Committed to the Indian market, says Reebok

After months of silence since the Rs 870 crore scam broke out Adidas Group that owns the Reebok chain of retail outlets spoke out exclusively to CNBC-TV18.

Highlighting the company's key priorities to kick-start business after the commercial irregularities Adidas Group said that Reebok under the new management was planning an accelerated restructuring of its business in India, reports CNBC-TV18's Ronojoy Banerjee. Though the company did not specifically spell out what the final changes would be, they said that the restructuring process would include significant changes to its commercial business practices in the country. The company said that it is estimating the maximum negative impact of the commercial irregularity could be up to a pre-tax amount of € 125 million. Reebok said that since the irregularities occurred prior to the 2012 financial year, Adidas Group might have to restate prior-year consolidated financial statements in line with the requirements of Indian Accounting Standards 8. Dismissing suggestions that the company is not serious about reviving Reebok brand, the company said that they are absolutely committed to the Indian market because it offers great long-term business potential. They say that the group is well positioned with two global brands, Adidas and Reebok. Also read: Reebok India's Brand Director Sajid Shamim quits