Bata To Invest Rs 100 Crore In FY15

India's largest shoemaker Bata plans to foray into rural markets and small towns, which have less than 5 lakh population. Bata will expand through rural distributors and franchisees, for its next wave of growth.

The company is currently developing a completely new line of merchandise to tap these unexplored markets, top company officials said.
It plans to open 100 outlets in tier III and tier IV markets through the franchisee route. It will also tie up with wholesalers to sell shoes in rural shops.

Bata has already piloted 20 such stores in smaller markets, said R Gopalakrishnan, managing director at Bata India.

He also added that the company set up a separate rural division over the past six months, which is now piloting sales in villages across Rajasthan and Uttar Pradesh.

The unorganised market accounts for two-third of the $35 billion Indian footwear market.

Bata India currently operates more than 1,400 shops, including 34 exclusive Hush Puppies stores and 21 Footin outlets.

The company will also invest Rs 50 crore this year to set up more than 120 Bata stores and 20 Hush Puppies and Footin stores each.
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