Bata India bets big on east India, eyes 3-5 pc annual price growth through premiumisation strategy

At the unveiling of the revamped flagship store at Grand Hotel in Kolkata, Bata India CEO Gunjan Shah said the eastern region currently contributes around 12-15 per cent of the companys national revenue and remains a key focus area for future growth.

Footwear major Bata India on Friday said it will channel its maximum expansion and renovation investments into eastern India, including West Bengal, citing the region's higher growth potential. At the unveiling of the revamped flagship store at Grand Hotel in Kolkata, Bata India CEO Gunjan Shah said the eastern region currently contributes around 12-15 per cent of the company's national revenue and remains a key focus area for future growth. ''Going forward, the maximum expansion and renovation investments will happen in eastern India, including Bengal, due to its potential,'' he told PTI. Shah stressed that the footwear major was committed to its growth in the state. ''We are invested in this market, and we will continue to invest in this market,'' he said. As part of its expansion roadmap, Bata India plans to increase its store count from over 2,000 at present to 3,000 in the next three years. For the eastern region, the company plans to open 25 to 30 stores over the next year through both company-owned and operated and franchise-owned and operated formats. ''The east continues to be one of our most important growth corridors, with Kolkata at the centre of this strategy,'' Bata India Chief Strategy Officer Badri Beriwal said. The company is also pursuing a premiumisation strategy and expects average product prices to rise by 3-5 per cent annually, driven by technology-led offerings and affordable premium collections. The revamped Grand Hotel outlet, Bata's first retail store in India, currently generates around Rs 9 crore in annual revenue and is expected to grow to Rs 10-11 crore over the next year, officials said. To support growth, the company is implementing ''zero-based merchandising'', a strategy aimed at tailoring inventory according to the specific demand profile of each store. On the broader economic outlook, Shah said demand conditions were showing signs of gradual recovery. ''We see significant improvement in terms of traction and demand,'' he said.