Tata buys stake in Bachi Shoes

Friday, 24 December 2010

Tata International, the Rs 1,000 crores trading house of the Tata Group, is buying a 74 per cent stake in Tamil Nadu-based Bachi Shoes for about Rs 130 crores. The move comes after Noel Tata took charge of the company just six months ago and entered into the retail sector by launching the footwear brand Tashi to take on giant like Bata as well as retailers such as Reliance Footprint, and the Future Group, which has a tie-up with UK shoe retailer Clarks.

The Rs 170 crores Bachi Shoes is one of India’s largest manufacturers and exporters of footwear and is a leading supplier of shoe uppers for Europe. Its businesses cover the entire shoe making chain, including tannery, shoe components and whole shoes, mainly for premium European brands. Bachi Shoes makes 8,000 to 9,000 pairs of shoes a day, and has plans to double the output in the next three years. It has three manufacturing facilities at SIPCOT Industrial Park. Besides catering to the domestic market, it also exports to Europe and the United Kingdom and has won several export awards. The company has about 800 employees. The footwear market in the country is estimated at Rs 15,000 crores.