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Leading shoemaker Bata India is looking for a “volume-driven revenue growth trajectory” for the next five years, with a focus on the middle-class Indian. The company wants to be relevant to its middle-class consumer base as it is looking for value propositions and wants to reset the cost price, said its Managing Director & CEO Gunjan Shah in an earnings call earlier this week.
“We want, over the next not only two years, but also five years, to make sure that… it’s a volume-driven growth trajectory overall. There might be some quarters up and down, but we want to make sure it’s a volume-driven revenue growth trajectory,” he said. According to Shah “the heart of our consumer base is basically the middle-class Indian”.
On store expansion, Shah said the company has retained a 80:20 ratio between franchise and COCO (company-owned and company-operated) retail outlets. Bata was operating 624 franchise stores by the end of FY’2025.
On being asked for revenue contribution from the key brands, Shah said Hush Puppies and Power are the second and the third largest after Bata in the group. “They would (contribute) be in the strong double-digits in the range of about 20 per cent,” he said. Over the demand conditions, Shah said they “have been tight”, however, within that, the company is “looking at it very aggressively across the various levers”.
This includes providing the right kind of portfolio to consumers, which is “value for money” as many customers are looking for relief from the overall inflation. “The second piece is our ability to showcase that to the consumers in a tangible way, which is, are you able to showcase them in a non-cluttered way, are you able to showcase them in a full set manner, which is all sizes, etcetera, our ability to make sure that they are served well,” he said.
Over the Floatz business, Shah said it has already crossed Rs 100 crore in revenue. “And this year, my sense is if this continues momentum, right, we should be in the range of about Rs 200 crore,” he said.
