Despite being embroiled in a controversy andthe Adidas Group having to make a 265 million euros (Rs 1,907.5 crores) writedown, the company is still buoyant about its troubled Reebok India business. In fact, they plan to open 100 new stores in FY14 after launching about 50 new Reebok stores in India this year.
The German sportswear giant’s balance sheet for 2011 was negatively impacted by 153 million euros (over Rs 1,090 crores) owing to ‘commercial irregularities’ at its Reebok India arm. Caught amidst the alleged Rs 850 crores fraud by its former MD Subhinder Singh Prem and COO Vishnu Bhagat, made public by the Adidas last April and unhappy Reebok franchises, German sports major Adidas, which acquired Reebok in 2006, brought in a new managing director, Erick Haskell on board to revive the brand in India.
Adidas has three brands in India, including the flagship brand that shares the same name as that of the group, Reebok and TaylorMade. The latter targets the golfwear market, while Reebok and Adidas are known for sportswear products.