About Footwear Industry and Its growth Patterns

The global footwear market size was valued at

$365.5 billion in 2020 and is estimated to
reach $530.3 billion by 2027 with a CAGR of
5.5% from 2020 to 2027

Growth drivers
• Increasing disposable income and
economic growth
• Government initiatives
• Growth in modern retailing and e-tailing
Challenges facing the footwear market in
India
• Tough competition from unorganized
players
• Sluggish growth of the Indian leather
footwear market
• Import from China
Key trends in the footwear market in India
• Automation in the footwear market
• Omni-channel strategy
Bata India Ltd
•Type: Public
•Founded: 1931
•Directors:
• Mr. Gunjan Shah, Mr. Ashwani Windlass, Mr.
Sandeep Kataria, Ms. Radha Rajappa etc.
• Industry: Footwear.
•Headquarter: Kolkata, West Bengal.
•Products -: Ballerinas, Sneakers, Loafers, Boots,
Sports Shoes, Pumps, Sandals, Chappals / Slippers,
Platform, stilettos, Mocassins
•Area Served: Global.
•Vision -: To make great shoes accessible to
everyone
•Mission -: We remain the most respected Footwear
Company
•Net Income: Rs.18025.65 million
•Taxes Paid: Rs. 274.13 million (31st March 2021)
RELAXO INTRODUCTION
Type: Public

Founded: 1976

Founders: Mukand Lal Dua, Ramesh Kumar

Dua.

Industry: Footwear.

Headquarter: New Delhi, India.

Area Served: Global.

Revenue: 2,410 Crore (Rupee)

Net Income: 226 Crore (Rupee)

Residencia Status: India.

METRO BRANDS
Type Public
Industry Retail , E-commerce
Founded 1977
Founder Malik Tejani
Headquarters Mumbai, Maharashtra, India
Area served India
Key people Rafique Malik Tejani (Chairman)
Farah Malik Bhanji (MD)
Products Footwear
Accessories
Brands Metro, Mochi, Walkway, Da Vinchi, J. Fontini
Services Online Service
Website Metrobrands.com
COMPARISON
BASIS BATA METRO RELAXO

1. GROWTH RATE • Q1FY2022 :  Rs 267.05 • Q1FY2022 : No Data • Q1FY2022:  Rs 497.13
crore crore, (36.7%↑)
• Q1FY2021 : Rs 134.79 • Q1FY2021 : Rs 325 • Q1FY 2021 : Rs 363.58
crore  crore crore
2.  EBITDA  • Negative EBITDA of Rs • 1.69 crore • 11.8% y-o-y to Rs
21.83 crore compared to 71.44 crore from Rs
negative Rs 34.09 crore in 63.9 crore in the
the comparable period. comparable period.

3. TAX PAID IN FY 2020- • Rs 27.30 crores • Rs 17 crores • Rs 24 Crores

21

4. SALES (FY 2020-21) • Rs 841 crores • Rs 800 crores • Rs 2359 crores

• Compounded sales • Not given • Compounded sales
growth for last 10 years is growth last 10 years is
3% 13%
 CORPORATE TAX
The rate of corporate tax in India varies from one type of company to another i.e.
domestic corporations and foreign corporations pay tax at different rates.

Surcharge on Net Income Less Surcharge on Net Income Surcharge on Net Income
Type of Company Corporate Tax Rate greater than Rs. 1 Crore and
than  Rs. 1 crore greater than Rs. 10 Crore
less than Rs. 10 Crore

Domestic with annual

25%  Nil  7% 12%
turnover upto Rs 250 Crore

Domestic Company with

turnover more than Rs 250 30% Nil  7% 12%
Crore

Foreign Companies 40% Nil 2% 5%

 HOW EBITDA IS CALCULATED

• EBITDA margin = (earnings before interest and tax + depreciation + amortization) / total revenue
 HOW ADVANCE TAX IS CALCULATED
• Step 1: Estimate how much income you earned in the financial year for which you are doing the advance tax
calculation.

• Step 2: Add your salary to the figure above to arrive at the gross taxable income.

• Step 3: Calculate the tax payable by applying the latest income tax slab that is applied.

• Step 4: As per the TDS slab, deduct the TDS .

ADVACNE TAX SLAB RATE
Advance tax is the amount of income tax that is paid much in advance rather than a lump-sum payment at the
year-end.

Advance Tax
Advance Tax Due Dates Payable*

On or before 15th June 15%

On or before 15th September 45%

On or before 15th December 75%

On or before 15th March 100%

How can government make changes in a fiscal policy to make an
organization more profitable ?

Governments have the capacity to make broad changes to monetary and fiscal policy.
• Interest Rates
• Bailouts
• Subsidies and Tariffs
• Regulations and Corporate Tax
Revenue in last 5 years
Revenue
3500

3000

2500

2000
Amount

1500

1000

500

0
2017 2018 2019 2020 2021

Years

Relaxo Bata Metro

All Figures are in crores

Tax paid by companies over 5 years

Tax Paid
200

150

100
Amount

50

0
2017 2018 2019 2020 2021

-50

Years

Relaxo Bata Metro

All Figures are in crores

Market Share

Market Share

6%
6%

53%
35%

Metro Relaxo Bata Others

Advance Tax Settlement/Payment
• Individuals can pay advance taxes online or offline through challan 280
• Advance tax payment of companies is usually carried out by their accounts section using challan 280
• Two ways for the payment of Advance Tax -:

Online advance tax payment

Advance Tax Challan 280

Offline advance Tax Payment

Advantages of Advance Tax Payment

Helps businesses in
Reduces stress of taxpayers. managing their finances
well.
Benefits

Speeds up the tax collection Increases government funds.

process.
G.S.T Slab Rates
Tax Rates Goods Services

5% Edibles like, Spices, Oil, Tea, Sugar, etc. Aircraft Leasing

5% Fuel like, Coal, Biogas etc. Crude and petroleum products transport
5% Fertilisers Takeaway food
5% Life saving Medicine and Drugs Restaurants (Both AC and Non – AC)
12% Processed Food Business class flight tickets
12% Diary Products Mining and drilling of natural gas
12% Dry fruits and nuts like almonds Real estate construction of sale IP rights
12% Packaged Products Movie tickets worth less than Rs.100
18% Eatables Hotel accommodation bill equal to or above Rs.7500
18% Capital goods Outdoor Catering
18% Household products Telecom and IT services
18% Perfume Party arrangement
28% Consumer durables such as AC and fridge Gambling
28% Small Cars 5 – star hotel services
Capital Structure of Bata, Metro and Relaxo

Bata India Ltd -: Authorized

Issued Capital -: Paid-Up Capital
Capital -: 70 Debt -: 914 crores
64.29 crores -: 64.26 crores
crores

Authorized
Issued Capital Paid-Up Capital Debt -: 00.00
Metro Ltd -: Capital -: 150
-:132.8 crores -: 132.8 crore crores
crores

Authorized
Issued Capital -: Paid-Up Capital Debt -: 138.2
Relaxo Ltd -: Capital -: 51
24.84 crores -: 24.84 crores crores
crores