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Bata India Ltd.

BSE: 500043 | NSE: BATAINDIA |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE176A01028 | SECTOR: Leather Products

BSE Live

Apr 09, 16:00
1242.35 2.55 (0.21%)
Volume
AVERAGE VOLUME
5-Day
25,167
10-Day
31,665
30-Day
33,854
44,881
  • Prev. Close

    1239.80

  • Open Price

    1279.90

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Apr 09, 15:59
1242.45 2.40 (0.19%)
Volume
AVERAGE VOLUME
5-Day
800,527
10-Day
831,854
30-Day
923,248
981,112
  • Prev. Close

    1240.05

  • Open Price

    1260.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    1242.45 (639)

Annual Report

For Year :
2019 2018 2002

Chairman's Speech

Ladies and Gentlemen: It gives me great pleasure to welcome you all at the 70th Annual General Meeting of Bata India Limited. The Annual Accounts and the Director's report have been with you for some time and, with your permission, i will take them as read. INTRODUCTION Before i review the highlights of your company's performance in the year ended 31st December, 2002 let me put in perspective the overall business environment in the country. Economic historians may in the future describe 2002 as the yar of disinvestments. The process was triggered by the smooth disinvestments of VSNL and IBP with a number of other PSUs on the way. These bold steps shuld have far reaching positive economic consequences. The Natonal Highway Project, envisaged as the Golden Qualdrilateral and covering 13 sates should strengthen the country's infrastructure facilities and attract foreign investmetn. This project is expected to cofer a length of 5851 Km and is planned to be completed by 2007 with the four metros conected by the end of 2004. The economic generally is characterized by high foreign exchange reserves a low level of inflation, adequate supplies of essential commodities and major infrastucture plans valued at Rs.104,000 crore. THE ECONOMIC BACKGROUND Industrial output gew 6.4 percent in January 2003., up from 3.8 per cent in January 2002. The pick-up in growth of the Indian economy in 2001-02 was stronger than initially anticipated. Data on quarterly GDP, which is available only for the first half of 2002-03, indiacated that in the first and second quarteres of th current financial year, GDP grew by 6 per cent and 5.8 per cent, respectively, registered for the corresponding periods of the previous financial year. Overall GDP growth in the current financial year as a whole is likely to be only 4.4 per cent. Most estimates indicate that the uncertainly created by the Iraq conflict will persist for some more time before consumer confidence retruns. The IMF has already scalled down its projections for gloabla economic growth from 3.7 per cent to 3.2 per cent, which in terms of US Dollor works out ot a very substantial decline of US $ 1400 billion. New risks, such as terrorism and SARS will also have a negative impact onthe world's economy and probably retard stronger growth. An increase in India's foreign exchange reserves has facilitated a furthree relaxation of foreign exchange restrictions and a gradual move towards greater capital account convertibility. After twenty three years the current account of Indai's balance of payments recorded a surplus - equivalent to 0.3 per cent of GDP - in 2001-02. Stagnant exports and falling imports brought down the trade deficit by 0.5 per centage points in 2001-02. The stengthenining of hte balance of payments has impacted on the monatary sector. With the net foreign exchange asets (NFA) of the RBI emerging as an important source of reserve Money. Capital markets continued to be subdued; The equity market has absorbed the design changes of rolling settlements and equity derivatives trading. A significant reform in the current financial year was the dismanting of the administered price mechanism for petroleum products from Arpril 1, 2002. Approval of the disinvestmetns of Hindustean Petroleum Corporation Limited and Bharat Petroleum Corporation Limited in December 2002 cleared teh uncertaqinly over privatization. OPERATIONS During the 2002 calendar year, your company's trunover was Rs. 6941.9 million copared with Rs. 7599.8 million in 2001, a decline of 8.66 per cen. This was mainly due to depressed market conditions and low purchasing power in rural areas, which have effected our wholesale business. There has been market resisteance tot price increases, particularly ofor volume articles, which face competitin from the unorganized sector. Besides these factors, discounts were needed to clear slow moveing articles and under-utilization of productin unites has resulted in the under-recovery of fixed costs in our factories. The business sector is switnessing fierce competition. The company is constantly introducing new lines of footwear to cater to t he needs of hte fashion-conscious consumer. The images fashion award for the most admited footwear company was conferred on us and has made the Company all the more conscious ofr its resposibilities to the ever-growing demands and expectations of Indian consumeres. The Company at present is in a stage of consolidation and in the prcess of re0investing itself. wHile at the sametime retaining the principle of Value of money The company is mintaining its ongoing goal of constantly trying to provide consumers with full satisfaction for every rupee spent. The technical collaboration with Bata Limited, Canada, contibutes to this end by providing access to the latest developments in the footwear industry. The Company in its present form will lose further market share until and unless it undertakes substantial restructuring and rationalizes its large workforce and reduces its fixed costs drastically. The scheme of arrangement is a step in this direction and will not only be beneficial to the Company, cbut also to the units which will function independently in their area of core competency to attain aconomicviability with more focused managment. DIVIDEND The Board has not recommended any divided for the calendar year ended December 31, 2002. INDUSTRIAL RELATIONS AND PERSONNEL Industrial raltions remained harmonious during the year. Production has commenced at the Peenya factory in Karnataka although some employees are still absent, Procurement levels are being maintaind by outsourcing untl opeations are normelized. The Loang term Agreement (LTA) for th e feridabad unit was concluded on May 17, 2002. LTA setllements are due for conclusion for shop managers and for the shop employees unions as well as for unionized employees in the Mokamehghat, Bataganj, Southoan and Batashatak units Negotiations are taking place with all the Unions and the Management expects to conclude agreements shortly. During the year 2002, numertous training and development programmes, covering areas such as retail and wholesale operations, human resources and marchandising strategies were dconducted to expose participoants to the latest management concepts and techniques. RESEARCH AND DEVELOPMENT ACTIVITIES AND ENERGY CONSERVATION In 2002, R & D activities were continued by the Company in the key areas of product, process and materials development, footwear moulds and leather and tennery technology with emphasis on solid waste treatment to crate a pollution-free work environment. Total expenditure devoted to R & D during the year was Rs.39.2 million. The energy consevation measures taken by the Company included installing and reerranging cpapcitor banks to attan a 0.96 power factor, changing over to energy efficient lumineries, mixing additive with furnace oil for sludege reduction and improved combustion, as well as enhanced insulation of steam and themic fluidlines. Energy saving against total energy costs in 2002 was 5.20%. THE FUTURE The company is repositioning its image as a marketing orinted company rather than primarily a manufactuirng ocmpany. The existing strong Bata brand image withdeep market pernetration will provide much needed support to this strategyt. Brand managers are working on this new corporate brand building, which will be a departure from the past and is directed towards combating competition. The Company's focus is on quality with an emphasis on consumer satisfaction. The Company would not hesitate to enter into appropriate a strategic tie-ups to outsouce its products. Some of the measures which have been adopted to improve performance are; * The Bata brand is being promoted to reaffirm awareness among consumers of its high quality * Quality contrl is being reinforced by the Company on a daily basis. * New ranges of footwear are being developed in -house to hive continuoius excitement to customers. * Purchasing functions have been centralized. * There is closer coordination between the merchandising, procuct development plannig, manfacturing and distibution functions. * Cash drain stores are being replaced by new large format stores. * Stict adherence to credit terms with a greater emphasis oncollection * The Company is rationalizing its overhead costs. * The Company is re0negotiating the provisions of its agreements with Unions in order to meet the challenges of the market place. * Shop Managers and Shop mployees will be motivated by attractive reward schemes linked to growth in business. * Non-viable stores will be closed. * The Company has appointed Brand Manger who will be directrly responsible for promoting their brand of footwear. * The Company has come out with some exciting new products in 2002. Including the CHIARA Collection of shoes with elastic tape upper. Which are one of the best selling BetaShoe Oeganization shoes in the Asia-Pacific region, the U.K. and France. These are snug fitting and smart lookin gmulti-apparel shoes, idial for people on the move. * The POWER brand range of world-lass footwear showcases superior features with uncompromising standards. Designed in Canada, this footwear is currently penertrating markets in many countries. In order to attract more customeres in this segment to the Bata stores, the company is also marketing REEBOK and NIKE brand products. Our own ROCKY brand sports sandal incorporating the latest international features and style is also being offered. * The famouns WEINBRENNER brand range of rugged leather shoes and sandsls for outdoor adventure loving customers has been introduced and priced most competitively. * The ALL SEASONS range of new products combines outstanding styling with all-weather wearability features * The traditional HAWAI brand products, created within the Bata Shoe Oeganization and copied by many footwear manufactureres in India, have been upgraded by crating a niche range of footwear. Which incorportes the therapeutic features of acupressure MESSAGE, IMPULSE AND REFLEX are the three styles in the new HAWAI range. * Our range of men's dress shoes branded TINO is a blod expression of international fashion. TINO branded footwear exemplifies the 'on the move executive who can simply apply WIPE 'N' Go to their shoes to give a freshly plished and shinning look for all occasions. * The introduction of state-of-the-art technology in shoes branded Comfort Wind. Flexible and Antishox hs also provided much neede edge to fight competition. The Board firmly believes that the introduction of a wide range of high-class quality footwear, a reduction in overhead costs and atractive rewrd schemes linked to growth n business for shop employees will enhance futre returns of the Company. CONCLUSION On behalf of your Board, may i take this opportunity to convey thier since, appreciation to all theCompany's employees and associates as well as to all shareholders for their continued cooperatin and support. I would specifically like to offer the Board's compliments to the management team and to employees who have worked so hard for the Company. I would also like to convey my personal gratitude to my colleagues on the board for thier guidance, support and cooperation. A L MUDALIAR Chairman Bata India Limited June 27, 2003