India's leading footwear maker Bata India Limited has sold its popular brand of Hawai rubber slippers to a Brazilian company. The company also plans to open around 250 new stores across the country over 3 years, as part of a strategic growth plan. Currently, Bata India has around 1200 outlets out of which 143 are franchisee-run.
According to P M Sinha, chairman of the company, the Rs3.90 crore sell-off to the Brazilian firm Alpragata was mainly due to the cheaper imitation of the brand in the unorganised Indian foot wear sector.
Hawai brand was being duplicated and sold at about one-third price of that of Bata by local manufacturers, which forced the company to sell the popular brand, Sinha added.
Bata is giving a 20 per cent dividend to its shareholders as the company recorded a gross turnover of about Rs890.79 crore in 2007, compared to nearly Rs794.82 crore in 2006, a growth of about 12 per cent.
The shareholders are getting a dividend after five years, which includes a 15-per cent dividend on equity shares and an additional five per cent dividend on the occasion of the platinum jubilee of the company.