Tata International to buy majority stake in Bachi Shoes
13 Dec 2010
Tata International, the Rs1,000 crore trading house of the Tata Group, is buying a 74- per cent stake in Tamil Nadu-based Bachi Shoes, for about Rs130 crore.
The move comes after Noel Tata took charge of the company just six months ago and entered into the retail sector by launching footwear brand Tashi to take on giant like Bata as well as retailers such as Reliance Footprint, and Future Group, which has a tie up with UK shoe retailer Clarks.
Based in Chennai and having a turnover of Rs170 crore, Bachi Shoes is a family venture run by Gopalakrishna Bachi.
The company is one of India's largest manufacturers and exporter 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 8,000-9,000 pairs of shoes a day, and has plans to double the output in the next three years.
The company recently entered into retailing by opening its first store in Chennai to get a slice of the Rs15,000 crore footwear market in the country.
Bach Shoes will now be operating with Tata International as a joint venture with the Bachi family holding the remaining 26 per cent interest and running the operations, according to today report from the Times of India.
Tata International makes shoes for several global brands including Escada and Hush Puppies. It operates one of the biggest tanneries in India at Dewas in Madhya Pradesh and also has a manufacturing facility in Chennai.
