Bata India clarifies stand on partnership talks with Adidas, stock slips 1%

Shares of Bata India slipped by about 1 per cent on August 18 after it clarified that the company is continuing to explore opportunities for strategic alliance or collaborations for the Indian market, but nothing has been finalised yet.

In a stock exchange filing, the footwear major said that it has had successful long-running strategic tie-ups with various brands and that it would fully comply with its obligations under listing regulations if a partnership works out.

“We would like to inform that the Company continues to explore opportunities for strategic alliance / collaborations / tie-up for the Indian market and as and when matters arise that require disclosure, the Company will fully comply with its obligations under Regulation 30 of the Listing Regulations,” the company said on Thursday.

On August 17, CNBC-TV18 reported citing sources that Bata India was in advanced talks with the German sportswear brand Adidas for a strategic tie-up.

At the time of writing the news report, shares of Bata India were trading at Rs 1,725.95, down by 0.45 per cent.

On Thursday, it closed 5.3 per cent higher at Rs 1,733.75 apiece. The scrip touched an intraday high of Rs 1,767.95 after opening at Rs 1,636.05 on the BSE. It settled at Rs 1,733.75 at the close of trade.

On August 9, Bata India reported a net profit of Rs 106.8 crore for the June quarter of FY24, registering a decline of 10.3 per cent from Rs 119.3 crore a year back. Its revenue stood at Rs 958.1 crore, rising 1.6 per cent from Rs 943 crore in the year-ago quarter, the company said in its Q1 FY24 report.

During its first quarter earning call, Bata India told analysts that it has extended Sneaker Studios to 565 stores and the category continues to outpace growth.

The company’s own brand North Star has seen a 1.15 times year-on-year growth in June 2023.

Also read: Bata India shares zoom 7% on talks for a tie-up with Adidas

Also read: Bata India in talks with Adidas for strategic partnership in Indian market: Report

Strategic partnership with Adidas

As per experts, a partnership with Adidas would drive growth in the market and could be beneficial for both companies. Moreover, Bata is looking at consolidating the sneakers segment and its focus is on premiumisation.

Bata Managing Director and CEO Gunjan Shah recently said that the footwear major is re-entering the premium price points with fresh portfolios while it increases spending on advertising and promotions to connect with young digital savvy consumers.

Bata India has established itself among India’s largest footwear retailers. Its retail network of over 2,100 stores in close to 700 cities gives it a very wide reach across the country.

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