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1/17 Footwear Industry & Bata India
The global footwear market size is valued at $365.5 billion in 2020 & estimated to reach 530 billion in next 6-7 years. CAGR of approx 6%
The global footwear market is segmented into type, material, end users, distribution channel, and region
The global footwear market size is valued at $365.5 billion in 2020 & estimated to reach 530 billion in next 6-7 years. CAGR of approx 6%
The global footwear market is segmented into type, material, end users, distribution channel, and region
2/ Footwear
~market categorized into athletic & non athletic
~material bifurcated into leather & non.
~distribution classified hypermarket, supermarket, speciality stores, brand outlets, online & others
Large Players: Nike, Adidas, Puma, Under Armour, Skechers, Crocs & WWW
~market categorized into athletic & non athletic
~material bifurcated into leather & non.
~distribution classified hypermarket, supermarket, speciality stores, brand outlets, online & others
Large Players: Nike, Adidas, Puma, Under Armour, Skechers, Crocs & WWW
3/ Business Opportunity Region, yes its APAC extend more opportunities for footwear market in coming years.
China & India are emerging markets expected to grow with a CAGR of 8% & 7.5%
China & India are emerging markets expected to grow with a CAGR of 8% & 7.5%
4/ Indian Footwear Industry: a growth engine to entire leather industry and second largest global producer of footwear.
India produces 13% of 16 billion pairs produced globally, 1065 million pairs.
95% of its production goes to meet its own domestic demand.
India produces 13% of 16 billion pairs produced globally, 1065 million pairs.
95% of its production goes to meet its own domestic demand.
5/ Indian Footwear Industry: India is the third largest footwear consumer.
Consumption of 1.66 pairs against ave global consumption of 3 pairs (Potential)
15,000 unites engaged in manufacturing footwear in India
Total turnover of 50,000 crore.
Source: https://msme.gov.in/indias-footwear-industry#:~:text=India%20is%20the%20second%20largest,production%20of%2016%20billion%20pairs.&text=India%20produces%202%20billion%20pairs,leather%20and%20non%20leather%20footwear.
Consumption of 1.66 pairs against ave global consumption of 3 pairs (Potential)
15,000 unites engaged in manufacturing footwear in India
Total turnover of 50,000 crore.
Source: https://msme.gov.in/indias-footwear-industry#:~:text=India%20is%20the%20second%20largest,production%20of%2016%20billion%20pairs.&text=India%20produces%202%20billion%20pairs,leather%20and%20non%20leather%20footwear.
*Bata India*
Incorporated as Bata Shoe Company Private Limited in 1931, initially set-up a small operation near Kolkata.
Incorporated as Bata Shoe Company Private Limited in 1931, initially set-up a small operation near Kolkata.
7/ Few of their popular brands sold through their distribution channels:
1. Bata
2. Hush Puppies
3. Scholl
4. Comfit
5. Bubbleg
6. Power
7. Northstar & Others
1. Bata
2. Hush Puppies
3. Scholl
4. Comfit
5. Bubbleg
6. Power
7. Northstar & Others
8/ Distribution: Bata has
1. 1,300 Retail Stores
2. 1,000 Multibrand stores
3. 30,000 dealers
4. e-commerce
The above distribution network helps serve 1.2 lac customers everyday.
1. 1,300 Retail Stores
2. 1,000 Multibrand stores
3. 30,000 dealers
4. e-commerce
The above distribution network helps serve 1.2 lac customers everyday.
9/ Bata has transformed itself to a Premium Segment Brand from lower-middle level brand
Their retail business focus on:
'Power' brand to target teenagers, youth & sports.
Red Concept Stores - premium
Women Segment - exclusive stores
Bata Woman Ad
Their retail business focus on:
'Power' brand to target teenagers, youth & sports.
Red Concept Stores - premium
Women Segment - exclusive stores
Bata Woman Ad
10/ Bata is also focusing on kids segment through Bubble gumers brand & Walt Disney Tie-up.
A decent share of business also come from non retail business, they reach-out to industrial, urban wholesalers & institution through 350 distributors (potential).
A decent share of business also come from non retail business, they reach-out to industrial, urban wholesalers & institution through 350 distributors (potential).
11/ Bata's Competitors are:
Major one: Relaxo and non branded
Others:
Sreeleathers
Superhouse
Liberty
Khadims
Mirza International
Major one: Relaxo and non branded
Others:
Sreeleathers
Superhouse
Liberty
Khadims
Mirza International
12/ Brief on Financials:
Sales CAGR: 11-12%
Net Profit CAGR: 15 - 16%
ROCE > 25%
Almost a debt free organization
In recent quarters profits has grown multi folds, the reasons are
1. Operational Efficiency &
2. Premiumisation
Sales CAGR: 11-12%
Net Profit CAGR: 15 - 16%
ROCE > 25%
Almost a debt free organization
In recent quarters profits has grown multi folds, the reasons are
1. Operational Efficiency &
2. Premiumisation
13/ Market Cap ~ some interesting facts 
https://twitter.com/Kiran24Rajput/status/1303402608103624705?s=20
https://twitter.com/Kiran24Rajput/status/1303402608103624705?s=20
14/ Do we get an opportunity to buy at lower price? https://twitter.com/Kiran24Rajput/status/1282601396060086274?s=20
15/ Footwear stocks CMP & FV: https://twitter.com/Kiran24Rajput/status/1291365351947608064?s=20
16/ Intrinsic Value (dont get carried away 
) https://twitter.com/Kiran24Rajput/status/1291365351947608064?s=20
) https://twitter.com/Kiran24Rajput/status/1291365351947608064?s=20
17/ Bata as a SEP Stock: https://twitter.com/Kiran24Rajput/status/1302622194854289408?s=20
Bata Store on Wheels by @bysurbhigupta https://indianexpress.com/article/cities/delhi/cant-go-to-the-store-retailers-say-well-come-to-you-6584795/
Creative ads by @BATA_India
1. For women segment: https://twitter.com/kritisanon/status/1105321803176525825?s=20
1. For women segment: https://twitter.com/kritisanon/status/1105321803176525825?s=20
2. Ad targeting sports enthu segment https://twitter.com/mandhana_smriti/status/1227846809914990592?s=20
https://twitter.com/mandhana_smriti/status/1227846809914990592?s=20
