Indian footwear maker Bata is going through a tough time right now. In such a situation, to recover from the loss, it can join hands with Adidas, a German company that manufactures sportswear. For this, she is in talks with Adidas. At the same time, as soon as this news came in the market, a jump was registered in the stock of Bata. Till 11 am, Bata India's stock was doing business with a jump of 1.80 percent.
According to the report of CNBC-TV18, several rounds of talks have taken place between Bata and Adidas regarding the partnership. Now work is being done on the final deal. In such a situation, it is expected that soon this deal will be confirmed. Currently Bata has brands of footwear like Hush Puppies and Scoll. Whereas, Bata India has more than 2 thousand stores across the country.
Dominance gradually weakened in the market
Actually, Bata was once the most famous footwear company in India. Whenever there was talk of shoes and chappals, Bata's name used to come first in mind. Its shoes and slippers were known for their strength. Rich people used to wear Bata footwear. Till the 90s, Bata was the only state in the country. But, after liberalisation, as foreign footwear companies like Adidas, Reebok and Nike entered India, Bata's dominance gradually weakened. In such a situation, the Bata company went into loss. That is the reason why it is joining hands with Adidas to overcome the losses and bring back its lost dominance.
Earning decreased by Rs 13 crore
Talking about the financial condition of Agar Bata, it released the results of the first quarter of the financial year 2023-24 on 9 August. In this, the company showed a 10.3 percent decline in profits on an annual basis. It was said in the quarterly report that the company has earned a profit of Rs 106.8 crore till June 30. In the last financial year, Bata had earned a profit of Rs 119.3 crore in the first quarter. That is, in the first quarter of this year, his earnings decreased by around 13 crores.
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