Come January and Bata India, the Rs 700-crore footwear major, will relocate core operations to Gurgaon from Kolkata. Bata India, a 51% subsidiary of Toronto (Canada) based Bata Shoe Organisation, has been in India for well over 70 years. The company has taken 36,000 sq ft of space spread over five floors in Gurgaon. The new building, will also house a 3,000 sq ft Bata flagship store. The company is also opening a 3,500 sq ft store in Mumbai, to be inaugurated by Thomas Bata, chairman, Bata worldwide when he arrives in India next month.
All merchandising activity will henceforth be done out of Gurgaon. The activities being moved from Kolkata include commercial, retail, exports, MIS and wholesale. Subsequently, finance and HR functions of the group will also be moved from Kolkata to Gurgaon.

Says Stephen Davies, managing director, Bata India: "The retail explosion is happening in the north. We can't be sitting far from the action. We are moving to Gurgaon, but the registered headquarters will continue to be in Kolkata. This will help us in better market penetration and focus on stores configuration.''

The move to Gurgaon will help the company consolidate its operations and also cut flab. It has 14,000 employees on its rolls. Its employee costs, at 25% of the sales is among the highest in the industry. Davies declines to comment on the contentious labour issue. He says that "it's a delicate subject. The number would diminish by a natural process of attrition.'' It remains to be seen whether this move helps dilute the powerful Bata unions.