Footwear Industry

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BY-

VINAY.M.S
VASANTHA
PRABHA
COMMENCEMENT DATE
The company was founded in January 1964 as Blue Ribbon
Sports by Bill Bowerman and Philip Knight, and officially
became Nike, Inc. in 1978. The company takes its name from
Nike (Greek Νίκη pronounced /níːkɛː/), the Greek goddess of
victory. Nike markets its products under its own brand as well
as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding
and subsidiaries including Cole Haan, Hurley International,
Umbro and Converse. Nike also owned Bauer Hockey (later
renamed Nike Bauer) between 1995 and 2008. In addition to
manufacturing sportswear and equipment, the company
operates retail stores under the Niketown name. Nike sponsors
many high profile athletes and sports teams around the world,
with the highly recognized trademarks of "Just do it" and the
Swoosh logo.
Continued……

Nike's world headquarters are surrounded by the city of


Beaverton, but are within unincorporated
Washington County.
FOUNDER DETAILS
 Nike, originally known as Blue Ribbon Sports, was founded by
University of Oregon track athlete Philip Knight (born February
24, 1938) and his coach Bill Bowerman in January 1964The
company's profits grew quickly, and in 1966, BRS opened its first
retail store, located on Pico Boulevard in Santa Monica, California
.
 Key people Philip H. Knight
(Chairman)
Mark Parker
(CEO & President)
 Knight's stake in Nike gives him an estimated net worth of US$
11.1 billion, making him the 23rd richest person in the U.S.
TURNOVER PER ANNUM
 major manufacturer of sports equipment with revenue in
excess of $18.6 billion USD in its fiscal year 2008 (ending
May 31, 2008).
 Revenue ▲ US$19.2 billion (FY 2009) Operating income ▲
US$1.87 billion (FY 2009) Net income ▲ US$1.49 billion
(FY 2009) Total assets ▲ US$13.2 billion (FY 2009)
Total equity ▲ US$8.69 billion (FY 2009)
NUMBER OF EMPLOYEES
As of 2008, it employed more than 30,200 people worldwide.
Nike and Precision Castparts are the only Fortune 500
companies headquartered in the state of Oregon, according
to The Oregonian.
PRODUCTION DETAILS
 Their first products were track running shoes.
 They currently also make shoes, jerseys, shorts, baselayers
etc. for a wide range of sports including track and field,
baseball, ice hockey, tennis, association football (soccer),
lacrosse, basketball and cricket. Nike Air Max is a line of
shoes first released by Nike, Inc. in 1987.
 The most recent additions to their line are the Nike 6.0, Nike
NYX, and Nike SB shoes, designed for skateboarding.
 Nike has recently introduced cricket shoes, called Air Zoom
Yorker, designed to be 30% lighter than their competitors.
 In 2008, Nike introduced the Air Jordan XX3, a high-
performance basketball shoe designed with the environment
in mind.
Continued….
 Nike sells an assortment of products, including shoes and
apparel for sports activities like association football, basketball
, running, combat sports, tennis, American football, athletics,
golf and cross training for men, women, and children.
 Nike recently teamed up with Apple Inc. to produce the Nike+
product which monitors a runner's performance via a radio
device in the shoe which links to the iPod nano. While the
product generates useful statistics, it has been criticized by
researchers who were able to identify users' RFID devices from
60 feet (18 m) away using small, concealable intelligence
motes in a wireless sensor network.
 Some of Nike's newest shoes contain Flywire and Lunarlite
Foam. These are materials used to reduce the weight of many
types of shoes.
OPERATION LEVEL

Nike has contracted with more than 700 shops around the
world and has offices located in 45 countries outside the
United States. Most of the factories are located in Asia,
including Indonesia, China, Taiwan, India, Thailand, Vietnam,
Pakistan, Philippines, and Malaysia.
STRATEGY
 distinctive logo and the advertising slogan: "Just do it".
 Nike promotes its products by sponsorship agreements with
celebrity athletes, professional teams and college athletic
teams.
 SPONSORSHIP
 INNOVATION IN PRODUCTS
NIKE’S MISSION STATEMENT
“to bring inspiration and innovation to every
athlete in the world.   If you have a body, you
are an athlete”
PUMA
 Puma AG Rudolf Dassler Sport, officially branded as PUMA, is
a major German multinational company that produces high-
end athletic shoes, lifestyle footwear and other sportswear.
Formed in 1924 as Gebrüder Dassler Schuhfabrik by Adolf and 
Rudolf Dassler, relationships between the two brothers
deteriorated until the two agreed to split in 1948, forming two
separate entities, Adidas and Puma. Puma is currently based in 
Herzogenaurach, Germany.
 Following the split from his brother, Rudolf Dassler originally
registered the new-established company as Ruda, but later
changed toPuma. Puma's earliest logo consisted of a square
and beast jumping through a D, which was registered, along
with the company's name, in 1948.
 Since 1996 Puma has intensified its activities in the United
States. Puma owns 25% of American brand sports clothing
maker Logo Athletic, which is licensed by American
professional basketball and association football leagues.
Since 2007 Puma AG has been part of the French luxury
group PPR
 HeadquartersHerzogenaurach, Germany
 Area servedWorldwideKey peopleJochen Zeitz (CEO and
Chairman of the management board)
Melody Harris-Jensbach(deputy CEO)
Klaus Bauer (COO)
François-Henri Pinault(Chairman of the supervisory board
ProductsFootwear, sportswear, sports goods, 
fashion accessories)
 Revenue€2.461 billion (2009)
 Operating income€192.4 million (2009)
 Profit€128.2 million (2009)
 Employees9,650 (end 2009)
MISSION & VISION
 mission
The brand mission is to become the most desirable
Sportlifestyle brand," and the corporate mission is "to be
the first truly virtual sports company.“

 vision
We are committed to working in ways that
contribute to the world by supporting creativity,
sustainability and peace and by staying true to the
values of being Fair, Honest, Positive and Creative in
decisions made and actions taken.
COMMENCEMENT DATE

Established in 1954, today the company through its six


manufacturing units collectively produces, 50,000 pairs of
footwear a day, sold through 6,000 multi-brand outlets.

Headquarters Karnal, Haryana


FOUNDER DETAILS
Adesh Gupta (Born 27 June 1960, Karnal) is the present Chief
Executive Officer of Liberty Shoes, one of India’s biggest
Footwear companies since 2003. Liberty was established in the
year 1954 by Shri P.D. Gupta, Shri D.P. Gupta and Shri R.K. Bansal
and further consolidated and expanded by the later generations
of the family. He is also the Chairman of Liberty Infotech and
Sunfest Infratech & Power Ltd.
Continued……….

Adesh Gupta is a Mechanical Engineer (1977-82) from


Kurukshetra University, Kurukshetra (Haryana). He was a
close friend and classmate of Astronaut Late Mrs. Kalpna
Chawla in Tagore Bal Niketan School, Karnal (Haryana).
PRODUCT DETAILS
 FOR MEN: Coolers, Fortune, Force 10, Gliders and Windsor
 FOR WOMEN: Force 10, Gliders, Senorita and Tiptopp
 FOR KIDS: Footfun, Force 10, Gliders, Prefect
 SAFETY SHOES: Freedom, Warrior and Workman
LSL produces more than 50,000 pairs of footwear a
day covering virtually every age group and income
category. Products are marketed across the globe
through 150 distributors, 350 exclusive showrooms
and over 6000 multi-brand outlets, and sold in
thousands every day in more than 25 countries.
Continued……..

After 50 years of its existence, today Liberty produces


footwear for the all age groups. Currently, LSL is headed
by Mr. Adesh Gupta as its CEO. It is a part of the 'Liberty
Group' which includes other associate companies - Liberty
Retail Revolutions Limited and Liberty Whiteware.
TURNOVER PER ANNUM
 1989 Liberty had become a Rs 35-crore company.
 The company saw major expansion in the 2000s, both in
retail and manufacturing bases, leading to a sharp growth,
in the year 2002-03, the company posted a retail turnover
of Rs 400 crore.
OPERATION LEVEL

25 countries, with 50 showrooms outside India .


350 exclusive showrooms.
VISION & MISSION

To ensure that the method we use is the latest technology


the world over. To follow the highest standards of honest
workmanship in whatever we make. To walk the extra mile
to ensure customer satisfaction worldwide. To remain a
true cosmopolitan to the spirit. To remain a great
corporation to associate with, to work for….
Board of Directors
 Adesh Gupta, CEO
 Adarsh Gupta, Executive Director
 S.K. Goel, Executive Director
 Prem Chand Garg, Independent Non Executive Director
 Siddharth Sanghi, Independent Non Executive Director
 Raghu Dayal, Independent Non Executive Director
 Shammi Bansal, Executive Director
 Sunil Bansal, Executive Director
 Amitabh Taneja, Independent Non Executive Director
 S.K.Arya, Independent Non Executive Director
 Vivek Bansal, Executive Director
 Increasing addressable market: The introduction of an
entirely new product range to cater to a wider income
group along with diversifying their focus from men's shoes
and children school shoes to catering to the entire family
which will help increase Liberty’s addressable market. The
company has introduced shoes for fashion conscious
consumers. It is expected to increase average realizations.
We expect revenues to increase from Rs1780mn in FY05 to
Rs2197mn in FY06 and Rs2618mn in FY07.
 The retail way: To increase presence in the lifestyle
market, Liberty has launched retail stores named
"Revolutions“ in high end malls across the country. From
the existing 9 stores we expect Liberty to put up 39 stores
by FY07. The revenues from the retail venture are
expected to go up from Rs.38mn in FY05 to Rs.91mn in
FY06 and Rs248mn in FY07. We expect this venture to
make profits at an operating level in FY06 of Rs.1.3mn and
Rs.26.5mn in FY07.
 Pantaloon-Liberty JV: Pantaloon and Liberty Shoes
entered in to a JV in September, 05 to set up a chain of
large format footwear retail stores ranging between
10,000-15,000 square feet. Liberty Shoes will invest
Rs.122.5mn for 49% stake and Pantaloon will invest
Rs.127.5mn for 51% stake. The JV will set up 45 stores by
2008. The details of this venture are still under discussion,
therefore we have not factored any upside from this JV
into our projections.
 Benefits from expansion in Uttaranchal Plant: To avail of
the promotional incentives available at Uttaranchal,
Liberty has set up a plant with capacity of 480,000 pairs.
The plant commenced operations in June 04. The excise
duty savings from this plant were Rs.15mn in FY05 and are
expected to be Rs.30mn in FY06. The company is also
expanding capacity to 1.18mn pairs. This expansion will be
completed by June-July, 06. Therefore excise duty savings
in FY07 will be Rs50mn.
 VAT and reduction in raw materials cost: The
implementation of VAT @ 12% has enabled the company
to revise their prices taking a long term view of their
strategy. Backward integration will contribute to reduction
in raw material cost. Both these factors will increase
operating margins from 12.2% in FY05 to 14.9% in FY06
and 15.9% in FY07.
 Valuations: We expect turnover of the company to grow
from Rs1780mn in FY05 to Rs.2197mn in FY06 and
Rs2618mn in FY07 along with EPS growth of 78% CAGR
over the next 2 financial years. RoCE is also expected to
increase from 16% in FY05 to 21% in FY07. At CMP of
Rs262, the stock trades at a PEG of 0.28xFY06 and 0.20x
FY07. Based on PEG of 0.25x FY07, we expect 26% growth
in price to Rs330.We recommend BUY on the stock.
NUMBER OF EMPLOYEES

Employees: 1333
The Company's products are marketed worldwide through
150 distributors, 350 showrooms and over 6,000 multi-
brand outlets, and sold in approximately 25 countries,
including France, Italy and Germany.
COMMENCEMENT DATE

 Thomas Bata, founder of the Toronto-based Bata Shoe


Company - which has hundreds of manufacturing units and
retail stores globally, including India -- is 93 years old.

"People in India consider Bata to be an Indian company,"


FOUNDER DETAILS
Tomáš Jan Baťa, CC (September 17, 1914 – September 1, 2008),
also known as Tomas Bata Jr. and Tomáš Baťa ml. and
"Shoemaker to the World", ran the Bata Shoe Company from the
1940s until the '80s.Baťa was born in the Czech city of Prague, in
what is now the Czech Republic, the son of Czech industrialist
Tomáš Baťa. In 1946 Bata operated 38 factories and 2,168
company shops; they produced 34 million pairs of shoes and
employed 34,000 people. In 1948, however, Czechoslovakia was
fully seized by communist powers and Bata enterprises in Poland,
East Germany, Yugoslavia, Hungary, Romania and Bulgaria were
lost.
Continued…….

 Thomas Bata, founder of the Toronto-based Bata Shoe


Company - which has hundreds of manufacturing units and
retail stores globally, including India -- is 93 years old.
 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.
Continued…….

 2003 - Awarded the Retail Council of Canada's


Lifetime Achievement Award
 1991 - Awarded the Czech Republic's top decoration, the
Tomas Garrigue Masaryk Order.
OUR VALUES
 Constant innovation in design and product development
 Superior customer service
 Excellence in operational and commercial execution
 Entrepreneurial spirit and passion to win
 Teamwork in international environment
 Trust and respect for our employees
 Adding value to the community
 Delivering on our commitment to shareholders
PRODUCTION DETAILS

Bata India Limited, through its subsidiaries, engages in the


manufacture and marketing of footwear primarily in India. It
manufactures leather, rubber, canvas, and PVC shoes. The
company offers various selection of footwear, such as men,
ladies, children, schools, sports, canvas, and hawai footwear. In
addition, the company offers accessories, including socks,
polishes, belts, brushes, and school bags. Bata’s brand portfolio
comprises Hush Puppies, Dr Scholls, North Star, Power, Marie
Claire, and Bubblegummers. The company sells its products
through its retail outlets, as well as through wholesalers. As of
July 13, 2007, it operated approximately 1,100 stores in India.
OPERATION LEVEL
 conglomerate across more than 50 countries around the
globe.
 serving over one million customers every day through
5,000 retail stores, which are supplied by 40 production
facilities in 26 countries.
NUMBER OF EMPLOYEES
 giving a livelihood to over 40,000 employees.
 workforce in India would be around 8,000 people.
TURNOVER PER ANNUM
 27.10.2010
Bata India Q3 net profit up at Rs 20.7 cr
 30.07.2010
Bata India reports Rs 351.20 crore
turnover for quarter ended Jun 2010
 29.07.2010
Bata India Q2 net profit up at Rs 25.9 cr
SIGNIFICANT STRTEGY

"bata has set in motion a 360 degree revamp operation


driven by a strategy of focussed marketing and
segmentation. it is designed to impact the customer in
every income group through both innovative product
development as well as fine-tuned distribution,"
COMMENCEMENT DATE
Founded 1924 as Gebrüder Dassler Schuhfabrik (registered in 1949).
Adidas AG is a major German-based sports apparel manufacturer
and parent company of the Adidas Group, which consists of the
Reebok sportswear company, TaylorMade-adidas golf company
(including Ashworth), and Rockport.
The "Three Stripes" were bought from the Finnish sport company
Karhu Sports in the 1950s.
FOUNDER DETAILS
 Founder(s) Adolf Dassler, Headquarters Herzogenaurach,
Germany.
PRODUCTION DETAILS
Besides sports footwear, the company also produces other
products such as bags, shirts, watches, eyewear and other sports
and clothing related goods.
 Footwear, sportswear, sports equipment, toiletries
 Adidas also designs and makes sandals, watches, eyewear, bags,
baseball caps, and socks.
 Adidas Fresh Impact – Limited Edition
 As well, Adidas has a branded range of male and female
deodorants, perfumes, aftershave and lotions.
NUMBER OF EMPLOYES

Employees 39,600 (2009)


TURNOVER PER ANNUM

 Revenue €10.38 billion (2009)


 Operating income €508 million (2009)
 Profit €245 million (2009)
OPERATION LEVEL

Area served-- Worldwide


MISSION
The adidas Group strives to be the global leader in the sporting goods
industry with sports brands built on a passion for sports and a sporting
lifestyle.

We are consumer focused and therefore we continuously improve the


quality, look, feel and image of our products and our organizational
structures to match and exceed consumer expectations and to provide
them with the highest value.

We are innovation and design leaders who seek to help athletes of all
skill levels achieve peak performance with every product we bring to
market.

We are a global organization that is socially and environmentally


responsible, creative and financially rewarding for our employees and
shareholders.
VISION
Our vision is clear: to enhance social and environmental performance in
the company and the supply chain, thereby improving the lives of the
people making our products.
 
We are striving to be the global leader in the sporting goods industry and
this demands that we return strong financial results. But leadership is not
only about results, it is also about how success is achieved. We are
accountable for the way we do business. In particular, we accept
responsibility for the way our products are manufactured by our
suppliers. By our actions we can – and should – improve the lives of
workers who make our products.
 
We are committed to good governance, and use our stainability
statement and our corporate missions on Social and Environmental
Affairs, Human Resources and Community Affairs to achieve our vision.
SIGNIFICANT STRATEGY
 Diverse brand portfolio
 Investments focused on highest potential markets and
channels
 Creating a flexible supply chain
 Leading through innovation
 Develop a team grounded in our heritage
 Creating Shareholder value

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