Agreement between Bata & Kolkata

Bata India Ltd (BIL) has restructured its agreements with the Calcutta Metropolitan Group with whom it has set up a joint venture to develop its riverside properties in Batanagar in West Bengal where it has a large factory.

BIL will receive Rs. 100 crore upfront in cash following this recast.

The company said it was doing this to focus on its core business of manufacturing and selling footwear and accessories. It, however, reassured the West Bengal Government that despite the restructuring, it would remain committed to the State government in terms of the approvals given by it towards the project. “BIL’s factory will continue to operate from the site and BIL continues to make additional investments in the factory.” The agreement on restructuring has been entered into on April 28.

BIL had entered into the agreements to develop surplus land at Maheshtala at Batanagar in South 24 Parganas district. The project, on the south-western fringes of the city, on the banks of Hooghly river involved the setting up of an integrated township.

A company release said that the township development and management needed specialized experience, skills and resources and BIL had decided to concentrate on its core business, leaving the responsibility for the development and management of the project to the joint venture partners who were experts in the field.

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