Bata India's Bold Steps for Volume-Driven Growth
Bata India is strategizing for volume-driven revenue growth over the next five years, targeting middle-class consumers. The focus includes cost adjustments, franchise expansion, and enhancing brand contributions. Despite challenging demand conditions, the company emphasizes delivering value propositions and aims to boost revenues in its Floatz business.
- Country:
- India
Bata India is on a mission to achieve a volume-driven revenue growth trajectory over the next five years, primarily focusing on middle-class consumers. In a recent earnings call, Managing Director & CEO Gunjan Shah emphasized the company's intent to remain relevant to its core market by resetting cost structures to offer value propositions.
The company retains a robust 80:20 ratio in its store expansion strategy between franchise and company-owned outlets, currently operating over 624 franchise stores. Brands like Hush Puppies and Power remain strong contributors, accounting for about 20% of the group's revenue.
Despite tight demand conditions, Bata India adopts an aggressive approach across various levers, targeting value-for-money offerings to attract cost-sensitive customers. Shah revealed notable success in the Floatz business, projecting revenues to double to Rs 200 crore this year.
(With inputs from agencies.)
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