PROJECT REPORT ON
“BATA INDIA LTD”
FOUNDATION B&T
2009-10
SUBMITTED TO:
Mr. Piyush Pandey
Ms. Preeti Dewan
Ms. Anjuna Dhir
Mr. Rahul Jain
Mr. S.C Kapoor
Faculty, Pearl Academy of Fashion
SUBMITTED BY:
ANKIT BEHL
SOURABH KUMAR
ADITI MALHOTRA
Bata India Pvt. Ltd
1
ACKNOWLEDGEMENT
We owe a great thanks to the people who have helped and supported us to make this
Project Report on Bata India Limited.
Our Deepest thanks to Mr. Rahul Jain who has mentored us and corrected our various
documents with attention and care. He has taken pain to go through the project and make
necessary changes when required.
We would also thank our institution and faculty members without whom the project would
have been a distant reality. Our special thanks to Mrs. Preeti Dewan Mehta for giving the
report format, Mr. Piyush Pandey for enhancing computing skill, Mr. S. C Kapoor for
motivating and teaching the human resource aspect of a business and Mrs. Anjuna Dhir for
giving us a complete knowledge of marketing perspective.
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 who has taught us and made us
competent of understanding the intricacies. Without him help this report could not have
been possible.
Apart from our college faculty we would also like to thank staff of Bata India pvt ltd. of
Faridabad Plant
for answering our questions and providing us with the necessary
information about the company.
Ankit Behl
Sourabh Kumar
Aditi Malhotra
Bata India Pvt. Ltd
2
Aim Of Project
This report aims to enable an understanding of a wide range of business functions and
contextual domains such as Behavior, finance, legal and marketing. By doing this report we
able to apply both quantitative aspects of business, such as economics and accounting, and
qualitative aspects such as OB, HRM and Industrial Law.
Bata India Pvt. Ltd
3
TABLE OF CONTENTS
S. No
1.
1.1
1.2
1.3
1.4
2.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
3.
3.1
3.2
3.3
3.4
3.5
3.5.1
3.5.2
3.5.3
3.6
3.6.1
3.6.2
3.6.3
3.7
3.9
4.
4.1
4.2
5.
6.
7.
8.
9.
10.
11.
12.
12.1
12.2
Particulars
Overview Of Indian Footwear Industry
Production Capacity of shoe Industry
Export & Import Overview
Role of Government in shoe Industry Of India
Raw Material Used For shoes
Organization Profile Of Bata
Share Holding Pattern
Board of Director
Management Organization Structure
History Of Company
Company Values
Company Commitments
Bata Position Today
Brands of Company
Internal & External Environment
H R Policy
Employee Categorization
Corporate social responsibility
Manpower
Marketing Environment
Macro Environment
Micro Environment
Internal Environment (The Company)
Product Mix
Price & Product
Place
Promotion
STP of Bata
Expansion & Future Plan
Financial Analysis
Analysis of Bata Report
Competitor Analysis
Factor That Will Affect Organization Demand
Factor That Will Affect Organization Supply
Implication Of Fiscal Policy
Implication Of Momentary Policy
SWOT Analysis Of Bata
Recommendation
Conclusion
Competitor Profile
Lakhani
Liberty
Bata India Pvt. Ltd
Page No.
6
8
10
14
15
16
17
18
22
23
25
26
27
28
34
34
39
39
40
41
42
49
56
58
63
74
78
89
97
98
98
109
123
128
134
139
143
146
147
148
148
151
4
13.
14.
15.
16.
17.
17.1
17.2
17.3
17.4
17.5
17.6
17.7
17.8
18.
19.
Minimum Wages Chart
Work Place Safety Checklist
Social Compliances
Recent News Related To Footwear Industry
Annexure
Product Profile Of Bata
Balance Sheet Of Bata
Profit & Loss Of Bata
Quarterly Result Of Bata
Mutual Fund Activities Of Bata
F I Activities Of Bata
Balance Sheet Of Lakhani
Balance Sheet Of Liberty
Reference
Report Check List
Bata India Pvt. Ltd
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156
163
169
173
173
181
183
185
187
188
189
190
191
193
5
1. 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 Chapels 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 Chapels and sandals, use of nonleather 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
Large & Medium
SSI
Household
Scale
Tamil Nadu
64
31
7
Delhi & up North
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
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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.
Bata India Pvt. Ltd
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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)
1.1 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,
Bata India Pvt. Ltd
8
Kanpur in Uttar Pradesh, Jalandhar in Punjab, Bangalore in Karnataka, Delhi and Hyderabad
in Andhra Pradesh.
Current market scenario
The Indian footwear market is estimated to be over 10,000 Crores in value terms and is
growing at the rate of 810% over the years. In this Men’s footwear account to be 50%,
whereas, women’s share constitutes to be 40% and the remainder are covered by kid’s
segment. In this total market demand, about 42% are brand-driven. And Bata is covering
about 12% of the organized footwear segment.
Raw material supplies
There exists a large raw material base. This is on account of population of 194 million cattle,
70 million buffaloes, and 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 sheep’s, 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
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1.2 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.
Bata India Pvt. Ltd
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MNC Brands sourced : Acme, Clarks, ColeHann, Deichmann, Ecco, Elefanten,
from India
Florsheim, Gabor, Hasley, Hush Puppies, Double H, Justin,
Marks & Spencer, Nautica, Nike, Nunn.
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, and Action
Note:
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 who 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.
Bata India Pvt. Ltd
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Footwear export has increased from US$40.15 million in 1977-78 to US$ 1475.83 million in
2007-08
Chart showing Global Import of footwear Vs. Indian Export of Footwear
Bata India Pvt. Ltd
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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
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 comes from Bata. i.e. about 8 crore pairs.
Bata India Pvt. Ltd
13
1.3 Role Of Government In Shoe Industry Of 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
14
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
Programme, 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)
1.4 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)
Bata India Pvt. Ltd
15
2. Organization 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 253.90(As on 22/1/2010)
BSE Price Rs254 (As on 22/1/2010)
Bata India Pvt. Ltd
16
2.1 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
17
2.2 Board of Director: As per company records, the board of directors of the company
presently comprises the following.
Name
Designation
Date Of Appointment
Mr. P M Sinha
Chairman
April 16, 2004
Mr. Marcelo Bravo
Managing Director
Feb 11, 2005
Mr. Pradip Kumar
Deputy Managing
August 25, 2001
Director
Mr. Jaswant Singh
Director Marketing
August 1, 2002
Mr. A. K. Thakur
Nominee Director UTI
December 11,, 1996
Mr. V. Narayanan
Director
January 2, 1995
Mr. Constantin
Director
March 10, 2004
Mr. Shaibal Sinha
Director Finance
Feb 2, 2005
Mr. Amit Mitra
Director
Feb 2, 2005
Mr. N. Sankar
Director
Feb 2, 2005
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.
Bata India Pvt. Ltd
18
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 Organization)
as Director .Enterprise Controlling. for Integrated Business Systems and was closely
associated 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
Bata India Pvt. Ltd
19
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 Ponds (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 Chese brough Ponds Inc in 1968 as its Marketing Director and became
Chairman and CEO of Ponds (India) Ltd. in1978. After his retirement from Ponds (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 1stclass 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 finance entities, business planning and
financial management practices from a global perspective.
Bata India Pvt. Ltd
20
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
Sears-Roebuck 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 Chloro-chemicals, 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 wellestablished 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
Bata India Pvt. Ltd
21
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
22
2.3 Management Organization Structure
Managing Director
M Velligran
Special Projects
Dy. Managing Director
H Vengali
P K Nag
Commercial
Internal Audit
Harpreet Singh
Finance
Human Resources
Special Projects
Shaibal Sinha
Sujit Sen
P P Dasgupta
Corporate/Admin./
Legal/Tax
M J Z Mowla
Personnel & H.R.
S Ganguly
Batanagar
P Gupta
Production
Merch.Coord
Special Projects
S Chakravarty
S D Singh
Production
AHM
Ehsanuzzaman
Marketing &
Commercial
Family & Bazaar
Stores
Flagship &
City Stores
J Singh
R Hotte
E Tonolli
Wholesale
V Anand
Exports
S Dixit
Bataganj
Finance
Mokamehghat
Hemant Sultania
S R Raha
Company
Secretary
Faridabad
S D Singh
Retail Family (East)
& Bazaar
Sandak
Retail Family
(West)
A B Anand
Insurance
B S Das
Retail Flagship(West)
Retail Family
(North)
Retail Flagship(West)
S K Dwivedi
G P Sahu
Retail Family
(South)
Retail Flagship (East)
A Nandy
R Sengupta
C Roy
Product
Development
F Ferraris
Merchandising
Opender Singh
GGGFFFFF
Information
SystemsBS
Southcan
K Raman
S Maitra
g
C C Ponnappa
S K Dwivedi
Finance, H.O.
Kisor Sen
T R Salaria
Retail Flagship &
City
S Nagarajan
Vinesh Singh
Retail Analysis
S Chakraborty
Advertising &
Comm.
Costing &
Efficiency
Tumpa Roy
S Ranjan
Bata India Pvt. Ltd
23
2.4 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.
(http://www.sharekhan.com/marketcorner/detailedreport.aspx?type=COMP-His&SSKIcode=Bata)
Bata India Pvt. Ltd
24
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 canvasshoes were manufactured in India.
October 28,
The foundation stone was laid on land purchased from the Port
1934
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
1936
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
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.
Bata India Pvt. Ltd
During the World War II the factory’s production was geared to meet
25
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
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
receive the ISO 9001 certification.
(http://www.sebi.gov.in/dp/bata.pdf)
2.5 Our Values

Constant innovation in design and product development

Superior customer service

Excellence in operational and commercial execution

Entrepreneurial spirit and passion to win
Bata India Pvt. Ltd
26

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)
2.6 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.

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.
Bata India Pvt. Ltd
27

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)
2.7 Bata India - Today

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
28
2.8 Brands Of Company
Bata
global
Subsidiary
Bata India Pvt. Ltd
Companies Of Bata India
29
Hush Puppies
In 1958, during the exciting atmosphere of change the Wolwerine Company created the
world's first casual shoe and provided a new alternative in footwear. Hush Puppies emerged
as a soft, breathable and very comfortable shoe.
A truly modern creation that was immediately embraced for its authentic style and casual
flair. This unique invention would not only change the kind of shoes we wear, it would also
herald the beginning of today's relaxed style.
Year by year, country by country, decade by decade the world was getting casual with Hush
Puppies. Hush Puppies is still growing championing the same easy going style Hush Puppy is
known for Relaxed and classic in design Hush Puppies is always defined what it means to be
modern and casual.
Today Hush Puppies continues to innovate bringing technical excellence in genuine style to
over 120 countries by application of various types of technologies like:
Hush Puppies Bounce technology for shock absorption and energy return in every step.
Wave Reflex outsoles provide complete freedom of movement for your feet. Natural latex
rubber and unique reverse action design waves unite to provide ultra flexibility.
100% relax, Hush Puppies collection of innovative, auth
entic casual footwear, mixed textures of soft casual leathers and rich Hush Puppies worryfree suede.
The desire for a fashionable and casual life, a young idea in 1958 is now the aspiration of
generations of people worldwide.
Bata India Pvt. Ltd
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Scholl
The name Scholl today is synonymous with feet and foot
care in over 70 countries throughout the world. This heartfelt fascination with feet, this dedication and drive, formed
the foundation of the company and the Dr Scholl spirit and
legacy are as much a part of the brand today - 100 years
on.
Dr Scholl's from Bata provides you with maximum comfort whole daylong.
The unique Anatomic Insole will give your feet that extra cushioning needed to keep all
stresses at bay from your feet while providing support from all sides.
The ribbed surface of the insole gently massages your feet while walking. This boosts the
circulation and keeps you active all the day. The soft sole absorbs all the shocks while
walking.
Bata India Pvt. Ltd
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North Star
North Star is synonymous with street cred. Stylish,
trendy comfortable and durable, the range is ideally
suited to the urban environment.
The youth market is attracted to the brands retro
styles, including designs from the late 80s as well as
contemporary interpretations, making it a highly
sought after brand name. It's a casual yet
fashionable street-style shoes that caters to the
young at heart.
North Star Shoes have graphics and prints and are shoes of style and edge. They are in all
types of materials, with the looks of casual cool.
Power
Power is a Bata International Brand, which continues to spark an
emotional connection with the masses by providing athletic
footwear at very affordable prices. First launched in 1972, it has
created a niche for itself in the sports segment.
POWER is inspired by the same passion to perform that is inherent in the athletes who use
our products. POWER as a brand stands for Durability, Trends, Responsiveness, Performance
and value.
Power offers a Sporty range of basic as well as performance -oriented shoes at unbeatable
prices. It's the Right Match for your active life style – be it Jogging, Running, Adventure,
Cricket, Badminton, Tennis and lifestyle. Power products are equipped with unique features
and benefits that differentiate Power footwear from competitors, provide professional
services to our customers and ensure the Right products are delivered in the Right time in
the Right price.
Bata India Pvt. Ltd
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Power Slogan: “A new terminology replacing “Value”, The Power customer is a Smart
consumer, not just a value consumer.”
Marie Claire
Marie Claire, a fashion lifestyle brand of shoes with a
touch of
elegance that
caters to the young
cosmopolitan women. Bata Brands is the trademark
owner of Marie Claire for shoes worldwide (except in
Japan and Korea).
Marie Claire stands for Contemporary and modern styling, adaptive to an active lifestyle yet
elegant and feminine. Subtle fashion trend details and quality products with a clean finish, it
is a brand that brings out every woman's confidence & individual style. Marie Claire
Emphasizes on its style, quality and value.
Bubblegummers
Bubblegummers is the leading children's footwear brand in India
and has an extensive presence in Latin America, Asia and Europe.
Bubblegummers offers good quality, comfortable, funny and
colorful shoes for kids. Developed to the strictest standards of
quality, all shoes are produced with state-of-art technology to
ensure healthy foot growth, and parents can be assured that their
children will enjoy these shoes in total comfort and safety.
It is our constant Endeavour to give you the best in styles, colors and comfort, and our
priority to deliver superior standards of product and service to all our customers. We
believe that our greatest strength and asset is the trust of our customers, which enables us
to sell close to 1.5 million pairs of Bubblegummers per year.
Bata India Pvt. Ltd
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3.Internal Environment & External Environment
The Internal factors include strengths and a weakness 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 their weaknesses from customer point
of view.
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
3.1 HUMAN RESOURCE POLICY: when they set-up their factory in India, their approach
was to hire local labor and trained them making shoes. As the 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 developed their vendors in
places like Agra, Noida, Gurgaon etc gave them their requirements to manufacturer per
their quality standard. The policy in this regard was to frame their vendor. The company has
number 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.
Bata India Pvt. Ltd
34
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 due importance to its employs. It provides many facilities to
its employees such as the crèche facility, medical facilities, transportation etc. the industry
also celebrates birthdays and long service etc. All these motivates the employees to achieve
the goals and objectives of the organization.
Common Components Of Human Recourse Managements:

Hiring component and qualified employees

Assigning and classifying employees effectively

Motivating employees to perform optimally

Stimulating employees professional growth and development

Evaluating and compensating employees fairly

Rewarding employees for their efforts

Providing in service education opportunities
Bata India Pvt. Ltd
35
3.1.1 Staffing Process
Recruitment
Recruitment
Selecting
fromamong
among the
Applicants
Selecting
from
Applicants
Placement
and Orientation
Placement
and Orientation
Training
and Development
Training and
Development
Performance
Appraisal
Performance
Appraisal
Promotion
and Career
Planning
Promotion
and Career
Planning
Compensation
Compensation
3.1.1(a) Recruitment Process
Ensures that provided candidates, are most suitable for your specific requirements. Our
trained consultant’s pre-screen and pre-select applicants before submitting their details for we want to assure accurate matching between our company and any prospective
employee.
Bata India Pvt. Ltd
36

Collection of Curriculum Vitae from applicants interested in one or more of our
offers. Every Curriculum Vita is written in the Bata format, which allows for easy
comparison of each candidate's details.

Performing the first telephone interview in order to make preliminary
assessments of the overall competency of a candidate, especially in regards to
their level of English.

All documents are then collected and reference checks are performed including
employment history, criminal background and health checks.

If the panel is fully satisfied with the results and feel confident that the candidate
is suitable for your specific requirements, then the second interview is done and
later sends the application to the potential employer who then obviously makes
the final decision.

The final interview is then conducted at Krakow, head office.

Also, arranging travel for any prospective employee to ensure the final step runs
smoothly.
3.1.1(b) Selection Process
The selection process is objective and robust. Bata selects talent for the Technical
function from FDDI. Engineers from disciplines such as Mechanical, Electronics,
Production Engineering and Chemical are considered for placement. The process
starts in August each year with a campus visit and a pre-placement presentation. This
provides an opportunity for young aspirants to learn more about the Company, its
achievements, its strategies and the kind of careers they can look forward to.

A range of selection tools are used. These include assessment centres, group
tasks and in-depth personal interviews.

Candidates found suitable for employment are immediately given offers to join
Bata in July of the following year. After a comprehensive induction programme,
they are assigned to various businesses of the Company.
Bata also selects first-year students for Summer Internships
Bata India Pvt. Ltd
37
A team of Bata managers visits campuses once again between December and March for
final placement. The process consists of group discussions and personal interviews preceded
by psychometric tests and assessment centres. Employment offers are made to selected
candidates immediately. On joining Bata in July, candidates undergo an induction
programme before being assigned to one of the Company's businesses.
Employment offers are made to selected candidates immediately. On joining Bata in July,
candidates participate in an induction programme. Thereafter they are assigned to
responsibilities in Trading, Sourcing and Logistics in the Agri Business Division.
Bata believes in taking out the best out of the pool of application received during
recruitment process. It believes in infusion of new blood in their organisation.
3.1.1(c) Training and Development
Training has become most crucial aspect in Bata because of chanding standards of
technology and its services. Training courses are sometimes offered for 6 months with
internship so it invites fresher’s which are motive of Bata. Training is given by practical
demos with latest and modern machines and equipments and is conducted professionally.
3.1.1(d) Retirement Benefits

The liability for Gratuity and Pension is computed and provided as per the actuarial
valuation report. The liability so provided is represented substantially by creation of
separate funds and is considered sufficient to meet the liability as and when it
accrues for payment in future. Expenditure in respect of early voluntary retirements
is written off as a period cost.

Retirement benefits in the form of Provident Fund are charged to the Profit and Loss
Account for the year/ period when the contribution to the respective funds are due.

Leave encashment benefit is accounted for on basis of actuarial valuation.

Expenditure in respect of early voluntary retirements is written off over 5 years as a
period cost.
Bata India Pvt. Ltd
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3.2 Employee Categorization: Employees of the Company are categorized along the
following grades, in descending hierarchical 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 at its factory sites. The
number of permanent employees currently on the payroll of the Company is 9,969 as on
January 31, 2005.
3.3 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.
Bata India Pvt. Ltd
39
- 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.
- 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)
3.4 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 workforces 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.
Bata India Pvt. Ltd
40
3.5 Marketing Environment
Marketing is the process by which companies advertise products or services to potential
customers. It is an integrated process through which companies creates value for customer
and build story value from customer into return.
Importance of understanding the environment
The managers job cannot be accomplished in a vacuum within the organization. There are a
number of factors both internal as well as external which jointly affect managerial decisionmaking. It is therefore very important for the manager to understand and evaluate the
impact of the business environment due to the following reasons :
a) Businesses may be doomed to be non starters due to restrictive business environment
which may take the form of rigid government laws (no polluting industry can ever be
located in around 50 Km radius of the Taj) , state of competition (Car manufacturing
capacity presently in the country is far in excess of demand) etc.
b) The present and future viability of an enterprise is impacted by the environment For eg
no TV manufacturer can be expected to survive by making only B&W television sets when
consumer preference has clearly shifted to colour television sets.
c) The cost of capital and the cost of borrowing - two key financial drivers of any enterprise
are impacted by the external environment . For eg the ability of a business to fund its
expansion plan by raising money from the stock markets depends on the prevalent public
mood towards investment in stock markets.
d) The availability of all key inputs like skilled labour , trained managers , raw materials ,
electricity , transportation , fuel etc are a factor of the business environment.
e) Increasing public awareness of the negative aspects of certain industries like hand woven
carpets ( use of child labour ) , pesticides (damage to environment in the form of chemical
Bata India Pvt. Ltd
41
residues in groundwater), plastic bags (choking of sewer lines) have resulted in the slow
decline of some industries.
f) Finally , the environment offers the opportunities for growth and profits . For eg when the
insurance and aviation industry was thrown open to the private sector , the new entrant
could easily build on the expectations of the public.
Technological
Environment
Demographic
Environment
Intermediarie
s
Logistics
R&D
Supplier
Product
Purchasing Place
Consumer
Marketing
Satage-5
Price
Production Public
Stage-4
Production
Promotion
Engineering
Stage-3
Stage-2
Competitors
Social cultural
Environment
Political Legal
Environment
Stage-1
Figure: Marketing Environment Chart
3.5.1 Stage-1 (Macro-Environment)
3.5.1(a) Demographic Environment
Demographics tell marketers who current and potential customers are; where they are;
and how many are likely to buy what the marketer is selling. Demography is the study of
human populations in terms of size, density, location, age, sex, race, occupation, and other
statistics. Changes in the demographic environment can result in significant opportunities
and threats presenting themselves to the organization. Major trends for marketers in the
Bata India Pvt. Ltd
42
demographic environment include worldwide explosive population growth; a changing age,
ethnic and educational mix; new types of households; and geographical shifts in population.
i.
Worldwide population growth:
ii.
Population age mix:
iii.
Ethnic market
iv.
Educational groups
v.
Household patterns
vi.
Geographical shifts in population
Demographic Of India
Population:
1,166,079,217 (2009 est)
Growth rate:
1.548% (2009 est)
Birth rate:
22.22 births/1,000 population (2009 est)
Death rate:
6.4 deaths/1,000 population (2009 est)
Life expectancy:
69.89 years (2009 est)
–male:
67.46 years (2009 est)
–female:
72.61 years (2009 est)
Fertility rate:
2.72 children born/woman (NFHS-3, 2008)
Infant mortality
rate:
{{{infant_mortality}}}
Age structure:
0-14 years:
31.1% (male 190,075,426/female
172,799,553) (2009 est)
15-64 years:
63.6% (male 381,446,079/female
359,802,209) (2009 est)
65-over:
5.3% (male 29,364,920/female 32,591,030)
Bata India Pvt. Ltd
43
(2009 est)
Sex ratio:
At birth:
1.12 male(s)/female (2009)
Under 15:
1.10 male(s)/female (2009)
15-64 years:
1.06 male(s)/female (2009)
65-over:
0.90 male(s)/female (2009)
Language:
Official:
Hindi, English
India has the second largest population in the world after China. But its population growth is
far more than China and it is expected that India will have the largest population by 2020.
India’s population, right now, is around 120 million. India has around 60% people below the
age of 60 and 40% are above 60 and they are called the senior citizens in the society.
India has around 68% literate people in the country. The literacy rate is not very good as
compared to other countries but is has shown growth in the past years. The urban areas
have more educated people as compared to the people in the rural areas. The household
pattern have seen a lot of change as people now prefer to stay in nuclear families and both
husband and wife wants to work and earn for the family.
People are shifting from rural areas to urban areas for the sake of employment and better
opportunities. So, metro cities have highest number of migrants from other cities. Every city
is famous for a profession, for example. Bangalore is famous for IT professionals etc.
Demographic Of Company
For Bata, It have their stores all over India. But, basically they have more tores in the metro
cities of the country because of the more educated people and high income service group of
people living there and now Bata also planning to open their stores in tier-II and Tier-III
cities.
Bata India Pvt. Ltd
44
Educational Group: Educated Upto Higher Secondary
Population: Upper Middle Class Middle class Lowe Middle class
Age: 10-14 yr 15-18yr 19-26yr 27-35yr 36-50yr upto-50yr
Income Distribution: Upto 20,000
Geographical shifts: Northern, Central, western India
3.5.1(b) Pest Analysis
Pest analysis cover Economic Environment, Natural Environment, Sociocultural Factor and
Technological Factor.
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:
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:
Bata India Pvt. Ltd
45
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?
4. What is the government's policy on the economy?
5. Does the government have a view on culture and religion?

Economic Factors
The economic environment consists of factors that affect consumer purchasing power and
spending patterns. Economic factors include business cycles, inflation, unemployment,
interest rates, and income. Changes in major economic variables have a significant impact
on the marketplace. For example, income affects consumer spending which affects sales for
organizations. According to Engel's Laws, as income rises, the percentage of income spent
on food decreases, while the percentage spent on housing remains constant.
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.
Bata India Pvt. Ltd
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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
376
76
NSE
277.89
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.
(For forther details refer chap[ter-7 and 8)
 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 Pvt. Ltd
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Indian culture is one of the ancient and famous cultures of the world. People are still
connected to the culture in one way or the other. The companies manufacture its products
using the Indian culture.
Bata India have a lot of products which are related to the culture so that it can increase their
sales because people prefer products related to the social environment of the country. Such
as they have good quality of leather sober shoes, which attract the office going people.
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

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?
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Technology has not only changed the working style in India but it has affected the world. It
has enhanced the working style of the people. It has accelerated the pace of working of the
people. Not only has the acceleration of the pace but it also made the room for innovations
that companies can try.
R&D is one of the important component that company needs, so that, it can know what the
customer wants from the company. Most of the companies are now using technological
upgraded machineries.
Note:- Bata India has entered into an agreements with Bata Ltd of Toronto (Canada) for the
supply of technical know- how and services such as footwear technology, design and brand
development.
Recent Technological 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
49
3.5.2 Stage-2 (Micro-Environment)
3.5.2(a) Suppliers
• 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 .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)
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50
3.5.2(b) Intermediaries
Distribution Channels Of Bata: 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 centers 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. plants to the distribution centers through the services of third party
carrying and forwarding agents. The distribution centers 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
defense 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 centers .
• 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.
Bata India Pvt. Ltd
51
• Market Extension Programs:
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 Programs, through authorized Bata dealerships. Under this programs,
the Company appoints authorized 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)
3.5.2(c) 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
Bata India Pvt. Ltd
52
India
India
Positioning Mapping (As per our group perception)
PRICE
HIGH
QUALITY
LOW
HIGH
LOW
Bata India Pvt. Ltd
53
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 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.
STORES OF MAJOR RETAIL SHOES BRANDS IN INDIA
RETAILER
Bata
Liberty
Metro
Woodland
M& B Footwear
Regal Shoes
Loft
Khadim’s
Sree Leather
PRESENT IN NO CITIES
All cities
225
31
Across India
All major cities
7
2
East & South of India
West Bengal, Orissa, Bihar
3.5.2(d) Publics
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, Tamil Nadu.
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
Bata India Pvt. Ltd
54
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 authorization
/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.
Bata India Pvt. Ltd
55
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)
3.5.3 Stage-3 (The Company)
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.
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.
3.5.3(a) Purchasing:
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 key arrangements:
• 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.
Bata India Pvt. Ltd
56
• 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 .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)
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3.5.3(b) Research and Design
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)
3.5.3(c) Engineering & Technology

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)
3.5.3(d) Logistics
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.
3.6 Stage-4 (Product Mix)
The marketing mix is probably the most famous marketing term. Its elements are the basic,
tactical components of a marketing plan. Also known as the Four P's, the marketing
Bata India Pvt. Ltd
58
mix elements are price, place, product, and promotion. Read on for more details on
the marketing mix.
When marketing their products firms need to create a successful mix of:

The right product

Sold at the right price

In the right place

Using the most suitable promotion.
To create the right marketing mix, businesses have to meet the following conditions:

The product has to have the right features - for example, it must look good and work
well.

The price must be right. Consumer will need to buy in large numbers to produce a
healthy profit.

The goods must be in the right place at the right time. Making sure that the goods
arrive when and where they are wanted is an important operation.

The target group needs to be made aware of the existence and availability of the
product through promotion. Successful promotion helps a firm to spread costs over
a larger output.
For example, Bata is constantly developing new shoes- the product element is the new
product itself, getting the price right involves examining customer perceptions and rival
products as well as costs of manufacture, promotion involves engaging in a range of
promotional activities e.g. competitions, product tasting etc, and place involves using the
best possible channels of distribution such as leading supermarket chains. The product is the
central point on which marketing energy must focus. Finding out how to make the product,
setting up the production line, providing the finance and manufacturing the product are not
Bata India Pvt. Ltd
59
the responsibility of the marketing function. However, it is concerned with what the product
means to the customer. Marketing therefore plays a key role in determining such aspects as:

The appearance of the product - in line with the requirements of the market

The function of the product - products must address the needs of customers as
identified through market research.
The product range and how it is used is a function of the marketing mix. The range may be
broadened or a brand may be extended for tactical reasons, such as matching competition
or catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it
more acceptable for a new group of consumers as part of a long-term plan.
The price: Of all the aspects of the marketing mix, price is the one, which creates sales
revenue - all the others are costs. The price of an item is clearly an important determinant of
the value of sales made. In theory, price is really determined by the discovery of what
customers perceive is the value of the item on sale. Researching consumers' opinions about
pricing is important as it indicates how they value what they are looking for as well as what
they want to pay. An organization’s pricing policy will vary according to time and
circumstances. Crudely speaking, the value of water in the Lake District will be considerably
different from the value of water in the desert.
The place: Although figures vary widely from product to product, roughly a fifth of the cost
of a product goes on getting it to the customer. 'Place' is concerned with various methods of
transporting and storing goods, and then making them available for the customer. Getting
the right product to the right place at the right time involves the distribution system. The
choice of distribution method will depend on a variety of circumstances. It will be more
convenient for some manufacturers to sell to wholesalers who then sell to retailers, while
others will prefer to sell directly to retailers or customers.
The promotion: Promotion is the business of communicating with customers. It will provide
information that will assist them in making a decision to purchase a product or service. The
razzmatazz, pace and creativity of some promotional activities are almost alien to normal
business activities.
Bata India Pvt. Ltd
60
The cost associated with promotion or advertising goods and services often represents a
sizeable proportion of the overall cost of producing an item. However, successful promotion
increases sales so that advertising and other costs are spread When marketing their
products firms need to create a successful mix of:

The right product

Sold at the right price

In the right place

Using the most suitable promotion.
To create the right marketing mix, businesses have to meet the following conditions:

The product has to have the right features - for example, it must look good and work
well.

The price must be right. Consumer will need to buy in large numbers to produce a
healthy profit.

The goods must be in the right place at the right time. Making sure that the goods
arrive when and where they are wanted is an important operation.

The target group needs to be made aware of the existence and availability of the
product through promotion. Successful promotion helps a firm to spread costs over
a larger output.
For example, a company like Bata is constantly developing new shoes- the product element
is the new product itself, getting the price right involves examining customer perceptions
and rival products as well as costs of manufacture, promotion involves engaging in a range
of promotional activities e.g. competitions, product tasting etc, and place involves using the
best possible channels of distribution such as leading supermarket chains. The product is the
central point on which marketing energy must focus. Finding out how to make the product,
setting up the production line, providing the finance and manufacturing the product are not
Bata India Pvt. Ltd
61
the responsibility of the marketing function. However, it is concerned with what the product
means to the customer. Marketing therefore plays a key role in determining such aspects as:

The appearance of the product - in line with the requirements of the market

The function of the product - products must address the needs of customers as
identified through market research.
The product range and how it is used is a function of the marketing mix. The range may be
broadened or a brand may be extended for tactical reasons, such as matching competition
or catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it
more acceptable for a new group of consumers as part of a long-term plan.
The price: Of all the aspects of the marketing mix, price is the one, which creates sales
revenue - all the others are costs. The price of an item is clearly an important determinant of
the value of sales made. In theory, price is really determined by the discovery of what
customers perceive is the value of the item on sale. Researching consumers' opinions about
pricing is important as it indicates how they value what they are looking for as well as what
they want to pay. An organization’s pricing policy will vary according to time and
circumstances. Crudely speaking, the value of water in the Lake District will be considerably
different from the value of water in the desert.
The place: Although figures vary widely from product to product, roughly a fifth of the cost
of a product goes on getting it to the customer. 'Place' is concerned with various methods of
transporting and storing goods, and then making them available for the customer. Getting
the right product to the right place at the right time involves the distribution system. The
choice of distribution method will depend on a variety of circumstances. It will be more
convenient for some manufacturers to sell to wholesalers who then sell to retailers, while
others will prefer to sell directly to retailers or customers.
The promotion: Promotion is the business of communicating with customers. It will provide
information that will assist them in making a decision to purchase a product or service. The
razzmatazz, pace and creativity of some promotional activities are almost alien to normal
business activities.
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62
The cost associated with promotion or advertising goods and services often represents a
sizeable proportion of the overall cost of producing an item. However, successful promotion
increases sales so that advertising and other costs are spread over a larger output. Though
increased promotional activity is often a sign of a response to a problem such as competitive
activity, it enables an organization to develop and build up a succession of messages and can
be extremely cost-effective. over a larger output. Though increased promotional activity is
often a sign of a response to a problem such as competitive activity, it enables an
organisation to develop and build up a succession of messages and can be extremely costeffective.
4 P’s
PRODUCT
PLACE
PRICE
PROMOTION
3.6.1 (1st & 2nd P: Product and Price)
They manufacture products for Men’s, women`s and kid`s wear.
Bata India Ltd. has a large variety of shoes for all the sections. They also make accessory for
men’s and women’s.
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63
Catalog
Space For Catalog
Bata India Pvt. Ltd
64
Bata’s product mix
Width
Bata
Kid’s
footwear
Men’s
footwear
Ladies
footwear
CASUALS
FORMALS
FORMALS
Bubble gummer
Bata
Bata
Socks
Hush Puppies
Marie Clair
Hand bag
SCHOOL
North Star
North Star
Range
Tiger
Accessories
School bag
SANDLES
Caps
CASUALS
Marie Clair
Shoe polish
Bata
Bata
Shoe Brush
Hush Puppies
North Star
Weinbrenner
Shoe Laces
SPORTS
Belt
Power
SPORTS
FOOTCARE
Power
Dr. Scholle’s
SLIPPERS
Bata
Sandak
FOOTCARE
Dr. Scholle’s
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SLIPPERS
Bata
Sandak
Product DNA
Hush Puppies:
Actual Product
(Casual shoes, Classic design, Authentic
style, Natural latex rubber)
Core Benefit
(Soft, Breathable and very
comfortable)
Augmented Product
(Casual flair, Unique, Modern, Bounce
technology for shock absorption and
energy return in every step, Wave Reflex
outsole provide complete freedom of
movement for your feet.)
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66
Dr. Scholl:
Actual Product
(Light, Soft shoes)
Core Benefit
(Comfortable)
Augmented Product
(Unique anatomic insole will give your
feet that extra cushioning needed to
keep all stresses at bay from your feet
while providing support from all
sides., Ribbed surface of the insole
gently massage your feet while
walking.)
North Star:
Actual Product
(All type of material)
Core Benefit
(Stylish, Trendy comfortable and
durable, Available in wide range)
Augmented Product
(Graphic Prints, Fashionable)
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Power:
Actual Product
(Sport shoes, Sporty range,
performance oriented shoes)
Core Benefit
(Durability, Trendy, value,
Performance, Responsiveness)
Augmented Product
(Unbeatable price, Affordable
price, Unique features)
Marie Claire:
Actual Product
(Trendy details and Quality
product)
Core Benefit
(Stand for contemporary and modern
styling, Feminine shoes and sandals)
Augmented Product
(Fashion lifestyle brand
name and its value)
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Bubblegumer:
Actual Product
(stylish kids shoes)
Core Product
(Good quality,
comfortable, safety)
Augmented Product
(Funny and colorful
0
shoes)
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:
Closed dress

Closed casual

Sandals

Chapels

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
Chapels range starts from 169-1799
Sports shoes range start from 699-1799
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69
Closed dress
. (http://www.bata.in/catlist.php?catItem=11)
Closed casual
(http://www.bata.in/catlist.php?catItem=21)
Sandals
.
(http://www.bata.in/catlist.php?catItem=31)
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Chapels
(http://www.bata.in/catlist.php?catItem=41)
2.) Women’s wear: They make products of preferably missy and have large variety of
product such as:-

Chappals

Closed

Sandals
Chappals range starts from 139 to 1249
Closed range starts from 299 to 1299
Sandals range starts from 299 to 1249
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71
Chapels
(http://www.bata.in/catlist.php?catItem=12)
Closed
( http://www.bata.in/catlist.php?catItem=22)
3.) Kid`s wear : they make products of the age group
6-17 years

Infants

Closed

Sandals
Infant range from 199
Closed range from 159 to 699
Sandals range from 199 to 599
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72
Infants
(http://www.bata.in/catlist.php?catItem=23)
Closed
(http://www.bata.in/catlist.php?catItem=33)
In 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
Pricing Strategy of Bata
1.) Psychological Pricing strategy: Bata always use this pricing strategy. In it price of a
product fix by company at 399/ 499/ 599 range. Psychologically affect the consumer mind,
that its is in the range of 300.
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73
For eg:- Bata have a shoe for sale at 499 Rs, if we see it is almost of 5oo Rs but company fix
its price at 499 Rs, so that it Psychologically affect the consumer mind that its is in the range
of 400 Rs and Consumer buy that product. By giving the 1Rs off company attract the
consumer to buy their product.
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74
3.6.2 (3rd P: Place)
Bata Stores In India
Due to clear segmentation in the footwear industry the Bata stores are of following four
types

Bazaar stores

Family stores

City stores

Flagship stores
Bazar Store: These are the stores which serves the volume market. These stores of Bata are
located all over the country. These stores are located in the local markets of each city and
town. They offer high value for money and variety. This is the most common form of Bata
stores.
Family Store: Factory stores first opened in 2003 and are the largest and the most valueoriented stores of our retail chain. They are ideally located in power centres, commercial
parks and outlet centres with easy parking facilities. The product selection offers more than
10,000 styles of ladies, men, children and sport shoes with related accessories and apparel
sold at attractive price points. It is based on a self service concept with helpful staff available
for service at anytime.
City Store: Bata operates stores in many of the big cities. Bata City Stores offer urban
customers the best in today’s fashion footwear and accessories. These stores are in prime
locations in the cities, and provide a high level of customer service, exclusive fashion shoe
lines with complementary accessories, and contemporary shopping environments to
discerning shoppers.
Flagship Stores: Bata Flagship Stores offer a wide assortment of fashion, casual and athletic
footwear for the entire family. Located primarily in urban and suburban shopping centers,
these spacious stores offer the best value by providing good quality shoes at great prices.
Bata India Pvt. Ltd.
75
Service is fast thanks to a self selection shopping environment with qualified staff to serve
and assist. One of the cornerstones of the Bata Flagship Stores is the sports area: a real
store within a store. All the key international sports brands are featured, carefully selected
for the most discerning customers.
Bata Stores Some Facts
Initially the Indian stores of the shoe brand were owned by the company. This resulted in
the shopkeepers becoming averse to the increase in the competition from the other
international brands like ADIDAS and REEBOK which were flooding the Indian markets.
These brands not only had better distribution policies, they were also advertising their
footwear more aggressively. The local shop owners did not pay any heed to this threat from
the global brands, and even if they did, they lacked the competency to compete with them.
This had resulted in growing losses for the company.
Then the company decided to start franchising their stores to the owners instead of hiring
them for selling their shoes.
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Manufacturing Plants In India
Bata have five manufacturing plants in India

Bataganj Factory (Bihar)

Batanagar Factory (West Bangal)

Pennya Factory (Karnataka)

Faridabad Factory (Haryana)

Mokameghat Factory (Bihar)
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Manufacturing 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
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
Bata India Pvt. Ltd.
78
Boxe
line working simultaneously, one for the stitching of shoes upper and other is a semiautomated 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.
Note: we went to a Bata plant in Faridabad, for understanding the manufacturing process
3.6.3 (4th P: Promotion)
Integrated Marketing Communication
.
Promotional Tool
Advertising
Print Media
Personal Selling
Electronic Media
Bata India Pvt. Ltd.
PR
Sales Promotion
Tele
Marketing
Direct Marketing
Online
Marketing
Strategy
Direct Mail
79
3.6.3(a) Advertising and Sales Promotion
Advertisement:Advertising is the means of informing as well as influencing the general
public to buy products or services through visual or oral messages. A product or service is
advertised to create awareness in the minds of potential buyers. Some of the commonly
used media for advertising are T.V., radio, websites, newspapers, magazines, bill-boards,
hoardings etc. As a result of economic liberalization and the changing social trends
advertising industry has shown rapid growth in the last decade. Advertising is one of the
aspects of mass communication. Advertising is actually brand-building through effective
communication and is essentially a service industry. It helps to create demand, promote
marketing system and boost economic growth. Thus advertising forms the basis of
marketing.
The Company has an advertising and sales promotion department to look after sales
promotions, brand management and other marketing tools engaged by the Company to aid
its product marketing efforts. This department works closely with both the Retail and well as
Non Retail segments of the marketing division of the Company.
Major methods for advertising:-
Print MediaMagazines: Magazines ads can get quite expensive. Find out if there's a magazine that
focuses on your particular product. If there is one, then the magazine can be very useful
because it already focuses on your market and potential customers.
Note:- very often company gave advertisement in fashion magazines.
Newspapers: Almost everyone reads the local, major newspapers. You can get your business
in the newspaper by placing ads, writing a letter to the editor or working with a reporter to
get a story written about your business.
Note:- Only at the sale period and some specific seasons they gave their advertisement.
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Space for Advertisement Cutting
Electronic MediaRadio announcements: A major advantage of radio ads is they are usually cheaper than
television ads, and many people still listen to the radio, or example, when in their cars. Ads
are usually sold on a package basis that considers the number of ads, the length of ads and
when they are put on the air. . A major consideration with radio ads is to get them
announced at the times that your potential customers are listening to the radio.
Note:- Company does not use this mode of advertisement.
Television ads: Many people don't even consider television ads because of the impression
that the ads are very expensive. They are more expensive than most of major forms of
advertising. However, with the increasing number of television networks and stations,
businesses might find good deals for placing commercials or other forms of advertisements.
Television ads usually are priced with similar considerations to radio ads, that is, the number
of ads, the length of ads and when they are put on the air.
Note:- Now a days company does not use this mean of advertisement.
E-mail messages: These can be wonderful means to getting the word out about the
business. In this we design a e-mail software to include a "signature line" at the end of each
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of our e-mail messages. Many e-mail software packages will automatically attach this
signature line to our e-mail, if we prefer.
Note:- Company does not use this mode of advertisement
Web Pages: You probably would not have seen this means of advertising on a list of
advertising methods if you had read a list even two years ago. Now, advertising and
promotions on the World Wide Web are almost commonplace. Businesses are developing
Web pages sometimes just to appear up-to-date.
Special events: These tend to attract attention, and can include, e.g., an open house,
granting a special award, announcing a major program or service or campaign, etc.
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Video advertisement:
Space for CD
Conclusion: Very less effort by Bata, because they have good quality at low prices and they
have value for money product. So they don’t emphasizes on promotion, it will also help to
cut their cost. Company gives advertisement in news or T.V one in a while to stable the
position in the mind of the customer. Bata do not promote the product to sell the product,
but for the remember its name in consumer mind.
3.6.3(b) Sales Promotion
A sales promotion strategy is an activity that is designed to help boost the sales of a product
or service. This can be done through an advertising campaign, public relation activities, a
free sampling campaign, a gift campaign, a trading stamps campaign, through
demonstrations and exhibitions, through prize giving competitions, through temporary price
cuts, and through door-to-door sales, telemarketing, personal sales letters, and emails. The
importance of a sales promotion strategy cannot be underestimated. This is because a sales
promotion strategy is important to a business boosting its sales. While developing a sales
promotion strategy for the product it is important to keep the following points in mindConsumer attitudes and buying patterns, Brand strategy, Competitive strategy, Advertising
strategy, and other external factors that can influence your products, availability and
pricing.
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Sales Promotion strategies
There are three types of sales promotion strategies:1:-A push strategy
2:-A pull strategy or
3:-A combination of the two
A 'push' sales promotion strategy involves 'pushing' distributors and retailers to sell your
products and services to the consumer by offering various kinds of promotions and personal
selling efforts. The basic objective of this strategy is to persuade retailers, wholesalers and
distributors to carry your brand, give it shelf space, promote it by advertising, and ultimately
'push' it forward to the consumer. Typical push sales promotion strategies include; buy-back
guarantees, free trials, contests, discounts, and specialty advertising items.
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3.6.3(c) Public Relation
Building Good Relations with company’s various publics by obtaining favorable publicity,
building up a good corporate image & handling or heading off unfavorable rumors, stories
and events.
Activities of PR
Press Relations / Press
agentry
Product Publicity
Public Affairs
Lobbying
Investor Relations
Development
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
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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)
Press Release
a.)
2. 12. 2009 | Chennai gets its first exclusive Hush Puppies store
Chennai, November 30, 2009: In a proposition to offer customers the best of casual
footwear, Bata India, the leading footwear retailer in the country unveils Hush Puppies
outlet at Ampa Mall.
The Hush Puppies store is spread across over eight hundred square feet. The outlet
showcases an exciting range of soft, breathable and very comfortable footwear from Hush
Puppies. A truly modern creation that enjoys immense popularity across the globe for its
authentic style and casual flair, Hush Puppies is the champion of easy going style. On offer
are a range of international and classic designs in Hush Puppies for today’s men and women
who believe in style and comfort. The range utilises state of the art technology to merge
comfort and fashion. Keeping in line with the Hushpuppies tradition the shoes have a
lightweight sole allowing for ease of movement and are ideal for casual wear.
Commenting on the launch, Mr. Marcelo Villagran, Managing Director, Bata India Ltd.
remarked, “Living up to our philosophy of offering the best of footwear fashion in India, we
now are happy to introduce Hush Puppies outlets for our valued customers in Chennai.
Designed to offer ultimate comfort, Hush Puppies has changed the kind of shoes we wear
and ushered in a more relaxed lifestyle. We aim to offer complete range of Hush Puppies
shoes and sandals to our customers through these stores. Plans are afoot to open similar
outlets in India.”
The Hush puppies brand has huge popularity with consumers looking for comfortable
fashion. Opening of these exclusive stores is a part of the expansion plan, so as to ensure
availability of a great range of these international designs to the customers in the major
cities.
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b.)
19. 6. 2009 | Bata brings the best of footwear fashion to Mohali
Unveils new family store latest in technology and brands Mohali, May 8 2009: Bata India
Ltd. today unveiled a traditional family store at SAS NGR, Mohali. Modelled after the
International Bata stores, this new store is all set to introduce customers in Mohali to a
range of stylish and comfortable footwear brands from Bata.
The Family store is spread across over one thousand square feet and offers customers a
comfortable & traditional shopping experience in air conditioned comfort. The large format
enables proper display of the shoeline, which has over eight hundred new designs on offer.
Be it elegant Marie Claire, stylish Weinbrenner, smart and sporty North Star or Power, on
offer is a range of lifestyle shoe line that exudes confidence and style of the 21st century
youth. Wide variety of comfortable and smart footwear like Hush Puppies, Scholl, Comfit
range, Ambassador to name a few are also available for those looking for daylong comfort.
Tiny tots can walk out with their favourite Bubblegummers.
Sourse: www.Bataindia.com
3.6.3(d) Personal Selling
Bata institutional sales division is an exclusive division of Bata India which caters to the
requirement of corporate customers across the country. The institutional sales team
customizes footwear solution to meet the requirements of various industries like
Hospitality, Aviation, Healthcare, Educational and Government organization.
Hospitality Industry: Each work place is different, as are the needs of the working people.
Bata offers shoes with climate management technology with breathable genuine leather
upper & linings along with unique foot bed insole which not only offers comfort but fresh
feel to the wearers for those standing for long hours.
Corporate & Government Organization: Bata Institutional Sales Division consults and advises
corporate customers on footwear requirements of various industries Bata India provides
Customized Shoe Solutions – we also advise and guide corporate staff to use the correct
shoes as per the job descriptions.
Schools: Parents as well as schools trust Bata when it comes to school shoes, all over the
country. We at Bata realize how critical it is for the children to wear school shoes specifically
Bata India Pvt. Ltd.
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and technically designed to support the needs of the growing feet. Bata has come up with a
patented MICROBAN technology, which keeps shoes completely bacteria free, which results
in odor reduction, keeping feet clean, fresh and hygienic as well.
3.6.3(e) Direct Marketing
Not as of now. Our website today, aims to be a window to the company and to essentially
dispense information about the company, its products and stores to consumers. The next
phase of development will look into possible business through e-commerce.
3.6.3(f) 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 programs 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.
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
programs.
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.
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The VRS is 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 he 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 against the
security of the Company.s assets. Details of the borrowing of the Company . Secured and
Bata India Pvt. Ltd.
89
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)
3.7 STP of Bata’s Product lines
Kids wear
Bata deals with two brands to serve the kids footwear market. Both cater the same segment
whereas the target & way it is positioned differs based on the need & economic status.
Segment

Kids up to 14 years of age.
Casual: Bubble Gummer
Target

Kids of middle & upper class families.
Upper Class Families
Secondary Target
Middle Class Families
Primary Target
Lower Class Families
Terser Target
Positioning

Superior quality
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
Soft

Attractive

Fashionable
School Shoes: North Star & Tiger
Target

School going children up to 14 years of age

Children of lower middle class to upper class families.
Upper Class Families
Terser Target
Middle Class Families
Primary Target
Lower Class Families
Secondary Target
Positioning

Long lasting

Comfortable

Low maintenance

Affordable price
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Men’s Footwear
Bata’s footwear for men’s have both own brand and tie up brand products. They cater to
different social class. It’s own brand “Bata” has variants in all the economic segments
whereas it’s tie up brands are specific to a particular economic segment.
Segment
Men above 14 years of age.
14-22 years
23-35years
36-55 years
56-75years
Formal Wear
Target
Its main target is high school students to working executives.
Economic Status
Brand/s
Upper
Bata, Hush puppies, Lee cooper
Upper Middle
Bata, I D
Middle
Bata, North Star
Positioning
1. All brands are positioned as comfortable and durable.
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2. Brands for Upper middle class and above are positioned as shoes looking elegance &
class, having new technology, more comfortable finishing and better material.
Casual Wear
Target
Students and working executives.
Economic Status
Brand/s
Upper
Bata, Hush puppies, Lee cooper, Wein brenner
Upper Middle
Bata, I D
Middle and lower middle
Bata, North Star
Positioning
1. Brands for middle & lower middle class are promoted as comfortable, durable and
good looking.
2. Brands for upper middle and upper are positioned in a fashionable and stylish way.
Sports
Bata doesn’t have a brand in its own name, whereas it manufactures the brand “Power”.
Target
Sports shoe variants doesn’t have a separate target. They are used by men for both
sports & style. They are targeted mainly for young adults and students who use this
more for style rather than for sports. Bata doesn’t emphasize on professional sports
shoe. Its variants are rather for general purpose sports utility.
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Economic Status
Brand/s
Upper middle and above
Rbk, Nike, Lotto, Adidas
Middle
Power, Portland
Positioning
1. The brands for upper middle and above are positioned as stylish, powerful,
comfortable and of the latest fashion & technology.
2. The middle class brands are promoted as modern, comfortable, durable and
affordable.
Ladies footwear:
Apart from its own brand, Bata has tie up with Mari Clair for its women range of formal and
casual shoes. Both are in the price range suitable for middle class and above.
Segment
Women above 14 years of age belonging to the social class “middle class and above”.
Formal Wear
Target
It is targeted for adult students and working women.
Positioning
All brands are positioned as comfortable, durable, trendy and modern .
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.
Casual Wear
Target
Targeted at women of all age belonging to the social class “upper middle and
above”.
Positioning
Positioned as high quality, trendy, comfortable and durable footwear.
Sports
Target
These are used for both sports and style purpose and hence targeted at young
.women of age group 16 to 35.
Economic Status
Brand/s
Upper middle and above
Rbk, Nike, Lotto, Adidas
Middle
Power, Portland
Position
1. The brands for upper middle and above are positioned as stylish, powerful,
comfortable and of the latest fashion & technology.
2. The middle class brands are promoted as modern, comfortable, durable, stylish and
affordable.
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Slippers (For both men and women)
Bata has its own slipper range namely Sandak & Bata hawai which is made for both men
and women in all range.
Segment
People of all class, ranging from lower middle to upper and of all age groups.
Target
Meant for all quality conscious individuals of all age groups and class.
Positioning
1. Can be used both indoor & outdoor
2. for all seasons
3. Long lasting
4. Affordable
5. Women‘s slippers are positioned as trendy while men’s are positioned as good
looking.
Dr. Scholl’s Foot care (For both men & women)
These are prescribed by doctors for people having problems in the nerves, diabetics and
related diseases. This product was initially brought on prescription but now people are
buying it out of their own interest and hence have good growth opportunity. Bata has
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96
designed this product in various models giving a better advantage over the local
physiotherapy made standard designs.
Segment
Health conscious individuals.
Target
People having disease/ problems requiring medicinal shoes and health conscious foot wear
users.
Positioning
Positioned as medicinal foot wear with modern look.
Accessories
To supplement its foot wear business, Bata also sells shoe accessories like socks, lace, shoe
polish etc.,
In order to give a family shopping experience, Bata is also selling leather and related
products like bag, belt and caps. It has plans to sell more such products in the future
through its flagship & city shops.
However no specific segment or target is aimed for these products. These are just to
augment its existing product line and they work as product fillers
Segment Reporting
The group has chosen geographical segments as primary segments. Analysis of geographical
segments is based on areas where the customers are located. It is engaged primarily in
manufacture and sale of footwear which is the only reportable secondary segment.
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3.8 Cycle-5 (Customer)
For example: total population is 1000, out of which target customer is 100 and from the 100
target customer only 60 customer buy Bata product. So, 60 are the customer to company
who buy their products.
3.9 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.

“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-390-crore-2882)

Add new machines to produce sophisticated new designs and comfortable shoes.
(http://content.icicidirect.com/Research/DirectorsReport.asp?icicicode=BATIND)
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4. Financial Analysis
4.1 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
1000
934.06
823.96
Figure in crores
800
600
400
200
0
2008
2007
years
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
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 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.
100
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
Note: Due to recession, to cut the cost. Company rationalized the salary of employs.
But they don’t fire any one from the job.
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101
 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
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 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
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 Horizontal Analysis of Balance Sheet (Bata)
(Current year)
(Base year)
2008
2007
ABSOLUTE
%
(Dec )
(Dec)
CHANGE
CHANGE
(Amt in
(Amt in
Crores)
Crores)
291.15
251.38
39.77
15.82
PARTICULARS
COMMENTS
SOURCE OF
FUNDS
Total Share
holder's Funds
Share Capital
Total share holder’s funds
increase in year 2008
64.26
64.26
0
0.0
There is no change in the
amount as compared to
previous year
Reserves and
226.89
187.12
39.77
21.25
Surplus
Due to the increase in
firm's Reserves and
Surplus firm will be able to
run its business in
uncertain conditions
Secured loans
35.91
45.07
-9.16
-20.32
Secured loans decreases
because of increase the
profits in business
Unsecured
8.72
6.73
1.99
29.57
loans
Total Debt
Unsecured loans increase
in year 2008 December
44.63
51.80
-7.17
-13.84
By the source of funds
total debt decrease in
year 2008
Financial risk increased.
Total
Liabilities
335.78
303.18
32.6
10.72
The liability increase in
year 2008 because of
increase in unsecured
loan, reserves and surplus
APPLICATION
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OF FUNDS
Gross Block
349.33
324.88
24.45
7.53
There is an increase in
company's fixed assets.
Therefore, outflow of cash
is taking place.
Less:
232.31
220.96
11.35
5.13
It is according to the total
Depreciation/
amount of Fixed Assets
Amortisation
they own.
Net Block
117.02
103.92
13.1
12.60
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 or
marginal expenses
Capital Work
0.86
0.31
0.55
177.41
in Progress
There is an increase in
capital work in progress
because of purchase of
Fixed Assets so they
would be under
construction
Investments
17.25
17.25
0
0
No change in investment
292.23
303.74
-11.51
-3.78
stocks decreases because
CURRENT
ASSETS , LOAN
& ADVANCES
Inventories
of liability increase
Sundry
25.89
22.86
3.03
13.25
Debtors
Cash & Bank
Sundry debtors increased
because of loan increases
26.75
32.72
-5.97
-18.24
Balance
Cash and bank balance
decreases because of
assets decreases and
liability increases
Loan and
Bata India Pvt. Ltd.
96.75
53.23
43.52
81.75
Loan increases because
105
Advances
liability increases and loan
comes under liability
LESS:
CURRENT
LIAB. & PROV.
Current
194.36
198.4
-4.04
-2.03
Liabilities
Current liability decrease
because the cash and
bank decrease to reduce
liability
Provisions
54.26
33.65
20.61
61.24
Provisions increased
Net Current
193
180.50
12.5
6.92
Net current Assets
Assets
Miscellaneous
increased
7.65
1.2
6.45
537.5
Expenses not
Miscellaneous expenses
increased
w/0
Total Assets
335.78
303.18
32.60
10.75
Total assets increased due
to purchase assets
Contingnet
Liabilities
Bata India Pvt. Ltd.
45.28
76.52
-31.24
-40.82
Contingent liability
decreased
106
 Horizontal Analysis of Profit & Loss Account (Bata)
(Current year)
(Base year)
2008
2007
ABSOLUTE
%
(Dec )
(Dec)
CHANGE
CHANGE
(Amt in
(Amt in
Crores)
Crores)
1012.33
890.79
121.54
13.64
PARTICULARS
COMMENTS
INCOME
Sales Turnover
Sales turnover increased
in year 2008 because of
increasing profits in the
company
Other Income
11.2
14
-2.80
-20
Other income decreased
with an absolute change
and absolute percentage
change of 20 percent
Stock
10.68
29.27
-18.59
-63.51
Adjustment
Total Income
Stock adjustment
decreased
1012.85
934.06
78.79
8.43
Total income increased
because of increased in
sales turnover
EXPENDITURE
Raw Material
455.33
437.63
17.7
4.04
Raw material expenditure
increased because of
making more shoes
Excise Duty
22.86
23.58
-0.72
-3.05
Excise duty decreased
because of less foreign
exchange from previous
year
Power & Fuel
Cost
28.22
25.74
2.48
9.63
Power and fuel cost
increased because of
increase in transportation
Bata India Pvt. Ltd.
107
use
Other
29.22
29.74
-0.52
-1.74
Manufacturing
Very less no. of change in
other manufacturing
Expenses
expenses, it decreased
because of less
manufacturing of stock
Employs Cost
173.22
181.47
-8.25
-4.54
Employs cost decreased
by -8.25 because of
decreased in employment
in a company
Selling and
184.71
141.73
42.98
30.32
Administration
increase in selling and
Expenses
Miscellaneous
administration expense
16.45
16.41
0.04
0.24
Expenses
Less:
It increased because of
Miscellaneous expenses
increased
0
0
0
0
102.08
77.76
24.32
31.27
No change, neutral
Preoperative
Expenditure
Capitalized
Profit before
interest,
Profit increased before
interest, depreciation and
depreciation &
taxes.
tax
Interest &
11.24
10.56
0.68
6.43
Interest and financial
Financial
charges increased because
Charges
of high purchases
Profit Before
90.84
67.2
23.64
35.17
Tax
Depreciation
Profits before taxes and
depreciation increased.
19
16.01
2.99
0.18
Depreciation on assets
increased
Profit Before
71.84
51.19
20.65
40.34
Tax
Tax
Profits increased before
tax
11.1
3.75
7.35
196
Tax increased in the
company
Bata India Pvt. Ltd.
108
Profit After
60.74
47.44
13.3
28.03
0
0
0
0
69
40.15
28.85
71.85
Profits after tax increased
Tax
Adjustment
No change
Below Net
Profit
P&L Bal.
brought
Profit and loss balance
brought forward increased
forward
Appropriation
24.87
18.59
6.28
33.78
Appropriation increased
P&L Bal.
104.87
69
35.87
51.99
P&L bal. carried down
Carried down
increased more than 50
percent
Equity
16.07
12.85
3.22
25.05
0
0
0
0
2.73
2.18
0.55
25.22
Equity dividend increased
Dividend
Preference
No change
Dividend
Corporate
Dividend Tax
Corporate dividend tax
increased by approx 25%
because company has to
give corporate tax on a
profit of a company
Bata India Pvt. Ltd.
109
4.2 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.
110
 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
more than liberty
Bata India Pvt. Ltd.
111
 Horizontal Analysis of Balance Sheet (Lakhani)
(Current year)
(Base year)
2008
2007
ABSOLUTE
%
(Dec )
(Dec)
CHANGE
CHANGE
(Amt in
(Amt in
Crores)
Crores)
13.45
13.45
0
0
No change
Share Capital
13.45
13.45
0
0
No change
Reserves and
48.99
47.87
1.12
2.34
PARTICULARS
COMMENTS
SOURCE OF
FUNDS
Total Share
holder's Funds
Surplus
Increase in absolute
change because reserves
and surplus increased
Secured loans
98.52
29.16
69.36
237.86
Increased in absolute
change and percentage
change because of
secured loans increases
Unsecured
0.46
1.96
-1.5
-76.53
loans
Unsecured loans
decreases in absolute
change and as well in
percentage
Total Debt
98.98
31.12
67.86
218.06
total debt of the company
increased which is not
good for company
Total
161.42
92.44
68.98
74.62
Liabilities
Liabilities are also
increased because of
loans
APPLICATION
OF FUNDS
Gross Block
88.09
34.86
53.23
152.70
Gross block increased due
to increase in funds
Bata India Pvt. Ltd.
112
Less:
15.36
11.54
3.82
33.10
Depreciation increased
Depreciation/
because machines always
Amortisation
depreciation by some
percent in every month
Net Block
72.73
23.32
49.41
211.88
Capital Work
0
27.97
-27.69
-100
in Progress
Increased
Capital work in progress
decreased due to less
profits or less money in
the company
Investments
14.80
0.40
14.4
36
Investments increased
71.51
48.69
22.82
46.87
Stocks increased in the
CURRENT
ASSETS , LOAN
& ADVANCES
Inventories
company
Sundry
49.95
22.26
27.69
124.39
Sundry debtors increased
1.29
0.70
0.59
84.29
Cash and bank balance
Debtors
Cash & Bank
Balance
Loan and
increased in the company
4.16
2.01
2.15
106.97
Advances
Loans increased more that
a cash and bank balance in
the company
LESS:
CURRENT
LIAB. & PROV.
Current
52.26
32.71
19.55
59.77
Liabilities
Current liability increased
due to maximum loan
Provisions
0.75
0.17
0.58
341.18
Provisions increased
Net Current
73.90
40.78
33.12
81.22
Net current assets
Assets
Miscellaneous
Bata India Pvt. Ltd.
increased
0
0
0
0
No change, neutral
113
Expenses not
w/0
Total Assets
161.43
92.47
68.96
74.58
Total assets increased in
the company
Contingnet
0
0
0
0
No change
Liabilities
Bata India Pvt. Ltd.
114
 Horizontal Analysis of Balance Sheet (Liberty)
(Current year)
(Base year)
2008
2007
ABSOLUTE
%
(Dec )
(Dec)
CHANGE
CHANGE
(Amt in
(Amt in
Crores)
Crores)
17.04
17.04
0
0
No change
Share Capital
0
0
0
0
No change
Reserves and
97.78
81.82
15.96
19.14
PARTICULARS
COMMENTS
SOURCE OF
FUNDS
Total Share
holder's Funds
Surplus
Reserves and surplus
increased due to absolute
change in reserves and
surplus
Secured loans
103.32
104.03
-0.71
-0.68
Secured loans decreased
due reduction on loans
Unsecured
15.06
22.02
-6.96
-31.60
loans
Unsecured loans
decreased due to less
loans
Total Debt
118.38
126.05
-7.67
-6.08
Total debts decreased
Total
233.20
224.92
8.29
3.68
Total liabilities increased
Liabilities
due to maximum loan
APPLICATION
OF FUNDS
Gross Block
126.06
110.55
15.51
14.03
Gross block increased
Less:
40.61
35.55
5.06
14.23
Depreciation increased
Depreciation/
due to old machines
Amortisation
Net Block
85.45
75
10.45
13.93
Net block increased
Capital Work
1.55
8.14
-6.59
-80.95
Capital work in progress
Bata India Pvt. Ltd.
115
in Progress
decreased due to less
progress in capital
Investments
20.344
17.10
3.24
18.94
Investments increased
due to invest
CURRENT
ASSETS , LOAN
& ADVANCES
Inventories
76.19
76.17
0.02
0.03
No change in stock
Sundry
72.41
72.09
0.32
0.44
Sundry debtors increased
1.20
1.55
-0.35
-22.58
Debtors
Cash & Bank
Balance
Cash and bank balance
decreased due to due to
max wages
Loan and
27.50
29.72
-2.22
-7.46
Advances
Loan reduced due to
payment of loan
LESS:
CURRENT
LIAB. & PROV.
Current
52.47
52.74
-0.27
-0.51
Liabilities
Current liabilities
decreased due to
reduction n loan
Provisions
2.28
5.20
-2.92
-56.15
Net Current
125.84
124.66
1.18
0.95
Assets
Miscellaneous
Provisions decreased
Net current assets
increased due to stocks
0
0
0
0
233.18
224.90
8.24
3.68
No change
Expenses not
w/0
Total Assets
Total assets increased due
to purchase more assets
Contingnet
Liabilities
Bata India Pvt. Ltd.
9.71
10.55
-0.84
-7.96
Contingent liabilities
decreased
116
 Horizontal Analysis of Profit & Loss Account (Liberty)
(Current year)
(Base year)
2008
2007
ABSOLUTE
%
(Dec )
(Dec)
CHANGE
CHANGE
(Amt in
(Amt in
Crores)
Crores)
247.53
257.89
-10.63
-4.01
PARTICULARS
COMMENTS
INCOME
Sales Turnover
Sales turnover reduced
due to less profits in
company
Other Income
1.4
5.51
-4.11
-75.59
Other income decreased
due to less incomes
Stock
1.4
5.51
-4.11
-75.59
Adjustment
Stock adjustment
decreased due to less
stock in the company
Total Income
-11.79
6.91
-4.85
-70.19
Total income decreased
due to whole income
reduced
EXPENDITURE
Raw Material
237.14
270.39
-33.25
-12.30
Expense on raw material
decreased due to less
production
Excise Duty
116.43
131.96
-15.53
-11.77
Excise duty decreased due
to less import from
abroad
Power & Fuel
Cost
Bata India Pvt. Ltd.
6.16
9.6
-3.44
-35.80
Power and Fuel cost
decreased due to less
117
consumption of transports
and machines
Other
4.39
4.61
-0.22
-4.77
Other manufacturing
Manufacturing
Expenses decreased due
Expenses
to less manufacturing in
the company
Employs Cost
20.55
22.28
-1.73
-7.76
Employs cost reduced
Selling and
51.4
56.8
-5.4
-9.50
Selling and Administration
Administration
Expenses reduced by -
Expenses
Miscellaneous
9.50%
5.19
1.06
4.13
389.62
Expenses
Miscellaneous Expenses
increased due to increase
in other expenses
Less:
0
0
0
0
26.43
36.33
-9.9
-27.25
No change
Preoperative
Expenditure
Capitalized
Profit before
Profit before interest,
interest,
depreciation and tax
depreciation &
decreased due to less
tax
profits in the company
Interest &
12.56
13.35
-0.79
-5.92
Interest and Financial
Financial
charges are decreased due
Charges
to less interest on loans
and decreased on financial
charges
Profit Before
13.89
22.98
-9.09
-39.56
Tax
Depreciation
. profits before tax and
deprecation reduced
6.59
6.38
0.21
3.29
Depreciation increased
due to machines
Profit Before
7.28
16.6
-9.32
-56.1
Profit before tax reduced
-0.24
0.64
0.40
62.50
Tax increased in the
Tax
Tax
company
Bata India Pvt. Ltd.
118
Profit After
7.52
15.96
-8.44
-0.52
0
0
0
0
32.86
22.9
9.96
43.50
Appropriation
6
6
0
0
P&L Bal.
34.38
32.86
1.52
4.63
Profit after tax decreased
Tax
Adjustment
No change
Below Net
Profit
P&L Bal.
P&L balance increased
brought
forward
Carried down
Equity
No change
P&L balance carried down
increased
0
0
0
0
No change
0
0
0
0
No change
0
0
0
0
No change
0
0
0
0
No change
4.41
9.37
-4.96
-52.93
Dividend
Preference
Dividend
Corporate
Dividend Tax
Equity Divid
(%)
EPS
EPS decreased due to less
earning share in the
company
Book Valu
71.79
67.38
4.41
6.54
Book value increased due
to increment of machines
in the company
Extraordinary
Items+
Bata India Pvt. Ltd.
-0.16
2.61
2.45
93.87
Extraordinary items
increased by approx 93%
119
 Horizontal Analysis of Profit & Loss Account (Lakhani)
(Current year)
(Base year)
2008
2007
ABSOLUTE
%
(Dec )
(Dec)
CHANGE
CHANGE
(Amt in
(Amt in
Crores)
Crores)
152.07
44.24
107.83
243.74
PARTICULARS
COMMENTS
INCOME
Sales Turnover
Sales turnover increased
due to increased profits in
company
Other Income
0.14
0.25
-0.11
-44
Decreased on other
income
Stock
5.35
9.24
-3.89
-42.1
Adjustment
Stock adjustment
decreased due to less
stock in the company
Total Income
157.56
53.73
103.83
193.24
Total income increased
due to increased in total
income
EXPENDITURE
Raw Material
93.51
30.09
63.42
210.77
Raw material expenses
increased due to increase
in production of goods in
the company
Excise Duty
5.2
3.37
1.83
179.63
Excise duty increased due
to increase in import from
abroad
Power & Fuel
Cost
9.03
3.41
5.62
164.81
Power and Fuel cost
increased due to
maximum usage of
Bata India Pvt. Ltd.
120
transport and machines
Other
9.92
3.74
6.18
165.24
Other manufacturing
Manufacturing
Expenses increased due to
Expenses
increase in manufacturing
of goods
Employs Cost
17.73
6.6
11.13
168.60
Employs cost increased
Selling and
8.74
3.64
5.1
140.11
Selling and Administration
Administration
Expenses increased
Expenses
Miscellaneous
0.19
0.02
0.17
850
Expenses
Less:
Miscellaneous expenses
increased
0
0
0
0
13.23
2.86
10.37
362.59
No change
Preoperative
Expenditure
Capitalized
Profit before
interest,
Profit before interest,
depreciation & tax
depreciation &
increased due to increase
tax
in profits in the company
Interest &
4.81
0.64
4.17
652.56
Interest and financial
Financial
charges increased due to
Charges
increase in interest on
loans and increased in
financial charges
Profit Before
8.42
2.22
6.2
279.28
Tax
Depreciation
Profit before dep. and tax
increased
3.83
1.81
2.02
111.6
Depreciation increased
due to machines
Profit Before
4.59
0.41
4.18
1019.51
Tax
Profits before tax
increased due to increase
in profits in the company
Tax
3.4
-4.98
-1.58
-31.73
Tax reduced due to
decrease in tax in the
company
Bata India Pvt. Ltd.
121
Profit After
1.19
5.39
-4.2
-77.92
Tax
Profit after tax decreased
due to increase in taxes
and other charges
Adjustment
0
0
0
0
9.25
3.86
5.39
139.64
No change
Below Net
Profit
P&L Bal.
brought
P&L bal brought forward
increased
forward
Appropriation
0
0
0
0
P&L Bal.
10.44
9.25
1.19
12.86
Carried down
Equity
No change
P&L bal carried down
increased
0
0
0
0
No change
0
0
0
0
No change
0
0
0
0
No change
0
0
0
0
No change
0.88
4.01
-3.13
-78.05
Dividend
Preference
Dividend
Corporate
Dividend Tax
Equity Divid
(%)
Earning per
share
EPS decreased due to less
Earning share in the
company
Book Value
46.42
45.59
0.83
11.82
Book value of the
company increased due to
company’s increment
profit
Extraordinary
0
0
0
0
1.05
0.51
0.54
105.88
No change
Items+
Key Ratio:
Debt Equity
Ratio
Bata India Pvt. Ltd.
Debt equity ratio
increased due to increase
122
in debt in a company
Long Term
0.65
0.09
0.56
622.22
Long term debt equity
Debt Equity
ratio increased due to
Ratio
long term loan in the
company
Current Rtio
1.48
1.24
0.24
19.35
Current ratio increased
2.47
0.74
1.73
233.78
Fixed assets increased due
Turnover
Ratio:
Fixed Assets
to increase in buildings
and machines
Inventory
2.53
0.85
1.68
142.80
Inventory increased due
to increased in stock of
the company
Debtors
4.21
2.2
2.01
91.40
Debtors increased due to
increase in loan
Interest Cover
1.95
1.64
0.31
18.90
Rate
PBIDTM(%)
Interest cover rate
increased
8.7
6.64
2.24
34.67
Profit before interest,
depreciation and tax
increased
PBITM(%)
6.18
2.37
3.81
160.76
PITM increased
PBDTM(%)
5.54
5.02
0.52
10.36
PBDTM increased
CPM(%)
3.3
16.27
-12.97
-79.72
CPM decreased
APATM(%)
0.78
12.18
-11.4
-93.60
APATM decreased
ROCF(%)
7.41
1.19
6.22
522.69
ROCF decreased
RONW(%)
1.92
9.19
-7.27
-79.11
RONW decreased
Bata India Pvt. Ltd.
123
5. 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)
5.1 Price Of The Commodity
If the price 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_num
ber=&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.
124
5.2 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.
5.3 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.
Bata India Pvt. Ltd.
125
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.
See the following chart to understand the consumer expenditure capacity.
Per Capita Income
Year
The Per Capita Income in India was Rs 19040.
2002-2003
The Per Capita Income in India was Rs 20982.
2003-2004
The Per Capita Income in India was Rs 23241.
2004-2005
The Per Capita Income in India was Rs 37490.
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.
5.4 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.
Bata India Pvt. Ltd.
126
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.)
5.5 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 .
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
Population
1981
68,33,29,097
1991
84,63,02,688
2001
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 demand of the shoes also increases because shoes are the part of daily need
of an human being.
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b) Composition Of Population
composition 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 society
then demand for the shoes will increase (decrease).
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6. 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)
6.1 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.
6.2 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 e.g.:- 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.
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This happens because the price of factor input is inversely related to the supply of the
product.
6.3 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
“Liberty” 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.
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6.4 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.
6.5 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 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.
6.6 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.
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6.7 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.
6.8 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 e.g.:- 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.
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 promotes Specific activities viz. Export promotion, Training Design Inputs ,
etc.
The States Governments of Himanchal Pradesh, Uttaranchal, 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.
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6.9 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.
6.10 Natural Factors
a) Size of Population
Size 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 Population
Composition 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.
This happens because composition of the population and supply for the shoesare directly
related.
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6.11 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.
6.12 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.
6.13 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.
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7. Implication of Fiscal Policy
Fiscal policy, also known 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 Spending
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.
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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.
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.
Interest 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
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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 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...)
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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 up to 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.
FDI (Foreign 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.
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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.
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8. Implication Of Monetary 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 lowers 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
2009-10
Q1
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
Overall GDP
9.0
6.7
7.8
5.8
6.1
Source: Central Statistical Organization (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 AprilAugust 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.
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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 utilization. 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 non-manual 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 2009-10 (up to October 26, 2009).
Contribution of Footwear industry in National Income: 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 provides 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 (Foreign 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
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and also duty free or concessional imports and reduction in excise duty help in increasing
FDI.
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.
Ban 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. Corporate 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.
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.
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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
Reduction(basis
points)
October
October
2008
2009
Repo Rate
9.00
4.75
425
Reverse Repo Rate
6.00
3.25
275
9.00
5.00
400
Cash Reserve Ratio (%
NDTL)
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)
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9. 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.

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
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
production technologies.

Financial strength
1. Total income of Bata increases in 2008 by 6.57%
2. Profit margin of Bata increases in 2008 by 19%. So, that company have more
money and they can use it for their expansion plans.
3. Total assets of company increase in year 2008, by 8.14%
4. Total share fund increase in year 2008, by 15.82%
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
switching to new production technologies


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
switching to new production technologies

Financial weaknesses
1. Power and fuel cost increased by 9.63% in year 2008, which will effect the profit
margins.
2. Company bank balance goes down in year 2008 by 19%
Opportunities

Great market channels.

Exchanging or expending in offer rural market.
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
Innovative Products

New mediums for advertisements

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.(Indian
industry, 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.
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
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

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

Recent merger between Adidas and Reebok.
10. 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.
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
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)
11. Conclusion
Over a period of time Bata has improved its distribution network, generated skilled
manpower, integrated itself backward as well as forward, resolved problem with trade
unions, lower down the input cost, create good physical infrastructure and technological
advancement. It is continuously increasing its distribution network and cutting cost through
manpower reduction.
Looking net sale/volume and profit before tax increases significantly from 2008 to 2009.
Now, Bata has no more considered as only a production company which produces footwear.
They now created an image of fashion driving, market oriented manufacturer. Positioning
Bata India Pvt. Ltd.
148
has been done in very passionate way to change a stable image of company over a period of
time.
They back their campaign through several TVC’s, print media and word of mouth.
Collaboration with several big players is giving an edge to Bata India Limited.
Bata successfully changes its image and repositioned itself.
Bata India Pvt. Ltd.
149
12. Competitor Profile
12.1 Lakhani -Company Profile
Business Type: Footwear
Main Market: India
Chairman and M.D: Mr. Parmeshwar Payal Lakhani
Market Value: 460 cr
Company Address: B-106, Sector-2, Noida,
Uttar Pradesh
.
Tel. no: 91-0120-4015810
Fax: 91 - 129 - 2232790
Site URL: www.lakhaniarmaan.com
Employees: 2702
Share Price: company only listed on BSE
Current price - 34.80 Rs
12.1(a) Share Holding Pattern: Promoter – 66.20%
Non-Promoter-25.32%
Public Holding- 7.42%
M.F & Other- 1.06%
Bata India Pvt. Ltd.
150
1.06%
7.42%
Promoter
25.32%
Non-promoter
Public Holding
M.F & Other
66.20%
12.1(b) 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 part-finance the expansion-cum-modernization 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)
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12.1(c) 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 employs in the company as on 31st march,2008
was 2702.
The company very well understand its obligations toward environment, its human resource
and society in general. It has made significant efforts in the field of environment protection
by implementing statutory and regulatory requirements. Moreover, the company believes
in safe work practices and show utmost concern towards its employs health and safety.
The company is well prepared to meet the future challenges of the market. It has firm plans to
double up its manufacturing capacity in near future. For that company is setting up a state-of-theart plant in Faridabad itself.
(http://www.indiainfoline.com/market/company)
(http://www.lakhaniarmaan.com/social.htm)
12.1(d) Product Profile:
PRODUCT RANGE-
Retail Price: Rs. 1150
Bata India Pvt. Ltd.
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12.2 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
12.2(a) Share Holding Pattern: Promoters-61.94%
Public-32.58%
Non-Promoter Corporate Holding-5.16%
Mutual Fund-0.32%
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0.32%
5.16%
Promoters
32.58%
Public
Non-Promoter
61.94%
M.F
12.2(b) 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, Geo Sport 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)
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12.2(c) Human Resource Policy:
Company has been consisted in following the
prudent poloci respect 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 31st march,2009,the company employ strength is 1332.
Company also have a special charity fund for providing financial assistance to families who
suffer the tragedy of losing their sole earning member. It's this sense of social commitment
that inspired us to set up the Sanjay Charitable Hospital at Karnal and join the Nation in
felicitating the winners of the Republic Day Bravery Awards with a special gift of free
footwear. Ecological awareness also happens to be uppermost on our minds. A testament to
this fact is the importance we have accorded to making all our Humantech Centers
environment-friendly with extensive green covers and the manner in which we have
nurtured and maintained the Karnal Roundabout which has become the city's “Green
Showpiece”.
(http://www.libertyshoes.com/social_liberty_shoes.asp)
(http://www.indiainfoline.com/market/company)
12.2(d) Award Won:
"A1+"(meaning highest safety) rating for its commercial paper in 1999-2000 by ICRA.
12.2(e) Product Profile:
Bata India Pvt. Ltd.
Brand
: Fortune
Article
: 2031-21
Color
: BLACK
MRP
: Rs.1099
155
13. Minimum Wages Chart
By The State Governments:
 MINIMUM WAGES IN DELHI (FEB 1,2009)
S.N
O
1
2
scheduled
employment
Pattern Making,
Cutting
Lasting,
Bottoming,
Finishing
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
165.69
165.69
167.69
167.69
172.69
172.69
(RS PER DAY)
1
2
Pattern Making,
Cutting
Lasting,
Bottoming,
Finishing
Bata India Pvt. Ltd.
147.69
147.69
152.6
152.6
157.69
157.69
156
 MINIMUM WAGES IN MADYA PRADESH
S.N
O
1
2
scheduled
employment
Pattern Making,
Cutting
Lasting,
Bottoming,
Finishing
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
1
2
scheduled
employment
Pattern
Making,
Cutting
Lasting,
Bottoming,
Finishing
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 Total
minimu .
minimu
m
m
wages
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
Note:- Re: minimum wages Delhi 2010
The Delhi Cabinet on Monday approved the minimum wages for unskilled, semi-skilled and
skilled workers by almost 33 per cent.
The new wage structure will also cover clerical and non-technical supervisory workers
working on the daily wage system.
While the Wages of an unskilled labour has been increased from Rs 163 to Rs 203, the semiskilled labour will now be paid Rs 248 per day instead of the previous wages of Rs 225.
“An un-skilled labour will now get Rs 5,272 per month whereas the semi-skilled labour will
can take home at least Rs 5,850 per month. A skilled labour is now entitled for minimum
wags of Rs 6,448 per month,” a senior Delhi government official said.
The non-technical supervisory and clerical staff are also entitled for hiked salaries.
Bata India Pvt. Ltd.
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“A graduate can now earn Rs 7,020 per month while a matriculate can take Rs 6,448 every
month,” the official said.
Reasons of difference of wages in Delhi and Madhya Pradesh:
1.) Low life style of people.
2.) Availability of cheap labor.
3.) Less consumption of calories per day.
4.) Inflation.
Bata India Pvt. Ltd.
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14. Work place Safety Checklist
CODE OF CONDUCT STANDARDS
The factory complies with all local regulations relating to health and safety of
workers at the workplace.
The factory was ensuring adequate lighting, circulation, ventilation, heating/cooling
of the workplace.
Adequate protection was being provided from fire, accidents, toxic materials,
chemical spillage, dangerous machinery parts and electrical risks.
The workplace was having clearly marked and adequate exits for emergency
evacuation of workers. Evacuation routes were pasted in all work areas.
All exits, staircases and sections were having emergency lights.
The workplace was having adequate fire alarms accessible from all sections/floors in
the factory.
The factory had trained an adequate number of workers in using fire extinguishers.
per
Periodic fire drills were conducted and duly recorded as per law or at least once in
six months.
The factory was having adequate number of fire extinguishers in all sections/floors.
Fire extinguishers were mounted on a wall at a height, where they remained visible
and accessible by most workers.
The location of fire extinguishers and the area in front of them were marked with
diagonal black and yellow lines in the form of a square, indicating that it should
always be clear of any obstruction.
Workers were being provided appropriate personal protective equipments (PPE) –
such a gloves, aprons, masks, goggles, earplugs, headgear and rubber boots.
Workers were given necessary training to use the PPE.
The factory was providing safe drinking water for all workers with free access to it
throughput the day.
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The factory had placed adequately stocked first aid kit on every floor of the
workplace. An adequate n number of workers were trained in basic first aid.
The factory was having procedures and facilities such as transport/ambulance to
deal with serious injuries that require medical treatment outside the factory
premises.
The workplace was having adequate number of clean toilets/bath-rooms
(Segregated by sex) for all workers with running water allowing adequate access to
them throughout the day.
The canteen was kept clean ensuring general hygiene and comfort for the workers.
The factory kept hazardous substances in safe, secure, separate and ventilated areas.
There are various terms that come under the head of workplace safety, health and hygiene,
which are discussed by showing pictures, stated below:
FIRE SAFETY COMPLAINCE
Bata India Pvt. Ltd.
FIRST AID AND EMERGENCY MEDICAL
CARE
160
COMPLIANT TOILETS
DRINKING WATER COMPLAINCE
FACTORY SIGNS AND SYMBOLS
Note:- we visited to one of the shoe manufacturing plant of Bata India Pvt. Ltd. in Faridabad.
And find that Bata India Pvt. Ltd. Faridabad plant use all of the above safety code of
conduct.
Bata India Pvt. Ltd.
161
15. SOCIAL COMPLIANCE
CODE OF VENDOR CONDUCT
The Code of Vendor Conduct applies to all factories
that produce goods for any particular buyer that has
certain norms and standards for code of vendor
conduct.
While buyers recognizes that there are different legal
and cultural environments in which factories operate
throughout the world, this Code sets forth the basic
requirements that all factories must meet in order to do business with these buyers.
This Code is based on internationally accepted labor standards, including the
International Labour Organization (ILO)’s core conventions and the Universal
Declaration of Human Rights.
The Code provides the foundation for buyer’s ongoing evaluation of a factory’s
employment practices and other social compliance.
1. Compliance With Laws
Factories shall operate in full compliance with the laws of their respective countries and
with all other applicable laws, rules and regulations.
The factory operates in full compliance with all applicable laws,
rules and regulations, including those relating to labor, worker
health and safety, and the environment.
The factory allows the buyers or any of their representatives or
agents’ unrestricted access to its facilities and to all relevant
records at all times, whether or not notice is provided in advance.
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2. Labor
A. Child Labor
Factories shall employ only workers who meet the applicable
minimum legal age requirement or are at least 15 years of age,
whichever is greater. Factories must also comply with all other
applicable child labor laws. Factories are encouraged to develop
lawful workplace apprenticeship programs for the educational
benefit of their workers, provided that all participants meet both
buyer’s minimum age standard of 15 and the minimum legal age
requirement.
Every worker employed by the factory is at least 15 years of age and meets the
applicable minimum legal age requirement. If the minimum legal age is higher under
local law, the higher age applies.
The factory complies with all applicable child labor laws, including those related to
hiring, wages, hours worked, overtime and working conditions.
The factory encourages and allows eligible workers, especially younger workers, to
attend night classes and participate in work-study programs and other governmentsponsored educational programs.
The factory maintains official documentation for every worker that verifies the
worker’s date of birth. In those countries where official documents are not available
to confirm exact date of birth, the factory confirms age using an appropriate and
reliable assessment method.
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B. Contract Labor Requirement
Factories that recruit or employ foreign contract workers shall ensure that these workers
are treated fairly and on an equal basis with its local workers.
C. Discrimination
Factories shall employ workers on the basis of their ability
to do the job, not on the basis of their personal
characteristics or beliefs.
The factory hires, employs, promotes, terminates, and provides access to training
and retirement to workers without regard to race, color, gender, nationality,
religion, age, maternity, marital status, indigenous status, social origin, disability,
sexual orientation, membership in workers’ organizations including unions, or
political affiliation.
The factory pays workers wages and provides benefits without regard to race, color,
gender, nationality, religion, age, maternity, marital status, indigenous status, social
origin, disability, sexual orientation, membership in workers’ organizations including
unions, or political affiliation.
D. Forced Labor
Factories shall not use any prison, indentured or forced labor.
The factory does not use involuntary labor of any kind, including prison labor, debt
bondage or forced labor by governments.
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E. Freedom of association and the right to collective bargaining
Workers are free to join associations of their own
choosing. Factories shall not interfere with workers who
wish to lawfully and peacefully associate, organize or
bargain collectively. The decision whether or not to do so
should be made solely by the workers.
Workers are free to choose whether or not to lawfully organize and join associations.
If freedom of association and/or the right to collective bargaining are restricted by
law, workers shall be free to develop parallel means for independent and free
association and collective bargaining.
The factory does not threaten, penalize, restrict or interfere with workers’ lawful
efforts to join associations of their choosing or to bargain collectively.
F. Humane treatment
Factories shall treat all workers with respect and dignity.
Factories shall not use corporal punishment or any other form of
physical or psychological coercion.
The factory does not engage in or permit physical acts to
punish or coerce workers.
The factory does not engage in or permit psychological coercion or any other form of
non-physical abuse, including threats of violence, sexual harassment, screaming or
other verbal abuse.
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G. Wages and benefits
Factories shall pay wages and overtime premiums in
compliance with all applicable laws. Workers shall be paid at
least the minimum legal wage or a wage that meets local
industry standards, whichever is greater. Factories are
encouraged to provide wages and benefits that are sufficient
to cover workers’ basic needs and some discretionary
income.
Workers are paid at least the minimum legal wage or the local industry standard,
whichever is greater.
The factory pays overtime and any incentive (or piece) rates that meet all legal
requirements or the local industry standard, whichever is greater. Hourly wage rates
for overtime must be higher than the rates for the regular work shift.
The factory provides paid annual leave and holidays as required by law or which
meet the local industry standard, whichever is greater.
For each pay period, the factory provides workers an understandable wage
statement which includes days worked, wage or piece rate earned per day, hours of
overtime at each specified rate, bonuses, allowances and legal or contractual
deductions.
The factory shall not modify or terminate workers’ contracts for the sole purpose of
avoiding the provision of benefits.
H. Working hours
Factories shall set working hours in compliance with all applicable laws. While it is
understood that overtime is often required in garment production, factories shall carry out
operations in ways that limit overtime to a level that ensures humane and productive
working conditions.
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The factory complies with all applicable laws, regulations and
industry standards on working hours. Except in extraordinary
business circumstances, the maximum allowable working hours
in any week shall be the lesser of a) what is permitted by
national law, or b) a regular work week of 48 hours plus
overtime hours not in excess of 12 hours.
Workers may refuse overtime without any threat of penalty,
punishment or dismissal.
Workers shall have at least one day off in seven.
Note:- Bata as a good brand and to keep it his image in market, follow all the above social
compliances.
Bata India Pvt. Ltd.
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16. 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
Bata India Pvt. Ltd.
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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 cr. 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 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-industries- news/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.
Bata India Pvt. Ltd.
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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 and technology 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.
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
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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)
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17. Annexure
16.1 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
172
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
173
Style no.
834-4006
INR 1999.00
.
(http://www.bata.in/catlist.php?catItem=21)
Sandals
Style no.
861-4053
Style no.
861-6226
Style no.
801-4167
Bata India Pvt. Ltd.
INR 399.00
INR 699.00
INR 1499.00
174
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
175
Style no.
874-6930
INR 1799.00
(http://www.bata.in/catlist.php?catItem=41)
Sports wear
Style no.
861-9224
INR 699.00
Style no.
839-8134
NR 749.00
Style no.
808-3456
INR 1099.00
Style no.
808-5499
INR 1799.00
(http://www.bata.in/catlist.php?catItem=5)
Bata India Pvt. Ltd.
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Women’s wear



Chappals
Closed
Sandals
Chappals
Style no.
571-6121
INR 139.00
Style no.
561-5995
INR 499.00
Style no.
673-4061
INR 1199.00
Style no.
674-6051
Bata India Pvt. Ltd.
INR 1249.00
177
Closed
Style no.
552-7007
Style no.
581-1840
Style no.
581-2796
Style no.
581-2121
INR 299.00
INR 599.00
INR 1199.00
INR 1299.00
( http://www.bata.in/catlist.php?catItem=22)
Bata India Pvt. Ltd.
178
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
179
16.2 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.
180
Particulars
Dec-2008
Dec-2007
Dec-2006
Dec-2005
Dec2004
262.16
Current Assets, loans & advances
Inventories+
292.23
303.74
276.36
278.76
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
308.51
Contingent
Liabilites+
45.28
76.52
119.69
112.5
108.35
Less: Current liab.
& Prov.
Current Liabilities+
0
(http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=BA&SSKICode=BATA)
Bata India Pvt. Ltd.
181
16.3 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
0
INCOME
EXPENDITURE
Miscellaneous
Expenses+
Less: Preoperative
Expenditure
capitalized
0
0
Profit before
Interest,
Depreciation & Tax
102.08
77.76
Bata India Pvt. Ltd.
73.37
0
37.83
0
-39.2
182
Particulars
Dec-2008
Dec-2007
Dec-2006
Dec-2005
Dec-2004
Interest & Financial
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
0
Adjustment below
Net Profit+
0
0
0
P & L Balance
brought forward
69
40.15
-50.26
Appropriations+
24.87
18.59
-50.26
P & L Bal. carried
down
104.87
69
Equity Dividend
16.07
12.85
40.15
-62.75
0
-50.26
0
0
0
62.75
0
0
0
Preference Dividend
0
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
(http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=PL&SSKICode=BATA)
Bata India Pvt. Ltd.
183
16.4 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.
184
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.
185
16.5 Mutual Fund Activities Of Bata
Dated
Purchase
E Gross
Sale
E Gross E Net
D Gross
Purchase Purchase Sale
Nov-2009
6459.19
6053.50
Oct-2009
14915.80
Sep-2009
D Gross
.
Purchase
405.60
21850.50
14008.50
20225
-5309.10
72412.30
39127.60
14105.50
16346.40
-2241
38589.60
30950.40
Aug-2009
16764.70
16106.70
657.60
35460.90
27028.60
Jul-2009
21002.60
19848
1154.50
51842.90
23677.70
May-2009
17208.50
15606.10
1602.60
25237.20
15248.40
Apr-2009
11144.60
11126.30
18
44342.60
18390
Mar-2009
10580.70
9731.10
849.90
36771.30
18699.50
Feb-2009
4684.80
6522.20
-1837.10
26113.60
9617.50
Jan-2009
9329.50
10729.10
-1399.80
30688
12466.90
2008
165942.60
157947.80
7994
375593.50
250582.70
2007
2295188.8
2439399.2
144207.4
2535182.1
1846545.4
2006
252320.9
225232.49
27088.48
200310.87
142793.51
2005
69403.32
56430.06
10173.70
95552.40
60410.06
2004
42043.39
43309.58
-1366.14
54889.76
43321.63
2003
28096.03
27744.62
274.16
58352.08
38382.54
2002
15254.33
18248.17
-2711.52
44879.39
31341.79
2001
12792.96
17931.20
-5144.50
28851.62
19647.57
(http://www.sharekhan.com/MarketCorner/CommonGrid.aspx?Type=MFAct)
Bata India Pvt. Ltd.
186
16.6 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.
187
16.7 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
188
16.8 Balance sheet of Liberty
Particular
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
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
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
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
115.75
17.22
122.67
0.00
151.93
60.14
47.93
0.00
224.90
10.55
58.01
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
Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)
Bata India Pvt. Ltd.
189
17. 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.
190
Bata
Products
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.
191
18 .Report Check List
Check for reports-

A4 paper size

word-processed, typed or neatly and legibly written

double-line spacing

2.5 to 3 cm left-hand margin *

cover sheet

clearly labelled headings (if required) *

Do you have a copy of this assessment item? *

Bibliography

Anexture

Table of Content
*
*
*
*
*
*
*
Proofread for the following language features

Colloquial terms-slag words or informal expression. *
Cliches *

Jargon

Double meanings or ambiguity *
Use of personal pronouns (I, You, us, we ,our) *


*

Elision (it`s for it is; won`t for will not; isn`t for is not) *
Emotive language *

Parallel constructions (keeping the same tense)

Acronyms (full citation of terms rather than letter symbols) *


Abbreviations *
Ampersand (`&` in place of the word `and`) *

Conciseness *

Preciseness *

Capitalization of alphabetical letters where necessary (Titles, names, place) *

Discriminatory language *
Bata India Pvt. Ltd.
*
192

Spelling, typographical errors

Punctuation- read your document aloud. Note the place where your pause
*
naturally and punctuate accordingly. *

Grammatical construction- check that sentences are complete units of
meaning and not sentence fragments. *

Check that your sentences are not too short , lacking in the use of conjunctive
words (however, therefor, moreover, alternatively) *
Bata India Pvt. Ltd.
193