After this the report delves into a broad discussion on macroeconomic environment of Bangladesh. After discussing the change in the key indicators, an analysis on the future uncertainty of the economic environment of Bangladesh is given. How this environment affects the investors decision is the reason for this discussion. The next part briefly discusses the tannery industry in Bangladesh. Who are the major players and what is the future industry growth prospects is discussed. Then we delve into the company analysis or competitive analysis of BAT Shoe. The sales growth and income potential of the company is discussed.
Also the various ratios are analyzed to give us a proper overview of the company performance. The final part focuses on the forecasts about the return on Bat stock, taking into account the different asset pricing models. The CAMP is used to calculate the Beta of the stock using five years of monthly historical data of Bat stock. Additional Performance measures like Sharpe and Sense’s alpha are used. Bloom’s formula is also used to forecast returns. Estimates and projections herein are our own and are based on assumptions that we believe to be reasonable.
Information presented herein, while obtained from sources we believe to be reliable, is not guaranteed either as to accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any security. INTRODUCTION The Bat Shoe Organization was founded in 1 894 by Czech businessman Atoms Bat in the city of Slink, what was then Czechoslovakia. Coming from a family of shoemakers with a long heritage of eight generations and over three hundred years, Atoms Bat capitalized on knowledge, expertise and skills to propel his newly founded company forward.
The introduction of factory automation, long distance retailing and modernized shoe making ensured the profitability of the company from the very beginning. It is now the world’s largest manufacturer and marketer of footwear operating across the globe. Today the Bat Shoe Organization is a sprawling gee-centric company encompassing operations in more than 70 countries around the world and is managed by 3 Meaningful Business Units (IAMBI) across five continents.
It serves over 1 million customers per day, employs more than 50,000 people, operates more than 5,000 retail outlets, manages retail presence in over 70 countries and runs 27 production facilities across 20 countries. In Bangladesh, Bat started its operation in 1962. The company is one of the largest ax-paying corporate bodies contributing TX. 1. 2 billion (year 2009) which represents approximately 70% of tax paid by the entire footwear sector of Bangladesh. Currently Bat Shoe Company (Bangladesh) Limited operates two manufacturing facilities – one in Tong and the other in Admire.
With a production capacity of 110,000 pairs of shoes daily, the company also has a modern tannery facility with an output of 5 million square feet of leather annually. Annual shoe sales currently stands at slightly more than 30 million pairs with a turnover for the year 2009 of TX 5 billion. Bat is playing a pivotal ole in developing the leather industry of the country. Bat has a firm commitment to CEO-friendly business and a state of the art Effluent Treatment Plant (HTTP) has been set up to provide a pollution free environment for both workers and the locality. Fashion would never be complete without a well designed pair of shoes.
This marketing insight has prompted Bat to introduce a number of designers’ collections for men, women and children. Internationally renowned brands such as Bat Comfit, Marie Claire, Hush Puppies, School, Nikkei, Beleaguers, Sandal, Weinberg and Firsts are a few names that testify to the momentous hanged towards branded shoe marketing in Bangladesh. Specialized shoe categories such as athletic shoes have been targeted through development of the power brand. Uncompromising quality with striking designs have put Bat shoes in a key position to appeal to different segments of consumers.
Another major change in the Bat business policy is the segmentation of retail outlets according to profiles of different market segments and the introduction of novel concepts such as Bat City Stores. These selective outlets, in conjunction with other types of outlets such as Bat Bazaar and Bat Family Stores, are adding a new level of consumer satisfaction. The City Stores incorporate spacious floor space allowing a comfortable shopping experience, modern interior decoder enriched with novel shelving systems, fittings, fixtures and lighting that can be found in the large retail shops in the Far East and Europe.
Bat has a network of 242 retail outlets located strategically in different parts of the country. These retail outlets are an integral part of our brand marketing. This extensive retail network is supplemented by an equally extensive network Of depots and dealers. Bat has 13 Wholesale depots covering Bangladesh. Under these depots 390 RED (Registered Wholesale Dealers) and 553 ADS (Dealer Support Program) stores are operating. Bat Bangladesh has already developed its vision up to 2013 showing significant business growth as well as increased market share.