Bata to invest Sh358m in expansion, recovery plan

Backto-School

Parents and their children shopping at Bata outlet along Tom Mboya Street. FILE PHOTO | NMG

Footwear multinational Bata Corporation is set to invest $2.5 million (Sh358 million) in the Kenyan market this year, targeting growth in both the retail business and factory production.

Bata Global chief executive Sandeep Kataria said this investment marks the resumption of the multinational’s spending for growth after the Covid-19 pandemic disruption which necessitated capital preservation.

The company’s factory in Limuru produces shoes for the local market as well as exports to the region. Bata manufactures a wide range of footwear including shoes for school, casuals and formal wear.

Mr Kataria said Bata will use franchises to grow its distribution network in the country. “In the bigger urban towns, which have high capital expenditure, we keep the business while we engage franchise partners in areas where we have a limited presence,” Mr Kataria said.

This is one of the steps the multinational is taking as it looks to counter competition from the growing flea market in the country.

A study conducted by the Institute of Economic Affairs and the Mitumba Consortium Association in 2019 revealed significant price sensitivity by Kenyans in buying footwear and apparel, with 91.5 percent of households choosing clothes and footwear worth Sh1,000 and below.

“Four of the regions we operate in are emerging markets and this kind of competition is not new to us,” Mr Kataria said.

“What is important is for us to make sure that we are able to provide footwear at several price points that are relevant to the multiplicity of our consumer base and create value for money for them.”

Other players in the market include Mr Price and LC Waikiki.

Most shoes are however sold by individuals or small shops.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.