Bata plans to open 240 new outlets by next three years

18 Feb 2009, 2151 hrs IST, Sutanuka, ET Bureau

Shoe major Bata India Ltd is expanding its national footprint in Tier I and Tier II cities. The company, which is a subsidiary of Canadian shoe major Bata Shoe Organisation, on Wednesday announced it will open 40 new retail stores
across the country in the first quarter of 2009.

These new stores will be based on Bata's international format and will have an average size of 3000 sq ft.

These new stores will primarily be located in Tier I and Tier II cities like Sonepat, Kota, Jodhpur, Ludhiana, Kakinada, Berampur, Mandya, Gangtok, Hassan, Hubli, Ahmednagar, Nasik, and others, apart from the metros.

This will help Bata offer its contemporary and trendy footwear range to potential customers in the small towns. These products are currently available in Bata's international format outlets.

Announcing this, Mr Macelo Villagran, managing director at Bata India Ltd said: "Bata India has opened over 150 new large format stores since 2006 and will continue to open 60 new outlets every year.

Our retail expansion plans are aimed at meeting the shoe requirements of our customers across India. We thank our customers for their continued brand loyalty, which has helped us get this recognition from the industry."

Bata India plans to open 240 new outlets across the country over the next three years with an investment commitment of up to Rs 480 crore.

According to the company, the cost of a new outlet would typically vary between Rs 1.5 crore and Rs 2 crore. Further, the company also plans to use the surplus cash for expansion and upgradation of 60 to 80 existing outlets.

Bata is the largest footwear retailer in India with more than 1,200 stores. The company is focusing on manufacturing shoes for defence and paramilitary personnel, as well as airlines and hospitals to increase institutional selling.

The Indian footwear market is pegged at roughly Rs 10,000 crore in value terms and is growing at 10% annually.

Via: E.T