Bata to delist from Lyons Range

Bata India has severed yet another tie with the City of Joy, its hometown. Close of the heels of shifting its marketing headquarters from Kolkata to New Delhi, the shoe major has decided to delist its shares from Calcutta Stock Exchange (CSE).

The board of Bata India took the delisting decision last week following the infrequent trading of shares on the local bourse, said sources in the company. After the delisting from CSE, the shares of Bata India will be listed with Bombay Stock Exchange.

Bata established itself in India in 1931 and commenced manufacturing shoes in Konnagar which was later shifted to Batanagar, West Bengal.

Incorporated as Bata Shoe Company Private Limited in 1931, the company went public in 1973 and changed its name to Bata India Ltd.

Operations were consequently expanded throughout India with the establishment of factories in different states and the rapid growth of the distribution channels to allow the products to reach consumers in every town across India. Bata India today is the country's biggest manufacturer and marketer of footwear.

As the company was incorporated in Kolkata, a large number of retail shareholders in and around the city possess the Bata India stock. Now, they will left with no other alternative but to trade on BSE.

A broker said the shareholders would be benefited if the shares were listed on NSE."

The number of NSE terminals in Kolkata are far more than that of BSE." He urged the company to list its shares on NSE.

The company has lately changed its focus from being a shoe manufacturer to a marketing company and decide to outsource a major portion of its products from domestic as well as foreign manufacturers.

On the turnover front its expects to emerge a $200 million company five years down the line and is confident of hopping back on the profit track this year itself.

Outsourcing is also high on BIL's priority. At present as much as 30 per cent of all shoes sold by Bata through retail stores is outsourced while as much as 55 per cent of shoes sold through the wholesale division are manufactured by BIL. This ratio is expected to rise in favour of outsourced shoe components in the next few years.