The Hindu Business Line : Bata India plans foray into clothing

Hyderabad, Oct. 14 Putting behind a bad patch that had forced the company into the red, Bata India is implementing a new strategy, which includes foray into clothing and converting a majority of its showrooms into big format outlets.

The strategy also involves addition of 70 stores every year in the next few years. The company currently has a network of 1,200 outlets across the country.

“We are going to launch the clothing collection by the end of next year, besides focusing on Bata branded belts and handbags,” Mr Marcelo Villagran, Managing Director of Bata India, told Business Line.

After achieving a turnaround recently, the company is confident of achieving Rs 1,000 crore this calendar year as against Rs 800 crore in 2006.

The company has also decided to enhance the size of its showrooms significantly, barring those which faced space constraints. It has already opened 12 such showrooms, including the recently launched 10,000 sq ft multi-storey megastore in Vadodara.

Asked about the company’s turnaround formula, Mr Villagran said it was the new collection, new positive attitude and new stores. “We are targeting the increasingly growing middleclass,” he said.

Mr Villagran was in Hyderabad for the launch of the country’s first exclusive Hush Puppies showroom. Bata, the sole distributor for the US casual footwear brand, would open two more such outlets in Bangalore and New Delhi in the next few months.

Besides Bata outlets, Hush Puppies footwear is sold in other shops as well. “We are going to have a meeting in May to decide on a strategy for Hush Puppies,” he said. Asked whether the US brand didn’t overlap with Bata’s own products, he replied in the negative. “There is no conflict of interest. It does happen sometimes in the casual wear segment but it is not significant,” he said.

More Stories on : Diversification | Strategy | Leather | Readymade Garments

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