Bata to invest Rs 100cr; may open 130 stores this year
The company will be investing Rs 45 crore in three of its plants in Patna, Batanagar in West Bengal and Bangalore over the next three years, said Bata India chairman Uday Khanna.
"We will take up the Patna plant in the first year, followed by Batanagar in West Bengal and then Bangalore. Each plant would require Rs 15 crore investment," Bata India managing director Rajeev Gopalkrishna said soon after the annual general meeting of the company in Kolkata on Wednesday.
The company has already firmed up plans to open 130 new outlets in 2012 itself. “Bata will continue to expand its exclusive stores with associated brands like Footin and Hush Puppies, and some 100-130 stores are planned in 2012 itself,” he said. The company would focus on women and kids segments, which contribute 22 per cent of revenues and was expecting a 5-6 per cent increase in 2012 in this segment.
Responding to specific queries on the company’s retail expansion plans, Gopalkrishna said that tier II and III cities were showing good growth and as a strategy the company would stay aggressive in these markets that offers 30-40 per cent revenues.
Meanwhile, the company has clocked a turnover of Rs 1,542 crore during 2011 and a net profit of over Rs 226 crore (including net gains from surplus property). The company declared final dividend of Rs 6 per share, which is again the best ever dividend declared till date.
Hush Puppies, its premium retail offering, plans to open 11 new exclusive Hush Puppies stores. The shop-in-shop retail format has also been very successful with six shop-in-shops opened in 2011. It has also entered into partnership with Central stores apart from the existing lifestyle stores, said Khanna.