoes
152.00
2.732
Leather shoe uppers
35.00
1.438
Finished Leather Shoes
420.00
7.551
EMPLOYMENT: Although India’s share in global economy is low, however being a labourintensive industry, its contribution to employment is significant.
In recent study, it was highlighted that the total employment in footwear sector would amount
to 2.5 million ( 30%of which are women).
Footwear industry provides employment to uneducated population-40% of employment is
represented by unskilled workers doing table work operation in assembly line. The footwear
industry has potential to provide employment across all sections of the economy. The
estimated employment potential of footwear industry is to provide 3 lakh jobs in next 3 years.
INTREST PAYMENTS: Due to fiscal consolidation in last four years, interest payments as
percentage of total revenue receipts (net) of central government has shown a significant
improvement. According to the budget estimation 2009-10 it is estimated as 36.7% from 36.7%
in 2008-09.
The 2% interest subvention scheme provided by Indian government for certain labour intensive
sectors, has been extended from september30, 2009 to march31,2010 which includes footwear
sector of the industry. This will facilitate reduced interest rate @BPLR minus 4.5% for leather
footwear sector on pre-shipment and post-shipment rupee export credit.
TRANSFER OF PAYMENTS: are the form of government spending .It is defined as
redistribution of income in market system. Eg:-for welfare(financial aid),social security and
government subsidies for certain business(firms).The boost the footwear industry the Indian
federal government has earmarked a Rs.4.5 billion Grant to be made available to the industry
Bata India Pvt. Ltd.
Page 75
over a span of 5years but that’s not without any string. The fund availability is conditional upon
the sector’s attracting an annual investment of 2.2 trillion.
SUBSIDIES: Government plan to spend Rs.1,11,276 crore (us $23.03 bn.) on providing
subsidies in budget 2009-2010.
There are various subsidies provided by Indian government to boost footwear industry in India.
The lowering of value addition norms under DFRC scheme from 33% to 25%, would benefit the
exporters of leather goods including leather footwear. Funding is available to enable tanners to
modernise manufacturing facilities in footwear sector. Machinery also benefits from duty
free/concessional import regulation.
There is concessional rate of interest on export credits to mitigate the effects of rupee
appreciation which has led to tightening of credit.
On the smaller scale, there is a scheme known as “support to rural artisans scheme, marketing
and technical support for traditional and ethnic Indian footwear products such a mojpuri, jooti
and kohlapuri is being provided. Government also provided support in terms of improved
infrastructure .Duty free import of raw material (namely raw skins, hides etc...)
EXPORT GROWTH: Exports can become engine of growth for the entire economy as it
develops. India is largest producer footwear producer after China. It comprises 42.44% export
of footwear.
In this view to boost exports Indian government has taken various measures:

Adjustment assistance scheme to provide enhanced exports credit and guarantee
corporation (ECGC) cover at 95% to badly hit sectors extended upto march 2010.

Interest subvention of 2% on preshipment credit for 7 employment oriented export
sectors extended beyond the current deadline of september30, 2009 to march31, 2010.

To facilitate flow of credit at reasonable rate, Rs.4000crore provided as special fund out
of rural infrastructure development fund to small industry development of India, This
will incentivise banks and state finance corporation to lend to micro and small
enterprises by refinancing 50% of incremental lending to MSE’s during current financial
year.
PUBLIC DEBT: Due to the slowdown in the economy in few last years government raised its
borrowings. Footwear industry shall raise funds from domestic and overseas economic sectors
in form of shares and bonds in the stock market.
Bata India Pvt. Ltd.
Page 76
FDI (FORIEGN DIRECT INVESTMENT): Liberalizing FDI was another important part of
India’s reform, driven by belief that this would increase total volume of investment in Indian
economy.
A list of investment projects will be prepared in bid to call for investors at home and abroad
encouraging the involvement of domestic foreign economic sector in investing in footwear
industry.
EXCISE DUTIES: According to the government policies in India, excise duties and many other
miscellaneous taxes are not levied on the apparel products, but they are categorized as
restricted imports.
Export Promotion Capital Goods (EPCG) Scheme: The EPCG scheme is provided for those
export companies and traders who inform the Government of India about the type and value of capital
goods being imported by them and the exports they expect to produce using those imports. The
Government of India provides a license to the exporters allowing them to import capital goods either
duty free or at very low rates of duty, on the basis of the export commitment made at the time of
import of goods.
Bata India Pvt. Ltd.
Page 77
IMPLICATION OF MONENTARY POLICY
The Indian economy has been developing at a considerable growth rate since independence,
but it has never been able to achieve the targets set up. In the first quarter of the year 2009-10,
the Indian economy was growing at a rate of 6.1%, which is higher than that of 5.8% in the
fourth quarter of the financial year 2008-09, but lower than 7.8% in the first quarter of the year
2008-09. The year-on-year (y-o-y) deceleration in growth was broad-based covering all the
three major sectors, viz., agriculture, industry and services.
Real GDP Growth (%)
Financial Year
Sector
2007-08 2008-09
Quarterly Growth Rates (y-o-y)
2008-09
Q1
2009-10
Q4
Q1
Agriculture
4.9
1.6
3.0
2.7
2.4
Industry
7.4
2.6
5.1
(-) 0.5
4.2
Services
10.8
9.4
10.0
8.4
7.7
9.0
6.7
7.8
5.8
6.1
Overall GDP
Source: Central Statistical Organisation (CSO).
In the Indian economy, clear signs of revival from recession and growth of the industrial sector
have been seen in the recent months. The index of industrial production (IIP) showed an
increase by approximately 5.8% during April-August 2009 as compared with a growth of 4.8% in
the corresponding period of the previous year. While the basic, intermediate and consumer
durable goods sectors (that includes the apparel industry) witnessed higher growth, the
performance of the capital goods and consumer non-durable sectors was relatively modest. The
core infrastructure sector experienced a growth of 4.8% during April-August 2009, as compared
to 3.3% in the corresponding period of the previous year. The leading indicators of industrial
production, both quantitative and qualitative, also point to revival of industrial activity in the
months ahead.
Bata India Pvt. Ltd.
Page 78
The results of the Industrial Outlook Survey done by the Reserve Bank of India that tracks the
business expectations for the current quarter and the business outlook for the following
quarter, conducted in July-August 2009 showed a turnaround in the business sentiment. The
assessment for the second quarter of 2009-10 showed continuing upturn with a 7.8% increase
in the Business Expectations Index (BEI) over the previous quarter. Also considerable
improvement was shown in key indicators such as production, order books and capacity
utilisation. The financing conditions have also become better.
Inflation that is measured by year-on-year variations in the wholesale price index (WPI),
remained negative during June-August 2009 due to the base effect, but returned to a positive
figure in September 2009. Inflation based on the CPI for industrial workers (IW) and urban nonmanual employees (UNME) has also witnessed a one-time step-up reflecting significant upward
revision in imputed prices of rent-free houses emanating from the Sixth Pay Commission
Award. The Central Government has already completed net market borrowing of Rs. 3,19,911
crore (as much as 80.4 per cent of the budget estimate) through dated securities during 200910 (up to October 26, 2009).
Contribution of Footwear industry in National Nncome: Footwear industry has major
contribution in country’s national income. The sector is pride of India’s leather industry and
ranks second in the world, next to China.
Global trade in leather footwear is US$30 Billion and non leather is US$ 18 Billion.
The footwear industry has made a strong contribution to Indian economy. India’s share in
global trade remains low, however being labour-intensive industry, It has a strong contribution
in employment.
The sector provide 2.5million employment(of which 30% women).By reduction in
unemployment the growth of economy increases and hence per capita income increases which
lead to higher standard of living. In total national income of the economy increases
FDI(FORIEGN DIRECT INVESTMENT): play an important role in increasing national
income. As India is developing economy it has an attractive profit making opportunities for the
foreign investors. Because of its production strength it attracts more international players and
also duty free or concessional imports and reduction in excise duty help in increasing FDI.
Bata India Pvt. Ltd.
Page 79
Pre- and Post-Shipment Financing: Pre-shipment financing is provided by the Reserve
Bank of India to Indian exporters through commercial banks for purchasing raw material,
packaging material and other required material by presenting a confirmed order or letter of
credit. Also RBI provides post-shipment financing through commercial banks at preferential
rates to Indian exporters presenting export documents. These programs make a financial
contribution to Indian firms to the extent of the difference between benchmark short-term
interest rates and the preferential interest rates.
BANK CREDIT:
Non-food credit by scheduled commercial banks decreased considerably, with the growth rate
(y-o-y) falling to 11.2% as on October 9, 2009 from 29.4% in the corresponding period of the
previous year. On a financial year basis (up to October 9, 2009) too, the growth in scheduled
commercial banks’ non-food credit at 4.3% is drastically lower than the growth of 10.5% in the
corresponding period of the previous year.
The various factors that have contributed to the slowdown in non-food bank credit are as
follows:
1. Overall credit demand from the manufacturing sector slowed down reflecting a
decrease in commodity prices and drawdown of inventories.
2. Corporates were able to access non-bank domestic sources of funds and external
financing – which had almost dried up during the crisis – at lower costs.
3. Oil marketing companies reduced their borrowings from the banking sector as oil prices
moderated.
4. A significant amount of bank finance has gone to the corporate sector through banks’
investment in units of mutual funds.
Bata India Pvt. Ltd.
Page 80
5. Banks have also reined in credit to the retail sector due to the perceived increased risk
on account of the general slowdown. This credit cutback was more pronounced in the
case of foreign banks and private banks.
Interest Rates: In response to the crisis, the Reserve Bank has effected a substantial
reduction in policy rates beginning October 2008: the repo rate by 425 basis points and the
reverse repo rate by 275 basis points. The CRR was also reduced by 400 basis points of NDTL
of banks.
Monetary Easing by the Reserve Bank since October
2008
Item
Early
October Reduction
October 2009
(basis
2008
points)
Repo Rate
9.00
4.75
425
Reverse Repo Rate
6.00
3.25
275
Cash Reserve Ratio (% of NDTL)
9.00
5.00
400
Taking cues from the reduction in the Reserve Bank’s policy rates and easy liquidity
conditions, all public sector banks and most private sector banks have reduced their
deposit and lending rates.
http://rbi.org.in/scripts/NotificationUser.aspx?Id=5326&Mode=0
Bata India Pvt. Ltd.
Page 81
SWOT ANALYSIS OF BATA
STRENGTHS






Targeting all income segments.
Footwear for the entire family.
Nationwide retail network.
Brand Image.
Good quality at low or reasonable price.
Shoes available are in varied quality and price.


The brand ‘Bata’ is closely identified with footwear by consumers.
An extensive retail network of owned and franchisee stores enables the Company to
reach out to consumers across the length and breadth of the country.
The Company’s own tanneries located in Batanagar and Mokamehghat ensures
uninterrupted supply of raw materials.
Six manufacturing locations enable the Company to schedule production to meet
demand for a large number and varied categories of footwear.
Being a part of the Bata Shoe Organization gives the Company access to new designs,
brands and production technologies.



WEAKNESSES






No continuity of leadership.
No proper planning regarding Advertisement
No variety in Fashionable shoes.
Lack of variety in sports shoes.
Lack of futuristic approach.
Lack of variety in sports shoes.


The Company has a large labour force resulting in high employee costs
The Company has been in existence for more than seven decades and faces a challenge in
switchingto new production technologies
OPPORTUNITIES




Great market channels.
Exchanging or expending in offer rural market.
Innovative Products
New mediums for advertisements
Bata India Pvt. Ltd.
Page 82










Acquired, Partnership with small players
Entering new segments of Markets
Rising potential in the domestic market
Growing fashion consciousness globally
The Indian footwear retail market is expected to grow at a CAGR of over 20% for the
period spanning from 2008 to 2011, and also expected to comprise of 60% of the total
leather exports by 2011.(india-reports,2008)
Footwear retailing in India remain focused on men’s shoes, there exists plethora
opportunities in the exclusive ladies and kids footwear segments with no organized
retailing chain having a national presence in either of these categories.(indiareports,2008)
For leather industry, duty free entitlements of import trimmings, embellishments and
footwear components is increased to 3% of FOB value of exports, for leather sector,
duty free import increased to 5% of FOB value of exports and the machinery and
equipment for effluent treatment plants are to exempt of custom duty.(Indianindustry,
2009)
India is a very large market and offers good demand potential for footwear which is an
item of mass consumption.
Low per-capita footwear consumption in India provides opportunity to the Company
which has large production capacity spread over six locations
The Company sees potential in leveraging the .Bata. brand for marketing other
merchandise consumer products.
(http://www.indianindustry.com/trade-information/foreign-tradepolicyhighlights.html)
THREATS

Too many players will dilute the market & the profit margin goes down because of Low
priced Chinese or local products.



The Company faces competition from the unorganized market which is able to sell
footwear at low cost due to lower overheads and manufacturing costs.
Opening of the Indian market to imports has resulted in the Company facing
competition from cheap imports.
Due to growing inflation, there has been an increase in the cost of raw materials and
transportation

The decreasing fashion cycle is one of the major threats as new collections need to be
brought in very frequent
Bata India Pvt. Ltd.
Page 83
Recommendations
The recommendation for the company to maintain the consistency, good will, brand image,
uniqueness and cost effective methods for production are as follows:-

In Asia luxury spending was expected to grow between 6 and 7 percent in the year
starting July, compared to a decline of up to 15 percent in the United States and a drop of
up to 5 percent in Europe. Bata retailers need to educate potential customers about their
wares, especially during this crisis, when they're more reluctant to buy on the spur of the
moment. Bata sales teams should appeal to customers' emotions, online or at the store, to
succeed.

Bata should adopt recycling of textiles. It is cost effective process and company input
cost will be reduced.

It should inculcate “Lean Sigma” adopting the latest technology of waste reduction and
improving efficiency level. This is cost cutting and time saving adoption.

Strengthening the pre production processes as apart of over all supply chain to enhance
the operational efficiency.

Many industries are adopting the strategy of going green highlighting their initiatives
and future plans towards a cleaner environment. Though the initial investment in setting up
a green factory is about 30%-40% higher, the investment pays back in couple of years
through various savings achieved as a part of this initiatives. Bata should also adopt this as
it will enhance its brand image.

Bata should also show some advertisement on T.V, newspaper so that more people
aware about it.

Indian market is dominated by men’s footwear i.e. about 58% so there huge untapped
sector of women and children footwear in India thus Bata should try tapping these sector.

Worldwide epidemiological studies shows that the employment in the shoe industry is
associated with high risk of cancer so Burberry should keep records of his workers
health.(joem,2009).
(http://www.ijoem.com/temp/IndianJOccupEnvironMed917-5037142_135931.pdf)
Bata India Pvt. Ltd.
Page 84
Competitor Profile
Bata India Pvt. Ltd.
Page 85
Lakhani
Company Profile:
Business Type: Footwear
Main Market: India
Chairman and M.D: Mr. Parmeshwar Payal Lakhani
Market Value: 46 cr
Company Address: B-106, Sector-2, Noida,
Uttar Pradesh
.
Tel. no: 91-0120-4015810
Fax:
Site URL:
Employees: 2702
Share Price:
company only listed on BSE
Current price - 34.80 Rs
Share Holding Pattern:
Promoter – 66.20%
Non-Promoter-25.32%
Public Holding- 7.42%
M.F & Other- 1.06%
Bata India Pvt. Ltd.
Page 86
1.06%
7.42%
Promoter
25.32%
Non-promoter
Public Holding
M.F & Other
66.20%
History:
Originally incorporated as Lakbros Shoe Company Pvt Ltd in Dec.'81, Lakhani was
converted into a deemed public limited company on 14 Jul.'89 and its name was changed to
Lakhani India in Sep.'94. Promoted by K C Lakhani, P D Lakhani and J C Arora, LIL belongs to the
Lakhani group. It manufactures and markets shoes and chappals. In Jun.'95, LIL came out with a
public issue of 38.4 lac equity shares at a premium of Rs 110, aggregating Rs 46.08 cr, to partfinance the expansion-cum-modernisation of its non-leather shoe unit from 30 lac to 61.65 lac
pairs pa at Faridabad, Haryana, and its diversification into the manufacture of 3 lac pairs of
leather shoes. The other companies in the Lakhani group are Lakhani Rubber Udyog, Lakhani
Footwear, Lakhani Shoe Company, Lakhani Shoes, etc.
The group is the largest manufacturer of beach slippers and the second-largest manufacturer
of canvas shoes in India. It exports goods to UK, Sweden, Italy, France, Germany, Ireland and
Western Australia. The manufacturing units of LIL are at Bhiwadi( Rajasthan); Noida(Uttar
pradesh) ; Faridabad(Haryana); and Indore (Madhya Pradesh). The Lakhani group is one of the
largest suppliers of rubber components to automobile manufacturers like Maruti, TELCO,
Escorts, Sona Steering, DCM Daewoo.
(http://www.sharekhan.com/MarketCorner/DetailedReport.aspx?Type=COMP-HIS&SSKICode=LAKHANI)
Bata India Pvt. Ltd.
Page 87
Human Recourse Policy:
Employer relations continued to remain cordial during the
training and development of employees continue to be an area of importance. The devotion
and commitment of our employees has enabled the company fulfill its target and deadlines in
time. The total number of employes in the company as on 31st march,2008 was 2702.
(http://www.indiainfoline.com/market/company)
Product Profile: PRODUCT RANGE-
RetailPrice: Rs. 1150
Retail Price: Rs. 1090
Bata India Pvt. Ltd.
Page 88
LIBERTY
Company Profile:
Business Type: Footwear
Main Market: India
CEO: Mr. Adesh Gupta
Market Cap: 180 cr
Company Address: A-40, II flore, Phase-II,
.
.
Naraina Industrial Area,
Near Batra Banquat Hall, N.D-110025
Tel. no: 91-11-41410592
Employees: 1332
Share Price:
Company listed on BSE as well as on NSE
Current price- BSE- 106 Rs ( As per the closing on 22/1/2010)
NSE-106.90 Rs (As per the closing on 22/1/2010)
52 week High- 113.45Rs
52 week low- 35Rs
Share Holding Pattern:
Promoters-61.94%
Public-32.58%
Non-Promoter Corporate Holding-5.16%
Mutual Fund-0.32%
Bata India Pvt. Ltd.
Page 89
0.32%
5.16%
Promoters
32.58%
Public
Non-Promoter
61.94%
M.F
History: Liberty Shoes (LSL), incorporated in Sep.'86 as a public limited company, engaged
in the business of manufacturing and selling leather & non-leather shoes, leather shoe uppers
and leather garments. In 1991, LSL set up a joint venture to manufacture shoes, and in Dec
1995 it was discontinued. facility for 6 lac pairs of leather shoes and 9.6 lac pairs of non-leather
shoes. The company has commenced commercial production of non-leather shoes in Dec.'93.
LSL has well established network of retail stores, and markets it's products under the well
known brand 'Liberty'. LSL serves all major segments of the footwear market, it's product range
consists of Gliders and Coolers range of footwears under Casual Footwear segment, GeoSport
in Sports shoes. Liberty Shoes Ltd. is the only Indian company that is among the top 5
manufacturers of leather footwear in the world with a turnover exceeding U.S. $100 million.
With 50 years of excellence, today Liberty produces footwear for the entire family and is a
trusted name across the world. In the domestic market it is one of the most admired footwear
brands and holds the largest market share for leather footwear.
(http://www.sharekhan.com/MarketCorner/DetailedReport.aspx?Type=COMP-HIS&SSKICode=LIBERTYS)
Bata India Pvt. Ltd.
Page 90
Human Resource Policy:
Company has been consisted in following the prudent
polocirespect of H.R and industrial relations by duly complain the all the applicable industrial
law and code of conduct as laid for the protection of the workers. The company believes in
harmonious and cordial relationship with its work force and as such, always committed to
provide generous support to its workforce. Proway for a better work environment and the
attainment of large bro objectives in efficient and specialized manner, As on 31 st
march,2009,the company employ strength is 1332.
(http://www.indiainfoline.com/market/company)
Award Won:
"A1+"(meaning highest safety) rating for its commercial paper in 1999-2000 by ICRA.
Product Profile:
Bata India Pvt. Ltd.
Brand
: Fortune
Article
: 2031-21
Color
: BLACK
MRP
: Rs.1099
Brand
: Senorita
Article
: 2020-104
Size
: 36-41
Color
: COPPER
MRP
: Rs.699
Page 91
Minimum Wages Chart By The State
Governments
 MINIMUM WAGES IN DELHI (FEB 1,2009)
S.N
O
1
2
scheduled
employment
Ready-made
garments
Textile ,
including
handloom ,
thread,
manufacturing
labels, dyeing &
printing
UNSKILLED
Basic
minim
um
wages
V.D.
A.
141.00
141.00
CATEGORY OF WORKERS
SEMI- SKILLED
SKILLED
Total
minim
um
wages
Basic
minim
um
wages
V.D.
A.
Total
minimum
wages
10.0
Total
Basic
V.D.
minim minim A.
um
um
wages wages
(RS PER DAY)
151.00 148.00 10.0
158.00
158.00
10.0
168.00
10.0
151.00
158.00
158.00
10.0
168.00
148.00
10.0
 MINIMUM WAGES IN HARYANA
S.N
O
CATEGORY OF WORKERS
Scheduled
employment
Unskilled
Semiskilled
(A)
Semi-skilled
(B)
Skilled
(A)
Skilled (B)
highly skilled
(RS PER DAY)
1
2
COTTON &
GINNING &
PRESSING
INDUSTRY.
READY MADE
GARMENTS
Bata India Pvt. Ltd.
147.69
152.6
157.69
165.69
167.69
172.69
147.69
152.6
157.69
165.69
167.69
172.69
Page 92
 MINIMUM WAGES IN MADYA PRADESH
S.N
O
1
2
scheduled
employment
COTTON ,
GINNING &
PRESSING
HANDLOOM
INDUSTRY
UNSKILLED
Basic
V.D.
minim A.
um
wages
CATEGORY OF WORKERS
SEMI- SKILLED
Total
Basic
V.D. Total
minim minim A.
minim
um
um
um
wages wages
wages
(RS PER DAY)
SKILLED
Basic
V.D.A.
minim
um
wages
Total
minimum
wages
47.38
54.1
101.49
43.15
54.1
97.26
39.00
54.11
93.11
47.38
54.1
101.49
43.15
54.1
97.26
39.00
54.11
93.11
 MINIMUM WAGES IN UTTAR PRADESH
S.N
O
scheduled
employment
1
HANDLOOM
INDUSTRY
2
WEAVING OF
SILK SAREE &
ZARI WORK
3
READYMADE
GARMENTS
Bata India Pvt. Ltd.
CATEGORY OF WORKERS
UNSKILLED
SEMI- SKILLED
Basic
V.D.A. Total
Basic
V.D.A Total
minimum
minimu minimu .
minimu
wages
m
m
m
wages
wages
wages
(RS PER DAY)
SKILLED
Basic
V.D.A
minimu .
m
wages
129.73
29.69
159.42
137.50
33.85 171.35
171.35
37.54 201.66
129.73
29.69
159.42
137.50
33.85 171.35
171.35
37.54 201.66
129.73
29.69
159.42
137.50
33.85 171.35
171.35
37.54 201.66
Total
minimu
m
wages
Page 93
Recent News Related To Footwear Industry
 A step for footwear
November 6, 2006
Indian Shoe Federation (ISF) has taken a step to create a direct link between
manufacturers of components and footwear manufacturers.
They had organized a footwear components and accessories exhibition at Rajah
Muthiah Hall, Egmore, Chennai. A total of 72 footwear components manufacturers
from all over India participated in this exhibition.
According to the Council of Leather Export, the footwear industry aims to reach a target
of $4 billion, within next five years.
There is a huge prospect of employment in the footwear component industry. This will
help in enhancing the export opportunity for the footwear industry.
(http://www.fibre2fashion.com/news/fashion-news/newsdetails.aspx?news_id=25742)
 Agra footwear industry facing new challenges
April 16, 2009 (India)
Arrival of footwear manufacturing units in the infrastructure-rich towns
like Noida and Chandigarh as well as slowdown in export orders due to
unavailability of credit facilities to the major footwear importers, are the
new challenges for Agra footwear industry. This makes footwear units
in the town to run at less than 50 percent of their production capacity.
Agra footwear industry is already facing a 30 percent decline in export orders due to financial
meltdown. First quarter of 2009 has experienced a sharp decline in export orders. Though only a
few number of footwear units have come up in Noida and Chandigarh, the business of small
exporters of Agra is getting affected. So, there is a need to develop a supporting infrastructure for
Agra
footwear
industry.
Big exporters of the town are looking for a substantial share in the economic package announced
by the Centre for the leather industry, totaling to Rs. 1,300 crore. According to the experts,
though Kanpur is known for utility footwear exports and Chennai has the largest share in men’s
footwear, the top position in exports of men’s & women’s fashion footwear rests with Agra.
Growth rate of Agra footwear industry was 27 percent for the past few years but this drop down
Bata India Pvt. Ltd.
Page 94
in business would make it difficult to maintain that growth rate this year. According to experts,
situation will change in the near future, as China faces import restrictions from several countries
and cost of footwear manufacturing in the Eastern European Countries is going high.
Experts hope that in coming years, bulk buyers will turn to India and country’s share in the world
footwear trade will rise, at least to 7 percent from 4 percent.
(http://www.fibre2fashion.com/news/daily-textile-industriesnews/newsdetails.aspx?news_id=71426)
 26th IFC to help Indian footwear industry
September 3, 2007
The countdown for the 26th International Footwear Conference
(IFC) has begun and this is the first time when India has been
given the honour to organize this prestigious event.
The three day conference will be organized from August 30 till
September 1, 2007 at Chennai and will be inaugurated by Mr G
K Pillai, Commerce Secretary, Government of India.
The IFC will witness participation from 9 major footwear manufacturing countries from Asia
and large number of footwear importing countries like US, Spain, Italy etc.
It will also have country presentations from Brazil, South Korea and India who will address the
relevant topics including design inputs while designing comfort footwear, latest technology in
sports footwear and emerging trends in retailing in India.
IFC being an important event for the global footwear industry is a major initiative by Council for
Leather Exports (CLE) to take a step ahead in boosting India’s footwear production in the world
market.
The event would also provide interactive forum to the participants to discuss various issues like
current trends in footwear production, trade and consumption.
The conference would be of immense help to Indian industry - in terms of understanding the
changes happening in other footwear producing countries.
Speaking on the occasion, Mr Mukhtarul Amin, Chairman, CLE said, “The conference would be
a gateway for Indian footwear manufacturers to know trade andtechnology practices worldwide
especially in Far East nations. This event will also gather opinions from experts and trade
analysts on issues concerning leather sector.”
With the world trade figure soaring high the global leather and leather products imports has
almost doubled to US$ 104 billion in 2005 as against US$ 56 billion in 1992 and out of which
footwear alone constitutes 67% of the total leather trade.
Bata India Pvt. Ltd.
Page 95
Figures also show that US being the largest importer has a highest share of 27%, the leather
exporters from India are creating space for Indian leather in US markets and strengthening our
trade relations.
With the current trends of footwear manufacturing are declining in Europe and depression in
Brazilian industry, the Indian Leather Industry sees an immense potential and growth prospects
with new emerging markets in Eastern Europe and Latin America and to cater the same stress is
on building capacities, manpower and technology advancement is the main stress.
(http://www.fibre2fashion.com/news/fashion-news/newsdetails.aspx?news_id=40328&page=2)
Bata India Pvt. Ltd.
Page 96
.
Bata India Pvt. Ltd.
ANEXTURE
Page 97
Product Profile of Bata
Men`s Wear
Variety of products such as:




Closed dress
Closed casual
Sandals
Chappals
Sports wear
Closed dress range starts from 699 to 2699
Closed casual range starts from 399 to 1999
Sandals range starts from 399 to 1899
Chappals range starts from 169-1799
Sports shoes range start from 699-1799
Closed dress
Style no.
851-6094
Style no.
854-6003
Bata India Pvt. Ltd.
INR 699.00
INR 1699.00
Page 98
Style no.
854-4099
Style no.
854-6074
INR 2299.00
INR 2699.00
(http://www.bata.in/catlist.php?catItem=11)
Closed casual
Style no.
829-6095
Style no.
891-1240
Bata India Pvt. Ltd.
INR 399.00
INR 1899.00
Page 99
Style no.
834-4006
INR 1999.00
.
(http://www.bata.in/catlist.php?catItem=21)
Sandals
Style no.
861-4053
INR 399.00
Style no.
861-6226
INR 699.00
Style no.
801-4167
Bata India Pvt. Ltd.
INR 1499.00
Page 100
Style no.
864-6439
INR 1899.00
(http://www.bata.in/catlist.php?catItem=31)
Chappals
Bata India Pvt. Ltd.
Style no.
872-6007
INR 169.00
Style no.
871-4095
INR 249.00
Style no.
874-4036
INR 818.00
Page 101
Style no.
874-6930
INR 1799.00
(http://www.bata.in/catlist.php?catItem=41)
Sports wear
Style no.
861-9224
Style no.
839-8134
Style no.
808-3456
Style no.
808-5499
INR 699.00
INR 749.00
INR 1099.00
INR 1799.00
(http://www.bata.in/catlist.php?catItem=5)
Bata India Pvt. Ltd.
Page 102
Women’s wear:



Chappals
Closed
Sandals
Chappals
Style no.
571-6121
Style no.
561-5995
INR 499.00
Style no.
673-4061
INR 1199.00
Style no.
674-6051
Bata India Pvt. Ltd.
INR 139.00
INR 1249.00
Page 103
Closed
Style no.
552-7007
INR 299.00
\
Style no.
581-1840
INR 599.00
Style no.
581-2796
INR 1199.00
Style no.
581-2121
INR 1299.00
( http://www.bata.in/catlist.php?catItem=22)
Bata India Pvt. Ltd.
Page 104
Sandals
Style no.
662-1050
Bata India Pvt. Ltd.
INR 299.00
Style no.
661-6088
INR 499.00
Style no.
581-2403
INR 999.00
Page 105
BALANCE SHEET OF BATA
Particulars
Dec-2008
Dec-2007
Dec-2006
Dec-2005
Dec-2004
64.26
51.42
Sources of funds:
Share capital+
64.26
64.26
64.26
Reserves &
Surplus+
226.89
187.12
147.73
197.21
132.74
Total shareholder
Funds
291.15
251.38
211.99
262.47
184.16
Secured loans+
35.91
45.07
56.1
59.69
112.16
Unsecured loans+
8.72
6.73
4.43
21.94
12.19
Total Debt
44.63
51.8
60.53
81.63
124.35
Total liabilities
335.78
303.18
272.52
343.1
308.51
Application of funds:
Gross block+
349.33
324.88
306.85
363.43
358.1
Less: Accum.
Depreciation
232.31
220.96
227.44
231.98
220.04
Net block
117.02
103.92
79.41
131.45
138.06
Capital work
in progress
0.86
0.31
0.84
0.47
1.59
Investments+
17.25
17.25
17.24
4.98
4.85
Bata India Pvt. Ltd.
Page 106
Particulars
Dec-2008
Dec-2007
Dec-2006
Dec-2005
Dec-2004
Current Assets, loans & advances
Inventories+
292.23
303.74
276.36
278.76
262.16
Sundry Debtors+
25.89
22.86
21.61
27.94
48.04
Cash and Bank
Balance
26.75
32.72
22.34
20.36
14.65
Loans & advances+
96.75
53.23
42.33
61.24
61.85
194.36
198.4
173.55
163.87
214.2
Provisions+
54.26
33.65
14.06
36.31
34.6
Net current Assets
193
180.5
175.03
1 88.12
137.9
Miscellaneous
Expenses not w/o +
7.65
1.2
18.08
26.11
Total Assets
335.78
303.18
272.52
343.1
Contingent
Liabilites+
45.28
76.52
119.69
112.5
Less: Current liab.
& Prov.
Current Liabilities+
0
308.51
108.35
(http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=BA&SSKICode=BATA)
Bata India Pvt. Ltd.
Page 107
PROFIT & LOSS ACCOUNT OF BATA
Particulars
Dec-2008
Dec-2007
Dec-2006
Dec-2005
Dec-2004
Sales Turnover+
1012.33
890.79
794.82
734.24
724.56
Other Income+
11.2
14
27.58
18.89
4.77
Stock Adjustments+
10.68
29.27
1.56
18.78
-12.95
Total Income
1012.85
934.06
823.96
771.91
716.38
Raw Materials+
455.33
437.63
366.34
349.1
378.37
Excise Duty
22.86
23.58
24.45
27.49
30.51
Power & fuel cost
28.22
25.74
24.03
22.65
22.49
Other Manufacturi
Expenses+
29.22
29.74
34.27
34.38
15.98
Employee Cost+
173.22
181.47
183.21
178.8
183.68
Selling and
Administration
Expenses+
184.71
141.73
110.2
100.69
109.64
16.45
16.41
8.09
20.97
14.92
INCOME:
EXPENDITURE:
Miscellaneous
Expenses+
Less: Preoperative
Expenditure
capitalized
0
0
Profit before
Interest,
Depreciation & Tax
102.08
77.76
Bata India Pvt. Ltd.
0
73.37
0
37.83
0
-39.2
Page 108
Particulars
Dec-2008
Dec-2007
Dec-2006
Dec-2005
Dec-2004
Interest & Financias
charges+
11.24
10.56
10.57
12.24
11.94
Profit Before
Depreciation & tax
90.84
67.2
62.8
25.59
-51.14
Depreciation
19
16.01
13.62
12
12.33
Profit Before Tax
71.84
51.19
49.18
13.59
-63.47
Tax
11.1
3.75
9.03
1.1
-0.72
Profit After Tax
60.74
47.44
40.15
12.49
-62.75
Adjustment below
Net Profit+
0
0
0
0
0
-50.26
-62.75
0
P & L Balance
brought forward
69
40.15
Appropriations+
24.87
18.59
-50.26
0
0
P & L Bal. carried
down
104.87
69
40.15
-50.26
62.75
Equity Dividend
16.07
12.85
0
0
0
Preference Dividend
0
0
0
0
Corporate Dividend
Tax
2.73
2.18
0
0
0
Equity Dividend (%)
25
20
0
0
0
Earning Per Share
(Rs)
9.03
7.04
6.25
1.94
0
.
Bata India Pvt. Ltd.
0
(http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=PL&SSKICode=BATA)
Page 109
Quarterly Result OF Bata
Particulars
September-2009
June-2009
March-2009
Sales Turnover
260.68
309
233.6
Other Income
1.33
2.03
1.31
Total Income
262.02
311.03
234.91
Total Expenditure
236.64
276.21
212.06
Operating Profit
25.37
34.82
22.85
Interest
0.8
1.07
1.29
Gross Profit
24.57
33.75
21.56
Depreciation
6.38
6.57
5.33
Tax
5.04
8.83
5.9
Reported Profit
After Tax
13.15
18.35
10.33
Extra-Ordinary
Item
0
0
0
Adjusted Profit After 13.15
Extra- 0rdinary
Item
18.35
10.33
EPS (units curr.)
2.05
2.86
1.61
Book value
(unit curr.)
0
0
0
Dividend (%)
0
0
0
Equity
64.26
64.26
64.26
Bata India Pvt. Ltd.
Page 110
Particulars
September-2009
June-2009
March-2009
PBIDTM (%)
9.73224
11.2686
9.78168
PBDTM (%)
9.42535
10.9223
9.22945
PATM (%)
5.0445
5.93851
4.42209
(http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=QU&SSKICode=BATA)
Bata India Pvt. Ltd.
Page 111
MUTUAL FUND ACTIVITIES OF BATA
Dated
.
E Gross
Purchase
E Gross
Sale
Nov-2009
6459.19
6053.50
Oct-2009
14915.80
Sep-2009
E Net
D Gross
Purchase Purchase
D Gross
Sale
D Net
Purchase
405.60
21850.50
14008.50
7842.20
20225
-5309.10
72412.30
39127.60
33284.80
14105.50
16346.40
-2241
38589.60
30950.40
7639.60
Aug-2009
16764.70
16106.70
657.60
35460.90
27028.60
8432.30
Jul-2009
21002.60
19848
1154.50
51842.90
23677.70
28165.60
May-2009
17208.50
15606.10
1602.60
25237.20
15248.40
9988.90
Apr-2009
11144.60
11126.30
18
44342.60
18390
25952.90
Mar-2009
10580.70
9731.10
849.90
36771.30
18699.50
18072.10
Feb-2009
4684.80
6522.20
-1837.10
26113.60
9617.50
16496.30
Jan-2009
9329.50
10729.10
-1399.80
30688
12466.90
2008
165942.60
157947.80
7994
375593.50
250582.70
125011.70
2007
2295188.8
2439399.2
144207.4
2535182.1
1846545.4
688645.25
2006
252320.9
225232.49
27088.48
200310.87
142793.51
57517.90
2005
69403.32
56430.06
10173.70
95552.40
60410.06
35161.34
2004
42043.39
43309.58
-1366.14
54889.76
43321.63
1155.01
2003
28096.03
27744.62
274.16
58352.08
38382.54
19959.94
2002
15254.33
18248.17
-2711.52
44879.39
31341.79
13752.38
2001
12792.96
17931.20
-5144.50
28851.62
19647.57
9207.40
18221
(http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=MFAct)
Bata India Pvt. Ltd.
Page 112
F I Activities OF BATA
Dates
.
purchase
(Rs Crore)
Sale
(Rs Crore)
Investment
(Rs Crore)
Sep-2009
65197
46766.40
18430.50
Aug-2009
49306
45191.10
4115.10
Jul-2009
67176.60
56338.90
10837.40
Jun-2009
67277.20
63447
3830
May-2009
74776.40
54659.10
20117.20
Apr-2009
39653.30
33145.10
6508.20
Mar-2009
32377.40
31847.30
530.30
Feb-2009
21341.10
23777.90
-2436.60
Nov-2009
21966.90
19088.40
2878.40
Oct-2009
65441.30
57873.90
7568.10
Jan-2009
27874
32119.10
-4245.30
2008
717377.90
769977.40
-52599.60
2007
1309179.60
1204358.13
99838.70
2006
684534.80
666426.80
18802.50
2005
243570.20
201527.20
42607.63
2004
185664.20
145666.70
47980.80
2003
93988.80
63989.80
30590.40
2002
46479.10
42849.80
3629.60
(http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=FIAct)
Bata India Pvt. Ltd.
Page 113
Profit and Loss Account of lakhani
Name
March(2008)
2007
2006
2005
2004
Sales Turnover
152.07
44.24
99.23
162.76
119.97
Other Income
0.14
0.25
0.71
1.23
0.32
Stock Adjustment
5.35
9.24
1.2
-2.08
-3.34
Total Income
157.56
53.73
101.14
161.91
116.95
Raw Material+
93.51
30.09
48.16
81.65
62.6
Excise Duty
5.2
3.37
11.25
16.14
10.35
Power & Fuel cost
9.03
3.41
6.5
9.23
6.38
Other Manuf.
Expenses+
9.92
3.74
9.27
14.3
10.05
Employee Cost+
17.73
6.6
10.04
15.42
11.03
Sellind & Administ
Expenses
8.74
3.64
5.9
10.72
7.06
Miscellan. Expense
0.19
0.02
0.05
0.12
0.91
Less: Preoperative
Expenditure
0
0
0
0
0
Profit before Interest 13.23
,Tax and Pepreciation
2.86
9.97
14.33
8.57
Interest & Financial
Charges+
0.64
2.2
3.9
0.79
2.22
7.77
10.43
7.7
Income:
Expenditure:
Profit before
Depreciation Tax
Bata India Pvt. Ltd.
4.81
8.42
Page 114
Name
March(2008)
2007
2006
2005
2004
Pepreciation
3.83
1.81
4.81
5.3
3.77
Profit
before Tax
4.59
0.41
2.96
5.13
4.01
Tax
3.4
-4.98
1.16
2.03
1.57
Profit After Tax
1.19
5.39
1.8
3.1
2.44
Adjustment below
Net Profit+
0
0
0
0
0
P&L Bal. Brought
forward
9.25
3.86
2.11
1.56
1.55
Appropriations
0
0
0.65
2.55
2.43
P&L Bal. Carried
down
10.44
9.25
3.86
2.11
1.56
Equity Dividend
0
0
0
2.02
2.02
Preference Divd.
0
0
0
0
0
Corporate Divd.
Tax
0
0
0
0.28
0.26
Equity Divid (%)
0
0
0
12
13
Earning per share
0.88
4.01
1.78
1.68
1.62
Book Value
46.42
45.59
41.58
40.25
39.91
Extraordinary
items+
0
0
0
0
0
Debt Equity ratio
1.05
0.51
0.53
0.49
0.49
Long term DebtEquity ratio
0.65
0.09
0.02
0.06
0.09
Current Ratio
1.48
1.24
1.15
1.21
1.31
Key Ratio:
Bata India Pvt. Ltd.
Page 115
Name
March(2008)
2007
2006
2005
2004
Fixed Assets
2.47
0.74
1.62
1.74
1.75
Inventory
2.53
0.85
2.47
2.61
2.34
Debtors
4.21
2.2
7.78
9.03
10.28
1.64
2.35
2.32
6.08
Turnover Ratio:
Intrest cover
rate
1.95
PBIDTM(%)
8.7
6.46
10.05
8.8
7.14
PBITM(%)
6.18
2.37
5.2
5.55
4
PBDTM(%)
5.54
5.02
7.83
6.41
6.48
CPM(%)
3.3
16.27
6.66
5.16
5.18
APATM(%)
0.78
12.18
1.81
1.9
2.03
ROCF(%)
7.41
1.19
6.18
8.99
6.04
RONW(%)
1.92
9.19
4.31
4.6
4.54
(http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=PL&SSKICode=LAKHANI)
Bata India Pvt. Ltd.
Page 116
Balance sheet of Lakhani
particulars
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
Contingent Liabilities
Bata India Pvt. Ltd.
Mar '03
Mar '04
Mar '07
13.74
13.74
0.00
0.00
40.10
0.00
53.84
28.95
0.00
28.95
82.79
65.89
25.31
40.58
0.00
0.04
54.70
10.59
0.63
65.92
4.33
0.00
70.25
0.00
26.64
2.11
28.75
41.50
0.67
82.79
1.40
13.45
13.45
0.00
0.00
40.22
0.00
53.67
23.61
0.00
23.61
77.28
71.09
28.54
42.55
0.00
0.04
47.72
12.75
1.90
62.37
5.93
0.00
68.30
0.00
30.56
3.38
33.94
34.36
0.34
77.29
2.40
13.45
13.45
0.00
0.00
47.87
0.00
61.32
29.16
1.96
31.12
92.44
34.86
11.54
23.32
27.97
0.40
48.69
22.26
0.70
71.65
2.01
0.00
73.66
0.00
32.71
0.17
32.88
40.78
0.00
92.47
0.00
Mar '08
13.45
13.45
0.00
0.00
48.99
0.00
62.44
98.52
0.46
98.98
161.42
88.09
15.36
72.73
0.00
14.80
71.51
49.95
1.29
122.75
4.16
0.00
126.91
0.00
52.26
0.75
53.01
73.90
0.00
161.43
0.00
Page 117
Bata India Pvt. Ltd.
Page 118
Profit and Loss Account Of Liberty
Name
March(2008)
2007
2006
2005
2004
Sales Turnover
247.53
257.89
237.54
221.12
194.84
Other Income
1.4
5.51
1.74
1.12
1.25
Stock Adjustment
1.4
5.51
1.74
1.12
1.25
Total Income
-11.79
6.91
20.13
6.5
-0.13
Raw Material+
237.14
270.39
259.41
228.74
195.96
Excise Duty
116.43
131.96
121.22
96.67
81.79
Power & Fuel cost
6.16
9.6
15.65
16.39
17.31
Other Manuf.
Expenses+
4.39
4.61
4.65
5
4.09
Employee Cost+
20.55
22.28
20.92
19.92
16.41
Sellind & Administ
Expenses
51.4
56.8
52.2
48.8
45.32
Miscellan. Expense
5.19
1.06
1.92
1.15
1.06
Less: Preoperative
Expenditure
0
0
0
0
0
Profit before Interest 26.43
,Depreciation & Tax
36.33
33.03
32.6
24.24
Interest & Financial
Charges+
13.35
8.82
4.74
6.99
Income:
Expenditure:
Bata India Pvt. Ltd.
12.56
Page 119
Name
March(2008)
2007
2006
2005
2004
Profit before
,Tax & Depreciation
13.89
22.98
24.21
27.86
17.25
Depreciation
6.59
6.38
4.63
4
3.71
Profit
before Tax
7.28
16.6
19.58
23.86
13.54
Tax
-0.24
0.64
2.4
4.94
3.75
Profit After Tax
7.52
15.96
17.18
18.92
19.79
Adjustment below
NetProfit+
0
0
0
P&L Bal. Brought
Forward
32.86
22.9
11.72
Appropriations
6
6
P&L Bal. down
34.38
Equity Dividend
0
Preference Divd.
0
-0.1
1.69
1.47
8.89
9.47
22.9
11.72
1.64
0
0
2.53
3.04
0
0
0
0
Corporate Divd.
Tax
0
0
0
0.36
Equity Divid (%)
0
0
0
50
60
Earning per share
4.41
9.37
10.08
10.89
18.46
Book Value
71.79
67.38
58.03
47.93
122.66
Extraordinary
items+
-0.16
2.61
0.12
-0.05
-0.01
Bata India Pvt. Ltd.
32.86
6
0
0.43
Page 120
Name
March(2008)
2007
2006
2005
2004
Debt Equity ratio
0.09
1.16
1.11
0.88
1.07
Long term DebtEquity rate
0.12
0.18
0.13
0.1
0.16
Current Ratio
1.18
1.13
1.17
1.31
1.3
Fixed Assets
1.92
2.18
2.5
3.02
3.06
Inventory
3.45
3.39
3.66
4.67
4.56
Debtors
3.47
3.57
3.94
4.67
4.56
Intrest cover
rate
1.58
2.02
3.22
6.03
2.94
PBIDTM(%)
10.68
12.95
13.91
14.74
12.44
PBITM(%)
8.02
10.47
11.96
12.13
10.54
PBDTM(%)
5.6
7.77
10.19
12.6
8.85
CPM(%)
5.7
7.65
9.18
10.37
6.93
APATM(%)
3.04
5.18
7.23
8.56
5.02
ROCF(%)
8.63
11.68
14.93
21.13
16.76
RONW(%)
6.34
12.5
19.03
26.3
10.57
Key Ratio:
Turnover Ratio:
(http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=PL&SSKICode=LIBERTYS)
Bata India Pvt. Ltd.
Page 121
37.60
39.90
Balance sheet
of Liberty
Particular
45.58
Mar'05
Mar '06
Mar '07
Mar '08
5.07
5.07
0.00
0.00
57.13
0.00
62.20
22.11
31.45
53.56
115.76
17.04
17.04
0.00
0.00
64.63
0.00
81.67
48.81
21.45
70.26
151.93
17.04
17.04
0.00
0.00
81.82
0.00
98.86
104.03
22.02
126.05
224.91
17.04
17.04
0.00
0.00
97.78
0.00
114.82
103.32
15.06
118.38
233.20
Application Of Funds
66.50
Gross Block
27.39
Less: Accum. Depreciation
39.11
Net Block
0.24
Capital Work in Progress
4.02
Investments
41.01
Inventories
47.26
Sundry Debtors
1.78
Cash and Bank Balance
90.05
Total Current Assets
23.20
Loans and Advances
0.67
Fixed Deposits
Total CA, Loans & Advances 113.92
0.00
Deffered Credit
33.27
Current Liabilities
8.27
Provisions
41.54
Total CL & Provisions
72.38
Net Current Assets
0.00
Miscellaneous Expenses
115.75
Total Assets
17.22
Contingent Liabilities
122.67
Book Value (Rs)
79.70
31.22
48.48
0.92
6.43
53.65
48.34
2.14
104.13
30.01
0.81
134.95
0.00
31.48
7.37
38.85
96.10
0.00
151.93
60.14
47.93
110.55
35.55
75.00
8.14
17.10
76.17
72.09
1.55
149.81
29.72
3.07
182.60
0.00
52.74
5.20
57.94
124.66
0.00
224.90
10.55
58.01
126.06
40.61
85.45
1.55
20.34
76.19
72.41
1.20
149.80
27.50
3.29
180.59
0.00
52.47
2.28
54.75
125.84
0.00
233.18
9.71
67.38
Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Bata India Pvt. Ltd.
Page 122
REFERENCES
Content
Overview of
Footwear Industry
Company profile
History
Reference List
http://indmin.nic.in
http://www.indianshoebazaar.com/ind_india.asp

Leather supply
http://leather.indiabizclub.com/info/indian_leather_industry_overview

Export and Import Over View
http://footwearsinfoline.tripod.com/export_import.htm

Role Of Government In Shoe Industry
http://www.thaindian.com/newsportal/politics/big-boost-for-agras-shoeindustry- if-state-government-helps_100116975.html#ixzz0XAkn7VPx

Bata India
http://www.bataindia.com

Lakhani
http://www.lakhaniarmaan.com/

Liberty
www.libertyshoes.com/

Bata India
http://www.sharekhan.com/Marketcorner/Detailedreport.aspx?type=comp_His
&SSKIcode=BATA
http://www.bataindia.com/page.php?kon=5_2_1
http://www.bataindia.com/page.php?kon=4_0

Lakhani
http://www.sharekhan.com/Marketcorener/DetailedReport.aspx?Type=compHIS&SSKIcode=LAKHANI

Liberty
http://www.sharekhan.com/Marketcorener/DetailedReport.aspx?Type=compHIS&SSKIcode= LIBERTY
Bata India Pvt. Ltd.
Page 123
Products
Bata
Human Resource
Policy
Balance Sheet:


Women’s wear
http://www.bata.in/catlist.php?catItem=22
http://www.bata.in/catlist.php?catItem=12

Men’s wear
http://www.bata.in/catlist.php?catItem=41
http://www.bata.in/catlist.php?catItem=31
http://www.bata.in/catlist.php?catItem=21
http://www.bata.in/catlist.php?catItem=11

Kids wear
http://www.bata.in/catlist.php?catItem=23
http://www.bata.in/catlist.php?catItem=33
http://www.bata.in/catlist.php?catItem=43

Bata
Mr. S C Kapoor

Lakhani
http://www.indiainfoline.com/market/company

Liberty
http://www.indiainfoline.com/market/company
Bata
http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=BA&SSKICode=BATA

Liberty
http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=PL&SSKICode=LIBERTYS
Profit and Loss
Account :

Bata
http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=PL&SSKICode=BATA

Lakhani
http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=PL&SSKICode=LAKHANI
Bata India Pvt. Ltd.
Page 124
Bata India Pvt. Ltd.
Page 125