Value chain Analysis of

Bata in India and

Bangladesh

Information Aggregated by

Abdulla Al Faruk

Department of Marketing

Begum Rokeya University, Rangpur

Value chain of Bata (Both Bangladesh & India)
Supporting activities

Firms infrastructure
Procurement
Technological development
Human resource development

Inbound Operations Outbound Marketing & Services

Logistics logistics Sales

Raw materials >Produce >Collection >Tag-line, >Warranty

like shoes in their of finished print ads > Exchange or
>leather own factories products >TV ads refund
>Rexene >Road side >Customer
> PVC sole >provide > Distribute advertising care and Web
>nylon net employee across the >Discount, access.
>rubber exceptional country or Gift
>elastic working world from > New stores
>lace conditions >Retail shop.
distribution
>chemicals and
hub or
community
facilities. channel.

Primary activities

Assessment of primary activities of value chain in Bangladesh and

India

Bata Shoe Company is the market leader in the footwear industry since its operation in
Bangladesh. The name Bata achieve such a position in the customers mind that whenever
they heard the name of Bata, a footwear with high quality comes in to their mind. Bata has
been serving its customer with wide assortment of products for about five decades and doing
it successfully. Its value chain very unique and every step are performed with environmental
friendly concept.

Bata India has established itself as one of Asia's largest footwear retailer. It has
cornered around 35 per cent market share in the organized sector (and approx. 8.5% of the
total footwear market) Almost 98 percent of the company's revenue is from the domestic
market while the rest is from exports.

primary activities of value chain primary activities of value chain

in Bangladesh in India
Inbound logistic Inbound logistic
Leather is the key raw materials for Bata India is popular all over the world for leather
which is collected from different part of production and exporting. So Bata easily
Bangladesh. Sometimes they collect raw collect leather as raw material from many
leather and have a modern tannery with the finished leather production company like-
latest technological facilities to process 5 AISHTMA and they have two own tannery
million square feet of leather yearly. They where they produce finished leather. Others
also collect finished leather from local raw materials are collected by the same way
tannery Hezerybag. Others raw materials like as like as Bangladesh.
Rexene, PVC sole, nylon net, rubber,
chemicals have collected from china.
Operation Operation
Bata Bangladesh has two factories in Tongi The company has a licensed capacity of 628
and Dhamrai. All the rubber and related lakh pairs per annum spread across its five
production has been done in Tongi factory. Manufacturing units at Batanagar (Kolkata),
Every types of leather products are been Faridabad (Haryana), Bataganj (Bihar),
manufactured in the Dhamrai factory. About Peenya (near Bangalore), and Hosur (Tamil
92% of all Bata products are produced in Nadu). Bata India brings latest in line
these two factories. Hourly production is technology in factory, and the workers to
4,000 pairs. There are two plant managers on many all to mated industries where work
in Tongi and other in Dhamrai. They are force shrink in direct proportion to their rate
controlled by the director of production. of technological thinking.
They are responsible for directing,
coordinating and controlling the overall
production activities means from the
purchasing raw materials to transferring
those into complete shoes. The function of
production manager is to assist the director of
production in achieving the production target
for a specified period. The function of
planning and supply manager is material
planning, production planning etc.

Outbound logistics Outbound logistics

The finished products send to the Its retail network of over 1500 stores gives it a reach
CDC (Central Distribution Center) that no other footwear company can match in India. The
in Tongi factory. After receiving stores are present in good locations and can be found in
the finished products then the all the metros, mini-metros and towns. The Company
packaging has been done also operates a large non retail distribution network
according to the requirement of through its urban wholesale division and caters to
different stores, Agencies, dealers millions of customers through over 30,000 dealers. It
and wholesalers the goods has has 26 Wholesale depots, serving more than 500
been transferred directly to the wholesalers.
distributors through company
owned vehicle. There is separate
process for own agencies and
stores against the wholesalers and
dealers. The goods for agencies
and stores gone straight to the store
headquarter and goods for others
gone to the 13 depots around the
country from where they collect
the goods (batabd.com).
Marketing & Sales Marketing & Sales
Marketing activities are concerned Like any other retail brand in the business, Bata too
with the planning, implementation, holds sales promotions at specific time periods in the
and control of persuasive year. These sales promotions are advertised through
communication with customers different mediums:
like- Advertising, sales promotion,
personal selling. As Bata is an Outreach Print media Electronic Online
established brand here in media media media
Bangladesh they think that they Bata was Advertisement Promotion Facebook
should go on with more and more the first in magazine through fan club
retail outlets rather than intense business to and TV ads, page of
advertising. place large newspaper. specially Bata
70% of Batas sales are from its advertising spring India has
own retail outlets. Besides there is signs at its summer 2,85,430
a network of about 500 exclusive own point and likes.
wholesalers who service about 300 of sale. winter.
retail stores all over the country.
Bata has showrooms, wholesale Bata sells over 60 million pairs of shoes every year.
depots and distribution centers South India is a major market for Bata, from where it
across the country. earns around 40% of its revenue. The company is the
market leader in South, with 16% share of the
organized footwear market.

Of the overall revenue, it derives nearly 85%through

retail networks, 14% from non-retail channels
(dealers/institutional/industrial sales) and remaining 1%
through exports.
Services Services
In any Bata store in the world they repair, Sales associates are committed to helping
exchange or refund any products if defects each customer find the shoes that suit them
found. They also exchange or refund on best and making sure that youre completely
unworn merchandise if one changes ones satisfied. Its why, over decades of service.
mind. Proof of purchase is required for They promised to provide personalized
refunds. They provide warranty for six service, a wonderful variety of footwear, easy
Months in every category of shoes. Bata shopping, post sales services at Customer
Shoe Company (Bangladesh) Ltd has a Help Desk and obtaining feedback from the
customer service center and the contract customers to make customer smile.
address is: Phone: +88029800501-5 Ext: 209.
Bata has a few service of home deliveries,
orders made possible via catalogues, the web
or even call centers only in mega city.

Comparison of supporting activities of value chain for both

Bangladesh and India

Technological development

As the weekly demand reached 460,000 pairs, it was very difficult to cut them by old Atom
cutting machines. On that account, a new Auto Thong Cutting machine was introduced to
meet the increasing market demand, producing 4,000 pairs / hour. Additionally, new value
added thongs were launched by introducing Thermal Printing & PVC Bi Color Straps.

Indian Bata tannery is very much updated and technology based, one of the tanneries is
second largest in Asia, so here world class quality leather is produced.

Human Resources Development

Activities of human resources department in Bangladesh are to ensure the proper section
of personnel, help the employees to grow and develop themselves, maintenance of
personnel records and maintain cordial and peaceful labor management relationship to
ensure discipline among the employees.
Where the human resource department of Indian Bata traditionally had encouraged the
retention of loyal employees, with the result that most personnel remained at Bata until
retirement; most senior managers had served for over 20 years. Bata provided a wide
range of employee benefits ( Uk-Eassy). In addition provides adequate training, reduce
employee turnover, take care about employee health, provide motivation to produce
world class product. Indian Bata gives more priority of working capability of employee
where in Bangladesh senior worker treated as more skilled.

Procurement
In both Bangladesh and India Bata use their own value chain to collect raw materials.
All inputs like equipment machinery are same but sometime high cost machineries have
purchased in India.

Firm infrastructure
In Bangladesh finance department try to allocate the fund in a proper way that minimizes its
cost and maximizes its profit but in India cost is not fact, quality is the most focusing issue
although quality is all about similar in both countries.

Internal audit department of India is very much intellectual where in Bangladesh there is no
active audit department. Quality assurance and R& D department employees creativity is so
high in India. Over all controlling of total firm activities is very tough in India than
Bangladesh.