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SUBJECT: PERSPECTIVE MANAGEMENT

ASSIGNMENT NO: 3
NAME: Omkar Patil
FIRST YEAR MASTERS OF MANAGEMENT STUDIES
History of Bata India
 Bata India is the largest retailer and leading manufacturer of footwear in India
and is a part of the Bata Shoe Organization. Incorporated as Bata Shoe
Company Private Limited in 1931, the company was set up initially as a small
operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation
stone for the first building of Bata’s operation - now called the Bata. In the
years that followed, the overall site was doubled in area. This township is
popularly known as Batanagar. It was also the first manufacturing facility in
the Indian shoe industry to receive the ISO: 9001 certification. The Company
went public in 1973 when it changed its name to Bata India Limited. Today,
Bata India has established itself as India’s largest footwear retailer. Its retail
network of over 1375 stores gives it a reach coverage that no other footwear
company can match. The stores are present in good locations and can be found
in all the metros, mini-metros and towns. Bata’s smart looking new stores
supported by a range of better quality products are aimed at offering a superior
shopping experience to its customers. The Company also operates a large non
retail distribution network through its urban wholesale division and caters to
millions of customers through over 30,000 dealers.
Bata India vision and mission
Vision Statement Mission Statement

 To grow as a dynamic, innovative and market  To be successful as the most dynamic, flexible
driven domestic manufacturer and distributor, and market responsive organization, with
with footwear as our core business, while footwear as its core business.
maintaining a commitment to the country,
 Bata will provide its product and services to all
culture and environment in which we operate.
the age groups in the community. Will also
 Bata India wishes to reposting itself as a market provide the finest quality through customers
driven, fashion, conscious lifestyle focus on involvement
variety of customer groups
Bata logo evolution
Organizational structure

Board of directors Name and designation


 Mr.Ashwani Windlass  Chairman & Ind.Director
 Mr.Ram Kumar Gupta Director  Finance & CFO Mr.Akshay Chudasama
Independent Director
 Independent Director
 Ms.Anjali Bansal
 Independent Director
 Mr.Ashok Kumar Barat
 Independent Director
 Mr.Ravindra Dhariwal
 Managing Director
 Mr.Rajeev Gopalakrishnan
 Non Executive Director
 Mr.Alberto Toni
 WholeTime Director & CEO
 Mr.Sandeep Kataria
Key executives designation
 Mr.Arunito Ganguly  Co. Secretary & Compl. Officer
 Mr.Rossano Fogarin  Head
 Mr.Kumar Sambhav Verma  Head
 Mr.Bishwanath Ganguly  Senior Vice President
 Mr.Sanjay Kanth Senior  Vice President
 Mr.Anand Narang  Vice President
 Mr.Raman Krishnamoorthy  Vice President - Information Technology
How many branches and employee company have in
India
 Today, Bata India has established itself as
India's largest footwear retailer with a retail
network of over 1,450 Bata Stores located in
over 600 cities and occupies more than 2 Mn.
sq. ft. , enjoying a large market share in the
organized sector. . The stores are present in
prime locations and can be found in all the
metros, mini-metros and towns. The company
also operates a large non-retail distribution
network through its urban wholesale division
and caters to millions of customers through
over 30,000 dealers.
 BATA INDIA has 4,913 in number of
employees in India
Company profile
 Website: www.bata.in
 Address: Bata House, 418/02, Sector-17,Gurgaon​, Haryana, 122002
India
 Company Description: BATA INDIA LIMITED is located in Gurgaon, Haryana, India
and is part of the Footwear Manufacturing Industry. BATA INDIA LIMITED has
4,913 total employees across all of its locations and generates $424.22 million in sales
(USD). There are 167 companies in the BATA INDIA LIMITED corporate family.
 Bata India ltd. Is engaged in the business of manufacturing and accessories through its
retail and wholesale network. The company operates in two segments -1.Footwear &
2. Accessories and investment in joint venture for surplus property development. Its
product include leather footwear ,rubber/canvas footwear & plastic footwear.
Swot analysis of Bata India
Strength weakness
 Bata is Found in all mini metro and town  Because of the low pricing of Bata shoes,
most consumers think the quality of the
 Bata has a very strong distribution
shoes will be low as well. This is a typical
network
price quality approach of positioning
 Bata has the cost advantage and is able to
 High competition in footwear segment
manufacture a huge range of footwear's at
a very affordable price
 Bata has positioned itself really well as a
fashionable yet affordable footwear
brand.
opportunities Threats
 Footwear's are now considered fashion  Bata is facing intense competition from
statement and hence sales are bound to other leading footwear brands in all the
increase. This creates an opportunity for categories and hence enlarging its
Bata to enhance its revenues. customer base and market share is
becoming difficult.
 Bata has a strong presence in the
emerging nations. Rural market in the  The Footwear industry is also subjected
emerging nations is growing at a high to duplicity in the market, which not only
rate. Bata needs to take advantage of the decreases sales but also weakens the
demand created in the rural market. This brand name.
will help in improving its bottom-line.
 There is a growing demand in the
premium footwear industry, especially in
the emerging nations where the standard
of living is growing.
YEARLY RESULTS OF BATA MAR '20 MAR '19 MAR '18 MAR '17
INDIA (in Rs. Cr.)
Net Sales/Income from 3,053.45 2,928.44 2,629.27 2,467.16
operations
Other Operating Income -- -- -- --
Total Income From Operations 3,053.45 2,928.44 2,629.27 2,467.16 Net profit of Bata India in past
EXPENDITURE Four years
Consumption of Raw Materials 256.96 280.72 269.52 291.42
 Net profit of Bata in financial year 2016-
Purchase of Traded Goods 1,073.62 1,086.13 984.23 887.82
Increase/Decrease in Stocks -34.27 -82.52 -57.9 -26.35 17 is 158.75 core
Employees Cost 376.42 331.08 295.38 272.7
Depreciation 295.77 64.02 60.42 65.01  Net profit of Bata in financial year 2017-
Excise Duty -- -- -- --
Other Expenses 550.98 835.75 784.25 763.95
18 is 158.75 core
P/L Before Other Inc. , Int., 533.98 413.27 293.37 212.63
Excpt. Items & Tax  Net profit of Bata in financial year 2018-
Other Income 68.84 68.54 50.84 46.65
P/L Before Int., Excpt. Items & 602.82 481.81 344.21 259.28
19 is 158.75 core
Tax
Interest 117.74 3.55 4.2 4.03  Net profit of Bata in financial year 2019-
P/L Before Exceptional Items & 485.08 478.27 340.01 255.24 20 is 158.75 core
Tax
Exceptional Items -- -- -- -21.67
P/L Before Tax 485.08 478.27 340.01 233.58
Tax 158.16 148.61 116.44 74.83
P/L After Tax from Ordinary 326.92 329.66 223.58 158.75
Activities
Net Profit/(Loss) For the Period 326.92 329.66 223.58 158.75
CSR activities done by Bata in recent years

year 2015-16 2016-17 2017-18 2018-19 2019-20

Actual CSR 1.78 Cr 6.00 Cr 7.11 Cr 6.42 Cr 7.59 Cr

Prescribed 5.70 Cr 5.80 Cr 5.58 Cr 5.81 Cr 7.18 Cr


CSR
CSR activities done by Bata in pandemic
 As a responsible corporate citizen and a trusted Brand Company is committed through
various initiatives including donation of 2 lakh pairs of shoes to assist the health care
workers volunteers and their families and the frontline fighters who have been helping
the Country in recovering from the Covid-19 pandemic.
 factory at Batanagar has realigned to make protective equipment such as face masks.
The factory has made close to 20,000 high quality face masks that have been
distributed to our employees, people living in the surrounding community, to ESCI
Hospital & to Police Department
 With the mission to equip our frontline heroes in this fight against COVID-19, Bata
collaborated with the Government Medical College Alumni Association, Bata
donated 2000 pairs of washable closed footwear to the Nursing Staff & Sanitation
Workers of various Govt hospitals at Nagpur. These washable footwear keeps
feet hygienic thereby preventing infections
 Further the Batanagar factory has made 4000 facial shields for the use of Police and
Medical staff apart from Bata employees.
 employees at Batanagar Factory are taking care of the migrant workers residing
nearby through food distribution drives. The employees voluntarily arrange for food
items & the initiative will continue during the lockdown.
Competitors of Bata
 Relaxo Footwear's Limited is an Indian multinational footwear manufacturer based in New
Delhi.
 Relaxo has the capacity to manufacture over 100 million pairs, per annum. It is second only
to Bata – a name of international repute in the footwear market.
 In India, Relaxo has a customer base of around 100 million people.
 Relaxo's capacity to manufacture 300,000 pairs of Hawaii slippers per day is the highest in
the footwear industry.
 The company is empowered by a team of experienced, mature, dynamic and result oriented
professionals with an experience in varied fields of marketing, finance, production, HRD and
administration. It is headed by 6 Directors, a President (operations), 5 GMs and over 30
managers.
 Relaxo employs over 2500 personnel who are well trained in their respective production
activities including 400 officials spread over all 9 manufacturing units and the corporate
office.
 Employees are induced to in house training programs and outside workshops sponsored by
leading institutions to broaden their existing working knowledge and experience.
 The company makes products under brands including Flite, Sparx, Bahamas, Hawai,
Canvas, Dip, Leatherite, Joggers and Schoolmate.
 Founders: Mukand Lal Dua, Ramesh Kumar Dua
 Headquaters: new Delhi India
CSR activities done by Relaxo Footwear
 In these times of Coronavirus pandemic sanitation workers with the municipal corporations have been at the forefront,
putting their lives at risk, in ensuring a clean and healthy environment. Acknowledging their selfless service to the society at
large, Relaxo Foundation donated 25,000 pair of slippers among North Delhi Municipal Corporation (NDMC) sanitation
workers who have been battling the COVID-19 pandemic for over 100 days now and counting.
 Responding to the need of the hour, Relaxo Foundation supported AIIMS, Delhi, and other hospitals in Haryana and
Uttrakhand, in purchasing medical equipment and also aided Government administration and various charitable
organizations in distributing relief materials for migrants and marginalized families.

Covid19- Project Mobile Remedial Project Private


relief Narayan medical education jaagrati modal
activities health programe school
programe
 Mirza International Limited is a leading Indian leather and footwear company led
by Irshad Mirza, who currently serves as the firm's Executive Chairman.
Headquartered in New Delhi and serving around the world, the company's major
brands include Red tape, OakTrak, Bond Street, Athleisure, and Mode.
 Mirza International was founded in 1979 as Mirza Tanners Limited. The company
started as a local business and expanded to countries like the UK, Europe, South
Africa, and the Middle East. Mirza International is listed on the NSE, BSE, and UP
Stock exchanges and is ISO 9001, 9002, and 14000 certified.
 Brands of mirza international: REDTAPE , REDTAPE ATHLEISURE, BOND
STREET, OAKTRAK, MODE
 REDTAPE is a premium lifestyle brand, offering style, quality, and comfort at
competitive prices. The brand offerings have been extended to garments and
accessories.
 REDTAPE At leisure offers quality sports shoes for men and is targeted to meet the
aspirations of young Indians always on-the-go and focused on fitness.
 Bond Street provides footwear in the polyurethane (PU) segment at very low price
points.
 Oaktrak stands for style and comfort and is targeted at the niche consumer-base of
senior professionals.
 MODE by the house of REDTAPE is an exclusive women’s wear brand, covering a
range of products from footwear to clothing
CSR activities of Mirza international
limited
 Mirza Charitable Hospital Ltd., a multi-specialty hospital at Unnao District, Uttar Pradesh. The hospital provides OPD and IPD services to
low-income people residing in nearby areas. It is run by independent doctors specialized in the fields of orthopedics, ophthalmology,
general medicine, physiotherapy and dental among others. Surgical facilities, diagnostic services, Mobile Medicare Unit (MMU), round-
the-clock ambulance, medicine distribution and medical consultation are all provided free of cost by the hospital.
 Another key service provided is a free eye-camp that is held every year. Eye operations, distribution of medicines and optical glasses,
boarding and lodging facilities to patients and their attendants are provided in this eye camps.
 Quami Ekta Inter College in Unnao, which provides educational facilities to approximately 400 boys and girls. Over the years, the
Foundation has taken up various projects for improving the college. These include: Arrangement of drinking water facilities, Construction
of boundary wall for security purposes, Construction of separate toilets for boys and girls, Levelling of college playground, Beautification
work, Maintenance and upgrade of infrastructure, We also extend financial assistance to students from underprivileged families by
sponsoring their educational fee to different schools and colleges.
 Mirza international is committed to helping expand economic opportunities for women. The Foundation distributes sewing machines to
women to enable them to become self-reliant and earn their livelihood.
 Running of Mobile Medicare Unit in/around nearby villages
Various departments of Bata
1. Procurement team
 India is popular all over the world for leather production and exporting. So Bata easily
collect leather as raw material from many finished leather production company like-
AISHTMA and they have two own tannery where they produce finished leather.
2. Operation department
 The company has a licensed capacity of 628lakh pairs per annum spread across its
five Manufacturing units at Batanagar (Kolkata),Faridabad (Haryana), Bataganj
(Bihar), Peenya (near Bangalore), and Hosur (Tamil Nadu).
3. Retail network
 Its retail network of over 1500 stores gives it a reach that no other footwear company
can match in India. The stores are present in good locations and can be found in all
the metros, mini-metros and towns. The Company also operates a large non retail
distribution network through its urban wholesale division and caters to millions of
customers through over 30,000 dealers. It has 26 Wholesale depots, serving more than
500wholesalers.
4. Marketing department
 Outreach media: Bata was the first company to place large advertising signs at
its own point of sales
 Print media: advertising in magazines and newspapers
 Electronic media: promotions through TV ads specifically in summer and winter
 Online media: Facebook fan club page
5. Sales team
 Sales associates are committed to helping each customer find the shoes that
suit them best and making sure that customers are completely satisfied.
6. Service team
 They provide post sales services like obtaining feedback from customers,
replacement of footwear's within guarantee and warrantee period
7. Quality maintenance team
 It focuses on quality maintenance, there internal quality audit team which
looks after the quality
Disputes between workers and management happened in Bata in
period 1990 to 2000
For right or wrong reasons, Bata India Limited (Bata) always made the headlines in the financial dailies and business magazines during the late 1990s. The company was headed by the 60
year old managing director William Keith Weston (Weston). He was popularly known as a 'turnaround specialist' and had successfully turned around many sick companies within the Bata
Shoe Organization (BSO) group. By the end of financial year 1999, Bata managed to report rising profits for four consecutive years after incurring its first ever loss of Rs 420 million in
1995. However, by the third quarter ended September 30, 2000, Weston was a worried man. Bata was once again on the downward path. The company's nine months net profits of Rs105.5
million in 2000 was substantially lower than the Rs 209.8 million recorded in 1999.Its staff costs of Rs 1.29 million (23% of net sales) was also higher as compared to Rs 1.18 million
incurred in the previous year. In September 2000, Bata was heading towards a major labor dispute as Bata Mazdoor Union (BMU) had requested West Bengal government to intervene in
what it considered to be a major downsizing exercise

Assault Case

More than half of Bata's production came from the Batanagar factory in West Bengal, a state notorious for its militant trade unions, who derived their strength from the dominant political
parties, especially the left parties. Notwithstanding the giant conglomerate's grip on the shoe market in India, Bata's equally large reputation for corruption within, created the perception that
Weston would have a difficult time. When the new management team weeded out irregularities and turned the company around within a couple of years, tackling the politicized trade unions
proved to be the hardest of all tasks. On July 21, 1998, Weston was severely assaulted by four workers at the company's factory at Batanagar, while he was attending a business meet The
incident occurred after a member of BMU, Arup Dutta, met Weston to discuss the issue of the suspended employees. Dutta reportedly got into a verbal duel with Weston, upon which the
other workers began to shout slogans. When Weston tried to leave the room the workers turned violent and assaulted him. This was the second attack on an officer after Weston took charge
of the company, the first one being the assault on the chief welfare officer in 1996. Soon after the incident, the management dismissed the three employees who were involved in the violence.
The employees involved accepted their dismissal letters but subsequently provoked other workers to go in for a strike to protest the management's move. Workers at Batanagar went on a
strike for two days following the incident . Commenting on the strike, Majumdar said: "The issue of Bata was much wider than that of the dismissal of three employees on grounds of
indiscipline. Stoppage of recruitment and continuous farming out of jobs had been causing widespread resentment among employees for a long time." Following the incident, BSO decided to
reconsider its investment plans at Batanagar. Senior vice-president and member of the executive committee, MJZ Mowla, said2: "We had chalked out a significant investment programme at
Batanagar this year which was more than what was invested last year. However, that will all be postponed." The incident had opened a can of worms, said the company insiders. The three
men who were charge-sheeted, were members of the 41-member committee of BMU, which had strong political connections with the ruling Communist Party of India (Marxist). The trio it
was alleged, had in the past a good rapport with the senior managers, who were no longer with the organization. These managers had reportedly farmed out a large chunk of the contract
operations to this trio. Company insiders said the recent violence was more a political issue rather than an industrial relations problem, since the workers had had very little to do with it.
Seeing the seriousness of the issue and the party's involvement, the union, the state government tried to solve the problem by setting up a tripartite meeting among company officials, the
labor directorate and the union representatives. The workers feared a closedown as the inquiry proceeded
INDUSTRIAL RELATIONS For Bata, labor had always posed major problems. Strikes seemed to be a perennial problem. Much
before the assault case, Bata's chronically restive factory at Batanagar had always plagued by labor strife. In 1992, the factory was
closed for four and a half months. In 1995, Bata entered into a 3- year bipartite agreement with the workers, represented by the then
10,000 strong BMU, which also had the West Bengal government as a signatory. On July 21, 1998, Weston was severely assaulted by
four workers at the company's factory at Batanagar, while he was attending a business meet. The incident occurred after a member of
BMU, Arup Dutta, met Weston to discuss the issue of the suspended employees. Dutta reportedly got into a verbal duel with Weston,
upon which the other workers began to shout slogans. When Weston tried to leave the room the workers turned violent and assaulted
him. This was the second attack on an officer after Weston took charge of the company, the first one being the assault on the chief
welfare officer in 1996. In February 1999, a lockout was declared in Bata's Faridabad Unit. Middleton commented that the closure of
the unit would not have much impact on the company's revenues as it was catering to lower-end products such as canvas and Hawaii
chappals. The lock out lasted for eight months. In October 1999, the unit resumed production when Bata signed a three-year wage
agreement. On March 8, 2000, a lockout was declared at Bata's Peenya factory in Bangalore, following a strike by its employee
union. The new leadership of the union had refused to abide by the wage agreement, which was to expire in August 2001. Following
the failure of its negotiations with the union, the management decided to go for a lock out. Bata management was of the view that
though it would have to bear the cost of maintaining an idle plant (Rs. 3 million), the effect of the closures on sales and production
would be minimal as the footwear manufactured in the factory could be shifted to the company's other factories and associate
manufacturers. The factory had 300 workers on its rolls and manufactured canvas and PVC footwear. In July 2000, Bata lifted the
lockout at the Peenya factory. However, some of the workers opposed the company's move to get an undertaking from the factory
employees to resume work. The employees demanded revocation of suspension against 20 of their fellow employees. They also
demanded that conditions such as maintaining normal production schedule, conforming to standing orders and the settlement in force
should not be insisted upon. In September 2000, Bata was again headed for a labor dispute when the BMU asked the West Bengal
government to intervene in what it perceived to be a downsizing exercise being undertaken by the management. BMU justified this
move by alleging that the management has increased outsourcing of products and also due to perceived declining importance of the
Batanagar unit. The union said that Bata has started outsourcing the Power range of fully manufactured shoes from China, compared
to the earlier outsourcing of only assembly and sewing line job. The company's production of Hawaii chappals at the Batanagar unit
too had come down by 58% from the weekly capacity of 0.144 million pairs. These steps had resulted in lower income for the
workers forcing them to approach the government for saving their interests.
Bata formed multi channel retail strategy
for growth in 2019
Bata will continue its growth journey in India with the multi-retail channel approach along with e-
commerce platform to reach out to as many customers. Now we are using all three engines - our own
stores, franchise partner store, which is a big drive for us in tier III & IV, and multi brand outlets. On the
top it would be our e-commerce channels, whether through bata.in or other marketplaces to get as many
consumers as we can," Bata India CEO Sandeep Kataria told . The company said it will strengthen its
presence by focusing mainly on small markets as it has identified tier II, III and IV cities where it has plans
to broaden its sales network through the franchise model. According to Kataria, online channels are
providing opportunities in multiple ways to reach consumers. "We can actually use the digital channels to
increase the productivity of our stores and enhance the satisfaction to our consumers," said Kataria on the
sidelines of an event organized by the Retailers Association of India. Besides, Bata is working hard to
reconnect with the country's millennial. Besides, Bata is working hard to reconnect with the country's
millennial. "We are seeing the average age of the customers in Bata store going down. We have now more
millennial than the past," he said. When asked whether Bata has any plans to introduce new brands from its
global fold, he said the company is not very keen to do that. "There is a huge opportunity for us to play
with the brands which we have here. So we are not very keen to bring a new brand," he said adding that the
company has license for manufacture and sale of several global brands as Hush Puppies, Naturalize.
Besides, the company has introduced outdoor brand shoes from Caterpillar in its top selected outlets this
season.
Awards won by Bata India

IMAGES Most Admired Featured among AFAQ’s 2017 DUN & BRADSTREET Corporate The Most Trusted Brand (Retail) Udyog Rattan Award - The The Most Attractive Brand at the Images Shoes & Accessories
Footwear Brand of the year India’s Buzziest Brands Award 2017 - Brand Equity recognized Bata Institute of Economics Studies 11th Position - Most attractive Forum Held at Mumbai - Bata
2017, at the 18th Annual into the 'Top Most Trusted honored Mr. Rajeev brand at the 11th position - India bagged the award for
IMAGES Fashion Awards Brands' in November 2013 Gopalakrishnan and the 2013. The report India's most 'Most Admired Large Format
Company with the Certificate of attractive brand is globally, the Multi Brand Footwear Retailer of
Excellence and Gold Medal at foremost intensive study on the Year' by the Images Shoes &
the 'International Global Meet' Brand attractiveness. It is a Accessories Forum - 2013
scheduled on the 23rd January comprehensive list of most
2014. The IES commits to attractive brands based on 36
improve the country economy traits of attraction quotient, find
through its activities by holding a survey research firm TRA
conferences & group
discussions on the issues of
contemprary business and
economics interests.
Sustainability measures taken by Bata India
The Company has established an internal mechanism for continual improvement process towards sustainable excellence and has taken
adequate steps for safe transportation and optimization of logistics, which in turn is improving the Company’s manufacturing system,
creating a safe work place and offering opportunities to our employees to excel and explore their potential and also mitigating the
impact on climate. The use of appropriate mode of transportation is a continuous part of effective supply-chain mechanism and the
Company’s endeavor to reduce transport related environmental impact is an ongoing process. Major associates of the Company, who are
engaged in supplying of maximum level of raw materials for shoe manufacturing process in all manufacturing Units across India, are
located nearby the respective Units. This helps the Company to minimize its transportation cost and environmental impact.
1. The Company is manufacturing Safety Shoes for the end consumers of various organizations where it is sold.
2. The Company has also replaced Natural Rubber & Leather with synthetic EVA (Ethylene Vinyl Acetate) in sole making& PU
coated PVC in shoe upper making respectively, thereby contributing towards natural resource conservation.
3. The Company has also introduced usages of recycled waste rubber from tyre waste for rubber outsole production which is
environment friendly.
4. The Company has also replaced Fossil Fuel based boilers at Batanagar with eco-friendly Bio-Mass waste based briquettes.

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