INDIA: Shoemaker Bata India's Profits Plunge
Bata India profits plummeted from $774,000 to $82,000 on turnover of $37m for the third quarter 2000. Sales rose 5.5 per cent from to $35.3m to $37.2m, expenses grew 9.2 per cent, from $32.8m to $35.8m, interest from $452,000 to $495,000. Depreciation and taxation fell from $1.3m to $843,000. Bata is a Canada-based multinational with over 50 years in India. It is India's largest footwear manufacturer, it sells and exports over 60 million pairs of shoes per year. It used to occupy the high quality value-for money niche, with its legendary chain of own and franchisee outlets in every Indian city, which sell only Bata footwear and accessories. The entry of Nike, Reebok, Adidas, Lotto and K-Swiss have crowded the top end of the market however. The above figures translate to a price realisation of $ 0.62 per pair. An extremely costly, unionised workforce has also helped eat into Bata's profits over the years.
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