Bata India surges over 5% on possible tie-up with Adidas report

Talks are going between the two footwear company for a strategic partnership and is likely at an advanced stage, according to a news report.

Bata India shares jumped 5.46 percent and were trading at Rs 1,737.05 at 12.49 pm on August 17 after a news report said that the shoe and leather goods maker has entered talks with Adidas for a tie-up for the Indian market.

The stock is still far below its 52-week high of Rs 1,989, hit exactly a year ago on August 17, 2022. Around 15 lakh shares changed hands on the exchanges -- five times more than the company’s monthly traded average.

The two footwear companies -- Bata India and Adidas -- are in talks for a strategic partnership and are likely at an advanced stage, CNBC-TV18 reported citing unidentified sources.

Also read Bata in partnership talks with Adidas for Indian market

Bata India is diversifying its portfolio with premium brands. The brand, once known for its affordable offerings has moved to include a broader audience seeking elevated products. This shift shows the brand's evolution from catering to budget-conscious consumers to attract those with a taste for higher-end selections. After partnering with Adidas, Bata India will be able to add more premium products under its roof.

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Market share for Bata India’s premium brands like Hush Puppies, Comfit and Floatz has increased in Q1FY24, the management said in its earnings conference call. This shows penetration for Bata India’s premium brands in increasing.

Bata India’s consolidated revenue grew marginally by 1.5 percent year-on-year (YoY) to Rs 958 crore in the April-to-June quarter. Net profit fell 10 percent YoY to Rs 107 crore in the same period.

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