Footwear Companies India: The population of India is more than 100 crores, you can guess from this that how big is the market for footwear companies here. Many companies are in the business of making footwear for many years and today they are the market leaders in this field, in this post we will discuss about these companies, their financials, which one is best for investment etc in detail.
Footwear companies India
Talking about the footwear sector in India, there are many small to big companies that are in the business of making shoes , slippers , bags, ladies purse, belt , leather jacket etc.
Among these companies top names are Bata India, Relaxo footwear, Mirza International, shreeleathers, khadims India, Bhartiye Int, Liberty shoes etc.
But as an investor the question comes how to choose the good one for long term investment.
For the answer we should check the financial condition of the company, such as whether the company is able to sell its products or not, how is the sales growth of the company, year basis earning profits, company debt, how is the management etc.
There are some important parameters on the basis of which you can find a good company .
Let us know about some of these major companies.
Bata India
Official Website – https://www.bata.in/
Market cap – 233.32 Billion INR (As on 4-10-2022)
Bata India is primarily engaged in the manufacturing and trading of footwear, slippers, belts, purses and allied leather accessories.
This company is a subsidiary of the world’s leading Bata Corporation in India, in which Bata Corporation has a 53% stake.
The world’s leading footwear company Bata Corporation was established in the year 1894 in the Czech Republic.
The company is the world’s leading footwear manufacturer by volume, and has a retail presence of more than 5,300 stores in more than 70 countries and production facilities in 18 countries.
Bata Corporation entered India in the year 1931 and went public in the year 1973.
Like Bata India, it has other subsidiaries in different countries like – Bata Europe, Bata North America, Bata Asia-Pacific-Africa and Bata Latin America etc.
Manufacturing Facilities
The company has four manufacturing units at Batanagar (Kolkata), Bataganj (Bihar), Peenya (near Bangalore) and Hosur (Tamil Nadu). T
he company has a capacity to produce 21 million footwear per year.
Bata top Products
Bata sells products under several leading brands in India.
Their flagship brands include Bata, Power, Marie Claire, North Star, Naturalizer, Shoal, Bata Comfit, Weinbrenner, Ambassador, Mocasinos and Hush Puppies, among others.
Bata India has a retail space of 2.98 million square feet with 1,526 stores in different cities, including franchise stores and across India.
The company sold 31.97 million footwear in FY 2011.
About 88% of the company’s income comes from Retail Business.
The company sold 24 lakh pairs of footwear through online channels and achieved a turnover of Rs 1522 million.
Bata India now delivers over 96% of the orders received through its stores.
Sales through digitally enabled platforms such as Bata website and other online marketplaces contributed to over 15% of the total revenue.
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Company financials
Bata India is trading at the highest (PE 358) valuation as compared to its competitors, due to the strong performance of the company over the years.
Except for March 2021, Bata’s stock is giving ROCE (Return on Capital) of 25% (approximately) continuously for the last several years.
The company has a reserve of 1614 crores and has a debt of 914 crores on it, a few years ago the company was debt free.
Promoter’s stake in the company is 52.96% while DIIS holds 27.46%.
Bata share price target 2022, 2025, 2030
If we look at the company’s financials, then the Bata share price will be the target for the coming time.
| Bata India Share Current Price | 1815 |
| Bata share price target 2022 | 2250 |
| Bata share price target 2025 | 3900 |
| Bata share price target 2030 | 9670 |
Relaxo Footwear
Market Cap – 253.80 Billion INR
Relaxo Footwears Limited is India’s largest footwear manufacturing company, dealing in non-leather products i.e.
Rubber/EVA slippers, canvas shoes, sports shoes, sandals, school shoes and other types of footwear.
It is also a leader in the footwear of the ‘value’ segment.
It has a portfolio of renowned brands like Relaxo, Sparks, Flight and Bahamas etc.
The company sells its products through distributors, retail outlets, retailers serving through export and e-commerce/modern trade.
In the last few years, Relaxo has been able to spread its brand at a much faster rate than other competitors.
Relaxo also spent on advertising, pays on big celebrities to promote their products.
Due to which Relaxo is increasingly fastly as a strong brand in the Indian market.
Relaxo is constantly focused on improving its product distribution network.
At present, the company is associated with more than 50,000 retailers, ~700 distributors & ~400 EBOs across the country.
Gradually the company seems to be focusing on increasing its own stores as well as increasing franchisees everywhere.
The largest share of the company’s sales comes from North India, which accounts for more than 50% of the revenue.
It has 8 manufacturing facilities, five in Bahadurgarh (Haryana), two in Bhiwadi (Rajasthan) and one in Haridwar (Uttarakhand).
It has a combined manufacturing capacity of 270 million pairs per annum which is the largest among its major competitors in India.
The company has 9 brands in its portfolio.
To keep pace with the changing times, the company has tied up with leading e-commerce portals to sell its footwear online.
More than 70% of its product portfolio is listed online for its customers.
Analysts expects, the demand for branded products among the youth, the footwear market is expected to grow around 11 to 15 percent CAGR in the coming times.
Relaxo being the market leader brand in its footwear business segment has full potential to show good growth in the growing market in the coming times.
Financials
If we look at the company’s financials, then the market cap of the company is ₹ 25,921 Cr and the company is trading at a PE of 95.
The company has a reserve of 1586 crores and the company is almost debt free.
From last 10 years the company is giving ROCE of around 25-30%.
Promoter’s stake in the company is 70.78%.
Relaxo Footwears is showing steady growth in financial results as well as increasing the market share in its business every year.
The company’s profit growth for the last 3 years from FY 2021 onwards has managed to show a CAGR growth of around 21 per cent.
The company can be expected to show good growth in the coming days as well, as the company continues to deliver excellent results over a long period of time.
If you look at the loan above Relaxo, it is almost negligible, whatever the debt is, the management can easily pay off its cash reserve whenever it wants.
Relaxo Share price target 2022, 2025, 2030
If we look at the company’s financials, then the target for the coming period would be –
| Relaxo Share Current Price | 1021 |
| Relaxo share price target 2022 | 1200 |
| Relaxo share price target 2025 | 2100 |
| Relaxo share price target 2030 | 5100 |
Mirza International Ltd
Market cap – 40.48 Billion INR
Established in 1979, Mirza International Limited is India’s leading leather footwear manufacturer, marketer and exporter.
It owns a portfolio of renowned brands such as Red Tape, Oaktrak, Mode and Bond Street.
It is also the preferred supplier of leather footwear to leading international brands and one of the largest Indian suppliers of finished leather to overseas markets.
The company derives the majority of its revenue from India at 58%, UK – 28%, US – 7% and ROW – 7%. It exports its products to a total of 29 countries.
Out of the total contribution of 42% of export sales, only 4% was due to the company’s own brand RED TAPE. Most of the export sales came from selling white label shoes.
33% of revenue came from selling branded shoes. 40% of revenue came from non-branded footwear. Apparel and accessories accounted for 22% of revenue and leather sales accounted for only 5% of the remaining sales.
Manufacturing facilities
The company has 6 manufacturing facilities in the state of Uttar Pradesh which can produce 6.4 million pairs of footwear per year.
The company achieved 77.5% capacity utilization in FY20.
The growing presence of the RED TAPE brand.
Red tape domestic business has grown from about 140 crores in 2015 to 650 crores in 2020.
It is marketed in India through a network of 200+ EBOs and 830+ MBOs with a presence in 210+ shop-in-shops across multiple cities.
32% of sales from e-commerce platforms .
The company has tied up with leading online e-commerce players like Myntra, Flipkart, Amazon, etc, to increase its presence on leading e-commerce platforms.
It operates a direct e-commerce division in Noida which specifically caters to this fast growing segment.
The stock is trading at 2.87 times its book value.
The company has given poor sales growth of 2.49% in the last five years.
The company has a low return on equity of 5.63% for the last 3 years.
In the last 3 years the company has paid lesser dividend than profit.
The company has a reserve of Rs 654 crore and a debt of Rs 113 crore.
Promoter’s participation in the company is 67.91%.
If we look at the company’s financials, then the Mirza International share price target for the coming time will be –
| Mirza International Share Current Price | 336.50 |
| Mirza International share price target 2022 | 350 |
| Mirza International share price target 2025 | 673 |
| Mirza International share price target 2030 | 1050 |
FAQ (Question – Answer)
Is Bata India a foreign company?
Bata India is a part of a foreign company Bata Corporation which has 53% stake in Bata India.
Which company is bigger in Bata India and Relaxo Footwear?
On the basis of market cap Relaxo footwear has grown more.
Disclaimer :- This is our personal opinion on this stock which we have derived on the basis of our analysis, Investing in share market can be risky, please take help of your financial advisor before investing.
Nirmal is a NISM Certified Derivative Trader & the Founder of InvestandEarn.net (Financial Blog). He entered the world of Equity research to explore his interests in financial markets having 5+ Years of Experience in Share Market Trading & Investing. Nirmal frequently writes about Share Market Trading & Investment and publishes his personal view on the market. Drop him a mail at nirmal.jaysval@investandearn.net.
