Bata India Ltd will start looking at the speciality shoes segments to cater instituional needs like defence, construction and health in the Indian market. This will help the company to continue with its sustainable business growth, said PM Sinha, the chairman of Bata India.

Sinha said institutional sales will be an important area for Bata India’s growth in future. He was speaking to the reporters after the 75th annual general meeting held here on Thursday.

Sinha could not provide any figure on the current state of institutional sales in India and what Bata wants to achieve in the future. “It is something new to us. We hope to achieve a good share in future,” he said.

Though BSO’s various subsidiaries manufacture speciality shoes in their area of presence, Bata India, till recently, did not have any plan to manufacture shoes for segments like fire department workers and the Army.

“Now we believe institutions command the market. So we have decided to tap this segment. Instituional sales will form a part of our business and we think it will grow year on year,” said Sinha.

He said in South American countries like Chile, institutional sales contribute a good share to the total business in the country. “We hope to achieve this in the Indian market,” said Sinha.

Besides depending on sales of speciality shoes in the vertical segments, Sinha said a major part of its cash accruals will be invested in setting up around 240 new outlets across the country and upgrading the existing ones.

Sinha said each of the new outlets will acquire 3000-11000 sq ft space and the interior will cost anything between Rs 1.5-2 crore.

Sinha did not disclose the total investment required for setting up the shops and refurbishing the existing ones, and whether the franchisees or the company itself will run the shops is yet to be decided.

At present, Bata India has around 1200 outlets out of which 143 are franchisee-run.

Addressing the shareholders, Sinha said the company will take a decision in the current year on the status of the 74 cash-drained stores.

He also said Bata India does not have any plan to export shoes as it wants to concentrate on the Indian market for the continuation of its sustainable growth.

In 2007, Bata India has reported 12.6% growth in revenue at Rs 868 crore, as against Rs 770 crore recorded in the year-ago period. The company has made a profit before tax of Rs 55 crore in 2007, as against Rs 17 crore in 2006 from one time exceptional items. Without considering the exceptional item, the company says the increase in profit is 72% over the previous year.