Financial Times

Bata Shoe Company of Ceylon Limited has relocated to its original operational site at Ratmalana, thereby saving over Rs. 20 million a year.

“We moved back to Ratmalana after experiencing a lean trading period due to the industrial dispute in June, 2004. This will save us Rs. 20 million a year,” Mahesh de Alwis, Chief Financial Officer of the Company told The Sunday Times FT.

“The Management, supervisory, clerical and other non-unionised staff united their strength to pull the company through this turbulent period and in May 2006, all units were brought back to Ratmalana after a spell of two years. With the strike a restructuring programme was introduced reducing 140 factory operators, who were compensated through a Voluntary Retirement Scheme at a cost of Rs 50 million,” a company report said.

The company currently holds the patent rights for international brands of footwear such as Power, North Star, Bubblegummers, Marie Claire, Emmozioni, Weinbrenner, Kingstreet etc. De Alwis said during the four months the industrial dispute continued, the company lost about Rs. 30 million in revenue. “Now we are restructuring and remodernising the company. We will bring in new machinery and replace the old ones,” he added. He said the company faces stiff competition from both organised and unorganised imports.

“There are a lot of shoes smuggled into the island without paying taxes especially children’s shoes,” he said, adding that the rising rubber prices have also affected sales of one of their core products, which are rubber slippers.