Bata material

2,631 views

Published on

Published in: Lifestyle, Business
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,631
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
72
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Bata material

  1. 1. Bata India Limited, India’s leading footwear retailer and manufacturer, today announced its financial results for thesecond quarter ended June 30, 2010. The Company’s PBT grew by an impressive 46% at Rs. 3,968.7 lacs asagainst Rs. 2,718.4 lacs in the same period last year. The Net Sales of the Company grew by 13.4% at Rs. 35,006.7lacs as against Rs. 30,862.6 lacs in the same period last year.For the half year period ending 30th June 2010, the Company’s PBT grew by an impressive 40% at Rs. 6,072.4 lacsas against Rs. 4,341.9 lacs in the same period last year. The Net Sales of the Company grew by 12.5% at Rs.60,922.1 lacs as against Rs.54,165.8lacs in the same period last year. Click here for Cloud Computing Also Read News Related Stories Now - SAIL posts Q1 profit after tax of Rs 1,177 cr - Huawei enters India open market with new mobile devices - RBI accords Infrastructure Finance Companies status to PFC - ICICI Lombard facilitates prompt settlement of Aban Pearls claim worth $235 mn - LITL bags order from Mahagenco - Ashok Leyland to acquire a 26% stake in UKs OptareAnnouncing the results, Mr. Marcelo Villagran, Managing Director, Bata India Limited said, “We have delivered ourbest ever results this quarter with the highest growth in our bottom line. This increased profitability is the result ofimproved sales and margin from our shoe line and continued growth from both of our retail and non retail businessesthrough rapid expansion, higher response to our collections, better customer service and growth in our customerbase. We will continue to grow and focus on providing the Indian consumer with the best in footwear.”Bata India continued to expand through opening new international format shoe stores across several cities in India. Italso invested in expanding the footprint of the Hush Puppies chain of exclusive stores targeting premium customersand is today present in all metros. The chain also reached out to newer customers through shop in shops inpartnership with major department store chains.Bata continued to focus on continuous improvement of its shoe designs for the youth and women segments. Newerdesigns introduced during this quarter under its international brands of Marie Claire, North Star &Weinbrenner weremuch appreciated by such customers. The company’s spring summer collection and monsoon collection alsoreceived great response from the customers. Recent introduction of a sporty range of school shoes met with hugesuccess.During the quarter, Bata India was chosen by consumers as India’s Most Preferred Exclusive Retailer and receivedthis award under the prestigious CNBC AWAAZ Consumer Awards 2010.Accepting the Award, Mr. Villagran said, “We are delighted to receive this Award as India’s most preferred ExclusiveRetail Outlet. This reconfirms our commitment to providing the best retail experience to our consumers in India. Ourefforts in retail expansion, improving customer experience, better merchandise selection have been rewarded withthe trust of the consumers.”About Bata India:Bata has been holding a unique place in the hearts of Indians for more than 75 years. Probably the only footwear
  2. 2. brand that offers footwear and accessories for the entire family, Bata has redefined the modern footwear industry inIndia. It has established a leadership position in the industry and is the most trusted name in branded footwear.Bata India is the largest footwear retailer in India, enjoying a large market share in the organized sector. It retailsthrough over 1200 Bata Shoe Stores located in over 400 cities across India.For more information on Bata India, please visit www.bata.inStatisticsPositive OutlookExport ImportProduction CentersEmployment ScenarioBACK TO HOMEIndian Footwear Industry Overview SearchIndian leather industry is the core strength of the Indian footwear industry. It is the engine of growthfor the entire Indian leather industry and India is the second largest global producer of footwear afterChina.Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco,Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured under licensein India. Besides, many global retail chains seeking quality products at competitive prices are activelysourcing footwear from India.While leather shoes and uppers are produced in medium to large-scale units, the sandals and chappalsare produced in the household and cottage sector. The industry is poised for adopting the modern andstate-of-the-art technology to suit the exacting international requirements and standards. Indiaproduces more of gent’s footwear while the world’s major production is in ladies footwear. In the caseof chapels and sandals, use of non-leather material is prevalent in the domestic market.Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes, horrachies,sandals, ballerinas, boots. Non-leather footwear exported from India are Shoes, Sandals and Chappals
  3. 3. MODEUROP. Design and Retail information is regularly made available to footwear manufacturers tohelp them suitably address the seasons requirement.The Indian Footwear Industry is gearing up to leverage its strengths towards maximizing benefits.Strength of India in the footwear sector originates from its command on reliable supply of resources inthe form of raw hides and skins, quality finished leather, large installed capacities for production offinished leather & footwear, large human capital with expertise and technology base, skilled manpowerand relatively low cost labor, proven strength to produce footwear for global brand leaders andacquired technology competence, particularly for mid and high priced footwear segments. Resourcestrength of India in the form of materials and skilled manpower is a comparative advantage for thecountry.The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact that footwear sectoris the most significant segment of the Leather Industry in India. The export targets from 2007-08 to 2010-11 (In Million US$)Product 2006-07 2007-08 2008-09 2009-10 2010-11 Actual ExportLeather 688.05 726.85 785.00 847.80 915.63Footwear 1212.25 1967.88 2597.60 3428.83 4526.05Garments 308.98 358.53 372.87 387.78 403.30Leather Goods 690.66 733.34 798.69 870.06 948.04Saddlery& 81.85 105.66 127.85 154.70 187.19HarnessTotal 2981.79 3892.26 4682.01 5689.17 6980.21India has emerged in recent years as a relatively sophisticated low to mediumcost supplier to world markets –The leather industry in India has been targetedby the Central Government as an engine for economic growth. Progressively, theGovernment has prodded and legislated a reluctant industry to modernise. India was noted as asupplier of rawhides and skins semi processed leather and some shoes.In the 1970’s, the Government initially banned the export of raw hides and skins,followed this by limiting, then stopping the export of semi processed leather andencouraging local tanneries to manufacture finished leather themselves. Despiteprotestations from the industrialists, this has resulted in a marked improvement inthe shoe manufacturing industry. India is now a major supplier of leather footwearto world markets and has the potential to rival China in the future (60% of Chineseexports are synthetic shoes).India is often referred to as the sleeping giant in footwear terms. It has an installed
  4. 4. capacity of 1,800 million pairs, second only to China. The bulk of production isin men’s leather shoes and leather uppers for both men and ladies. It has over 100 fully mechanised,modern shoe making plants, as good as anywhere in the world (including Europe). It makes for someupmarket brands including Florsheim (US), Lloyd (Germany), Clarks (UK), Marks and Spencer (UK).India has had mixed fortunes in its recent export performance. In 2000, exports ofshoes were US$ 651 million, in 2001 these increased to 663 million but declinedin 2002 to 623 million dollars (See Statistics).The main markets for Indian leather shoes are UK and USA, which between themtake about 55% of total exports.India has not yet reached its full potential in terms of a world supplier. This is duemainly to local cow leather that although plentiful, has a maximum thickness of 1.4– 1.6mm, and the socio / political / infrastructure of the country. However, Indiais an excellent supplier of leather uppers. Importation of uppers from India does not infringe FTA withEurope or the USA.The potential is set to change albeit slowly, but with a population rivalling China forsize, there is no doubt the tussle for world domination in footwear supply isbetween these two countries.Few Interesting Facts:- The Indian footwear retail market is expected to grow at a CAGR of over 20% for the periodspanning from 2008 to 2011.- Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in2006-07.- Presently, the Indian footwear market is dominated by Mens footwear market that accounts fornearly 58% of the total Indian footwear retail market.- By products, the Indian footwear market is dominated by casual footwear market that makes up fornearly two-third of the total footwear retail market.- As footwear retailing in India remain focused on mens shoes, there exists a plethora of opportunitiesin the exclusive ladies and kids footwear segment with no organized retailing chain having a nationalpresence in either of these categories.- The Indian footwear market scores over other footwear markets as it gives benefits like low cost ofproduction, abundant raw material, and has huge consumption market.- The footwear component industry also has enormous opportunity for growth to cater to increasingproduction of footwear of various types, both for export and domestic market.In a Nutshell:There are nearly 4000 units engaged in manufacturing footwear in India. The industry is dominated bysmall scale units with the total production of 55%. The total turnover of the footwear industryincluding leather and non-leather footwear is estimated at Rs.8500-9500 crore (Euro 551.3-1723.1
  5. 5. Million) including Rs.1200-1400 crore (Euro 217.6-253.9 Million) in the household segment.Indias share in global leather footwear imports is around 1.4% Major Competitors in the exportmarket for leather footwear are China (14%), Spain (6%) and Italy (21%).The footwear industry exist both in the traditional and modern sector. While the traditional sector isspread throughout the country with pockets of concentration catering largely to the domestic market,the modern sector is largely confined to select centres like Chennai, Ambur, Ranipet, Agra, Kanpurand Delhi with most of their production for export.Assembly line production is organized, and about 90% of the workforces in the mechanized sector inSouth India consist of women. In fact, this sector has opened up plenty of employment opportunitiesfor women who have no previous experience. They are trained to perform a particular function in thefactory itself.===___-----------------------------------------------------------------------------------------------------------CompetitionName Last Price Market Cap. Sales Net Profit Total Asse (Rs. cr.) TurnoverBata India 702.95 4,517.42 1,266.43 95.35 412Relaxo Footwear 322.25 386.74 557.76 37.69 317Mirza Intl 20.55 190.51 474.38 39.18 309Liberty Shoes 82.60 140.75 298.14 10.64 241Bhartiya Inter 61.05 61.44 167.33 5.54 180Crew B.O.S. 39.00 54.57 621.01 22.43 447 Enter NamCompare Bata India with another companyComparison with CompetitorsBalance SheetP&L AccountCash FlowsQuarterlyHalf Yearly9 MonthlyYearlyBalance Sheet ------------------- in Rs. Cr. ------------------- Bata Relaxo Footwear Mirza Intl Liberty Shoes Bhartiya Int India
  6. 6. Dec Mar 11 Mar 11 Mar 11 Mar 10Sources Of FundsTotal Share Capital 64.26 6.00 18.54 17.04 9.Equity Share Capital 64.26 6.00 18.54 17.04 9.Share Application Money 0.00 0.00 0.00 0.00 2.Preference Share Capital 0.00 0.00 0.00 0.00 0.Reserves 299.30 128.62 160.00 124.59 108.Revaluation Reserves 34.68 0.00 0.00 0.00 0.Networth 398.24 134.62 178.54 141.63 120.Secured Loans 0.00 143.77 131.09 95.56 59.Unsecured Loans 13.77 38.74 0.00 4.45 0.Total Debt 13.77 182.51 131.09 100.01 59.Total Liabilities 412.01 317.13 309.63 241.64 180. Bata Relaxo Footwear Mirza Intl Liberty Shoes Bhartiya Int India Dec Mar 11 Mar 11 Mar 11 Mar 10Application Of FundsGross Block 417.56 352.90 274.81 145.95 47.Less: Accum. Depreciation 264.44 84.47 87.03 59.47 9.Net Block 153.12 268.43 187.78 86.48 37.Capital Work in Progress 0.32 1.18 15.84 1.05 2.Investments 17.25 0.06 1.00 17.94 71.Inventories 299.36 116.59 104.72 81.28 55.Sundry Debtors 30.20 23.24 31.22 77.67 8.Cash and Bank Balance 15.65 1.09 4.80 0.96 4.Total Current Assets 345.21 140.92 140.74 159.91 67.Loans and Advances 175.27 20.49 35.76 36.00 34.Fixed Deposits 119.92 1.07 0.00 1.83 3.Total CA, Loans & Advances 640.40 162.48 176.50 197.74 105.Deffered Credit 0.00 0.00 0.00 0.00 0.Current Liabilities 313.14 110.12 60.87 60.10 30.Provisions 85.94 4.90 10.64 1.48 5.Total CL & Provisions 399.08 115.02 71.51 61.58 36.Net Current Assets 241.32 47.46 104.99 136.16 69.Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.Total Assets 412.01 317.13 309.61 241.63 180.Contingent Liabilities 72.53 3.07 124.26 27.35 10.Book Value (Rs) 56.57 112.17 19.26 83.11 124.Source : Dion Global Solutions LimitedExplore Bata India connections

×