The company would also look at doubling their ad spends from the current 1 percent of sales to around 2-2.5 percent, said Rajeev Gopalakrishnan, President, South Asia at Bata Emerging Markets.
Bata Director, Finance, R K Gupta said Rs 8 crore and Rs 12 crore would be spent on modernisation of Batanagar plant this fiscal and next, respectively. The plant would be modernised with a capacity expansion of about 10 percent.
Net sales rose to Rs 680.4 crore for the first quarter as against Rs 622 crore during the same period of previous fiscal, Bata India said in a BSE filing.
The company had posted a net profit of Rs 39.40 crore in the same period previous fiscal, the company said in a statement.
Bata India's Q3 net sales stood at Rs 547.64 crore, up 13.11 percent compared to Rs 484.15 crore in the same quarter a year ago.
Group MD of Bata India Rajeev Gopalakrishnan said that the company had shut almost 35 stores in this quarter, but it is likely to open bigger stores in same location, so its turnover is lower.
Bata India's Q3 net sales stood at Rs 484.15 crore, up 14.31 percent compared with Rs 423.54 crore in the same quarter of its 2012 fiscal.
Bata's net sales went up 13.66 per cent to Rs. 572.13 crore for the quarter under review as against Rs. 503.33 crore in the corresponding period a year ago.
Bata, a household name in the footwear market, is diversifying its business in accessories categories like sunglasses and scarves and is expecting to net 15-20 percent of revenues from this area in the next two-three years.
Footwear brand Bata India's net profit rose by 28.6% to Rs 52.6 crore in the quarter ended June. However, the company's sales growth was disappointing in the second quarter and Rajeev Gopalakrishnan, MD of Bata said sales were hit by a delayed monsoon.
Bata India on Wednesday said it has decided to switch to large format stores in the next three to four years.