Looking to reduce cost of operations and become competitive, Bata India Limited plans a second round of voluntary retirement scheme this year.
While it was not clear how many of the company's 9,600 employees would be separated through VRS, Bata India sources told PTI that remaining workers would be trained to improve their skills.
In 2005, the company had separated nearly 1,500 employees through the VRS route.
The company, which had posted profits after a gap of three years in FY'05, is trying to work out a viable solution to rationalise workforce without causing any operational bottelnecks, sources said.
Bata India Limited, headquartered in Kolkata since inception of operations, has shifted activity to Gurgaon to benefit from the retail boom of the country.
During 2005, the shoe major posted a net profit of Rs 12.5 crore (Rs 125 million) on a total income of Rs 725.39 crore (Rs 7.25 billion).
The company also plans substantial capital expenditure during the current year, which will be used for setting up new stores, store modernisation and purchasing factory equipment.
Asked what would be company's strategy in shoring up market share, sources said the aim would be to create an exclusive and distinctive shoeline with higher margins and reduction in operating costs.
In addition to that, the strategy will also be to have more thrust on institutional sales and also make current urban usiness profitable.
While the retail business of the company grew by five per cent in volume, the wholesale business declined by seven per cent.
The company's exports last year fell to Rs 6.9 crore (Rs 69 million).
This year, the company plans to open about 40 stores and introduce the superstore concept. Bata India also plans to extend shopping hours and focus operations on family stores.
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