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Lovemore Zigara Midlands Correspondent
THE country’s biggest shoe manufacturer, Bata Shoe Company, will open new retail outlets to regain market share after increasing production in the first six months of the year. Bata increased capacity utilisation to 83 percent following the purchase of new equipment towards the end of last year.

The company’s tannery section has doubled production resulting in the recruiting of an additional 200 workers.
Bata managing director, Ronjoy Sengputa, said the positive growth by the company will result in an expansion drive which will culminate in the opening of new retail outlets. He said some of the outlets to be opened were shut down in 2008 at the height of economic challenges.

“There have been positive developments taking place at Bata.
“Last year we commissioned new equipment and our tannery section has doubled production and this has seen capacity utilisation increasing to 83 percent.

“Buoyed by this growth we will open new retail shops in the year as we seek to regain part of our market share. We, however, still have challenges especially with the high leather cost on the market which makes our prices uncompetitive when compared to the cheap imports,” he said.

Bata’s viability has been under threat since the turn of the millennium following an economic meltdown the country experienced which resulted in the closure of many industries.

The situation was exacerbated after the introduction of the multi-currency regime that resulted in the influx of cheap footwear mainly from the Far East.

However, government quickly moved in and imposed a 40 percent duty on footwear.
Bata has been rattled by high leather costs which the company has blamed on illegal exports of the commodity.

During the 2014 budget presentation, Finance Minister Patrick Chinamasa introduced a 75 cents export tax on every kilogramme of raw hide, in a move meant to discourage the exportation of the commodity.

The Gweru-based firm has also set up Associated Business Units (ABUs) where it has provided equipment and technical expertise to locals who are sub-contracted to manufacture tennis shoes.

Sengputa said ABUs are a way of empowering the local community.
Bata at its peak employed 5,000 workers but now has a staff complement of over 1,300 employees.

The giant shoe company is producing about 2 million pairs of shoes annually.