Bata India targets volume-drive revenue growth over next five years
Leading shoemaker Bata India has set its sights on a volume-driven revenue growth trajectory for the next five years, with a strategic focus on the middle-class Indian consumer.
To cater to its core customer segment, Bata India plans to offer a portfolio that delivers value for money, acknowledging that many customers are seeking relief from ongoing inflation. The company is also focusing on improving the in-store experience, ensuring products are showcased effectively, are well-stocked in all sizes, and that customers receive excellent service.
Gunjan Shah, Managing Director & CEO, says, remaining relevant to its core middle-class customer base, the company recognizes their demand for strong value propositions. It is making a concerted effort to reset cost-price structures and aim for a consistent volume-led revenue growth.
In terms of retail expansion, Bata India plans to maintain an 80:20 ratio between franchise and company-owned and company-operated (COCO) outlets. The company operated 624 franchise stores by the end of FY25.
Hush Puppies and Power are the second and third largest brands within the Bata group, respectively, notes Shah. These contribute a strong double-digits growth in the range of about 20 per cent to the company's overall revenue, he adds.
Despite acknowledging ‘tight’ demand conditions, the company aims to drive growth by exploring various options.
One particular success story highlighted is the Floatz business, which has already surpassed Rs 100 crore in revenue. If the current momentum continues, Floatz could reach approximately Rs 200 crore in revenue this year, Shah projects.
