Spain’s Inditex, which owns luxury fashion brand Zara, posted a net profit of Rs 148.76 crore and revenue of Rs 1,815 crore for the financial year ended on March 31, 2022, according to the latest annual report of Trent Ltd.
In FY21, Inditex Trent Retail India Private Ltd (ITRIPL), a JV which is engaged in the operation of Zara stores in India, had reported a net loss of Rs 41 crore and its revenue fell 28.3 percent to Rs 1,126 crore during the pandemic impacted year.
The Inditex group of Spain owns 51 percent while Trent has 49 percent in ITRIPL. “During the year under review, the Zara entity recorded revenue of Rs 1,815 crore,” said the annual report of Tata group retail arm Trent. The entity for Zara currently operates 21 stores across 11 cities in India. There has been no increase in the number of stores in the last two years.
“The incremental store openings for Zara continue to be calibrated with focus on presence only in very high-quality retail spaces,” it said.
Zara competes with the likes of other foreign brands such as H&M, and UNIQLO in India. Inditex group of Spain has another similar association with Trent, which operates Massimo Dutti stores in India. It has also reported revenue growth of 43.9 percent during FY22.
“The entity for Massimo Dutti operates 3 stores and recorded revenue of Rs 59 crore in FY22,” it said.
Massimo Dutti India Pvt Ltd had reported a profit of Rs 1.48 crore in FY22. 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.
“Also, the choice of product and related specifications are at the latter’s discretion. Further, the entities are dependent on the Inditex group for permissions to use the said brands in India subject to its terms and specifications,” said Trent.