Bata is currently engaged in discussions with Adidas to establish a strategic partnership focused on the Indian market.

Bata India, a footwear manufacturer, is currently in advanced discussions with German sportswear company Adidas to establish a strategic partnership in India. This potential collaboration is expected to involve a revenue-sharing arrangement. Bata’s shares saw a 7.3% intraday increase on Thursday, ultimately closing at Rs 1,733.75 on the BSE, marking a 5.3% rise from the previous day.

As part of this partnership, Adidas is looking to leverage Bata India’s extensive retail network to enhance its presence within the country. Adidas, which currently has fewer than 1,000 stores in India primarily operated under franchises, aims to use Bata’s retail network to reach a broader market across India.

Bata India, a subsidiary of Netherlands-based Bata BN, manages various brands including Hush Puppies and Scholl, with over 2,050 stores throughout India. The company’s CEO, Gunjan Shah, expressed plans to re-enter the premium market with new product portfolios and price ranges. Bata also intends to amplify its advertising and promotional efforts to connect with digitally inclined young consumers.

While Bata is known for its affordable footwear offerings, it has faced challenges due to changing consumer preferences in recent years. Despite a nearly 10% year-on-year decline in net profit for Q1FY24, Bata saw growth in revenue from operations, which stood at Rs 958.1 crore—a nearly 2% increase from Q1FY23. Expenses were higher during the same period, impacting operating margins, which declined to 25% compared to 26% reported the previous year.