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    Gradual school reopening sees demand revival for Bata; co focused on franchisee stores

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    Gradual school reopening sees demand revival for Bata; co focused on franchisee stores

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    Bata India has seen a spike in demand as schools opened throughout the country after the second wave of infections died down. In an interview with CNBC-TV18, Vidhya Srinivasan, the CFO of the company also said the shoemaker is looking to increase our franchisee stores. Bata's share price was trading over 1.5 percent higher at Rs 1,886.

    Schools have been opening up across the country slowly over the last couple of months and we have seen a pick up in demand in the third quarter, said Vidhya Srinivasan, Chief Financial Officer, Bata. In an interview with CNBC-TV18, Srinivasan also said the shoemaker is looking to increase our franchisee stores.
    "We have about 1,800 plus stores. Currently the franchisee is about 15 percent and we will keep increasing the number of franchisee stores, and we are expecting to get it to about 25-30 percent in the next couple of years," she said.
    The company is renegotiating the rent on an ongoing basis.
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    "We have done that very well over the last year and our teams are continuing to do that this year," she added.
    Going ahead, the company plans to focus on revenue sharing contracts. "We are moving towards more revenue sharing contracts and I think that is a win-win for both - us as well as the landlords," she said.
    The company had launched new lines across the clusters, the company had said in November 2021 earnings call, including Floatz, a causal footwear section. Srinivasan said the brand is doing well.
    "With COVID and with more people working from home, there is a certain casualization which has happened and we have reacted well. We have launched a number of new product categories, including our latest launch, which is Floatz, which is doing extremely well in the market," she mentioned.
    The stock price of Bata India Limited was trading over 1.5 percent higher at Rs 1,886. The stock has risen declined by 0.35 percent and 11 percent in the past five sessions and past month, respectively. In the past six months, however, the stock has risen nearly 20 percent, outperforming Sensex that gained over 10 percent.
    For the full interview, watch the accompanying video.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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