Bata strikes export deal to Chile
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Permanent secretary Abigail Shonhiwa and AfDB executive director Mohamed Ratique Mohamed admire some of the Bata products last week

Lovemore Zigara Midlands Correspondent
THE country’s biggest shoe maker, Bata Shoe Company, has received an export order for 10,000 pairs of shoes to Chile.
The first consignment is expected to be delivered to that country at the end of this month.Ronjoy Sengupta, the Bata managing director said the company will take advantage of its established retail outlets in some of Latin American countries such as Venezuela and Peru to establish a niche market.

He said: “We’ve exported to our neighboring countries and being a part of the group I think this is an advantage to us that we’re able to tap into the market that are neighbouring to us.

“After a span of about 15 years we’re now exporting our famous farmer shoes all the way to Chile and in other Latin American countries. So the first company that has given us the order of 10,000 pairs is going this month”.

Sengupta said the breakthrough to Latin America was a milestone achievement for the Gweru-based firm.

He said the firm would intensify marketing efforts with a target to also export to Venezuela, Peru and Bolivia.

Sengupta said exports to Latin America were likely to increase the company’s exports, which stand at eight of total production.

Bata’s exports have largely been confined to the Sadc region where the Gweru plant has been the main supplier.

The Gweru based shoe manufacturer is operating at 70 percent capacity utilisation, which saw the company making 2, 7 million pair of shoes last year alone.

Sixty six percent of the company’s business is retail with the balance going to the wholesalers.

Despite making great strides in recovering domestic market share mainly due to the influx of cheap foreign footwear, the company’s viability is now being threatened by vendors who are selling cheap shoes on the sidewalks.

“You’ll realize that wholesalers today have become retailers, the principle and fundamental of being a wholesaler is that you sell in bulk but you and I can go to a wholesaler today and buy in singles.

“As I speak, I can buy five and six pairs of shoes from a wholesale and come to the pavements and become a retailer. The wholesalers are changing the pattern of business and this needs to be addressed as soon as possible since the vendors don’t have overhead costs,” added Sengupta.

The company employs 1,400 employees.

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