Bata reopens

NEW DELHI, NOV 19: Bata India, the largest footwear manufacturer in the country, has re-opened its Faridabad unit after an eight month lo...

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NEW DELHI, NOV 19: Bata India, the largest footwear manufacturer in the country, has re-opened its Faridabad unit after an eight month lock-out following a settlement with the striking workers.

"We re-opened the unit early this month after a negotiated settlement with the workers on outstanding issues," M J Z Mowla, senior vice president of Bata India told PTI.

The Faridabad plant, which is the largest unit of Bata India, has been under lockout since February this year. The lockout, which was declared following an industrial go slow by unions, was lifted following a tripartite agreement between the management, workers and the Haryana government.

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Mowla said the eight-month lockout would not affect the company’s revenue in the current year as Faridabad unit was catering to lower-end products like canvas shoes and Hawai chappals. He said Bata India was likely to report higher turnover in 1999 ending December compared to last year’s Rs 743.17 crore. Sources said the settlement was reached after Punjab and Haryana High Court stayed Haryana government’s order prohibiting the lockout.

Haryana labour commissioner had asked the company not to continue with the lockout at the faridabad plant by an order on august 19.

Mowla said faridabad unit, which has a capacity of 4.25 crore pairs per annum, was likely to take some time before going full steam. Last year, the company had sold a total of 6.1 crore pairs of footwear.

On future plans, edward tkachuk, senior vice president (retail) said the company was looking at adding new lines including new brands to its existing range of footwear.

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Bata india has recently signed bollywood actress Rani Mukherjee to endorse its women’s range of footwear. "This is an experiment, if it goes well with the public we will think of signing more celebrities to endorse bata products," T Kachuk said.

Mowla said the company would focus on its "bread and butter shoes" instead of targetting top-end market to expand business.

Bata india, which suffered a loss of rs 42 crore in 1995 shot back to profits in the next year itself following top-level management changes. During 1998, bata india reported a net profit of rs 24.25 crore, a 50 per cent growth from rs 16.69 crore in 1997.

The company has a paid capital of rs 51.42 crore against an authorised share capital of rs 60 crore. Toronto-based bata shoe organisation holds 51 per cent of the paid-up capital, while the remaining is being held by domestic financial institutions and the public.