Bata renegotiates rentals at 30% discount

Footwear major Bata India has renegotiated rentals with owners of around 40 stores and achieved up to 30 per cent rent reduction on properties.

"The fall in the realty prices have led to rent renegotiations with our property owners and so far we have been able to renegotiate rents on around 40 of our outlets across India. The revised rentals are up to 30 per cent less than the earlier amount," Bata India Group Managing Director Marcello Villigram told PTI.

He said talks are on with some other property owners and the company expects rent reductions on more properties.

Villigram added, Bata has also closed around 40 stores in India in accordance with the company's strategy of shutting small format stores and focusing on medium and large ones.

 

"Around 40 stores have been closed over last one year. Most of them have been merged together to set up medium and large format stores," he said.

Bata currently has around 1,200 outlets across the country and reported an annual turnover Rs 1,000 crore last year.

"We are hoping to increase our turnover by 12-13 per cent in our January-December 2009 fiscal," Villigram said.