Trending Mid Cap Stock: Bata footwear to lure rural India

Bata India is looking forward to expanding its business geographically in this upcoming fiscal year. Its prime focus areas include Tier III and IV markets. Basically, the company is planning to focus on the rural areas of India.

The company is planning to offer stylish and comfortable varieties of footwear at affordable prices to the rural population.

Company’s senior official stated that company plans to open 100 owned stores and 30 franchisee-owned outlets in this year. These 100 stores would be located in malls and at high street locations, each with area of 2500-4000 square feet.

Capex planned for the same would be 2-2.5 crore for each store. 50 stores are planned to be renovated with new decor which may show growth of 15-20 percent in the upcoming years. Currently, the company owns 1300 stores.

It is also focusing on increasing its digital footprint through online shopping format to gear up its revenue. Tie-up with payment banks is under process and company wants to increase the product offerings through partner websites like Amazon, Flipkart, Myntra etc.

S R Industries Ltd, a sports footwear manufacturing company has recently announced to include Bata India in its client list.

In Tuesday’s afternoon session, stock price surged to Rs 571.2 level from Rs 558.65. Upside of 2.3 percent was seen yesterday in the trading session. Today it has opened high at Rs 576.30.