Bata India inks joint venture pact for township development in Kolkata

Bata India LtdBATA India Ltd, the country’s largest footwear manufacturer, is foraying into real estate development. The company has entered into joint venture tie-ups with the Calcutta Metropolitan Group and the Kolkata Metropolitan Development Authority and plans to kick off operations by developing the excess land at its factory at Batanagar near Kolkata.

This is thorough Riverbank Holdings. The company has received approval from the Central government for the SEZ, which will be spread over 25 acres and entail an investment of Rs 333.5 crore. Bata India has clarified that it is not selling the land leased to it in Batanagar, but is only developing a 262 acre township along the river Hoogly. Its 50:50 joint venture and will involve an investment of Rs 1,300 crore, excluding the cost of land, school, hospital and hotel construction. Bata’s equity in the project is in the form of land.

“We are looking at developing about 260 acres of excess land at our Batanagar premises, which is our biggest factory in the country. The options under consideration include setting up an integrated township with housing and commercial facilities, and also setting up an industrial park,? a Senior Company Executive informed on the occasion.

The company would take a decision on setting up more such real estate development projects in due course. “Depending on how this venture materializes, we will be deciding on taking up more real estate projects,? the executive said.

The Batanagar factory churns out around 25 million pairs of shoes annually. The plant was set up on land belonging to the Kolkata Port Trust, which has been leased out to Bata India Ltd for a 99-year period.

The Indian arm of the Toronto-based Bata Shoe Organization, which is in the process of restructuring its retail business and refurbishing its 1,600 stores across the country, has five footwear manufacturing units across India with a combined capacity of 40 million pairs annually. To turn around the fortunes of its mainstay footwear operations, the company has introduced a VRS scheme to cut down flab and is looking at wiping out its Rs 40-crore accumulated losses over the next two years.

The company’s board has also approved a rights issue to fund the restructuring exercise. The foray into real estate development is expected to generate an additional revenue stream.

Source: Indiarealestateblog

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3 Responses to “Bata India inks joint venture pact for township development in Kolkata”


  1. 1 shibu ganguly Sep 27th, 2007 at 2:00 am

    I would like to be member of Bata colony . Since I know Bata will give quality product as it had been doing it in footware
    Regards
    sganguly

  2. 2 Sushil Garg Nov 22nd, 2007 at 9:41 pm

    i am intrested in booking a couple of flats in the bata township. can you assist me.

  3. 3 gagan Apr 3rd, 2010 at 3:08 am

    would like to know more on project.

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