Bata India Reduces Workforce and Salary Hikes in FY25

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Bata India has implemented significant workforce and compensation adjustments in fiscal year 2025 (FY25), reflecting a strategic shift toward operational efficiency and cost control.

The company’s annual report and recent disclosures reveal a year marked by headcount reductions, scaled-back salary increases, and tighter expense management—even as profitability improved.

Bata Workforce Reduction Across Categories

Bata India’s permanent workforce declined by 2.74% year-on-year, dropping from 4,073 employees in FY24 to 3,961 in FY25.

This marks the third consecutive year of headcount contraction, with the figure down from 4,421 in FY23.

Including factory workers and other staff, the total employee count stood at 9,005 as of March 31, 2025, reflecting a 9.06% decrease from 9,903 in the previous year.

The reduction is part of a broader cost rationalization strategy, aimed at streamlining operations and improving productivity.

While the company has not disclosed specific departments affected, the consistent decline suggests a structural shift in workforce planning.

Salary Hikes Scaled Back for Non-Managerial Staff

In a notable departure from previous years, Bata India reduced average salary hikes for non-managerial employees to 4% in FY25, down from 9% in FY24.

This adjustment aligns with broader industry trends, as companies across sectors adopt cautious compensation strategies amid economic headwinds.

Despite the lower hike percentages, employee benefit expenses rose by 10.3% year-on-year, reaching ₹461.6 crore in FY25 compared to ₹418.2 crore in FY24.

The increase was driven by higher payouts under salaries, wages, bonuses, and gratuity.

Specifically, salary and bonus expenses grew to ₹423.3 crore, up from ₹382.4 crore, while gratuity costs surged to ₹9.21 crore from ₹5.53 crore.

Bata CEO Compensation Also Reduced

Bata India’s Managing Director and CEO, Gunjan Shah, also took a pay cut in FY25.

His total compensation dropped to ₹4.68 crore, down from ₹5.53 crore in FY24.

The reduction reflects the company’s top-down approach to cost containment and signals leadership alignment with broader austerity measures.

Expense Management and Profitability

The company successfully reduced its consolidated expenses by 2.56%, bringing the figure down to ₹764.5 crore in FY25 from ₹780.5 crore in FY24.

Advertising and sales promotion spending fell sharply by 10%, declining to ₹82.35 crore from ₹91.6 crore.

Despite these cuts, Bata India’s revenue from operations rose marginally to ₹3,488 crore, and net profit increased to ₹328 crore, up from ₹260 crore in the previous fiscal year.

The company attributes this growth to volume-led sales, premium product demand during festive and seasonal periods, and improved inventory management.

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