Zara, the global fashion brand, has posted a growth of 40.42 per cent in its India revenue at Rs. 2,562.50 crore for FY ’23 while the profit was also up 77.66 per cent to Rs. 264.30 crore for the financial year ended on 31st March 2023.
In FY ’22, Zara reported a total income of Rs. 1,824.82 crore and a profit of Rs. 148.69 crore.
Inditex Trent Retail India Private Ltd (ITRIPL), a JV, is engaged in the operation of Zara stores in India. Trent Ltd’s annual report says that the incremental store openings for Zara continue to be calibrated with a focus on presence only in very high-quality retail spaces.
ITRIPL operates 20 stores across 11 cities. However, in FY ’22 the entity was operating 21 stores.
Inditex group of Spain has another similar 51:49 JV association with Trent, which operates Massimo Dutti stores in India. It has also reported revenue growth of 45.54 per cent during FY ’23.
The entity for Massimo Dutti operates 3 stores and recorded revenue of Rs. 89 crore in FY ’23. Massimo Dutti India Pvt Ltd., had reported a profit of Rs. 11.14 crore in FY ’23.
The business of both entities is essentially limited to the distribution of Zara and Massimo Dutti products in India. Both entities are required to source merchandise only from the Inditex Group.
The business of these entities is essentially limited to the distribution of Zara and Massimo Dutti products in India.
The choice of product and related specifications are at Inditex’s discretion. Further, the entities are dependent on the Inditex group for permission to use said brands in India subject to its terms and specifications.
