Bata India Introduces Voluntary Retirement Scheme for Workers at Hosur

Bata India, a leading name in the footwear industry, has announced a Voluntary Retirement Scheme (VRS) for its eligible workers at the Hosur-based Bata Shatak Unit in Tamil Nadu. The initiative, approved by the company’s Board of Directors, aims to create a mutually beneficial solution for both employees and the organization.

In a filing with stock exchanges, Bata India stated, “The company believes the implementation of the VRS will benefit the workmen and the company alike. Updates on the status of the scheme’s implementation and its financial impact will be disclosed as per the company’s Policy for Determination of Materiality of an Event/Information.”

Bata’s Financial Performance

The announcement follows Bata India’s strong financial performance in the second quarter ending September 2024. The company reported a 53% surge in consolidated net profit, reaching ₹51.97 crore compared to ₹33.99 crore in the same period last year.

The company’s revenue from operations saw a modest increase of 2.2%, reaching ₹837.14 crore for the quarter. However, total expenses rose by 5%, amounting to ₹784.55 crore, while the total income, including other sources, climbed 2.36% to ₹854.32 crore.

Impact on Stock Performance

Despite the robust financial growth, shares of Bata India closed at ₹1,336.90 on Monday, reflecting a 1.47% decline on the Bombay Stock Exchange (BSE).

Why This Move Matters

The introduction of VRS signals Bata India’s intent to streamline operations while ensuring a fair opportunity for its workers to transition smoothly. The Hosur unit, a significant hub for Bata’s operations, will likely undergo a transformation as the company realigns its priorities.

This step could also contribute to Bata’s long-term strategy to maintain its competitive edge in the highly dynamic footwear market.