Bata 2

1931

INTRODUCTION

Bata India Limited the Company was incorporated at Calcutta. The Company Manufacture and market of all types of footwear, footwear components, leather and products allied to footwear trade. - Bata was originally promoted as Bata Shoe Co Pvt Ltd by Leader AG, Switzerland, a member of the Toronto-based multinational, Bata Shoe Organisation (BSO). It became a public limited company in 1973 and the name was changed to Bata India Ltd. 1937 - Tanning was introduced at the new factory at Batanagar, along with the introduction of leather products towards the end of the year. 1942 - In addition to the footwear manufacturing plant, a machinery

department was set up which produced the first Indian-made major shoe machine. A leather footwear factory was established at Patna, Bihar, which is known today as Bataganj. 1952 - In Mokamehgat, a tannery was established and a hide purchasing centre was also set up there. Another factory was constructed at Faridabad. 1973 - With the public issue of capital in June, Leader A.G. St. Moritz, Switzerland offered for sale 5,00,000 shares out of their holdings at a premium of Rs 20 per share (2,00,000 shares each to LIC and UTI and 1,00,000 shares to the public). 1977 - Leader A.G. St. Moritz, Switzerland offered for sale 8,00,000 shares at a premium of Rs 8 per share to resident Indian

nationals thereby reducing their holdings to 12,00,000 shares or 40% of the issue capital. - Another 47,14,000 No. of equity shares of Rs 10 each at a premium of Rs 25 per share were issued to Bata (BN) B.V., Amsterdam, a wholly owned subsidiary of Leader A.G. St. Moritz, Switzerland, in order to raise their holding in the Company from 40% to 51%. 1979 - 7,50,000 bonus shares issued in prop. 1:4. 1984 - 15,00,000 bonus shares issued in prop. 2:5 in April. 1987 - The Company privately placed with financial institutions (UTI, LIC, GIC & its subsidiary) 15% debentures worth Rs 5 crores. The Company also allotted debentures worth Rs 1.75 crores to the Army Group Insurance Fund.

- The Bata Shoe Organisation consists of 96 independently run companies in 90 countries throughout the world. - 52,50,000 bonus shares issued in prop. 1:1. 1988 - Agreement was arrived at with Adidas of West Germany for manufacture and marketing of sports and special application footwear, spots goods and sports wear in India and the products were expected to be launched in December, 1989. - Marketing of `Star' clothings designed by Murjani International, New York, U.S.A. and sourced through Inmark Brands Pvt. Ltd., was launched. - A new brand of shoe, `Tigre' was introduced during the year for sales through wholesalers and independent retailers. 1989

- The Company sucessfully launched `Adidas' collection of hi-tech sports footwear. - As a result of the R&D activities, special leather board was developed as a substitute for insole leather. 1990 - A highly versatile sample 18-station bicolour injection moulding plant was installed in the Bangalore factory for production of `State-of-the-art' injection moulded shoes with synthetic and textile uppers and specially developed PVC compounds as soleing material. - Pursuant to a Scheme of Arrangement between the Company and Bata Properties, Ltd. a wholly-owned subsidiary of the Company, certain properties constituting the real estate division of the Company were transferred to BPL for better development and management with effect from 1st July. 1991

- A promotional brand `Tigre' was launched to keep the factories full at all times and thereby reduce losses due to under recovery of overheads. - The Company issued non-convertible debentures aggregating Rs 3.50 crores to SBI Mutual Fund. These debentures are redeemable in three equal instalment at the end of 6th, 7th and 8th year from the date of allotment. Negotiations were in progress for private placement of the remaining debentures. 1992 - The workers at Batanagar factory went on strike from 3rd January, to 23rd May, which resulted in a substantial loss of production during the initial 6 months of the year. - The Company undertook to set up a green field export oriented unit at Hosur in Tamilnadu with the State-of-the-art technology. - Over the years, the Company with the collaboration of Bata

Development, Ltd., London, U.K., and its association with Bata, Ltd., Toronto, has been building up its own well-equipped and up-to-date R&D organisation. 1993 - The Company undertook to expand and modernise its existing plants for capacity optimisation to become cost efficient on a global basis. Apart from it also undertook expansion and upgradation of its retail stores. Export Oriented Unit was also to be set up at Hosur in Tamil Nadu. - During January, the Company issued 105,00,000 No. of equity shares of Rs 10 each at a premium of Rs 20 per share on rights basis in the proportion of 1:1. Allotment of 1,856 No. of equity shares was kept in abeyance since the matter was sub-judice. The balance 104,98,144 shares were allotted. 1995 - 13,114,000 No. of equity shares allotted to Bata (BN) BV

Amaterdown, The Northerlands the holding company. - The Long Term Agreement with the Bata Mazdoor Union representing employees of Batanagar and Calcutta Offices was signed at bipartite level satisfactorily without any disruption of work. 1996 - The Company has received a notice in writing from a member of the Company under Section 257 of the Companies Act, 1956 signifying his intention to propose the appointment of Mr Thakur as a Director of the Company. 1997 - India's largest shoe company Bata India (BIL) has performed admirably to stage a remarkable turnaround for the year ended December 1996. - Bata has entered into a marketing tieup with Nike wherein the latter's products will be offered from select Bata outlets.

- The company's debt-equity ratio is also set to improve dramatically to 0.60:1 from 1.90:1 in December 1996, and 2.06:1 in December 1996. - Bata India, a 51 per cent subsidiary of Canada based Bata Shoe Organisation, had last revalued its buildings in 1969, and the latest exercise which will cover all fixed assets is expected to substantially prop up its reserves. 1998 - Bata India, a subsidiary of the Canadian multinational Bata Shoe Organisation, has suspended its after-sales service. - Every Bata outlet, 1,000 owned and over 600 joint ventures were expected to sell Hush Puppies, Marie Claire and Adidas. - Bata India has proposed a dividend of 85 paise per share to its shareholders for the year ended December `98.

- The shoe major had concluded long term wage agreements with the workers of its factories at Faridabad (Haryana) and Mokamehghat (Bihar) for three years up to 2001. 1999 - Bata needs to launch new products on a regular basis by expanding its women's range, and moving into the premium segments it had vacated. - The company will launch the `Sundrops' line at New Delhi on August 16. - The company signed seven long-term agreements and the last in Batanagar is in an advanced stage of negotiations which will be settled soon. - Bata's Faridabad factory workers' union finally reached an agreement with the company management, ending the nearly eight-month-old lock-out at the unit. - Bata India is aiming to achieve a 15 per cent growth in

turnover and profits in 1999, to reach the target set out in the Vision 2001 plan drawn up by Compass, the international board of the Bata Shoe Organisation (BSO). - Shoe major Bata India, which is set to unleash a new advertisement campaign for its new ladies range `Sundrops', has signed up film actress Rani Mukherjee to endorse the line. 2000 - Bata India (Bata) is the largest footwear manufacturer and produces a wide range of footwear such as canvas, rubber, leather, plastic and so on. - The Company has lifted the lock-out at its Peenya factory in Karnataka. The lockout was declared on March 8th following a strike by the employees' union. 2002 -Withdraws lockout at Bata India's Peenya Factory on the direction of Government of Karnataka.

-Creates its own insider Trading rules in an attempt to protect the rights of shareholders and prevent unscrupulous trading in the company's share by insiders. -Shareholders approve for the transfer of Tannery and Footwear division to separate companies. -Appoints Mr Jaswant Singh as the wholetime Director, Marketing and Commercial. 2003 -Shareholders pass all the major nine requisite resolutions. -Appoints Gautam Thapar, Vicechairman and MD of Ballarpur Industries Ltd on the Board of the company. -Forges into a retailing alliance with Lee Cooper Shoes , to retail their shoes. -Engages Ogilvy and Mather to devise its Festive season Advertising, side stepping , JWT, its incumbent agency.

-Repositions itself as the marketing firm. 2004 -Bata unveils new flagship store in Mumbai -de-lists equity shares from the Calcutta Stock Exchange Association Ltd. -Appoints Mr Constantin Salameh, Senior VP and CFO of Bata Shoe Organization as acting Chairman -Bata India has inducted P M Sinha, former CEO of Pepsi Cola International South Asia as Chairman of the company 2006 - Bata India Ltd has informed that Mr. J Carbajal has been appointed as an Additional Director on the Board of Bata India Limited 2007 - Bata India Ltd has set up a new flagship store in Thiruvananthapuram.

MANUFACTURING PROCESS OF BATA SANDALS

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Sourcing: Bata factories

Bata Factories About half of the factories’ output is destined for sale through Bata-owned retail stores, and the balance is manufactured to the specifications of wholesale customers or under contract to other footwear brands. 110 years of leadership in footwear Bata has been manufacturing footwear for over 100 years. Bata personnel made key advances in several footwear production techniques in use today, including the Direct Vulcanization Process (DVP) and slushmoulding. Bata inventors also patented the original process that adhered PVC outsoles to textile uppers. During the 1990’s additional patents have been awarded, including one for the first removable heel cartridge system for athletic performance footwear. Most of Bata manufacturing facilities have passed stringent ISO 9000 certification, with others presently in the certification process.

BATA TODAY Bata is one of the world leading footwear

retailer and manufacturer with operations across 5 continents managed by 4 regional meaningful business units (MBUs). The MBU approach provides quality resources and support in key areas to the companies operating in similar markets such as product development, sourcing or marketing support. Each MBU is entrepreneurial in nature, and can quickly adapt to changes in the market place and seize potential growth opportunities. Bata's strength lies in its worldwide presence. While local companies are self-governing, each one benefits from its link to the international organization for back-office systems, product innovations and sourcing. Although Bata operates in a wide variety of markets, climates and buying power Bata companies share the same leadership points. Two important ones are product concept development and constant improvement of business processes in order to offer customers great value and the best possible service

RETAIL CONCEPT City Store watch the video Bata operates stores in many of the world’s fashion capitals. Bata City Stores offer urban customers the best in today’s fashion footwear and accessories. These stores are in city centres’ prime locations, and provide a high level of customer service, exclusive fashion shoelines with complementary accessories, and contemporary shopping environments to discerning shoppers.

Large store format Watch the video Bata Superstores offer a wide assortment of fashion, casual and athletic footwear for the entire family. Located primarily in urban and suburban shopping centres, these spacious stores offer the best value by providing good quality shoes at great prices. Service is fast thanks to a self selection shopping environment with qualified staff to serve and assist. One of the cornerstones of the Bata Superstore is the sports area: a real store within a store. All the key international sports brands are featured, carefully selected for the most discerning customers.

Family store

Bata is the world’s leading family footwear chain thanks to the wide assortment of everyday fashion footwear available in our stores from Milano to Delhi. The products are primarily the Bata brand, with a carefully selected assortment of articles from both local and international brands.

Factory store Watch the video Factory stores first opened in 2003 and are the largest and the most value-oriented stores of our retail chain. They are ideally located in power centres, commercial parks and outlet centres with easy parking facilities. The product selection offers more than 10,000 styles of ladies, men, children and sport shoes with related accessories and apparel sold at attractive price points. It is based on a self service concept with helpful staff available for service at anytime.

Brand of bata

Premium Collection Bata has been delivering hand-crafted quality footwear for well over 100 years. To maintain and build on our heritage of creating high quality, comfortable and stylish shoes, Bata has created the Bata Premium Collection of products in our design centre in Italy. These shoes are the most international collection from Bata and are available at selected Bata stores in Europe and in leading Department stores in Asia and the middle East. They all incorporate innovative leading design with the application of modern technology. They are our signature shoes for both women and men.

Bata Industrials Footwear beyond Safety Bata Industrials is a specialised division of the Bata Group producing industrial and work-related footwear, hosiery and accessories. Bata Industrials is present on 4 continents to efficiently serve industries in Africa from South Africa, in Asia from Australia, in Latin America from Chile and in Europe from Holland.

Bubblegummers Bubblegummers is the leading children's footwear brand in Latin America and has developed an extensive presence in Asia and in Europe. Bubblegummers offers quality, comfortable, funny and colourful shoes for the 0 to 9 old that assure the healthy growth of a child's foot.

Power Power embodies diversity with ranges in running, training, court, basketball, football and Outdoor that combine fonctionality with creativity. International pro-skaters signature shoes designed to meet the demanding needs of skateboarding are developed under the Power-Skate line. Power is sold across 5 continents via Bata retail stores and distributors’ networks.

Marie Claire Marie Claire shoes are for women with an active lifestyle who seek contemporary modern styles. Marie Claire shoe stores successfully opened in Latin America and Asia. Bata Brands is the trademark owner of Marie Claire for shoes worldwide (except in Japan and Korea).