Bata India Aims for Volume-Driven Revenue Growth Targeting Middle-Class Consumers Over Next Five Years

Bata India is aiming for a revenue growth strategy focused on volume over the next five years, targeting middle-class Indians. The company seeks to offer value propositions and adjust cost prices to remain relevant to this consumer segment, according to Managing Director & CEO Gunjan Shah during an earnings call.

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Shah emphasised the importance of maintaining a volume-driven growth trajectory, acknowledging potential fluctuations in quarterly performance. "We want, over the next not only two years, but also five years, to make sure that... it's a volume-driven growth trajectory overall. There might be some quarters up and down, but we want to make sure it's a volume-driven revenue growth trajectory," he stated.

Focus on Middle-Class Consumers

The core of Bata's consumer base is the middle-class Indian, Shah noted. The company is keen on offering a product portfolio that provides value for money, especially as customers seek relief from inflation. This involves presenting products in a clear and comprehensive manner, ensuring all sizes are available and customers are well-served.

In terms of store expansion, Bata has maintained an 80:20 ratio between franchise stores and company-owned outlets. By the end of FY 2025, Bata operated 624 franchise stores. This strategic balance helps the company reach a wider audience while managing operational costs effectively.

Brand Contributions and Revenue Goals

When asked about revenue contributions from key brands, Shah mentioned that Hush Puppies and Power rank second and third after Bata within the group. These brands contribute significantly, with their share expected to be around 20 percent. This highlights their strong position in the market alongside Bata's primary offerings.

Despite tight demand conditions, Bata is aggressively pursuing opportunities across various levers. The company aims to showcase its products effectively to consumers by ensuring they are presented in a non-cluttered and comprehensive manner. This approach is intended to enhance customer experience and drive sales.

Floatz Business Performance

Regarding the Floatz business segment, Shah revealed it has already surpassed Rs 100 crore in revenue. He expressed optimism about reaching approximately Rs 200 crore if current momentum continues. This indicates strong growth potential within this segment of Bata's operations.

Bata India's strategic focus on volume-driven growth and middle-class consumers positions it well for future success. By balancing store expansion and brand contributions while addressing consumer needs amid inflationary pressures, the company aims to sustain its relevance in the competitive market landscape.

With inputs from PTI