Bata to start Batanagar devp work from Oct

Kolkata, June 29: Bata India Limited today said work for developing 262 acres of land at its plant site in Batanagar will start from October 2006.

''The project is expected to contribute to the company by 2009,'' company's chairman P M Sinha said.

The footwear manufacturing and retailing company has entered into a joint development agreement with Calcutta Metropolitan Group Ltd (CMGL).

A special purpose vehicle named Riverbank Holdings Pvt Ltd has been formed, Sinha said in sidelines of the company's AGM.

The five year project, which has been approved by the West Bengal government, will entail an estimated investment of Rs 1300 crore.

The estimated investment excludes the cost of land, the school, the hospital and the hotel.

The project will involve creation of modern housing for employees, a large hospital, a school, an IT park, a hotel and residential flats.

Bata India is also planning substantial growth and investment in the retail business in 2006 to cash in the great retail movement in the country.

''The company has already opened 22 new super stores and plans to open another 18 such stores in the near future,'' Sinha said.

The super stores will be spread over 3000 square metres of area.

The company is also remodelling its 150 stores, he said.

''We are trying to be part of the mall concept and talking to the players in the market,'' the executive said.

The company, which turned around with PBT of Rs 4.8 crore in the first quarter, is expecting its financial restructuring process to be complete by fourth quarter of the year.

The company is also exploring possibilities of reducing cost by offering VRS. Bata has 9,500 works in rolls at present.

UNI