The Hindu Business Line : Bata to enter real estate development

Mr Thomas G Bata, Chairman & CEO, Bata Shoe Organisation (right), with Mr Stephen J. Davies, Managing Director, Bata India Ltd, at a press conference in Kolkata on Friday. — Parth Sanyal

Kolkata , April 16

BATA India Ltd has decided to make a foray into real estate development, along with a renewed focus on specialty manufacturing. Besides complete modernisation of its retail network, the company plans to introduce new categories of footwear in addition to updating of its classic and traditional ranges.

The company has also inducted a new Chairman Mr P.M. Sinha, the former CEO of Pepsi International South Asia. At the board meeting held here on Friday, Mr Sinha was inducted as Chairman, replacing Mr Constantin Salameh, who was holding charge on a temporary basis after Mr A.L. Mudaliar stepped down recently. Mr Salameh will continue on the board.

Mr A.K. Thakur, the UTI nominee, and Mr V. Narayanan continue as independent directors. The other directors include Prof Nirmalya Kumar, a US-based professor of marketing, Mr Stephen J.Davies, Managing Director, Mr P.K. Nag, in-charge of Finance, and Mr Jaswant Singh, marketing and commercial.

The company plans to take up a major re-development of Batanagar estate, in a surplus area of 264 acres, where its biggest factory (25 million pairs of shoes) in India is located.

Addressing presspersons here on several initiatives launched by the company, including a major revamp of the board, to regain its position of pre-eminence in the Indian footwear sector, Mr Thomas G. Bata, Chairman and CEO of Bata Shoe Organisation (worldwide), said the re-development project at Batanagar, being taken up as a 50:50 joint venture with Calcutta Metropolitan Group Ltd (real estate developers) was expected to bring about a qualitative change in the factory environment.

Mr Bata said the development project, set to roll by the end of the current year, will offer quality healthcare, housing facilities, education, sports & recreation, and also attract substantial outside investment, which may generate the much needed cash for the loss-stricken footwear major. He said the new restructured board, with its new vision and ambitious initiatives supported by investments in products, technology and manpower, "will go a long way in helping Bata India to emerge as a true winner in the next few years."

The company is also developing multi-million dollar latest integrated retail management system in partnership with Infosys for Bata worldwide, including India operations. Mr Bata it was being piloted in France this summer without a worldwide roll-out schedule starting in fourth quarter of this year. The MIS programme, to be developed by Infosys, will include warehouse management and logistics processes.

The company's retail plan includes making its presence felt in all major shopping centres throughout the country. Mr Bata said the company wishes to re-position itself as a market-driven, fashion-conscious lifestyle company.

Mr Stephen J. Davies, Managing Director, said Bata India, known earlier for its men's range of footwear, was now giving special emphasis on ladies and children's range of footwear.

He said, "We plan to present international shopping experience to our customers at urban markets and shopping malls." He added the plan was to make 75 million pairs of shoes in the next three years from the 60 million pairs now.

Mr Davies also confirmed that while the corporate office operations would shift to Delhi, Batanagar factory here would remain the same.

He said the company was also focusing on development of a good outsourcing model through an importation programme and also locally through associates.

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