0% found this document useful (0 votes)
321 views

cHAPTER 2

India is the second largest global producer of footwear after China. The footwear industry is a major segment of India's leather industry, accounting for 13% of global production. India produces over 2 billion pairs of footwear annually, with 95% going to domestic demand. The footwear industry provides employment to over 1 million Indians. While India exports around $2 billion worth of footwear annually, the domestic market is valued at $32 billion and growing at 11-12% annually. The Indian footwear industry is poised for continued growth due to investment in technology and manufacturing capacity.

Uploaded by

Nithin Reddy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
321 views

cHAPTER 2

India is the second largest global producer of footwear after China. The footwear industry is a major segment of India's leather industry, accounting for 13% of global production. India produces over 2 billion pairs of footwear annually, with 95% going to domestic demand. The footwear industry provides employment to over 1 million Indians. While India exports around $2 billion worth of footwear annually, the domestic market is valued at $32 billion and growing at 11-12% annually. The Indian footwear industry is poised for continued growth due to investment in technology and manufacturing capacity.

Uploaded by

Nithin Reddy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 46

ABOUT INDIAN FOOTWEAR INDUSTRY

The footwear sector is a very significant segment of the leather industry in India; rather it is
the engine of growth for the entire Indian leather industry.

India is the second largest global producer of footwear after China, accounting for 13% of
global footwear production of 16 billion pairs. India produces 2065 million pairs of different
categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million
pairs and non-leather footwear - 1056 million pairs).India exports about 115 million pairs.
Thus, nearly 95% of its production goes to meet its own domestic demand.

The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai
in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat,
Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the
footwear manufacturing industry. .

Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes,
Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C.
and other materials.

The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of
capacities on modern lines with state-of-the-art machinery. To further assist this process, the
Government has permitted 100% Foreign Direct Investment through the automatic route for
the footwear sector.

Conducive Investment climate towards attracting overseas investments and increasing cost
competitiveness.The Government of India is setting up dedicated Footwear Complex and
Footwear Components Part where footwear clusters are located.

Footwear – Global Scenario and India’s share The global import of Footwear (both made of
leather as well as non-leather) increased from US$ 124.43billion in 2013 to US$
134.943billion in 2017, growing at a CAGR of 2.1%. During 2017, the India’s share in the
global import is 2%.
2013 2014 2015 2016 2017
Global 124312.959 131,819.943 127,818.701 128324.900 134,943.372
import of
Footwear
India's 2609.804 2990.733 2771.020 2747.900 2785.993
export of
Footwear
% Share of 2% 2.27% 2.16% 2.15% 2%
India

India’s Export of Different categories of Footwear (Value in USD Mn)

2013 2014 2015 2016 2017


Leather 2018.18 2207.17 2017.22 1952.44 1933.13
footwear
Footwear 320.15 361.29 284.34 298.69 335.24
Components
Non-Leather 202.06 306.44 306.74 338.21 296.68
Footwear
Total 2540.39 2874.9 2608.3 2589.34 2565.05

Footwear is the engine of growth of the leather industry in India. India’s export of Footwear
touched US$ 1933.13 million in 2016-17, accounting for a share of 45 % in India’s total
export from the leather sector of US$ 5739.93Mn.

 India’s export of leather footwear had increased from US$ 2018.18 million in 2012-13 to
US$ 1933.13 million in 2016-17.

 India’s export of footwear components had increased from US$ 320 million in 2012- 13 to
US$ 335.24 million in 2016-17

 India’s export of non-leather footwear has increased from US$ 202.06 million in 2012- 13
to US$ 296.68 million in 2016-17

Major Markets:
During 2016-17, the main markets for Indian Footwear are USA with a share of 14.6%,
UK14.4%, Germany12.2%, France6.4%, Italy4.8%, Poland4%, UAE3.7%, Spain 3.3%,
Belgium3.2% and Netherlands2.5%. These 10 countries together accounts for 80.53% share
in India’s total footwear export.

Nearly 90% of India’s export of footwear goes to European Countries and the USA. Future
growth of Indian footwear in India will continue to be market driven. The European countries
and the US are major consumers for the Indian footwear.

A Statement showing India’s Export of Footwear to different countries (leather, nonleather


and uppers): (Year 2013 to Year 2017)

Future Trends: - Keeping in view its past performance, current trends in global trade, the

industry’s inherent strengths and growth prospects, the footwear industry aims to augment

production, thereby enhancing its exports from the current level of US$ 1.73 billion.

Domestic Footwear Industry in India

 The Domestic Footwear Industry in India is valued at approximately US$ 3200

million, projected growth at 11 – 12% p.a.

 Organized retail is 25% and growing fast at 35-40% pa

 Footwear retailing constitute about 9% in the total consumer market.

 Men’s footwear is about 50% of the market

 Branded footwear (including store labels) is about 50% of the market, driven by men’s
footwear largely

 Ladies and kids footwear, Sports Footwear also have vast potential in the domestic

market

• Consumers purchase footwear throughout the year and there is no fixed period/timing

of purchase. However, the beginning of an academic session seems to be a peak time

for purchase of footwear.

• A majority of consumers (over 75 percent) in metro and non-metro urban areas


showed their preference for indigenous footwear and about 17 percent indicated no

preference for indigenous or imported footwear. Surprisingly more than 10 percent of

consumers in non-metros towns showed their preference for imported footwear as

against only 6 percent in metro cities.

• About 55 percent of the consumers surveyed indicated preference for leather footwear

while 45 percent preferred non-leather footwear. However, in non-metros town, more

than 70 percent consumers preferred leather footwear and less than 30 percent

preferred non-leather footwear.

Consumer preference

• A little over 53 percent of consumers expressed their preference for branded footwear

while around 27 percent showed their preference for non-branded footwear and 10

percent were found to be brand neutral. Interestingly the preference for branded

footwear was more in non-metro towns in as much as 62 percent of consumers

surveyed indicated preference for branded footwear.

• As against popular perception, price of footwear apparently was not a major factor in

influencing consumers preference. A majority (60 percent) of consumers would rather

prefer quality of footwear.

• Expectedly, majority of consumers (58 percent) showed distinct preference for

comfortable and durable footwear, although a significant 42 percent of consumers

valued fashion and design of footwear.

Competitiveness of Indian footwear vis-à-vis imported footwear

• The natural advantage of Indian footwear industry in terms of factor endowments like

availability of leather and cheap labour apparently has not been converted in to a

comparative advantage in production. Import growth has tended to rise faster than
growth of exports of footwear in recent years and this may at- least partly be reflective

of the loss of competitiveness of exports. Taking unit value of exports and imports of

some items as proxies of prices, it is observed that the unit value of imports in majority

of footwear items whether leather or non-leather, is comparatively lower than unit

value of exports of these items.

Indian footwear industry poised for growth

India has state-of-the-art manufacturing plants. The footwear sector has matured from the

level of the manual footwear manufacturing method to the automated footwear


manufacturing

systems. Footwear production units are installed with world class machines. Manned by

skilled technicians, these machines help to turn any new innovative idea into reality. Support

systems created for the sector have indeed served the footwear industry well. India has a well

developed footwear component manufacturing industry. The future growth of the footwear

industry in India will continue to be market-driven, and oriented towards EU and US markets.

With technology and quality of the footwear improving year after year, Indian Footwear

industry is stamping its class and expertise in the global footwear trade. The leather and
footwear industry is a labour intensive sector, providing employment to 4.42 million people.
This is one of the largest sectors providing employment to women, as about 40% of
workforce are women.

The industry has achieved several milestones. India is the second largest exporter of leather
garments , third largest exporter of Saddlery & Harness and 4th largest exporter of Leather
Goods in the world.

It is estimated that about 0.5 million unemployed people have been employed in this sector in
the last five years after undergoing training under various Government schemes. Hence, the
sector has very good potential for generating additional employment opportunities in Post
COVID period.
India is the second largest consumer of footwear in the world and its leather products and
footwear market is estimated to be about USD 12 billion. Besides, India’s annual export of
finished leather, leather products and footwear is about USD 5 billion. With its inherent
strengths of huge raw material base, traditional knowhow, skilled manpower and application
of modern technology, India has established its own reputation as a supplier of high quality
goods.

100% FDI is already permitted under the sector under automatic route. The Government is
implementing the Indian Footwear, Leather and Accessories Development Programme
(IFLADP) with an outlay of Rs.2600 crore wherein financial support is provided for core
areas namely capacity augmentation and technological upgradation of production units,
upgradation of CETPs, HRD, establishment of institutional facilities etc., Thus, the huge
market potential combined with support measures and ease of doing business measures of the
Government have made Indian leather and footwear industry an attractive investment
destination.

There are bright opportunities for start-ups in the leather and footwear sector, as there are
good prospects for growth both on the domestic front and in exports, post COVID. The Mega
Leather, Footwear and Accessories Development Cluster (MLFACs) will be coming up in
various States like Uttar Pradesh, Tamil Nadu, West Bengal, Maharashtra, Andhra Pradesh
etc., which will be integrated production centres with plug-and-play model of factories and
common facilities like testing laboratories etc., These MLFACs are a good platform for Start-
ups.

We thank the Government of India for announcing series of support measures during the
Pandemic period.  These include the following major measures.

 The definition of Micro, Small and Medium Enterprises were revised on account of
which about 98% of the units in the leather, leather products and footwear sector are
under MSME as against 92% earlier
 The revised finished leather norms were notified vide DGFT Public Notice No. 15-
2015/20 dated 4th September, 2020. This will facilitate export of new types of leathers
which are in huge demand in the global market and will enhance export of finished
leathers from the country
 The validity of Duty Free Import Scheme (DFIS) (allowing Basic Customs Duty
exemption for notified inputs to the extent of 5% of FOB value of exports in previous
year for footwear and other leather products and 3% for Leather Garments) for the
year 2019-20 was extended upto 30th September, 2020 (facilitating manufacture of
export products in the sector)
 Apart from above measures, extension of Foreign Trade Policy (FTP) till March 2021,
continuation of interest equalization on rupee export credit till March 31, 2021, etc.,
have also been taken by the Govt. to facilitate promotion of exports in the sector.

The Council for Leather Exports has been playing an active role in the overall growth and
development of the leather and footwear industry.

Despite the Pandemic, the Council for Leather Exports is undertaking a multi-pronged, 
aggressive and pro-active marketing strategy to tap the potential available in various markets.
We have had B2 B meetings with buyers in Vietnam and Korea. We have organized Virtual
Buyer Seller Meets with Russia and Peru. We are planning such Virtual BSMs in 7 countries
namely Germany, Canada, Australia, Italy, Vietnam, UAE and UK during 2020-21. Besides,
CLE has participated in virtual exhibitions namely Footwear & Leather Show, Australia ;
Magic Show, Las Vegas held from Sept. 15 – Dec. 15, 2020 and is participating in the
January 2021 edition of Expo Riva Schuh Fair held in Riva Del Garda, Italy which is one of
the major fairs for footwear . Physical editions of three other major fairs in Italy namely
Mipel, Micam and Lineapelle are scheduled in March 2021 wherein CLE will be
participating.

Besides direct marketing, we are actively engaging with overseas Trade Associations to
facilitate business tie-ups. We have webinars with British Footwear Association (BFA); US
Fashion Industry Association (USFIA) and Footwear Distributors and Retailers of America
(FDRA).

On the whole, the leather and footwear industry has very good potential for growth and
development both on the domestic front and in exports.
Footwear Industry In India 2020

India is the second largest footwear manufacturer in the world with 9% of the annual global
production of 22 billion pairs.

Footwear Industry in India Presently about 90% of the footwear produced in India is
consumed by the domestic market and the rest is exported. India’s consumption stands at
~2.1 billion pairs and is third largest globally after China and USA.

Rising disposable income is allowing individuals to move up the value chain, demanding
products for different use occasions, leading to emergence of new product segments in
footwear in aesthetics, performance and price. This in turn is fuelling growth in individual
categories, be it slippers, sandals or shoes, driving industry leaders to continually innovate
their offerings.

Indian Footwear Industry Contribute 9% of the annual global production

Import duty on footwear is 35 per cent in India.

Footwear Industry in India Unlike most global markets, the Indian footwear market is skewed
towards men with the segment commanding nearly 60% share vis-à-vis a global average of
40%. However, improved education and employment opportunities and the resultant
economic empowerment for women has substantially augmented demand of trendy and
stylish footwear among women of all age groups and likely will lead to disproportionately
higher growth in the women’s footwear market.

Indian footwear market is under penetrated with per capita consumption of only ~1.7 pairs
per annum against a global average of 3 pairs.
India’s consumption stands at ~2.1 billion pairs and is third largest globally after China and
USA.

Increased internet access and evolving digital technologies have created a whole new
marketing ecosystem. A new class of consumers has sprung up being more aware, ambitious
and willing to adopt the change early.

The companies too, are quick to spot this emerging segment and have adapted their strategies
and earmarked significant investments to tap this market. A perfect interface has been
enabled with the emergence of online market places and support infrastructure for logistics
and billing.

Further, availability of huge data and advanced analytics has enabled companies

to access invaluable information about consumer behaviour, useful for product development
and strategy .Omni channel presence is the new buzz word, and companies are rushing to
reap this trend. For consumers, all this translates into a bonanza of greater availability,

convenience and price optimisation, helping them in taking informed shopping decisions.

Additionally, this evolution has led to a spurt in demand from tier 2 cities, and below,
opening up newer markets for the footwear industry. Several leading global fashion and
lifestyle brands have started betting big on small cities o India.ic marketing planning.

Import Duty on Footwear in India

Budget 2020: Government has hiked import duty on footwear from 25 per cent to 35 per cent
and on footwear component from 15 per cent to 20 per cent. This move, combined with
recent government announcements on promoting ‘Made-inIndia’ footwear, is expected to
provide a boost to domestic manufacturers.

Opportunities and challenges of Footwear Industry


The Indian footwear market is under penetrated with per capita consumption of only ~1.7
pairs per annum against a global average of 3 pairs, while the developed countries average
around 6-7 pairs.

With rising disposable incomes and emergence of fashion conscious and aspirational
consumers, the Indian footwear market is well positioned to achieve double digit growth over
the next few years. Footwear, being a labour intensive industry, also presents a unique
‘social’ opportunity with a potential to generate employment for over 20 lakh people over
next few years.

Abundant raw material and cost efficient skilled labour, provide a distinct competitive
advantage to Indian footwear manufacturers over their international peers, enabling them to
tap the huge domestic market.

Given the right market access and incentives, the industry is well poised to even target global
markets and transform India into an export hub for footwear.

Risks and Concerns

Economic and political factors, both national and global, that are beyond control, and factors
force majeure’ may directly affect performance of the Company as well as the footwear
industry.

These factors include interest rates and its impact on availability of retail space, rate of
economic growth, fiscal and monetary policies of governments, inflation, deflation
consumer credit availability, consumer debt levels, tax rates and policy, unemployment
trends, terrorist threats and activities, worldwide military and domestic disturbances and
conflicts, pandemics, and other matters that influence consumer confidence and spending.
Prospects for India in Footwear Sales

India is the second-largest producer of footwear in the Asia Pacific excluding Japan region,
after China, accounting for 13% of global footwear production of 16 billion pairs. According
to the Council for Footwear Leather and Accessories, India produces over 2000 million pairs
of different categories of footwear, of which, leather shoe uppers are a 100 million pairs,
leather footwear accounts for over 900 million pairs, and non-leather footwear for more than
1,000 million pairs.

India exports around 115 million pairs of footwear annually. Close to 95% of its production
goes towards domestic demand. Major production centers in India for footwear are Ranipet,
Chennai, Mumbai in Maharastra, Ambur in Tamil Nadu, Jalandhar in Punjab, Kanpur in U.P.,
Delhi, Agra, Ludhiana, Karnal, Faridabad, Sonepat, Kolkata, Pune, Ernakulam, and Calicut.
Over 1 million people are engaged in the footwear manufacturing industry in India.

Major footwear styles exported from India include casuals, dress shoes, sport shoes,
moccasins, sandals, horrachies, boots, ballerinas, and chappals made from a wide range of
materials, including plastic, rubber, and P.V.C.

The footwear sector of India is de-reserved and de-licensed in nature. This allows for
capacity expansion. The Government of India has also permitted 100% Foreign Direct
Investment through the automatic route for the footwear sector.

Favorable environment for investments and increasing cost competitiveness are key
influencers of the Indian market. Close to 90% of India’s exports of footwear go to European
countries and the United States.

Between 2016 and 2017, major markets for Indian footwear were USA and the U.K., with a
share of over 14%, Germany with more than 12%, France with 6.5%, Italy nearly 5%, Poland
at 4%, and UAE, Spain, Belgium, and the Netherlands at over 3%. These 10 countries
altogether account for around 80% share in India’s total footwear exports.
BATA

Bata Corporation (originally, and in the Czech Republic and Slovakia, known as Baťa) is a


Czech multinational footwear and fashion accessory manufacturer and retailer, founded in the
town of Zlín, today in the Czech Republic. After World War II, its factories in socialist
states were nationalized, while its branches in capitalist states remained family-owned. It is
now based in Lausanne, Switzerland. The principal subsidiaries are Bata Europe (based
in Zlín), Bata North America (based in Toronto), Bata Asia-Pacific-Africa (based
in Singapore) and Bata Latin America (based in Mexico).

A family-owned business, the company is organized into three business units: Bata, Bata
Industrials (safety shoes) and AW Lab (sports style). The company is the world's leading
shoemaker by volume, and it has a retail presence of over 5,300 shops in more than 70
countries and production facilities in 18 countries.

Paragon Footwear

Paragon footwear is an Indian footwear company which was founded in the year 1975 in
Kottayam, Kerala. Established by three individuals, P.V. Abraham, K.U. Thomas & K.U.
Scaria, the company now employs over 10,000 people.

History

Paragon is a Kerala-based footwear manufacturer who launched their production line in the
year 1975. Their main-stay being Rubber Hawai, Poly-Urethane (PU) and Poly Vinyl
Chloride (PVC) footwear, Paragon quickly ventured into alternate materials like Ethylene-
Vinyl Acetate (EVA) and Thermo Plastic Rubber (TPR). In 1982, Paragon shifted their
business model to include a wider audience. The company’s footwear is now distributed
through 18 depots across India, with over 450 Paragon distributors. Promoted by the Paragon
Group of Companies, they have multiple ISO-9001 & 14001 certified factories around the
country and have also outsourced the production of footwear to manufacturers in Bangalore,
Hyderabad, Kottayam, Salem, Delhi and other locations. With over 24 manufacturing plants
located in Bangalore (12 units), Kottayam (4), Salem (3), Hyderabad (4) and Vijayawada (1),
Paragon’s in-house production rate stands at over 400,000 pairs of footwear a day, with
approximate annual sales of over 14,00,00,000 pairs each year.

Metro

Metro Shoes is multi-brand footwear retail chain in India. In 2013, the company announced
that it was able to expand the number of its retails stores due to low rental rates, particularly
in tier II cities. Metro Shoes has a countrywide network of exclusive Metro showrooms at
more than 206 prime locations across 100 plus cities in India.

RELIANCE FOOTPRINT LIMITED


Reliance Footprint Limited was an unlisted public company incorporated on 05 June, 2007. It
is classified as a public limited company and is located in , Maharashtra. It's authorized share
capital was INR 1.05 cr and the total paid-up capital was INR 1.05 cr.

Reliance Footprint Limited's operating revenues range is INR 100 cr - 500 cr for the
financial year ending on 31 March, 2012. It's EBITDA has increased by 698.63 % over the
previous year. At the same time, it's book networth has decreased by -4.17 %. Other
performance and liquidity ratios are available here.

The current status of Reliance Footprint Limited is - Amalgamated.

The last reported AGM (Annual General Meeting) of Reliance Footprint Limited, per our
records, was held on 04 August, 2012. Also, as per our records, its last balance sheet was
prepared for the period ending on 31 March, 2012.

Nike

Nike, Inc. (/ˈnaɪki/ or /ˈnaɪk/ is an American multinational corporation that is engaged in the


design, development, manufacturing, and worldwide marketing and sales
of footwear, apparel, equipment, accessories, and services. The company is headquartered
near Beaverton, Oregon, in the Portland metropolitan area. It is the world's largest supplier
of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in
excess of US$37.4 billion in its fiscal year 2020 (ending May 31, 2020). As of 2020, it
employed 76,700 people worldwide. In 2020 the brand alone was valued in excess of $32
billion, making it the most valuable brand among sports businesses. Previously, in 2017, the
Nike brand was valued at $29.6 billion. Nike ranked 89th in the 2018 Fortune 500 list of the
largest United States corporations by total revenue.

The company was founded on January 25, 1964, as "Blue Ribbon Sports", by Bill
Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company
takes its name from Nike, the Greek goddess of victory. Nike markets its products under its
own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1,
Nike Dunk, Air Max, Foamposite, Nike Skateboarding, Nike CR7, and subsidiaries
including Jordan Brand and Converse. Nike also owned Bauer Hockey from 1995 to 2008,
and previously owned Cole Haan, Umbro, and Hurley International. addition to
manufacturing sportswear and equipment, the company operates retail stores under the
Niketown name. Nike sponsors many high-profile athletes and sports teams around the world,
with the highly recognized trademarks of "Just Do It" and the Swoosh logo.

VKC Footwear

VKC Group is a footwear manufacturing and marketing company, based in


the Kozhikode district of Kerala state, in India.

It is considered to be one of the biggest in the organised footwear sectors. It is also the largest
branded PU footwear manufacturer in India.

V.K.C Mammed Koya is the founder of VKC Group.

History

The Group was established on 17 August 1984 with venturing into a Hawai Sheet
manufacturing unit. Later on Hawai straps were also inducted to the production line and in
1986, VKC group launched the first product with its own brand name VKC Hawai in the
market with an initial production of 600 pairs per day. By 1989 the production increased to
5000 pairs a day and by 1996 it was increased to 17000 pairs.
In 1987, the group initiated the floating of the first RPVC (Rigid Polyvinyl Chloride)
footwear manufacturing unit in the Kozhikode, Kerala. This product also got very good
acceptance in the market. This has paved the way for a rapid change in the footwear industry
itself. Within a few years the number of Rubber and RPVC units grew to more than 80
numbers in this region.

In 1994 the group ventured the first unit in Kerala to manufacture footwear from virgin PVC.
This resulted in a drastic change and the multinational brands confronted competitions from
the local brands. In 1998 the group ventured into the first Micro Cellular PVC footwear in
Kerala with the help of imported plant and machinery. "Quality at affordable price" made the
VKC groups products popular in the market day by day.

In 2001 the group introduced the first Air Injected PVC DIP footwear manufacturing unit in
the South India. In 2003 the group missioned the first Injected EVA manufacturing unit in
South –Central India. In 2006 the group started backward integration to produce EVA
compound for Injection and initiated the first EVA compounding plant in the South –Central
India.

In 2007, the group initiated the Manufacturing of PU DIP footwear at affordable price for
common man. The production capacity also shoot up to two lakhs of PU footwear per day.

Liberty

Liberty Shoes Limited (LSL) is an Indian shoe company, based in Karnal, Haryana.

Established in 1954, the company presently produces 50,000 pairs of footwear a day through
its six manufacturing units, sold through 6,000 multi-brand outlets and 350 exclusive
showrooms, and has a presence in 25 countries, with 50 showrooms outside India.[2] Adesh
Gupta became the CEO of LSL on 16 July 2001.

History

Liberty Shoes was founded by Dharam Pal Gupta, Purshotam Das Gupta and Rajkumar
Bansal by the name of Pal Boot House in 1954. Liberty Shoes first associated in India for
distribution and exclusive showrooms with Balbir Singh & Son's in the year of 1983, which
was later named as Naruson Sales Corporation.
The company was incorporated on 3 September 1986 as a Public Limited Company and
obtained the Certificate of Commencement of Business on 11 March 1988. The company has
been set up to manufacture and sell leather and non leather shoes, leather shoe uppers and
leather garments Presently the company is engaged in the manufacturing of leather and non
leather shoes.

Adidas

Adidas AG (German: [ˈʔadiˌdas]; stylized as adidas since 1949. is a German multinational


corporation, founded and headquartered in Herzogenaurach, Germany, that designs and
manufactures shoes, clothing and accessories. It is the largest sportswear manufacturer in
Europe, and the second largest in the world, after Nike. It is the holding company for the
Adidas Group, which consists of the Reebok sportswear company, 8.33% of the German
football club Bayern München, and Runtastic, an Austrian fitness technology company.
Adidas' revenue for 2018 was listed at €21.915 billion. The company was started by Adolf
Dassler in his mother's house; he was joined by his elder brother Rudolf in 1924 under the
name Gebrüder Dassler Schuhfabrik ("Dassler Brothers Shoe Factory"). Dassler assisted in
the development of spiked running shoes (spikes) for multiple athletic events. To enhance the
quality of spiked athletic footwear, he transitioned from a previous model of heavy metal
spikes to utilising canvas and rubber. Dassler persuaded U.S. sprinter Jesse Owens to use his
handmade spikes at the 1936 Summer Olympics. In 1949, following a breakdown in the
relationship between the brothers, Adolf created Adidas, and Rudolf established Puma, which
became Adidas' business rival.

The three stripes are Adidas' identity mark, having been used on the company's clothing and
shoe designs as a marketing aid. The branding, which Adidas bought in 1952 from Finnish
sports company Karhu Sports for the equivalent of 1,600 euros and two bottles of whiskey,
became so successful that Dassler described Adidas as "The three stripes company".

History

The company was founded by Adolf "Adi" Dassler who made sports shoes in his
mother's scullery or laundry room in Herzogenaurach, Germany after his return from World
War I. In July 1924, his older brother Rudolf joined the business, which became "Dassler
Brothers Shoe Factory" (Gebrüder Dassler Schuhfabrik). The electricity supply in
Herzogenaurach was unreliable, so the brothers sometimes had to use pedal power from a
stationary bicycle to run their equipment.
Dassler assisted in the development of spiked running shoes (spikes) for multiple athletic
events. To enhance the quality of spiked athletic footwear, he transitioned from a previous
model of heavy metal spikes to utilising canvas and rubber. In 1936, Dassler persuaded
U.S. sprinter Jesse Owens to use his hand made spikes at the 1936 Summer Olympics.
Following Owens' four gold medals, the name and reputation of Dassler shoes became known
to the world's sportsmen and their trainers. Business was successful and the Dasslers were
selling 200,000 pairs of shoes every year before World War II.

Khadim's

Khadim India Limited, doing business as Khadim's, is an Indian footwear company based


in Kolkata. It is involved in the manufacture and retail of footwear products and accessories,
primarily in eastern and southern parts of India.

Khadim's traces its roots to KM Khadim & Company, a footwear store in Chitpur, Kolkata,
which was acquired by Satya Prasad Roy Burman in 1965. Khadim's was incorporated in
1981 and remained a wholesale business until 1993 when it opened its first retail store in
Kolkata. The company expanded operations in east and northeast India, before opening its
first store in south India in 2000. At the time of its initial public offer in 2017, the company
had 853 retail stores, and ranked second on the list of footwear companies by number of store
locations in India. It has two manufacturing locations, in Kolkata and Kanpur. In 2019,
Khadim's established a wholly owned subsidiary in Bangladesh called Khadim Shoe
Bangladesh Limited.

Puma

Puma SE, branded as Puma, is a German multinational corporation that designs and


manufactures athletic and casual footwear, apparel and accessories, which is headquartered
in Herzogenaurach, Bavaria, Germany. Puma is the third largest sportswear manufacturer in
the world.[4] The company was founded in 1948 by Rudolf Dassler. In 1924, Rudolf and his
brother Adolf "Adi" Dassler had jointly formed the company Gebrüder Dassler
Schuhfabrik (Dassler Brothers Shoe Factory). The relationship between the two brothers
deteriorated until the two agreed to split in 1948, forming two separate
entities, Adidas and Puma. Both companies are currently based in Herzogenaurach, Germany.
Puma has been a public company since 1986, listed on the Frankfurt Stock Exchange. French
luxury group Kering (formerly known as Pinault-Printemps-Redoute or PPR) holds 16%,
Kering's largest shareholder Artemis SA owns 29% of the share capital. Since 1 July 2013,
the company has been led by former football professional Bjørn Gulden (chief executive
officer).

As of 2017, Puma SE employs more than 13,000 people worldwide and distributes its
products in more than 120 countries.

History

Christoph von Wilhelm Dassler was a worker in a shoe factory, while his wife Pauline ran a
small laundry in the Franconian town of Herzogenaurach, 20 km (12.4 mi) from the city of
Nuremberg. After leaving school, their son, Rudolf Dassler, joined his father at the shoe
factory. When he returned from fighting in World War I, Rudolf was trained as a salesman at
a porcelain factory, and later in a leather trading business in Nuremberg.

The brothers drove from Bavaria to the 1936 Summer Olympics in Berlin with a suitcase full
of spikes and persuaded United States sprinter Jesse Owens to use them, the first sponsorship
for an African American. Owens won four gold medals. Business boomed; the Dasslers were
selling 200,000 pairs of shoes annually before World War II.

Woodland

Founded in Quebec, Canada, over twenty five years ago, Woodland has grown to be
recognized internationally as one of the world’s leading manufacturers of extreme weather
outdoor gear and outerwear. Woodland offers an extensive line of footwear, performance
apparel and outdoor gear.
Woodland's parent company, Aero Group, has been a well known name in the outdoor shoe
industry since the early 50s. Founded in Quebec, Canada, it entered the Indian market in
1992. Before that, Aero Group was majorly exporting its leather shoes to Russia. After the
division of Russia into various states known as the USSR, the group decided to launch some
of its products in India. Hence, the first hand-stitched leather shoe was launched, which took
the entire shoe market by storm. That shoe made the brand 'Woodland'.
Popular Shoe Mart India Pvt Ltd

"Popular Shoe Mart" is a partnership firm established in the year 1962. It was the vision
of Sri Chukkapalli Pitchaiah, Who foresaw the potential of quality-footwear-trading in
abutted market. Branding of items of mass consumption was being resorted to at a faster
pace during those times. Proliferating urbanization has created awareness about the
quality of branded products.

Recognizing the characteristic property of the footwear as a product of mass consumption


and sensing the opportunity, Sri Pitchaiah, an entrepreneur by instinct, commenced a
partnership firm under the trade name "Popular Shoe Mart". The firm commenced the
initial business, opening a shop at Guntur. Sri Pitchaiah carefully nurtured the trendy
consumer taste and acquired valuable insight into the intricacies of marketing branded
footwear. Armed with the market pulse Sri Pitchaiah proceeded to expand the business by
opening branches. Branch net work was extended year-by –year. Interior areas of the state
are taken special care and branches are opened to cater to the untapped markets. Sri
Pitchaiah was the pioneer in creating and developing a retail business model for footwear
in Andhra Pradesh, soon Popular Shoe Mart network became a competitor to national
network such as BATA & LIBERTY etc.,

Sri Ch.Pitchaiah with a vision of entrepreneurship individually supervised each and every
detail of business, starting with the design of the retail Branch, the furniture & fixtures
model at the branch, Quality of purchases, selling price and the after the sales-service.

Lotto

Lotto may refer to:

Lotto was established in 1939 by the Caberlotto family (who were the owners of the
football team F.C. Treviso) in Montebelluna, northern Italy, the world centre of footwear
manufacturing. In June 1973, Lotto made its debut as a sports footwear manufacturer. Tennis
shoes signaled the beginning of production, followed by models for basketball, volleyball,
athletics and football.
Lakhani

Lakhani Footwear Pvt. Ltd. is a renowned name in shoe manufacturing with a wide array of
offerings under various brands and categories.
Lakhani Footwear Pvt. Ltd. is the largest producer of Sports Shoes, Beach Slippers, PU
Injected Sports Shoes, PVC Injected Sports Shoes with a total capacity of 55.5 million pairs
per year. Lakhani Footwear has setup state-of-the-art plants in Faridabad (Haryana),
Dhar(MP) and Haridwar (Uttaranchal) to produce Sport Shoes, Leather Shoes, Canvas Shoes
and EVA Slippers.

The company has made its mark in the footwear industry by manufacturing shoes that are
high on style as well as comfort. It has been manufacturing shoes for leading brands.

Lee Cooper

Lee Cooper is an English-American clothing and footwear manufacturing company, based


in London, that specialises in denim products. As well as its own production, the company
licences the sale of many Lee Cooper-branded items worldwide. Founded as M. Cooper
(Overalls) Ltd, the company originally produced workwear for export from England, and
began to specialise in denim jackets and trousers in the 1930s. Current products by Lee
Cooper include jeans, denim t-shirts, sneakers, backpacks, and fanny packs.

History

The company that eventually became Lee Cooper was established in 1908 by Morris Cooper
and a friend, Louis Maister, after they arrived in London from their hometown
in Lithuania (then part of the Russian Empire), having previously spent some time in South
Africa. Operating under the name M. Cooper (Overalls) Ltd, from premises on Middlesex
Street in London's East End, they began production of workwear, having identified a market
for it in South Africa. During the years of the First World War, M. Cooper (Overalls), which
by then employed over 600 people, halted production of workwear and began making
uniforms, kit bags and rucksacks for the British Army. In 1937, a new factory dedicated to
the manufacture of denim was opened in Stratford, with the business reporting a profit of
£1,000 by year end. The outbreak of the Second World War in 1939 led Morris Cooper to
split the business into two: one arm continued making workwear, while the other
concentrated on producing military uniforms, battle fatigues and flight overalls. M. Cooper
(Overalls) eventually became one of the biggest suppliers to the British Armed Forces.

Red tape

RedTape shoes was conceptualised as a lifestyle brand for the aspiring and ambitious
Generation Next. A brand synonymous with unparalleled comfort, international style and
exceptional finesse owing to its unrelenting focus on quality, craftsmanship and in-vogue
fashion.

The story dates back to 1996, when RedTape became one of the first Indian footwear brands
to be available in the leading and discerning global markets of UK. Since then, RedTape’s
footprint has moved onwards and upwards.

To stay abreast with the latest footwear trends and styles, our footwear range is designed
indigenously in the design studios of UK and Italy, with manufacturing mapped to globally
accepted standards of quality and material.

Enthused by popularity of the brand, in 2006, we extended our brand to the men’s clothing
and accessories categories with our product offerings comprising casual and semi-formal
apparels including shirts, t-shirts, trousers, denim, sweaters, jackets and accessories such as
belts, socks, handkerchiefs and wallets. Today, the brand also caters to the fashion-conscious
women and kids with a wide array of products.

Internationally, we sell in the markets of US, UK, France, Germany, West Asia and South
Africa through our extensive global distribution channel.

Sparx

The brand is known for its active sporty design, the right price range and unique choice for
fashion-conscious customers. Delhi headquartered Sparx, one of the leading footwear
brands in the country has been ranked 3rd ‘Most Trusted Footwear Brand’ in India in
‘The Brand Trust Rep ort 2016’ by Trust Research Advisory (TRA).

The brand has also secured 222th position among all categories that featured 20,000 unique
brands across industries and categories. The 6th edition of The Brand Trust Report researched
2505 consumer influencers across 16 cities and listed India's 1000 Most Trusted Brands.
LANCER FOOTWEAR

Lancer footwear is a renowned footwear manufacturing company that offers diverse portfolio
of products, which adds comfort to people's lives. Lancer was founded in the year 1989 from
the passion and knowledge of a great visionary Mr. Subhash Chander Gupta, who spearheads
the company’s strategic execution of business goals and exponential growth. Lancer
Footwear is headquartered in New Delhi, India with 7 state-of-the-art manufacturing facilities
spread across Delhi and Haryana, servicing the Footwear Industry with the best of material,
design and quality at competitive prices.

Footwear design, quality and customer service are the key pillars of success which
keeps inspiring Lancer Footwear to provide exceptional products with unbeatable value for
money. Our aim is to always exceed our customer's expectations on quality. The
competitiveness of Lancer's portfolio of products rest on the strong foundations of
institutional strengths derived from its deep consumer insights, cutting-edge Research &
Development in the footwear industry, differentiated product development capacity, strategic
brand-building, world-class manufacturing infrastructure, efficient marketing and distribution
network and dedicated team of experienced workforce.

Relaxo

Relaxo Footwears Limited is an Indian multinational footwear manufacturer based in New


Delhi. It is the largest footwear manufacturer in India in terms of volume and second-largest
in terms of revenue, with a market share of more than 5 percent. The company makes
products under 10 brands including Flite, Sparx, Bahamas and Schoolmate.

Salman Khan was signed as a brand ambassador of Relaxo footwears. [10] Among other actors
signed up to endorse the company's brands are Akshay Kumar,[11] Katrina
Kaif[12] and Sonakshi Sinha.[13]

Tirubala
Tirubala Group is the largest manufacturer and exporter of high quality, fashionable footwear
for men, women and kids. We have international markets comprising countries like EU,
USA, UK etc. Our portfolio of clients includes the likes of Mango, Tempe, Arcadia Group,
Bimba and Lola, Hoogenbosch, Lloyds, Esprit, Zara, Bershka, Topshop, Mexx, Gioseppo as
well as Why Not Shoes and many more clients.
 • Today we are an ISO 9001 certified company with 4 factories housed on
approximately 160000 square feet of land and manufacture around 12000 pairs of
sandals and shoes a days.

 • We are one of the largest leather manufacturer and exporter. In a very short
span of time we have spread our wings to far-reaching markets of the country.We at
Tirubala believe that a satisfied workforce makes for the highest quality of end-
product as it promotes a more amiable work environment where individual functions
are carried out with passion and with the goal of creating something unique.

 . Tirubala Group is the largest manufacturer and exporter of high quality, fashionable
footwear for men, women and kids.

 We combine state-of-the-art technology with automated systems along with


experienced staff that are qualified in the whole process right from the start to finish.
BATA- COMPANY PROFILE
Bata Corporation (originally, and in the Czech Republic and Slovakia, known as Baťa) is a
Czech multinational footwear and fashion accessory manufacturer and retailer, founded in the
town of Zlín, today in the Czech Republic. After World War II, its factories in socialist
states were nationalized, while its branches in capitalist states remained family-owned. It is
now based in Lausanne, Switzerland. The principal subsidiaries are Bata Europe (based
in Zlín), Bata North America (based in Toronto), Bata Asia-Pacific-Africa (based
in Singapore) and Bata Latin America (based in Mexico).

A family-owned business, the company is organized into three business units: Bata, Bata
Industrials (safety shoes) and AW Lab (sports style). The company is the world's leading
shoemaker by volume, and it has a retail presence of over 5,300 shops in more than 70
countries and production facilities in 18 countries.

Industry Shoemaking

Founded 24 August 1894; 126 years ago in


then Austria-Hungary (now
the Czech Republic)

Founder Tomáš Baťa

Headquarters Lausanne, Switzerland[1]

Area served Worldwide

Key people  Thomas George Bata


(Chairman)
 Sandeep Kataria
(CEO)
Products Footwear and accessories
Owner Bata family
Website bata.com
Origins and history

The T. & A. Baťa Shoe Company was founded on 24 August 1894 in the Moravian town
of Zlín, Austria-Hungary (today in the Czech Republic), by Tomáš Baťa (Czech: [ˈtomaːʃ
ˈbaca]), his brother Antonín and his sister Anna, whose family had been cobblers for
generations. The company employed 10 full-time employees with a fixed work schedule and
a regular weekly wage.
Tomáš, Antonín and Anna Baťa

In the summer of 1895, Tomáš was facing financial difficulties. To overcome these setbacks,
he decided to sew shoes from canvas instead of leather. This type of shoe became very
popular and helped the company grow to 50 employees. Four years later, Baťa installed its
first steam-driven machines, beginning a period of rapid modernisation. In 1904, Tomáš read
a newspaper article about some machines being made in America. Therefore, he took three
workers and journeyed to Lynn, a shoemaking city outside Boston, in order to study and
understand the American system of mass production. After six months he returned to Zlín
and he introduced mechanized production techniques that allowed the Baťa Shoe Company to
become one of the first mass producers of shoes in Europe. Its first mass product, the
“Baťovky,” was a leather and textile shoe for working people that was notable for its
simplicity, style, light weight and affordable price. Its success helped fuel the company’s
growth. After Antonín's death in 1908, Tomáš brought two of his younger brothers, Jan and
Bohuš, into the business. Initial export sales and the first ever sales agencies began
in Germany in 1909, followed by the Balkans and the Middle East. Baťa shoes were
considered to be excellent quality, and were available in more styles than had ever been
offered before. By 1912, Baťa was employing 600+ full-time workers, plus another several
hundred who worked out of their homes in neighbouring villages.
In 1914, with the outbreak of World War I, the company had a significant development due
to military orders. From 1914 to 1918 the number of Baťa’s employees increased ten times.
The company opened its own stores in Zlín, Prague, Liberec, Vienna and Pilsen, among other
towns.

In the global economic slump that followed World War I, the newly created country


of Czechoslovakia was particularly hard hit. With its currency devalued by 75%, demand for
products dropped, production was cut back, and unemployment was at an all-time high.
Tomáš Baťa responded to the crisis by cutting the price of Bata shoes in half. The company’s
workers agreed to a temporary 40 percent reduction in wages; in turn, Baťa provided food,
clothing, and other necessities at half-price. He also introduced one of the first profit-
sharing initiatives, transforming all employees into associates with a shared interest in the
company's success (today's equivalent of performance-based incentives and stock opition.

Shoemaker to the world

Consumer response to the price drop was dramatic. While most competitors were forced to
close because of the crisis in demand between 1923 and 1925, Baťa was expanding as
demand for the inexpensive shoes grew rapidly. The Baťa Shoe Company increased
production and hired more workers. Zlín became a veritable factory town, a "Baťaville"
covering several hectares. On the site were grouped tanneries, a brickyard, a chemical
factory, a mechanical equipment plant and repair shop, workshops for the production of
rubber, a paper pulp and cardboard factory (for production of packaging), a fabric factory (for
lining for shoes and socks), a shoe-shine factory, a power plant and farming activities to
cover food and energy needs. Workers, "Baťamen", and their families had at their disposal all
the necessary everyday life services, including housing, shops, schools, and hospital.

The T. & A. Baťa Shoe Company


Baťa's Skyscraper

Baťovka shoe

Baťa in Zlín

Baťa employee housing

 

1922 advertising (drahota - costliness)

Baťa store in the 1920s

Baťa store in the 1920s

Foreign growth

Tomáš Baťa
Lockheed 10 Electra executive aircraft operated before the Second World War by Baťa in
Europe

Baťa also began to build towns and factories outside of Czechoslovakia


(Poland, Latvia, Romania, Switzerland, France) and to diversify into such industries as
tanning (1915), the energy industry (1917), agriculture (1917), forestry (1918), newspaper
publishing (1918), brick manufacturing (1918), wood processing (1919), the rubber industry
(1923), the construction industry (1924), railway and air transport (1924), book publishing
(1926), the film industry (1927), food processing (1927), chemical production (1928), tyre
manufacturing (1930), insurance (1930), textile production (1931), motor transport (1930),
sea transport (1932), and coal mining (1932), airplane manufacturing (1934), synthetic
fibre production (1935), and river transport (1938). In 1923 the company boasted 112
branches.

In 1924, Tomáš Baťa displayed his business acumen by calculating how much turnover he
needed to make with his annual plan, weekly plans and daily plans. Baťa utilized four types
of wages – fixed rate, individual order based rate, collective task rate and profit contribution
rate. He also set what became known as Baťa prices: numbers ending with a nine rather than
with a whole number. His business skyrocketed. Soon Baťa found himself the fourth richest
person in Czechoslovakia. From 1926 to 1928 the business blossomed as productivity rose 75
percent and the number of employees increased by 35 percent. In 1927 production lines were
installed, and the company had its own hospital. By the end of 1928, the company’s head
factory was composed of 30 buildings. Bat'a then created educational organizations such as
the Baťa School of Work and introduced the five-day work week. In 1930 he established a
shoe museum[specify] that maps shoe production from the earliest times to the contemporary age
throughout the world. By 1931 there were factories in Germany, the United Kingdom,
the Netherlands, Poland and in other countries.
In 1932, at the age of 56, Tomáš Baťa died in a plane crash during take off under bad weather
conditions at Zlín Airport. Control of the company was passed to his half-brother, Jan, and
his son, Thomas John Baťa, who would go on to lead the company for much of the twentieth
century guided by the founder's moral testament: the Baťa Shoe company was to be treated
not as a source of private wealth, but as a public trust, a means of improving living standards
within the community and providing customers with good value for their money. Promise
was made to pursue the entrepreneurial, social and humanitarian ideals of their father.

The Baťa company was apparently the first big enterprise to systematically utilise aircraft for
company purposes, including rapid transport of personnel on businesslike delivery of
maintenance men and spares to a location where needed, originating the practice of business
flying.

Jan Antonín Baťa


Main article: Jan Antonín Baťa

At the time of Tomáš's death, the Baťa company employed 16,560 people, maintained 1,645
shops and 25 enterprises. Jan Antonín Baťa, following the plans laid down by Tomáš Baťa
before his death, expanded the company more than six times its original size
throughout Czechoslovakia and the world. Plants in Britain, the
Netherlands, Yugoslavia, Brazil, Kenya, Canada and the United States followed in the
decade. In India, Batanagar was settled near Calcutta and accounted from the late 1930s
nearly 7500 Baťamen. The Baťa model fitted anywhere, creating, for example, canteens for
vegetarians in India. In exchange, the demands on workers were as strong as in Europe: "Be
courageous. The best in the world is not good enough for us. Loyalty gives us prosperity &
happiness. Work is a moral necessity!" Bata India was incorporated as Bata Shoe Company
Pvt. Ltd in 1931[4] and went on to become Bata India Ltd. in 1973. The Batanagar factory was
the first Indian shoe manufacturing unit to receive the ISO 9001 certification in 1993.[5]

As of 1934, the firm owned 300 stores in North America (after World War II, many of theses
stores were rebranded with the "Barrett Shoes" trademark), a thousand in Asia, more than
4,000 in Europe. In 1938, the Group employed just over 65,000 people worldwide, including
36% outside Czechoslovakia and had stakes in the tanning, agriculture, newspaper
publishing, railway and air transport, textile production, coal mining and aviation realms.
[citation needed]
Bata-villes

Company policy initiated under Tomáš Baťa was to set up villages around the factories for
the workers and to supply schools and welfare. These villages include Batadorp in
the Netherlands, Baťovany (present-day Partizánske) and Svit in Slovakia, Baťov (now
Bahňák, part of Otrokovice) in the Czech Republic, Borovo-Bata (now Borovo Naselje, part
of Vukovar in Croatia then in the Kingdom of Yugoslavia), Bata Park in Möhlin,
Switzerland, Bataville in Lorraine, France, Batawa (Ontario) in Canada, Batatuba (São
Paulo), Batayporã and Bataguassu (Mato Grosso do Sul) in Brazil, East Tilbury[6] in Essex,
England, Batapur in Pakistan and Batanagar and Bataganj in India. There was also a factory
in Belcamp, Maryland, USA, northeast of Baltimore on U.S. Route 40 in Harford County.[7]

The British "Bata-ville" in East Tilbury inspired the documentary film Bata-ville: We Are
Not Afraid of the Future.[8]

World War II

Just before the German occupation of Czechoslovakia, Baťa helped re-post


his Jewish employees to branches of his firm all over the world. Germany occupied the
remaining part of pre-war Czechoslovakia on 15 March 1939; Jan Antonín Baťa then spent a
short time in jail but was then able to leave the country with his family. Jan Antonín Baťa
stayed in America from 1939–1940, but when the USA entered the war, he felt it would be
safer for his co-workers and their families back in occupied Czechoslovakia if he left the
United States. He was put on British and US black lists for doing business with the Axis
powers, and in 1941 he emigrated to Brazil. After the war ended, the Czechoslovak
authorities tried Baťa as a traitor, saying he had failed to support the anti-Nazi resistance. In
1947 he was sentenced in absentia to 15 years in prison. The company's Czechoslovak assets
were also seized by the state – several months before the communists came to power. He
tried to save as much as possible of the business, submitting to the plans of Germany as well
as financially supporting the Czechoslovak Government-in-Exile led by Edvard Beneš.

In occupied Europe, a Bata shoe factory was connected to the concentration camp Auschwitz-
Birkenau.[11] The first slave labour efforts in Auschwitz involved the Bata shoe factory. [12] In
1942 a small camp was established to support the former Bata shoe factory (now under
German administration and renamed "Schlesische Schuh-Werke Ottmuth, A.G")
at Chełmek with Jewish slave labourers.[13] The prisoners, mostly from France, Belgium, and
the Netherlands, were tasked to clean the ponds from which the plant drew the water it
needed.[14] Also slave workers from the ghetto of Radom were forced to work at the Bata
factory for a soup a day.[15]

The Baťa factory was bombed by the 15th AF, 455th BG at 1235 hrs using 254 x 500 RDX
bombs (63.50 tons). The Strikes fell south in the workers dwellings and carried across eastern
half of plant layout. Numerous strikes in this section including warehouses, machine shops
and footwear production building

Post-war

The now demolished Bata International Centre was the global headquarters during its entire
existence (1965-2004)

Tomáš's son Thomas J. Bata, manager of the buying department of the British Bata
Company, was unable to return until after the war. He was sent to Canada by his uncle Jan, to
become the Vice President of the Bata Import and Export Company of Canada, which was
founded in a company town named Batawa, opened in 1939. Foreign subsidiaries were
separated from the parent company, and ownership of plants in Bohemia and Moravia was
transferred to another member of the family.

After World War II, governments in Czechoslovakia, East Germany, Poland and Yugoslavia
confiscated and nationalized Bata factories, stripping Bata of its Eastern European assets.

In 1945, the decision was taken that Bata Development Limited in Great Britain would
become the service headquarters of the Bata Shoe Organisation. Now based in the West,
Thomas J. Bata, along with many Czechoslovakian expatriates, began to rebuild the business.

From its new base, the company gradually rebuilt itself, expanding into new markets
throughout Asia, the Middle East, Africa and Latin America. Rather than organizing these
new operations in a highly centralized structure, Bata established a confederation of
autonomous units that could be more responsive to new markets in developing countries.

Between 1946 and 1960, 25 new factories were built and 1,700 company shops were opened.
In 1962, the company had production and sales activities in 79 countries.

In 1964, Bata moved their headquarters to Toronto, Ontario, Canada. In 1965 they were
moved again, into an ultra-modern building, the Bata International Centre. The building,
located on Wynford Drive, in suburban North York, Ontario, Canada, was designed by
architect John B. Parkin.

In 1979, the Bata family established the Bata Shoe Museum Foundation to operate an
international centre for footwear research and house of a collection that was started by Sonja
Bata, Thomas' wife, in the 1940s. As she travelled the world on business with her husband,
she gradually built up a collection of traditional footwear from the areas she was visiting.

Bata was one of the official sponsors of the 1986 FIFA World Cup held in Mexico. Bata also
sponsored 2014 Electronic Sports World Cup.[17]

Czechoslovakia after 1989

After the Velvet Revolution in November 1989,


Thomas J. Baťa arrived as soon as December
1989. The Czechoslovak government offered him the opportunity to invest in the ailing
government-owned Svit shoe company. Since companies nationalised before 1948 were not
returned to their original owners, the state continued to own Svit and privatised it
during voucher privatisation in Czechoslovakia. Svit's failure to compete in the free market
led to decline, and in 2000 Svit went bankrupt.

Present

After the global economic changes of the 1990s, the company closed a number of its factories
in developed countries and focused on expanding retail business. Bata moved out of Canada
in several steps. In 2000, it closed its Batawa factory, then in 2001, it closed its Bata retail
stores, retaining its "Athletes World" retail chain. In 2004, the Bata headquarters were moved
to Lausanne, Switzerland and leadership was transferred to Thomas G. Bata, grandson of
Tomáš. The notable Bata headquarters building in Toronto was vacated and eventually
demolished to much controversy. In 2007, the Athletes World chain was sold, ending Bata
retail operations in Canada.[18] As of 2013, Bata maintains the headquarters for its "Power"
brand of footwear in Toronto. The Bata Shoe Museum, founded by Sonja Bata, and operated
by a charitable foundation, is also located in Toronto.

Although no longer chairman of the company, the elder Bata remained active in its operations
and carried business cards listing his title as “chief shoe salesman.” On 1 September 2008
Thomas John Bata (Tomáš Jan Baťa) died at Sunnybrook Health Sciences Centre in Toronto
at the age of 93.

Bata estimates that it serves more than 1 million customers per day, employing over 30,000
people,[19] operates more than 5,300 shops, manages 23 production facilities and a retail
presence in over 70 countries across the five continents. Bata has a strong presence in
countries including India where it has been present since 1931. Bata India has five factories
and two tanneries. The Mokameh Ghat tannery in Bihar (1952) is the second largest in Asia.
[20]

The business is organised in five regions: Africa (with regional office based in Nairobi), Asia
Pacific (with regional office based in Singapore), Latin America (with regional office based
in Santiago de Chile), South Asia (with regional office based in New Delhi) and
Europe/Developed Markets (with regional office based in Zlín).

In April 2019, the consumer forum in India fined Bata Rs 9000 (approx US$129) for asking a
customer to pay Rs 3 extra for a paper bag. The customer approached the forum citing
deficiency in services seeking a refund of Rs 3. The forum observed that it was the brand's
responsibility to provide consumers with eco-friendly bags without charging them for it.
Bata brands

Bata shop (built 1927-9) Wenceslas Square in Prague, Czech Republic - 2005

 Bata (Baťa in Czechia and Slovakia)


 North Star (urban shoes)
 Weinbrenner (premium outdoor shoes)
 Bubblegummers (children's shoes)
 Power (athletic shoes)
 Bata Industrials (work & safety)

Bata labels

 Ambassador (classic men's shoes)


 Atletico (urban shoes)
 Bata Bullets (sports shoes)
 Bata Comfit (comfort shoes)
 Bata Flexible (comfort shoes)
 Insollia (comfort/women's shoes)
 Marie Claire (women's shoes)
 North Star
 Sunshine (women's shoes)
 Baby Bubbles (children's shoes)
 Patapata (flip flops)
 Power (sports shoes)
 Toughees (school shoes)
 Verlon (school shoes)
 Teener (school shoes)
 B-First (school shoes)
 Footin (trendy shoes)
 Urbano (men shoes)
 Tomy Takkies (urban shoes)
 Red Label collection
 Quovadis

In popular culture

Bata 1970s poster at Nicosia International Airport

 The 1968 Czech film All My Compatriots by Vojtěch Jasný, in a scene set in


1948, refers to Bata putting small shoemakers out of business.
 Nicosia International Airport which has remained closed by the Turkish invasion
of 1974 still has a 1970s Bata advertisement logo displayed in the arrivals hall.
 In Susan Elderkin's 2000 novel Sunset Over Chocolate Mountains one of the three
narrative voices is Eva, a worker in a Bata factory in Partizánske, Slovakia.[22]
 Emil Zátopek worked in a Bata factory in Zlín.
 Bata-ville: We are not afraid of the future is a 2005 documentary produced and
directed by the artistic duo Karen Guthrie and Nina Pope that documents a party
of former UK Bata workers on a coach trip to the headquarters of the company at
Zlín.[23]
 The East Tilbury Bata factory features in the 2013 BBC 4 programme, Jonathan
Meades: The Joy of Essex, presented by Jonathan Meades.[24][25]
 The Praha Shoe Company of the novel A Suitable Boy by Vikram Seth is
modelled on Bata Shoes.

See also

 Baťa’s Skyscraper, Zlín


 Bata Shoe Museum, Toronto
 Bata shoe factory (East Tilbury)

Bata’s American experience :

A huge turning point in the Bata’s thinking caused his trips to America, where he was
three times (in 1904–1905, 1911 and in 1920). The fi rst journey he took in December
1904. The main objective was to get acquainted with rationalizing methods of
management, with technical equipment, organization of production and performance
of workers in the local shoe factories. At that time it was something quite new and
unusual to go America to acquire new knowledge and experience. At the turn of the
century the word America had a strange sound in Europe. It provoked images of mad
speculations, quick getting rich and amazing adventures, whichever the fantasy can
create. The crowds of emigrants were coming to America from the whole world;
fraudsters, embezzlers and bankrupts tried to hide there to avoid the justice of their
own countries. When news about Bata’s departure to America spread, there was
uproar among his creditors. They did not want to believe that the young entrepreneur
le for new experiences. They were convinced that the company bankrupted and T.
Bata escaped. Several of them came for a meeting to Zlín, one of them was the
director of the Olomouc branch offi ce of a large fi nancial institution; it was
necessary to submit business books and appease the creditors (Bata, 1932: 31). A er
his arrival to America in January 1905, Thomas Bata worked together with his three
employees in shoe factories, mainly in the centre of the American shoe industry in
Lynn, Massaschusetts. A er work they were meeting and sharing their experiences –
today we might call this activity a kind of “industrial espionage”. All of them were
surprised mainly by skilfulness of American workers whose productivity of work at
some machines - due to strict specialization – was ten times higher than the
productivity of comparable work in Europe in that time. Therefore Bata was
particularly surprised by the transition of a worker knowing the entire process of
production to the worker, who – as a result of division of labour – is specialized in a
single manufacturing operation. About the machines, organization and skills he wrote
in his memoirs: As far as the organization of production and machines are concerned
and I did not fi nd much new in America. Machines were nothing new for me because
I had been maintaining a lively written contact with American machine factories.
Strange was only the placing of machines, which I had changed a few times during a
year until I fi nally invented a way that also in America was considered the most time-
proven. Skilfulness of workers, however, was enormous. They reached at some
machines ten times higher productivity than our workers. That is why I worked as a
worker in a factory, I was realizing that it is useless to say anything to people if you
cannot show it. On the return journey via England and Germany I stopped in several
factories and I worked there as a worker. In Primanses - one of the largest factories - I
polished heels. I barely started to work and my neighbours began to summon the other
workers to come and look at the American fool. They thought that I worked very
quickly, in the way –they believed – was not suitable for the proper worker. Workers
in America did not admire me. There I was delayed far beyond my comrades. Good
workers there polished 1200 pairs in the nine-hour working time. My best
performance was only 800 pairs. In Germany, in the same system of machines, they
produced only 100 pairs. And there was ten-hour working time (Bata, 1932: 290).
That time in America the motto “time is money” was fully applied. T. Bata solved the
adverse eff ects of sale crisis in the footwear industry by his second trip to the USA
(in 1911). He wanted to gain further insight into the deepening of rationalization in
the factory. One of the measures that he introduced with the aim to increase the
intensifi cation of work, were employment contracts, which the Bata company was
signing with labourers working at the machines. According to these contracts the
company penalizes the workers if they had not reached the prescribed work
production or if they made defective products. Before World War II the Bata
Company took an important position among mechanical footwear 490 M. Urbanová,
J. Dundelová factories, not because of the size of the factory or the number of
employees, but because of especially highly eff ective production. Bata used First
World War for the enlargement of the company, which in the time of war boom, grew
up in a large combined super-company. The company acquired the biggest military
orders and sharply increased the number of employees. Economic crisis in newly
established Czechoslovakia was then a part of the post-war crisis in Europe and the
USA. As the most dangerous matter appeared the infl ation, which achieved in
Germany catastrophic dimensions and which aff ected all states established a er the
disintegration of Austria - Hungary. The Czechoslovak government decided to
prevent the danger of infl ation with the stabilization of the Czech crown in relation to
the Swiss franc. The Finance Minister Dr. Karel Rasin managed the monetary policy
so that from mid 1921 to mid 1922 the Czech crown rose from fi ve Swiss centimes to
eighteen. Unemployment worsened, the export fell by half and the domestic market
was engulfed by a lack of purchasing power of inhabitants. The government was
accused of defl ationary policy. And at that time Thomas Bata made a decisive step to
obtain money for industrial recovery. He at once discounted shoes by 50% on the 1st
September 1922. As it could be expected, the Bata stores were besieged by crowds of
customers. Sales reached a record high of 98,711 pairs of the discounted value of
CZK 8.1 millions. The money Bata used for the recovery of his production. A er
averting that great danger Bata fully used all experiences from his journeys. In l923
he introduces conveyor belts, the most serious technical and organizational
rationalization equipment, inspiration for which he found in a moving circle in Ford’s
plants. Ford himself saw this ring in a Chicago slaughterhouse, where they used it for
a long time without someone’s notice, and he invented for this device the entire
system of fl uent work. Furthermore, Bata, following the example of F.W. Taylor –
the founder of scientifi c system of management – conducted time and motion studies
of individual work operations. These results he used for elimination of all
uneconomic, impractical and unnecessary movements at work.

Batism :

Bata never considered his method of production to be original; it is evident from the
pro-Bata literature of that time3 . It is obvious that Bata lined the fi ndings of
Taylorism, Fayolismu, Fordism and his experiences from US companies and he
adapted these diff erent work cultures to the traditional life in Zlín. T. G. Masaryk
must also have seen these roots, when he wrote in one of his letters to Bata: Although
we have diff erent professions, we have something in common. Both of us learned a
lot of things in America. And your company I can compare to some of the American
ones (Message, 1927: 26). The fact that the company was tied with the place of its
origin was also mentioned by Paul Devinat, who carried out the survey in Zlín on
behalf of the International Labour Offi ce in Geneva. The system of Zlín depends on
two moral factors: the personality of the leader, and special characters of the workers.
The Bata’s system carries the seal of his personality and is also locally determined. It
is a work of man which was realistically adapted to a particular region and time. We
cannot a priori guess what another person in another time could establish there
(Devinat, undated: 8). The success of the Bata Company shows the daily production
of pairs of shoes. In 1894 – 50, 1900 – 300, 1920 – 3 000, 1915 – 5 000, 1920 – 8
000, 1928 – 82 000, 1932 – 144 000.

Bata’s slogan “Service to the public” :

Already during his fi rst trip to the U.S. (1904– 1905), Tomas Bata met the slogan
“service to the public”, which played an important role in his business. The idea of
“service to the public” he used, expanded and later it became the main motive of his
business. Bata wrote about it in his memoirs: Some American entrepreneurs put their
plants into the public service, they placed the prosperity of their customers and
workers at the forefront. They won the hearts of all customers and employees that
liked to serve to the plant, which aimed to serve them. Workers receive higher wages,
customers receive perfect products at the lowest price, and plants are expanding every
day (Bata, 1932: 108–109). In the American idea of service the connection of
individual and general welfare is expressed. It’s basically a well-understood self-
interest of people, who are in their businesses dependent on continuous and increasing
customer’s willingness of purchasing. The term “service” is of the religious,
Protestant origin, and it is related to economical prosperity, because the Protestantism
ordered puritans to care about their material prosperity. This concept of “service” in
combination with other modern elements shows this term as compound of the
Protestant public meaning of Bentham’s utilitarianism and dedication to a progress. It
is a practical social morality, the eff ort of businessmen to acquire and retain
customers, but it gives a semireligious and semi-moral sanction to economic success.
Production is organized from the point of view of the general welfare. The public is
told that the wholesale and large-scale industry has its essence in the service to the
public and not only in the owners’ profi t. In the term “service” a good reputation and
public favour is involved, which is an extremely valuable capital. The public service
is more important than profi t. This, however, does not mean that entrepreneur
abandons his profi t. The profi t is the result, the reward for good work, service, and if
the service is really good, it certainly will come. To produce means to buy the
material as cheap as possible, make objects from them at the lowest cost and then sell
the products to the customers as cheap as possible. That is to meet the wishes of 95%
of customers. That means that to produce something is not an exclusive activity, only
a marketable one. Thomas Bata said about the principles of the public service: This is
a virtual principle of industry, commerce, and every human activity at all. It is in
accordance with the laws of nature. In the nature, everything, that serves to life,
supports it and grows, swells and reproduces. The companies that serve the best to the
human society, are automatically supported by the public and people buy only the
products of the most advantageous price and quality. The most capable people seek
employment with companies that provide them with the greatest benefi ts and in
return for these benefi ts they give the most eff ective work. The principle of public
service is a measuring scale that everybody can use for their own most important
decisions (Bata, 1932: 121). According to Bata the entrepreneurs doing their business
under this slogan play an important social function, they not only care for workers but
they also work harder than their employees. These entrepreneurs work in their offi ces
from 10 to 12 hours a day, and a er reaching a certain success they do not fi nd
seclusion where they could rest and protect their business only with their infl uence,
but they work even harder. New entrepreneurs are called organizers of labour, they
call workers coworkers and all their actions are subordinated to the public service.
Bata himself wrote about this cooperation: The only possibility of mutual relationship
between the employee and the employer within the company is only in perfect
cooperation, carried out every day; that is the solution of the problem, how to use the
modern production machines for the source of wealth (Bata 1936: 129).
Bata and changes in work culture :

In a way of work at the Bata Company mainly these major changes could be
observed:

1. Work task.

Handmade production is replaced with machine production; production is not


organized in terms of livelihood, but the main goal is profit

2. Production means.

There was a shi from underdeveloped hand tools to the latest machinery. Bata dreamt
also about automatic machines.

3. Work Environment.

The imperfect work was changed into the optimal working environment for that time.

4. Employees.

From the worker mastering the entire production process became a specialist worker.
The age is not already the privilege of knowledge and experience. The way is open
especially to young people. The preparation of young workers is provided by the
Bata’s School of Work.

5. Organization and management.

Almost unplanned production turned into production planned in every detail. The
decentralized production was replaced by centralized production using full capacity of
workforce. The most advanced technical organization of the production process
worldwide in the footwear industry was applied. From the moments clarifying why

Bata was successful in introducing a new work culture in Zlín, we can specify
following:
1. Bata was aware that the people in the Zlín region as well as throughout Wallachia
are used to work hard. Like a master was a model for his apprentice in previous ages,
so Bata was expected to lead the staff , to show what is right and what is wrong.

2. Bata successfully continued in the local cra spirit, he emphasized cra smanship and
quality.

3. While introducing in Zlín the system of work typical for American large-scale
companies he always adapted it to the local situation. For example he did not
introduce shares that are common in American companies because he knew that local
people are not accustomed to give money from their hands.

4. The personality of Thomas Bata - people believed him, liked him and admired him.

Bata’s self-government workshops :

The main basis for the Bata organization was the self-government of workshops and
employees’ participation in profi t and loss. Participation in profi ts was not a new
idea. It used to be used by American entrepreneurs who provided an annual
participation in the profi t of the whole company to their employees. Bata, however,
sought such a share of the profi ts that he could help him to project selfgovernment
workshops. Bata tried to set up such a profi t participation, which organically grew
from the autonomy of the workshops. Assumptions for this project were following:

1. The calculation of the achieved profi ts has to be as quick as possible and it must be
carried out weekly.

2. Everybody who is involved should have opportunity to calculate on their own their
own profi t participation.

3. The department in which the employee participates in the profi ts should be so


small that it allows the employee to have a noticeable eff ect in it. Autonomy of
Bata’s workshops was based on the division of the whole company into hundreds of
separate departments; each with its own head, its own means and special workshop
records. The operating tables were supposed to show an accurate and stable weekly
overview of the assumptions and facts, because each performance of such a company
cell was measured according to its production and fi nancial assumptions and real
achievements. The assumption of each of these units was prepared 26 weeks in
advance. Weekly assumption was divided into daily assumptions that were mainly in
the production monitored on hourly reports. All assumptions and results of accounting
were posted on bulletin boards. Each department was buying.

From traditional to modern society:

In the economic life of traditional society, whose elements Zlín had maintained until
the second half of the 19th century, the market played a signifi cantly diff erent role
than in modern society. In traditional societies, even the most developed ones, the
trade served for a exchange of a relatively small part of products. A part of the
products consumed in the houses of producers, as well as the labour and land as the
dominant means of production of agrarian societies, was outside the market.
Individual markets were relatively isolated. The basic principles of human behaviour
were based on reciprocity, redistribution and autarky (self-suffi ciency). The transition
from traditional to modern was very slow in the Zlín region, especially if we came
from Karol Polanyi’s theory. According to this author the modern society is related to
the infl uence of large machines on social life. K. Polanyi described this situation in
his book The Great Transformation in 1944. It was just “The Great Transformation”
that broke the traditional society. The core of the transformation according to K.
Polanyi took place in the fi rst half of the 19th century; in the Zlín region the changes
occurred probably even later. The transformation was infl uenced mainly by the
invention of the “big machines” that brought the change in the motivation of society
members: the original motive – securing livelihood – was replaced by profi t motive.
At the turn of the 19th to 20th century Zlín was a moderate cra and agricultural town
in which industrial production was slowly taking roots. The city was located in the
region of poor peasants and gladers in a very economically backward area. The
development of Zlín into an industrial city dates from the turn of the 19th to 20th
century and was closely linked with the growth of the Bata Group. This
manufacturing complex entirely uniquely infl uenced the development of the city and
its surroundings.2 The city had a clearly defi ned and peculiar uniformity, a
cosmopolitan face. It was a result of a high tech building production. The regulatory
plan for the town of eightthousand people was created by Kotera in 1918. The
enormous expansion of Zlín shows the increase of its population. In 1925 8000
inhabitants lived there, then in 1930 it was 22 thousands people, and in 1932
population of Zlín increased up to 26 thousands. Zlín defi nitively found itself in
modern times. But let’s return to the origins of the Bata Company.

The establishment of the Bata Company :

The basis of the Bata Company was Antonín (in English Anthony) Bata’s shoe
factory, founded in September 1894. The fi rst industrial and business experiences
Anthony and Tomas Bata gained in the shoe factory of their father in town of Uherské
Hradiště, which gave employment to 40–50 workers at the 1880’s. The workers were
producing stitched, coarsewoollen footwear, a part of them worked at home. Anthony
(1874–1965) – the older of the siblings – a er completion of his apprenticeship, was
devoted to a supervision of the production, while his younger brother Tomas (1876–
1932) cared mainly about the marketing and business matters of his father’s company.
Apart from this Tomas Bata worked from time to time at his father request (when his
father wanted him to verify the utility of a machine) also in the shoe factories in towns
of Prostějov and Kroměříž. But a er a quarrel with his father concerning the
introduction of modern machines to manufacture, Tomas Bata founded with his
brother Antonín and his sister Anna their own shoemaking workshop in Zlín. In this
shoe factory, where Thomas’ brother Anthony was registered as its owner, Bata
continued in the tradition and produced exclusively Wallachian stitched, coarse-
woollen footwear. The production was organized so that in the workshop components
of footwear were cut and upper sides tailored, which were then passed to home-
working workers and cra smen living in Zlín and the surrounding areas, who
completed them. This was the usual procedure of work in small shoe factories.

You might also like