Tata International Ltd acquires a 76% stake in Bachi Shoes India Pvt Ltd and Euro Shoe Components Pvt Ltd

Tata entities trading arm Tata International Ltd (TIL) announced it had acquired a 76 per cent stake in two firms, Bachi Shoes India Pvt Ltd (BSIPL) and Euro Shoe Components Pvt Ltd (ESCPL).  Tata International will acquire the 76 per cent stake from each of the individual firms. The investment sees Tata International acquire India’s largest manufacturer of children’s footwear, BSIPL. Bachi Shoes India Pvt Ltd supplies its products to a number of international brands all over Europe.

On the other hand, Euro Shoe Components Pvt Ltd is a manufacturer of footwear soles. Under the terms of the investment, the Bachi family will continue to hold the residual stake and will work closely with TIL to manage and grow this business, said a company statement.

With these acquisitions, TIL has established significant presence in the children’s footwear segment. The buys considerably augment TIL’s presence in the manufacture and export of footwear, take capacity to over 5 million pairs per year and make TIL one of India’s largest exporters of footwear, it said.

Further, TIL now has consequential presence in all key footwear segments - men’s, women’s and children’s footwear range, the release said. TIL has a pioneering presence in the finished leather business in India through its state-of-the-art leather tanning and finishing facility located at Dewas near Indore. TIL views footwear as a significant business opportunity with worldwide demand exceeding 3 billion pairs annually and China and India emerging as predominant manufacturing destinations, it added.

Tata International has evolved into an international entity with a global reach in international trade and encompasses the entire value chain from supply chain integration to facilitating third country trade by setting up strategic alliances or wholly-owned subsidiaries with a focus on certain geographies.

The firm has taken on various value-added roles and has stakes in a cross-section of businesses. However, TIL’s two main business lines are - Leather & Engineering (including Automobiles distribution in Africa).

With the worldwide network of 42 offices that span India and the globe, it has also developed some important international alliances for the Group. It is a unit of India’s Tata Group.

The Tata Group, a business conglomerate, operates in information systems and communications, engineering, materials, services, energy, consumer products, and chemicals business sectors worldwide.

7 Jan 2011.