Bata for rural game plan, to pump in Rs 100 crore in FY15

Shoe-maker Bata India will pump in Rs 100 crore to carry on with its old strategy of deeper penetration of markets in small cities and rural areas.
"We are going for franchisee route as they are more cost effective for tier III and tier IV cities. We have set up a rural division that will distribute merchandise in the rural market," Bata Managing Director R Gopalakrishnan said here today on the sidelines of the AGM.
The new marketing initiatives will help it tap a larger population, the company said.
The company is to add 100 stores under the franchise model in rural areas in the next two years.

The rural stores will sell shoes under the Bata brand. The company has already opened 20 such stores in North India on a pilot basis, Gopalakrishnan said.
In urban and semi-urban areas, Bata runs self-owned stores totalling 1,500 in 500 locations across the country.

The company also plans to add at least 120-130 stores under Bata, Hush Puppies and Footin brands by December at an investment of Rs 50 crore, Gopalakrishnan said.
The company has also undertaken modernising its three plants at Batanager in West Bengal, Patna and Bangalore at an investment of 50 crore.
Bata has shut down its tannery at Mokama in Bihar and is yet to finalise utilisation of the existing 33 acres of land, Gopalakrishnan said.

Bata currently has a capacity to produce 20-22 million pairs of shoes every year.
Meanwhile, to address rise in complaints the company has setup a quality team and is taking advice from consultant Accenture. The consultant will also offer advice on logistics for distribution.