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Bata India is reportedly in advanced talks with athletic shoemaker giant Adidas for a strategic partnership in the Indian market. While details of the partnership are still being worked out, this potential collaboration comes as Bata India has begun trials for sports apparel. Bata India’s chairman, Ashwini Windlass, expressed optimism about the company’s future growth and its focus on strategies for expanding its distribution footprint.

In the fiscal year 2023, Bata India saw a significant increase in net profit to ₹319 crore, up from ₹100 crore in the previous year, with revenues reaching ₹3,451.5 crore. The company’s retail sales accounted for 75% of its revenue, and it plans to invest around ₹100 crore in initiatives such as ‘casualisation’ and ‘premiumisation’.

Bata India is aiming to expand its presence in smaller towns and cities and collaborate with small and medium entrepreneurs to increase the number of franchisee stores. The company plans to add 500 franchised stores by 2025. Additionally, Bata India is known for its focus on gender diversity, with an all-women stores concept and 15% female employees out of a total of 9,800.

For Bata, the collaboration could offer a premium product line that increases the Average Selling Price and aligns with the athleisure trend. This move may help Bata regain market share and revitalize its business.

This potential partnership with Adidas could provide Bata India with opportunities to further diversify its product offerings and expand its market presence.

In conclusion, we assume that a collaboration between Adidas and Bata could be mutually beneficial, providing Bata with a fresh approach to improve its fortunes and helping Adidas solidify its presence in India. However, it remains speculative, pending confirmation of the rumours.