Bata walks tall
Footwear major Bata expects the contribution of premium shoes to its total business mix to rise.
Under GST, the tax rate on shoes priced below Rs 1,000 is 5 per cent, while those priced above that attract an 18 per cent rate. The company said its sales on either side of the Rs 1,000 price threshold are equal. However, the ratio is expected to slowly change with the company betting on better products and technology.
“For us, the mix is 50:50 in the two as far as turnover is concerned. We are trying to build our premium image by using better products and technology in our shoes. The mix will slowly change but the reality is we are a family brand. We offer products to urban as well as rural Indians,” Sandeep Karatia, wholetime director and CEO of Bata India, said on the sidelines of the annual general meeting of the company.
The company’s consolidated profit rose 22.52 per cent to Rs 100.97 crore for the June quarter of 2019. The company had posted a profit of Rs 82.41 crore a year ago.