Financial Daily from THE HINDU group of publications
Friday, Dec 03, 2004
Financial Daily from THE HINDU group of publications Friday, Dec 03, 2004 |
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Corporate
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Outlook Marketing - New Products & Services Bata targets 12 pc rise in sales, plans another VRS Our Bureau
Mr Stephen J. Davis, MD, Bata India, launching new products at a press conference in the Capital on Thursday. - Kamal Narang
New Delhi , Dec. 2 BATA India Ltd — the country's largest manufacturer of footwear products — is targeting a 12 per cent jump in turnover at Rs 840 crore in 2005, against estimates of Rs 750 crore for the current year. The company is planning to introduce a voluntary retirement scheme to cut down flab and is looking at wiping out its Rs 40 crore accumulated losses over the next two years, the Bata India's Managing Director, Mr Stephen J Davies, told newspersons on the sidelines of a news conference today. "Our ongoing restructuring exercise involves ways and means to increase our topline and bottomline growth. Bata India had been a high cost structure company," Mr Davies said. The company's board has approved a rights issue to fund the restructuring exercise. The Indian arm of the Toronto-based Bata Shoe Organisation, which is in the process of restructuring its retail business and refurbishing its 1,600 stores across the country, has spent Rs 12 crore on the exercise besides investing in technology at its plants in 2004. "Our topline will be driven by the `Power' range of shoes, which is growing at about 15 per cent quarter on quarter," Mr Davies said while introducing a new range of the brand. The company had posted a net loss of Rs 26 crore for the year ended December 31, 2003 on a turnover of Rs 716 crore. The company hopes to wipe out the accumulated loss by 2006 and is planning to introduce another round of VRS in 2005 and is expecting around 700-800 employees to opt for the scheme, the Bata India Deputy Managing Director, Mr P.K. Nag said.
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