A

MINI PROJECT REPORT

ON
“BATA INDIA”

Submitted in Partial Fulfillment of Award of MBA Degree

UNDER THE GUIDANCE OF

(Mr. Pradeep Tripathi)

(ASST. PROFESSOR)

SUBMITTED BY:
(Mahi Tripathi )

(M.B.A. - II SEMESTER- 2022-24)

(ROLL NO. - ---------)

DAYANAND ACADEMY OF MANAGEMENT STUDIES

AFFILIATED TO A.K.T.U. LUCKNOW

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 DECLARATION

I hereby declare that this submission is my own work. It contains no material previously

published or written by another person, nor has this material to a substantial extent been

accepted for the award of any other degree or diploma of the university or other institute

of higher learning.

“Mahi Tripathi”
Roll No. --------------

2
CERTIFICATE

3
 ACKNOWLEDGMENT

Mini Research Project Report is the one of the important part of MBA program, which has
helped me to gain a lot of experience, which will be
beneficial in my succeeding career.

For this with an ineffable sense of gratitude I take this opportunity to express my deep sense
of indebtedness and gratitude to Mr. Amarendra Tiwaree , HOD, Department of Business
Administration, for their encouragement, support and guidance in carrying out the project.

I am very much thankful to, My Project Guide “Pradeep Tripathi”, Assistant Professor for
their interest, constructive criticism, persistent encouragement and untiring Guidance
throughout the development of the project. It has been my great privilege to work under
his/her inspiring guidance.

I am also thankful to my Parents and my friends for their indelible Co-operation for achieving
the Goal of this study.

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 TABLE OF CONTENTS

Chapter
Title Page No.
No

EXECUTIVE SUMMARY 1

1 INTRODUCTION 2-4
Introduction about
Organization Industry Profile

2 ORGANIZATION PROFILE 5-15

Background
Nature of Business

Vision, Mission and Quality Policy

Workflow Model

Product/Service Profile
Ownership Pattern
Achievements/Awards

Future Growth and Prospects

3 MCKENSY‟S 7S FRAMEWORK AND 16-20

PORTER'S FIVE FORCE MODEL

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 McKensy‟s 7S Framework

Porter's Five Force Model

4 SWOT ANALYSIS 21-22

5 ANALYSIS OF FINANCIAL 23-31

STATEMENTS

6 LEARNING EXPERIENCE 32
BIBLIOGRAPHY 33

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 LIST OF TABLES

Table
Title Page No.
No.
01 Income Statement 23
02 Balance sheet Analysis 25
03 Cash flow analysis 26
04 Per Share Data 28
05 Ratio Analysis 30

LIST OF CHARTS

Chart
Title Page No.
No.
01 Income Statement Chart 24
02 Balance sheet Analysis Chart 25
03 Cash Flow Chart 27
04 Per Share data Chart 29
05 Ratio Analysis Chart 30

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 BATA INDIA

EXECUYIVE

SUMMARY

Bata India Limited is a manufacturer, wholesaler and retailer of footwear and related
accessories. In retail, it operates a network of approximately 1,250 stores across India.
The product line of the company comprises of footwear collection, which includes
slippers, sandals, closed dress, closed casual, infants and sport shoes for men, women,
children,school bags, socks, belts, polishes and brushes. In addition, the company offe
rs various servicesincluding repairing and products warranty maintenance, gifts cards,
and various discount offers. The company sells products of its in- house brand „Bata‟,
and other international and national

It operates five manufacturing units in India. The company is a subsidiary of Bata

Shoe Organization and is headquartered in Gurgaon, Haryana, India. Bata India Ltd is
the largest footwear retailer and the leader in the footwear industry in India. The
company is engaged in the business of manufacturing and trading of footwear and
accessories through their retail and wholesale network. They are having their
production facilities at Batanagar in West Bengal, Patna and Hathidah in Bihar,
Faridabad in Haryana, Bangalore in Karnataka and Hosur in Tamilnadu. Their wholly
owned subsidiaries include Bata Properties Ltd and Coastal Commercial & Exim Ltd.
The company operates in two segments, namely footwear & accessories, and
investments in joint venture for surplus property development. Their Footwear &
Accessories segment is engaged in the business of manufacturing and trading of
footwear and accessories items through their retail and wholesale network. Their
Investment in joint venture for surplus property development segment is involved in
development of real estate at Batanagar. Their products include leather footwear,
rubber/canvas footwear and plastic footwear. Bata India Ltd was incorporated in the
year 1931 as Bata Shoe Company Pvt Ltd in Konngar, West Bengal, which was then
shifted to Batanagar. Batanagar was the first manufacturing facility in the Indian shoe
industry to receive the ISO 9001 certification. The company went public in 1973.
They changed their name to Bata India Ltd. Over the years, the company has

1
established a leadership position in the footwear industry and is easily the most
trusted name in branded footwear.

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 CHAPTER - 01

INTRODUCTI

ON

INTRODUCTION ABOUT ORGANISATION

Bata (also known as Bata Shoe Organisation) is a family-owned global footwear and
fashion accessory manufacturer and retailer with acting headquarters located in
Lausanne, Switzerland. Organised into three business units: Bata Europe, based in
Italy; Bata Emerging Market (Asia, Pacific, Africa and Latin America), based in
Singapore, and Bata Protective (worldwide B2B operations), based in the
Netherlands, the organisation has a retail presence in over 70 countries and production
facilities in 26 countries. Bata India is the largest retailer and leading manufacturer of
footwear in India and is a part of the Bata Shoe Organization. Incorporated as Bata
Shoe Company Private Limited in 1931, the company was set up initially as a small
operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation stone
for the first building of Bata‟s operation- now called the Bata. In the years that
followed, the overall site was doubled in area. This township is popularly known as
Batanagar. It was also the first manufacturing facility in the Indian shoe industry to
receive the ISO: 9001 certification. The Company went public in 1973 when it
changed its name to Bata India Limited. Today, Bata India has established itself as
India‟s largest footwear retailer. Its retail network of over 1200 stores gives it a reach

/ coverage that no other footwear company can match. The stores are present in good
locations and can be found in all the metros, mini-metros and towns Bata‟s smart
looking new stores supported by a range of better quality products are aimed at
offering a superior shopping experience to its customers. The Company also operates
a large non retail distribution network through its urban wholesale division and caters
to millions of customers through over 30,000 dealers.

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COMPANY PROFILE

Asia„s largest footwear companystrives to maintain its lead with an image of

superiority, professionalisms and round the clock efficiency. A visit to any factory or
office in the country bears testimony to that. Bracing to meet the 21st century, Bata is
gearing itself with the latest in technology and a forward-looking approach to human
resource development. Staggering 16,000 people work at various functional centers in
Bata India. While another 2,00000 are indirectly employed. The world of Bata India:
There are four factories, at Batanagar near Calcutta now it is Kolkata, at Faridabad in
Haryana, Bataganj near Patna in Bihar and at Peenya in Bangalore. Taking stock of
them all means accounting for thousand of trained men and women, millions of pairs
of footwear on the production line. The people –our assets: The Company firmly
believes that giving its people the right encouragement, yields incomparable rewards.
Even with technology and progress man doesn„t take second place at Bata India.
Emphasis is given to man management and every opportunity is given so that people
can grow with the organization. Each year a large number of regional, national and
international courses are held to train Bata employees. it is a Bata policy to provide
equal opportunity, to promote on merit and to stimulate it„s people into thinking

4
globally .always abreast with current trends and technology, Bata India brings latest in
line technology in factory, and the workers to many all to mated industries where

5
work force shrink in direct proportion to their rate of technological thinking .Bata
India keeps its employment levels steady. Bata India is the largest retailer and leading
manufacturer of footwear in India and is a part of the Bata Shoe Organization.
Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up
initially as a small operation in Konnagar (near Calcutta) in 1932. In January 1934,
the foundation stone for the first building of Bata„s operation- now called the Bata. In
the years that followed, the overall site was doubled in area. This township is
popularly known as Batanagar. It was also the first manufacturing facility in the
Indian shoe industry to receive the ISO: 9001 certification. The Company went public
in 1973 when it changed its name to Bata India Limited. Today, Bata India has
established itself as India„s largest footwear retailer. Its retail network of over 1200
stores gives it a reach / coverage that no other footwear company can match. The
stores are present in good locations and can be found in all the metros, minimetros
and towns Bata„s smart looking new stores supported by a range of better quality
products are aimed at offering a superior shopping experience to its customers. The
Company also operates a large non retail distribution network through its urban
wholesale divisionand caters to millions of customers through over 30,000 dealers.
Bata has the following brands operating under its umbrella: Bata, Mocassino, North
Star, Marie Claire, Bubblegummers, Ambassador, Hush Puppies, Scholl, Comfit,
Power, Sparx, Reebok, Weinbrenner, Naturalizer, Bata and I. But the promotional
campaign has to be designed only for the original and classic brand―Bata‖, which is
about finding STYLE – that agrees with the consumers„ tastes, meet their diverse
needs, meet their budget, and fulfill their well-being.

Product Attributes

 Comfortable and Trendy Footwear

 Easy to Maintain

 Contemporary Styles with International Know-How

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 High Quality at affordable prices

 Versatile products to suit each occasion

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 CHAPTER – 02

ORGANIZATION

PROFILE

BACKGROUND

Our history and language are full of reference to shoes and chappals and the
timehonored craft of show and chappal making. Shoemakers were the
first craftmen to establish guilds in the middle ages and through the builds
societies of craftsmen within a common trade come a standard of quality, which
earned the shoemaker a well-established position in the community. The quality and
care the shoemaker has taken with his craft has earned him a place in the history and
Bata shoe organisation is proved to follow in this tradition of time quality
craftsmanship. Today Bata shoe organisation is truly “Shoemaker and chappal
maker to the world” and we invite you to join us and learn a little about the long
history of shoes and how they are designed and constructed.

Primitive man made his own shoes from the skins of the wild animal he
hunted and, where the climate was cold, he tied or around his lower leg. Primitive
men were for the most part, nomadic and he bound his feet for protection
against the bites of insect, often thorny forest flow and the heat of the earth on
the dry plains. How the primitive men bound his feet dependent on where lived and
this form the very beginning we see that shoes were used for protection but that to
some extent the environment, the weather and the land dictated style.

Thus, sandal was the earliest from of show made by a “specialist” shoemaker.
The early Egyptians made sandals, which consisted of a sole head to the foot by
single piece of leather, which is circled the big toe. This from of sandal is
called a thongs are still popular today in certain parts of the world. The
Egyptian had an interesting custom, which indeed seems to be or origin of
expression under foot. The Egyptian painted or carved images of their enemies on
the bottom of their sandals. They believed, they could hurt their foe by treading

8
on their image, hence the expression; to be under foot” Early shoe design was
often taken from nature and in addition to sandals the Egyptians also wore a
shoe within up turned toe model on the elephants tusk. The Mesopotamian used the
same design, but with a longer curved toe. Some believed that the Chinese might

9
have originated the curved toe design, as the boat with a peaked toe is quite
common among the Mongols today.

The early Greeks where barefoot except in foul weather and it was not until the
Hellenistic period around 232 BC that going barefoot out of dears become a sign of
slavery. At that time the wearing of shoes signified that the wearer was free and
beginning barefoot come to signify that the person was a slaved. Early Greek
shoes were made from one piece of leather, which was drawn over the foot by a
threaded throng and tied around the ankle.

The Romans carried their shoe style throughout the ancient world as the conquered.
They brought “Roman Style” shoes to French and to Britain. The Moons who
th
conquered the Spain in the 8 century (711 AD), introduced a beautifully – soft-
dyed leather known as Cordovan. Their shoes fit snugly and covered the foot and
the ankle. They came to be called “Babylonian” shoes.

Thus we see the different materials different regions of the known world. As
people traveled, traded, conquered, shoes style was carried from one region to
another. The shoemaker became a specialist, a respected, influential and need
member of the society. Shoes and chappals where made for specific uses,
designed for specific climates and where often decorated to harmonies with
clothing style. Leather, wood and plant elements (rice stalk in China and palm
leaves in Egypt) where the primary materials utilized in shoe making.

This history of shoes very much apart of all history. In the beginning necessity
dictated style and then though conquest, travel and trade, styles where exchanged
among the people of the world materials varied and decoration in footwear
became popular to and luxurious.. Simplicity then returned and shoes reflected
the egalitarian ideas of the day.

Craftsmen shoemakers in single pairs produced one shoe; each cut, stitched and
tracked by hand in a time consuming, laborious method. The result; an expensive,
custom- made pair of shoes design in accordance with specifications and whims of a
wealthy client, more often than not a privileged member of a select segment of

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 th
society. The industrial revolution of the 19 century was to bring about vast
changes in the shoemakers‟craft, transforming the art though mass production
techniques into a rapid, highly automated, mechanical process. For the first time

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in history, good quality people, thus achieving the long- short-after dream.

In turn, the automation of the shoe industry gave reach to the modern fashion –
oriented footwear industry. As peoples basic demanded and sought after more
specialized footwear; footwear for sports, for leisure, for work, footwear that
satisfied needs of both fashion and function. Today the footwear industry, the
assimilation of scientific methods and the findings of modern radical research
particularly in the realm of sports medicine in developing footwear in accordance
with the physiology of the human foot and the dynamics of the body in motion.
Placed on reality. Ever looking to the future with optimism. This is the
golden profile of Bata India.

NATURE OF BUSINESS

Bata India is the largest retailer and leading manufacturer of footwear in India and is a
part of the Bata Shoe Organization. Incorporated as Bata Shoe Company Private
Limited in 1931, the company was set up initially as a small operation in Konnagar
(near Calcutta) in 1932.

Industry : Retail Manufacturing

VISION

“Vision is that igniting spark that can inspire and energies people to do better.
The focus of vision is to reach out hungrily for the future and drag it into the present.
Bata India today wishes to reposition itself as a market driven, fashion conscious
lifestyle. Focus on a variety of customer groups.”

MISSION

“Amission statement articulates the philosophy of the company with respect

to the business in specific and society in general. Once the mission statement of
company is finalized and adapted, it provides a readymade guideline to
employees of the organization about its principles, policies and practices. Bata will

12
provide its products and services to all the age groups in the community. Will also
provide the finest quality through customer involvement.”

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 QUALITY POLICY

BATA‟s quality policy is based on the Bosnia and Herzegovina's state policy in the
field of accreditation and is defined by the BIH Law on Accreditation and the BiH
Law Establishing the Institute for Accreditation whereby BATA has been authorized
to implement that policy.

“BATA products are manufactured with the utmost care and stringent quality control
is always maintained. However, despite this high quality assurance, there can be few
odd defective ones among the millions we manufacture and sell.” Impartiality policy
is one of the BATA's key policies which guarantees equal access to all conformity
assessment bodies, ensures objectivity of accreditation activities and regulates the
importance of the management of conflict of interest. Exchange of experience and
cooperation with other accreditation bodies is another opportunity for strengthening
the status of accreditation in Bosnia and Herzegovina. Therefore, BATA is open for
any new project that would support the development of accreditation. Aware of the
importance of accreditation in the quality infrastructure, BATA continuously works
on providing opportunities for education and new practical experiences for permanent
and external staff.

In the implementation of its quality policy, BATA works towards meeting general
quality objectives including the following:

 Maintain the status of EA MLA bilateral signatory in the relevant fields and promote
the importance of this agreement,

 Monitor the needs of interested parties and timely react and establish new
accreditation schemes and sign EA MLA in the fields relevant to Bosnia and
Herzegovina,
 Actively participate in the work of international accreditation organizations,
 Cooperate with accreditation bodies from the neighboring and other countries,

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 Raise awareness about accreditation as the most adequate and internationally
recognized tool for confirmation of CAB's competence,

 Cooperate with the state-level and entity-level authorities in the field of accreditation,
 Cooperate with other quality infrastructure institutions,

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 Have access to an adequate pool of assessors and/or experts to be able to perform a
high-quality accreditation process,

 Eliminate or minimize any risks that could potentially compromise the Accreditation
System of Bosnia and Herzegovina.

WORKFLOW MODEL

A workflow model is the sequential series of tasks and decisions that make up a
business process. Designing a workflow model lets business users see how a process
works and helps them streamline and optimize it for best results and high efficiency.

A workflow model is easy to define and understand. The specific set of rules and
paths that anyone would follow in an organization to complete their respective tasks
are referred to as processes, tasks, or workflows.

The rules and policies that act as guidelines are the ones that are implemented with
the help of workflows. The concept is quite similar to setting up roadways for miles
because there will be plenty of hurdles, obstacles created by others, and changes that
need to be implemented.

As long as workflow models are evolutionary with the ability to adapt to changes,
they will continue to be conducive to a productive environment. Sometimes, users
will be inclined to keep things simple and get it over with.

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PRODUCT / SERVICE PROFILE

Wide product assortment :

Bata Collections target a wide range of customers and offer an excellent price-
quality ratio. Bata‟s exclusive models along with national and international brands are
carefully selected and updated in response to market demand.

Personalized service :

Qualified and enthusiastic sales associates who take customer‟s satisfaction to

heart. In many countries customer service goes beyond the stores with home
deliveries, orders made possible via catalogues, the web or even call centers

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Clear product merchandising :

Easy-to-shop store layout with clear product display by category and by style.

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 OWNERSHIP PATTERN

Historical FII holding in Bata India Ltd.

Promoters holding marginally changed to 52.96% as of Jun 2020 qtr. FII/FPI have
decreased their holdings by 2.33% of holdings in Jun 2020 qtr Mutual Funds holding
marginally changed to 15.93% as of Jun 2020 qtr.

ACHIEVEMENTS / AWARDS

Bata India awarded the prestigious Images award 2009

Bata India, the leading footwear retailer in the country was
awarded the Images award for the Most Admired Retailer of the
Year – Fashion & Lifestyle. This was announced at the India Retail
Forum in Mumbai, where the top retail companies in India con

Expending & nurturing the largest footwear

retail network
A retail network of over 1200 stores gives us a reach unmatched by
any other company. The Bata Shoe Store is amongst the most
recognisable and favoured landmark in any major market in India.

Bata India continues with its Super brand status

The Bata brand was chosen after a very in-depth and detailed
evaluation procedure. Marketing and Business professionals who
compromise the Super brands Council evaluate and select on
parameters like trust, emotional loyalty and re-call of the brand
which creates strong customer loyalty

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 Bata India awarded Amity Corporate Excellence Award
Bata India Ltd. has been awarded the Amity Corporate Excellence
Award for Best Retail Chain. This is the third time in a row that Bata
India has been honoured with this prestigious award for Corporate
Excellence. The Corporate Excellence Awards are held annually
by Amity International Business.

Amity Corporate Excellence

Bata India has been awarded the AMITY CORPORATE
EXCELLENCE AWARD on 21st February 2008. This award has
been given for Bata's excellent performance and retail growth during
the past year.

IMAGE Retail Award

This award was received in the footwear category on on

6th September 2007. This award was a part of Reid & Taylor
Awards for Retail

Excellence presented during India Retail Summit 2006.

Super Brands Award

It is awarded to the 1st top ten Super brands of India. Super brand
signifies the recognition that the consumer is giving to the Brand
Image, Brand Value and Brand Delivery. The award ceremony was
held in Mumbai on 12th April 2007

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FMCG Consumer Reaction Award
Bata won FMCG Consumer Reaction Award in Fashion & Specialties
(Shoes) on March

2007. The Award was presented by: Bharati Vidyapeeth's Institute of

Management Studies & Research

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Lycra Images Fashion Awards
Bata is honoured for 3 consecutive years as Most Admired Brand
of the year in Footwear

Category on 25th January 2007.

Retailer of the Year Award

This award was received on 24th Nov 2006 in the footwear category.
This award was a part of Reid & Taylor Awards for Retail Excellence
presented during India Retail Summit 2006.

Amity Corporate Excellence Award

This award was given to Bata by Amity International Business
School on 22nd –

24th Feb 2006 for having achieved an enviable position of one of

the best and most admired company of the world with their
unparalleled performance.

Super Brands Awards

It is awarded to the 1st top ten Super brands of India on
23rd Sept 2005. Super brand signifies the recognition that
the consumer is giving to the Brand Image, Brand Value and

Brand Delivery

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Retail Asia Pacific Top 500 Awards Bata won the Top Retailer
2006-India Bronze award on

7th Sept 2005. This award is given by Retail Asia Pacific TOP 500

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FUTURE GROWTH AND PROSPECTS

The organization is the world‟s largest manufacturer and marketer of

footwear. It has 83 companies spread all over the globe both in developed and
developing countries. The organization is the leader in the use of modern
technology and the latest management and marketing techniques. Its 73
manufacturing units produce a vastly comprehensive line of footwear from
women‟s high fashion shoes to artic boots; men‟s dress shoes to popular
sports shoes for the children. It operates 6300 company owned stores all over the
world. This includes Bata family Athletes world Bubble gummers, Rizzi,
Heyraud and Marie Claire stores. In addition Bata has around 50 thousands
retailers the combined production and sales total 270,000,000 pairs of shoes per year.
The Bata shoe organization has 67 thousands employees on its roles today. Bata
limited; the world headquarters of Bata shoe organization located in Toronto is
manned by experts in manufacturing, marketing, finance, product development
and personnel. A work force that is available for training and guidance in all
operations in the field. Today Bata India has become a legend behind it‟s a sage of
determination and pursuit of excellence. A spirit of enterprise that has made Bata
India a complex, multidimensional giant ever at the service of millions of
people in India. How did it all begin? Today the largest footwear manufacturer is
India. The biggest footwear market has wide wingspan-it covers the entire length and
breath of the country. The company prides itself in having your manufacturing units,
two tanneries, and a number of ancillary units. Pursuing an active policy of
encouraging exports since 1935, Bata India exports the largest number of canvas
shoes from the country.

In March 2018, Bata India Limited (NSE:BATA INDIA) released its earnings
update. Generally, analyst consensus outlook appear cautiously optimistic, with
profits predicted to increase by 29% next year relative to the past 5-year average
growth rate of 1.6%. Currently with trailing-twelve-month earnings of ₹2.2b, we can
expect this to reach ₹2.8b by 2019. Below is a brief commentary on the longer term

24
outlook the market has for Bata India. For those keen to understand more about other
aspects of the company

25
What can we expect from Bata India in the longer term?

The view from 10 analysts over the next three years is one of positive sentiment.
Broker analysts tend to forecast up to three years ahead due to a lack of clarity around
the business trajectory beyond this. To understand the overall trajectory of
BATAINDIA‟s earnings growth over these nextfew years, I‟ve fitted a line through
these analyst earnings forecast to determine an annual growth rate from the slope.

From the current net income level of ₹2.2b and the final forecast of ₹4.0b by 2021,
the annual rate of growth for BATAINDIA‟s earnings is 19%. This leads to an EPS of

₹31.27 in the final year of projections relative to the current EPS of ₹17.16. In 2021,

BATAINDIA‟s profit margin will have expanded from 8.4% to 11%.

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 CHAPTER – 03

MCKENSY’S 7S FRAMEWORK AND PORTERS’S FIVE FORCE MODEL

MCKENSY‟S 7S FRAMEWORK

The McKinsey 7S Framework is a management model developed by business

consultants Robert H. Waterman, Jr. and Tom Peters (who also developed the
MBWA-- "Management By Walking Around" motif, and authored In Search of
Excellence) in the 1980s. This was a strategic vision for groups, to
include businesses, business units, and teams. The 7 Ss are structure, strategy,
systems, skills, style, staff and shared values.

The model is most often used as an organizational analysis tool to assess and monitor
changes in the internal situation of an organization.

The model is based on the theory that, for an organization to perform well, these
seven elements need to be aligned and mutually reinforcing. So, the model can be
27
used to help identify what needs to be realigned to improve performance, or to
maintain alignment (and performance) during other types of change.

Whatever the type of change – restructuring, new processes, organizational merger,

new systems, change of leadership, and so on – the model can be used to understand

28
how the organizational elements are interrelated, and so ensure that the wider impact
of changes made in one area is taken into consideration.

 Strategy: this is organization's plan for building and maintaining a competitive

advantage over its competitors.

 Structure: this how company is organized (that is, how departments and teams
are structured, including who reports to whom).

 Systems: the daily activities and procedures that staff use to get the job done.

 Shared values: these are the core values of the organization, as shown in its
corporate culture and general work ethic. They were called "superordinate goals"
when the model was first developed.

 Style: the style of leadership adopted.

 Staff: the employees and their general capabilities.

 Skills: the actual skills and competencies of the organization's employees.

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Usage

• Improve the performance of a company

• Examine the likely effects of future changes within a company
• Align departments and processes during a merger or acquisition
• Determine how best to implement a proposed strategy

The framework gives rise to a few vital points, like:

• What type of analysis is this? Or what is the action triggered after putting your
organization into this drill?
• Does this give you real guidelines as to how to proceed further, after the
analysis is completed?
• Do we treat this as a guideline or checklist and proceed with using other
techniques to formulate further steps?
• There have been other techniques in vogue which have to be used to arrive at
actionable points. Here too, a similar approach may be needed, as a tool, to
really put this into action.
• The above seems to be an abstract list of generic elements in any organization.
It does not spell out which steps are to be initiated to improve each business
process, such as Marketing, Finance, Manufacturing etc.

PORTERS‟S FIVE FORCE MODEL

Porter's Five Forces is a model that identifies and analyzes five competitive forces
that shape every industry and helps determine an industry's weaknesses and strengths.
Five Forces analysis is frequently used to identify an industry's structure to determine
corporate strategy. Porter's model can be applied to any segment of the economy to
30
understand the level of competition within the industry and enhance a company's
long-term profitability. The Five Forces model is named after Harvard Business
School professor, Michael E. Porter.

31
Porter's Five Forces is a business analysis model that helps to explain why various
industries are able to sustain different levels of profitability. The model was published
in Michael E. Porter's book, "Competitive Strategy: Techniques for Analyzing
Industries and Competitors" in 1980.1

The Five Forces model is widely used to analyze the industry structure of a company
as well as its corporate strategy. Porter identified five undeniable forces that play a
part in shaping every market and industry in the world, with some caveats. The five
forces are frequently used to measure competition intensity, attractiveness, and
profitability of an industry or market.

Porter's five forces are:

• Competition in the industry

• Potential of new entrants into the industry
• Power of suppliers
• Power of customers
• Threat of substitute products

KEY TAKEAWAYS

• Porter's Five Forces is a framework for analyzing a company's competitive

environment.
• The number and power of a company's competitive rivals, potential new
market entrants, suppliers, customers, and substitute products influence a
company's profitability.
• Five Forces analysis can be used to guide business strategy to increase
competitive advantage.

The Five Forces model can help businesses boost profits, but they must continuously
monitor any changes in the five forces and adjust their business strategy.

Porter's Five Forces is a business analysis model that helps to explain why various
industries are able to sustain different levels of profitability. The model was published
in Michael E The five forces are frequently used to measure competition intensity,

attractiveness, and profitability of an industry or market.

19
In order to devise a competitive strategy for BATA, we need to analyze Porter„s Five
Forces Model. The model analyses the different aspects of attractiveness and
competitiveness of the market.

20
 CHAPTER – 04

SWOT

ANALYSIS

SWOT analysis of Bata analyses the brand/company with its strengths, weaknesses,
opportunities & threats. In Bata SWOT Analysis, the strengths and weaknesses are the
internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Bata
to benchmark its business & performance as compared to the competitors and
industry. As of 2020, Bata is one of the leading brands in the lifestyle and retail
sector.

The table below lists the SWOT (Strengths, Weaknesses, Opportunities, Threats), top
Bata competitors and includes Bata target market, segmentation, positioning &
Unique Selling Proposition (USP).

BATA STRENGTH

• Bata has a worldwide Presence in over 70 countries and production facilities

in 27 countries
• Benefit received from link to the international organization for back-office
systems, product innovations and sourcing.
• Bata showrooms are found in all the major cities, mini-metros and towns
• Sells through over 1200 retail stores in India and 5000 stores worldwide
• Bata company employs more than 6800 people in India and 40000 people
world over and over 30,000 dealers
• Excellent advertising and brand presence
• Wide range of footwear including ladies sandals, heels, sports shoes, men
formal shoes, trek shoes, accessories etc

BATA WEAKNESS

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• High cost for brand protection for Bata products
• Intense competition in the footwear segment means limited scope to overhaul
market share

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BATA OPPORTUNITIES

• People now look towards buying footwear as a blend of fashion and comfort,
so now has an increasing market size
• Bata has an opportunity to create a separate division for tackling the rural
markets in emerging nations
• Global expansion in the premium footwear section

BATA THREATS

• Intense competition from other leading footwear brands can affect Bata's
margins
• Commoditization if fashion footwear not differentiated well

COMPETITORS

• Nike
• Reebok
• New Balance
• Converse
• Puma
• Fila
• Adidas
• Liberty Shoes

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 CHAPTER – 05

ANALYSIS OF FINANCIAL STATEMENT

BATA INDIA INCOME STATEMENT ANALYSIS

• Operating income during the year rose 11.3% on a year-on-year (YoY)

basis.
• The company's operating profit increased by 35.8% YoY during the fiscal.
Operating profit margins witnessed a fall and down at 16.3% in FY19 as
against 13.3% in FY18.
• Depreciation charges increased by 6.0% and finance costs decreased by
15.5% YoY, respectively.
• Other income grew by 35.5% YoY.
• Net profit for the year grew by 49.2% YoY.
• Net profit margins during the year grew from 8.2% in FY18 to 11.0% in
FY19.

Table - 01

BATA INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change

Net Sales Rs m 26,342 29,311 11.3%

Other income Rs m 503 682 35.5%

Total Revenues Rs m 26,845 29,993 11.7%

Gross profit Rs m 3,514 4,771 35.8%

Depreciation Rs m 605 641 6.0%

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 Interest Rs m 42 36 -15.5%

Profit before tax Rs m 3,370 4,777 41.7%

Tax Rs m 1,165 1,487 27.6%

Profit after tax Rs m 2,205 3,290 49.2%

Gross profit margin % 13.3 16.3

Effective tax rate % 34.6 31.1

Net profit margin % 8.2 11.0

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Chart 01

30000

25000

20000 12 Mar-18*

12 Mar-19*
15000
0 % Change

10000
-5000

5000

BATA INDIA BALANCE SHEET ANALYSIS

• The company's current liabilities during FY19 stood at Rs 6 billion as

compared to Rs 6 billion in FY18, thereby witnessing an increase of 12.3%.
• Current assets rose 18% and stood at Rs 18 billion, while fixed assets rose
7% and stood at Rs 3 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 25 billion as
against Rs 21 billion during FY18, thereby witnessing a growth of 16%.

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Table 02

BATA INDIA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change

Networth Rs m 14,747 17,418 18.1

Current Liabilities Rs m 5,608 6,297 12.3

Long-term Debt Rs m 0 0 0.0

Total Liabilities Rs m 21,414 24,741 15.5

Current assets Rs m 15,549 18,405 18.4

Fixed Assets Rs m 3,070 3,300 7.5

Total Assets Rs m 21,414 24,741 15.5

Chart 02

25000

20000

15000

10000
12 Mar-18*
5000 12 Mar-19*
12 Mar-19*
0

27
BATA INDIA CASH FLOW STATEMENT ANALYSIS

• BATA INDIA's cash flow from operating activities (CFO) during FY19
stood at Rs 3 billion, an improvement of 115.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -3
billion, an improvement of 148.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -631
million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 43
million from the Rs -72 million net cash flows seen during FY18.

Table 03

BATA INDIA Cash Flow Statement 2018-19

No. of
months 12 12

Particulars Mar- Mar- %

Year Ending
18 19
Change

Cash Flow from Operating

Rs m 1,603 3,451 115.3%
Activities

Cash Flow from Investing

Rs m -1,119 -2,777 -
Activities

Cash Flow from Financing

Rs m -556 -631 -
Activities

Net Cash Flow Rs m -72 43 -

28
Chart 03

18-Mar

Cash Flow from Operating

Activities

Cash Flow from Investing

Activities

Cash Flow from Financing

Activities

Net Cash Flow

19-Mar

Cash Flow from Operating

Activities

Cash Flow from Investing

Activities

Cash Flow from Financing

Activities

Net Cash Flow

29
CURRENT VALUATION FOR BATA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands
at Rs 25.6, an improvement from the EPS of Rs 17.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,345.0, stands
at 52.4 times its trailing twelve months earnings.

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 • The price to book value (P/BV) ratio at current price levels stands at 8.0
times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 44.0 times its end-
of-year operating cash flow earnings.

Table 04

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*

Sales per share (Unadj.) Rs 204.9 228.0

TTM Earnings per share Rs 17.2 25.6

Diluted earnings per share Rs 17.2 25.6

Price to Cash Flow x 61.5 44.0

TTM P/E ratio x 52.4 52.4

Price / Book Value ratio x 5.9 8.0

Market Cap Rs m 172,873 172,869

Dividends per share (Unadj.) Rs 4.0 6.3

31
Chart 04

250

200

150
12 Mar-18*

12 Mar-19*
100

50

RATIO ANALYSIS FOR BATA INDIA

Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY19,
from 2.8x during FY18. The current ratio measures the company's ability to pay short-
term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at
135.6x during FY19, from 81.2x during FY18. The interest coverage ratio of a
company states how easily a company can pay its interest expense on outstanding
debt. A higher ratio is preferable.

Profitability Ratios

32
Return on Equity (ROE): The ROE for the company improved and stood at 18.9%
during FY19, from 15.0% during FY19. The ROE measures the ability of a firm to
generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and
stood at 27.6% during FY19, from 23.1% during FY18. The ROCE measures the

33
ability of a firm to generate profits from its total capital (shareholder capital plus debt
capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 13.4%
during FY19, from 10.5% during FY18. The ROA measures how efficiently the
company uses its assets to generate earnings

Table 05

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*

Current ratio x 2.8 2.9

Debtors‟Days Days 12 8

Interest coverage x 81.2 135.6

Debt to equity ratio x 0.0 0.0

Return on assets % 10.5 13.4

Chart 05

250

200

150

12 Mar-19*
100
12 Mar-18*

50

0
Current ratioDebtors’ Interest Debt to Return on 34
coverage equity ratio assets
Days
BATA INDIA SHARE PRICE PERFORMANCE

Over the last one year, BATA INDIA share price has moved up from Rs 825.9 to Rs
1,345.0, registering a gain of Rs 519.1 or around 62.9%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,284.7 (down 0.0%). Over
the last one year it has moved up from 11,261.0 to 11,284.7, a gain of 24 points (up
0.2%).

Overall, the S&P BSE SENSEX is up 7.2% over the year.

35
 CHAPTER – 06

LEARNING

EXPERIENCE

The organizational study at BATA INDIA LTD has given me the opportunity to gain
valuable industry related experience that would allow me to expand my carrier
options. Though it was a virtual organization study due to pandemic, the skill and
knowledge I gained from organizational study of BATA INDIA was quiet different
form experience I gained at my previous projects. I was able to utilize and engage the
knowledge and skill I gathered during my course in more practical way. The
guidance, support, feedback, useful suggestions and advanced insights about my
subject which was provided by my mentor helped me to successfully complete the
organizational study.

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BIBLIOGRAPHY:-

BooksReferred

Philip Kotler, “Marketing management”,Hall of India, Mumbai, 2000.

S.S Sherlekar, “Principle of Marketing”, Sapna Publishers,

Hyderabad, 1998.

C. R. Kothari, “Research Methodology”,Himalaya

publisher, Delhi, 1999.

Journals&Magazines Business Today Business India Business World

NewsPapers&Magazines

The Economic Times

The Asian Age

The Hindu

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Website:www.bata.com

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