Shares of Bata India surged more than 16% on Thursday after the footwear maker named Nike executive Sanjay S Rao as its next managing director and CEO.
The board approved Rao’s appointment as whole-time director and CEO with effect from August 24. He will take over as managing director from October 1 and will serve until August 2031, the company said in a stock exchange filing. Current managing director and CEO Gunjan Shah will complete his five-year term on September 30.
Bata India shares rose 16.5% to close at Rs 790.45 on the BSE, significantly outperforming the broader market, with the Sensex gaining 0.33%. Despite Thursday’s rally, the stock remains down more than 16% so far this year.
Global Retail Lineage
Rao currently serves as senior director, Nike Retail, where he oversees operations across France and the Benelux region comprising Belgium, the Netherlands and Luxembourg. He has previously held senior leadership roles at global fashion and apparel companies Guess and Inditex, the parent of Zara and Massimo Dutti.
Announcing the appointment, Bata Group CEO Panos Mytaros said Rao brings extensive retail and consumer experience, an international perspective and a strong understanding of the Indian market.
“India is one of the Bata Group’s most important markets and Bata India has a powerful brand, deep consumer trust and significant room to grow,” Mytaros said. He added that the company’s next phase of growth would focus on strengthening consumer relevance, responding faster to trends and expanding its appeal across customer segments.
Executing the Turnaround
The leadership change comes at a critical juncture for Bata India, which is executing a turnaround strategy aimed at improving profitability and reviving growth. The company has been reducing inventory levels, rationalising vendors, streamlining its store network and sharpening its focus on younger consumers and online sales.
The transition follows a challenging year for the footwear maker. Bata India reported a more than 95% decline in net profit in the March quarter, largely due to costs related to a voluntary retirement scheme and foreign exchange accounting losses. Revenue remained largely flat as the company continued efforts to optimise inventory and simplify its product portfolio.