Bata India, the footwear company in talks with German sportswear giant Adidas for a strategic partnership for the Indian market. Post the news, the shares of Bata India zoomed 6% above its previous close of Rs 1,647.15 and reported its sharpest intra-day rally since 30 August 2022.

Bata India’s primary business is the manufacturing and trading footwear and accessories through its retail and wholesale distribution network. The company is one of the biggest footwear manufacturers in India that sells a range of footwear in rubber, canvas, leather, and plastic.

The company has reported a slow June quarter for the current fiscal year with a 10.5% YoY decline in its net profit to Rs 107.8 crore, while the revenue from operations was up by a nominal 2% on a yearly basis to Rs 958 crore, primarily on account of the end of season sale by the industry.

Bata India is a semi-owned subsidiary of Bata (BN) BV, Amsterdam holding a 50.16% stake in the company. The company has access to technical research and innovative programs implemented by the Bata Group.

The company receives support from Bata Group in the realm of purchase, manufacture, and training of managers from its Group company, for which the company pays technical fees.

As of now, the management is very confident about demand resurgence going ahead and is continuing its expansion process in tier 3-5 towns.

At 2:20 pm, the shares of Bata India were trading at Rs 1,747.45 or 6.10% below its previous close of Rs 1,647.15 on NSE.