Sources have revealed to CNBC-TV18 that a notable collaboration is potentially in the works within the Indian footwear sector. According to sources, discussions of a strategic nature are taking place between Bata India and Adidas India.

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This anticipated partnership between Bata India and Adidas India is focused specifically on the Indian market. The primary objective of this strategic collaboration is to leverage Bata's extensive and impressive retail network across India. With around 2,100 stores spread across 700 cities throughout the country, Bata India's retail reach has captured the attention of Adidas India. Adidas may seek to harness the immense potential of Bata's retail prowess to bolster its own presence in India.

Insiders have indicated that these discussions are progressing towards their final stages, with both parties meticulously ironing out the details of the imminent arrangement. An official announcement unveiling the outcome of these negotiations is expected in the near future.

In response to the CNBC-TV18 newsbreak, Bata informed the exchanges that the company has had successful, long-running strategic tie-ups with various brands over the years for offering unique propositions to consumers.

It further said that it continues to explore opportunities for a strategic alliance, collaborations, tie-ups for the Indian market and will make adquate disclosures as and when the need arises.

Comments from Adidas India are still awaited. It is evident that Adidas India's strategic interest lies in harnessing Bata's robust retail network to fortify its own foothold and market presence within India.

Meanwhile, Kaustubh Pawaskar, the Deputy Vice President at Sharekhan by BNP Paribas, commented on Bata as follows: "Considering its longer-term strategic direction and areas of focus, the company is poised for sustained earnings growth and potential margin expansion. However, in the short term, we anticipate subdued revenue growth. Therefore, we are maintaining a hold rating on Bata."

Today's move has taken the stock into positive territory on a year-to-date basis.

First Published:Aug 17, 2023 12:18 PM IST