Page 3 - Footwear

Bata Q3 results: Net profit falls 30% to Rs 58 cr, revenue at Rs 903 cr

Bata India's consolidated net profit declined by 30 per cent to Rs 58 crore in the December 2023 quarter against Rs 83 crore a year ago. Its revenue from operations was steady at Rs 903 crore despite muted market demand, thanks to growth in premium categories, the shoemaker said in a statement. Overall expenses for the quarter were higher at Rs 836 crore compared to Rs 798 crore in the corresponding period last year. The company in a statement attributed the decline in net margin to significant investments made in brand and technology during the quarter. Bata India expanded its network with 54 net new stores and franchise and COCO expansion, while also renovating 36 stores to enhance the brand experience during the quarter. "Despite persistent market headwinds accentuated in discretionary spending, we continued to invest in new product launches, enhancing customer experience, and expanding our reach across channels & markets," Gunjan Shah, MD and CEO of Bata India Limited, said.

Footwear retailer Metro Brands Q3 net profit declines 12.6% to Rs 98.78 cr

Footwear retail chain Metro Brands on Thursday reported a 12.57 per cent decline in consolidated net profit to Rs 98.78 crore for the third quarter ended December 2023. The company had posted a net profit of Rs 112.99 crore during the October-December period a year ago, according to a regulatory filing from Metro Brands Ltd (MBL). However, its revenue from operations increased 6.14 per cent to Rs 635.50 crore during the quarter under review against Rs 598.71 crore in the year-ago period. MBL's total expenses rose 11.77 per cent to Rs 515.53 crore in the December quarter. In a separate filing, MBL said its board in a meeting held on Thursday declared an interim dividend at Rs 2.75 per equity share on the face value of the paid-up equity shares of Rs 5 each for the FY 2023-24. Shares of Metro Brands on Thursday settled at Rs 1,202 on the BSE, down 1.98 per cent from the previous close.

In China+1 plan, Chennai right fit for non-leather footwear majors

Several suppliers of non-leather footwear players like Nike, Adidas, Puma, and Reebok have either set up their units in Tamil Nadu or are close to sealing a deal

Shoe imports ban, sops to help footwear industry hit $90 bn mark: Report

Market size of the Indian footwear industry can increase by over three times to USD 90 billion by 2030 provided a host of measures such as a ban on show imports, fiscal incentives, more design centres and Taiwanese contract manufacturers setting up shops in the country are taken, a report said on Sunday. Economic think tank Global Trade Research Initiative (GTRI) said that the Indian footwear market, valued at USD 26 billion, is projected to reach USD 90 billion by 2030. "This growth will be characterized by two main changes - a significant increase in the demand for non-leather footwear (like sports shoes, running shoes, casual wear, and sneakers) in India, rising from 25 per cent to 75 per cent of the market share by 2030; and a shift in leather shoe production from small-scale, cottage industries to large corporates," it said. Suggesting eight actions for the sector, the report said shoe-making technology is primitive compared to electronics or semiconductor manufacturing and Ind

Bata steps up to take on global moulded footwear and sneaker brands

Bata is pushing its Floatz product line to grab a share of the moulded footwear market but at a lower price than Crocs and Birkenstock

Reliance Retail to scale up distribution of clothing under B2B venture

Reliance Retail has launched over 50 exclusive brands and plans to increase the number by 2-3 times, under its strategy to expand the fashion business beyond its own stores

Tamil Nadu to start production of Crocs footwear brand from November 28

According to the state government, with a policy rolled out last year that is pushing up its growth, the footwear sector in Tamil Nadu is a mainstay in the state's industrial growth story

Footwear industry likely to register moderate growth of 7-8% in FY24: ICRA

The footwear industry is likely to register a moderate growth of 7-8 per cent in the current fiscal against 28 per cent in FY23, a report by Icra said on Thursday. The industry witnessed a muted revenue growth in the first half of FY24, mainly on account of factors like sluggish volume growth and no significant increase in average selling price, it added. The mass segment faces headwinds, and demand is unlikely to improve significantly in the near term, though sales recovery during the festive and wedding season in H2 FY2024 could "partially offset muted revenue growth in H1". "While some recovery is expected in H2 FY2024, overall revenue growth is likely to moderate sharply to around 7-8 per cent in FY24, with companies focusing on the premium segment expected to perform well," said Icra. On the input side, softening raw material (RM) prices are estimated to support the operating margin (OPM) in H1 FY2024. However, increasing RM prices since August 2023 are likely to impact the .

BIS norms: Footwear, allied industries conduct nationwide protest

Footwear manufacturers and allied industries from 13 states held a protest, dissenting against the Central government's imposition of BIS quality certification on all kinds of footwear. The nationwide protest was organised by the All India MSME Footwear Council on Wednesday. The state-level protest was held at Modern Industrial Estate in Kozhikode, a statement said here on Thursday. As many as 400 small-scale footwear units also took part in the protest across Kerala. Industry leaders and MSME owners pointed out that the government's decision was neither practical nor scientific, it said. "The standards are set without considering the manufacturing/production process, types of raw materials used, and categories of footwear products. This makes the implementation of BIS standards unrealistic," VKC Razak, National Chairman, All India MSME Footwear Council, said. The protestors demanded a conclusive order from the government that relieves the MSME units from the ambit of mandatory B

Agilitas acquires sports footwear maker Mochiko Shoes for undisclosed sum

Established in 2008 by Virender Awal and a co-founding team of five members, Mochiko Shoes registered a revenue of Rs 642 crore in FY23 and is estimated to grow by 30 per cent year-on-year

Footwear industry to record 11% revenue growth this fiscal: Report

Softening input cost and rising demand will help the footwear industry to record an 11 per cent growth in revenue this fiscal, says a report. Footwear demand is seen clipping at 4 percent this fiscal, Crisil Ratings said in the report Tuesday. Prices of key inputs such as ethylene vinyl acetate, rubber and resins have fallen 30 per cent in the past fiscal. Raw materials constitute around 45 per cent of the total cost of footwear makers. The resultant healthy cash accrual and balance sheets will keep their credit profiles stable, as per the report that is based on an analysis of 43 footwear companies, which account for 15 per cent of the industry revenue of Rs 1 lakh crore. Softening input cost will boost operating margin by about 125 basis points to 9 per cent, which will still be below the pre-pandemic levels of 10 per cent, the report said. Exports, which constitute a fifth of the sectoral revenue, is seen slowing to 12 per cent this fiscal compared to a 25 per cent uptick last

Moderation in demand is where the shoe pinches for footwear majors

Valuations factoring in second-half recovery are in the expensive zone

Mandatory footwear quality standards to come into force from July 1

It was also informed that the BIS has revised five standards on footwear specifications, and the industry has been given an additional time of six months till January 1, 2024, to comply with the QCOs

Footwear industry to comply with quality control orders from July 1

The government in consultation with the footwear industry on Wednesday decided not to extend the deadline for complying with the mandatory quality standards -- which will come into force on July 1 -- and included MSMEs from the sector into its ambit. It was also decided to give six more months time to small industries (annual turnover less than Rs 50 crore and investment of Rs 10 crore) for complying with the order and accordingly, it will come into force from January 1, 2024. Similarly, micro units (annual turnover less than Rs 5 crore) will have to follow these norms from July 1, 2024. Earlier, MSMEs in the sector were out of the ambit of these orders. Announcing these decisions, Commerce and Industry Minister Piyush Goyal said that these orders would help in increasing the production of quality footwear, exports and establishing Indian brands in the global markets. "We have decided that the QCOs will be implemented from July 1. The order will come into force from July 1. It was

Outgoing Puma India chief Abhishek Ganguly's new venture raises Rs 430 cr

Agilitas Sports will be a solutions platform for sportswear and athleisure

'Unhappy with footwear industry for not complying with quality control'

Commerce and Industry Minister Piyush Goyal on Wednesday came down heavily on the footwear industry for not complying with the quality control order issued in 2020 and seeking more time to comply. Industry players and exporters of footwear have urged the government to extend the implementation of the Quality Control Order (QCO) by 12 months as the businesses are not yet prepared to follow the norms. Goyal said that no QCO is introduced without adequate consultations with the industry. On leather and footwear sector, the government issued three mandatory quality orders on October 27, 2020. These orders were issued after detailed consultations with the industry and not suo moto, he said. "So in two-and-a-half-years, if somebody has not yet become compliant, then there is a vested interest which we can not fulfil....it means their intentions are wrong," he told reporters when asked about the industry apprehensions on these orders. He accused that the industry running a campaign agai

Stock of this footwear company has zoomed over 100% in 9 trading days

Mirza International was locked at the 10 per cent upper circuit for the third straight day so far on Friday.

Footwear stocks rally; Khadim, Liberty Shoes, Superhouse zoom up to 20%

Bata India, Metro Brands, Sreeleathers, Relaxo Footwears and Campus Activewear were up in the range of 2 per cent to 7 per cent

Global non-leather footwear makers put best foot forward in Tamil Nadu

On Monday, world's largest player Pouchen sign a deal with Tamil Nadu; six others in the pipeline On Monday, world's largest player Pouchen sign a deal with Tamil Nadu; six others in the pipeline

Private equity firm TPG sells 7.6% stake in Campus Activewear for Rs 806 cr

Private equity firm TPG on Friday divested a 7.6 per cent stake in sports and athleisure footwear company Campus Activewear for Rs 806 crore through an open market transaction. TPG through its affiliate TPG Growth III SF Pte offloaded the shares in Campus Activewear. According to the bulk deal data available on the National Stock Exchange (NSE), TPG Growth III SF Pte sold 2,32,07,692 shares, amounting to a 7.62 per cent stake in the firm. The shares were disposed of at an average price of Rs 347.24 apiece, taking the transaction value to Rs 805.86 crore. As of December 2022, TPG Growth III SF Pte owned a 7.62 per cent stake in the firm. Investment Trust Fidelity Series Emerging Markets Oppor Fund, Societe Generale and Fidelity Investment Trust Fidelity International Discovery Fund acquired a total of 91.06 lakh equity shares of the firm. On Friday, shares of Campus Activewear closed 8.72 per cent lower at Rs 338 per share on the NSE. In a separate bulk deal, Zydus Family Trust b