Speaking at the company’s exhibition which ran under the theme “Bata – 7 Decades of Success” in the city recently, the Czech ambassador to Zimbabwe, Petr Stayr, said his country was motivated to do everything possible to revive the firm’s fortunes because the founder of the company, Thomas Bata, was a native of his country.
At its peak, Bata used to employ about 5,000 workers at its factory in Gweru and hundreds more in its industrial units located in Kwekwe and Mutare. At its peak, the company produced a record 60,000 pairs of shoes weekly. The Sandak and Tommy brands have remained the most popular. Since being established in Zimbabwe over 70 years ago, the total number of shoes manufactured is estimated at four billion.
However, the company is almost at a standstill as production took a nose dive when the country started experiencing serious economic challenges in the period leading to formation of the inclusive government in 2009. The controversial indigenisation law, which compels foreign firms to give up 51 percent shareholding to local,s has made investors scared to pour their money into coffers of the company.
At the Gweru factory, less than 1,000 workers are now employed. These few remaining are constantly on forced leave. The sport shoes factory in Kwekwe was forced to shut down in 2011 due to the economic challenges.
“We are aware of the challenges that Bata has been experiencing but the people of Czech Republic are interested in helping the company rise again to its past glory days. Thomas Bata’s small-scale family business began in 1894 in our country and soon spread world-wide.
“Here in Zimbabwe the firm has been facing challenges but we all hope that interventions we are discussing with the company management will yield results so that production shoots up to yesteryear levels,” said Stayr.
The capital crisis facing Bata, which has seen it failing to procure critical raw materials, requires some $9 million. The most critical areas are in the modernisation of machinery, technology and communication networks.
Past efforts by the company to raise money in the local market have been hampered by the high cost of borrowing.
Ronjoy Sengupta, the Managing Director of Bata, said his hopes had been revived due to support from partners and the Czechs.
“We are not really depressed by the present challenges and our lives are full of hope that once again, production will blossom. Everyone is working really hard to achieve that goal,” he said.
Kwekwe Mayor Matenda Madzoke, who also attended the exhibition, gave his blessings to the efforts being made by the Czechs.
“Our wish is to see the Bata we knew where thousands were employed and fabulous shoes produced. Their plant in the city sadly closed down but we give them our blessings for success in re-opening it so that the jobless youths gallivanting in the streets can find employment and put food on tables of their families, which are struggling to really make ends meet,” said the mayor.
Post published in: Business
Threat of new entrants
Do you know that when Qantas flew via Harare, almost every Australian passengers’ first priority was to stock up on Bata’s Safari Boots (fellies, farmers’ shoes etc. These were renowned as the best in the world and during their stopover they would each buy 7-10 pairs to take home – not just for themselves but also as prized gifts! Now you can buy almost exact copies in most parts of the world, in every colour, for male and female and kids… all made in China.
Do you know that when Qantas flew via Harare, almost every Australian passengers’ first priority was to stock up on Bata’s Safari Boots (fellies, farmers’ shoes etc. These were renowned as the best in the world and during their stopover they would each buy 7-10 pairs to take home – not just for themselves but also as prized gifts! Now you can buy almost exact copies in most parts of the world, in every colour, for male and female and kids… all made in China.