Premiumisation Fuels Bata India’s East India Growth

Highlighting eastern India as a key growth market, Bata India has announced plans to direct the majority of its expansion and store renovation investments toward the region, including West Bengal, driven by strong consumer demand and higher growth opportunities.

At the unveiling of the revamped flagship store at Grand Hotel in Kolkata, Bata India CEO Gunjan Shah said the eastern region currently contributes around 12-15 percent of the company's national revenue and remains a key focus area for future growth.

"Going forward”, he informs, “the maximum expansion and renovation investments will happen in eastern India, including Bengal, due to its potential. Shah stressed that the footwear major was committed to its growth in the state. "We are invested in this market, and we will continue to invest in this market," he said.

Pursuing an aggressive growth strategy, Bata India aims to expand its retail network from more than 2,000 stores currently to 3,000 outlets over the next three years. In eastern India, the company is targeting the addition of 25 to 30 new stores in the coming year through a mix of company-owned and operated as well as franchise-owned and operated formats.

"The east continues to be one of our most important growth corridors, with Kolkata at the centre of this strategy," Bata India Chief Strategy Officer Badri Beriwal said.

Alongside its expansion plans, Bata India is strengthening its premiumisation focus, anticipating annual average price growth of 3-5 percent supported by innovation-driven products and accessible premium range offerings.

The revamped Grand Hotel outlet, Bata's first retail store in India, currently generates around Rs 9 crore in annual revenue and is expected to grow to Rs 10-11 crore over the next year, officials said.

To support growth, the company is implementing "zero-based merchandising", a strategy aimed at tailoring inventory according to the specific demand profile of each store. On the broader economic outlook, Shah said demand conditions were showing signs of gradual recovery. "We see significant improvement in terms of traction and demand," he said.