Spain’s Inditex, owner of luxury fashion brand Zara, reported net profit of Rs 148.76 crore and revenue of Rs 1,815 crore for the financial year ended March 31, 2022, according to the latest annual report of trent ltd.
In FY21, Inditex Trent Retail India Private Ltd (ITRIPL), a joint venture that operates Zara stores in India, reported a net loss of Rs 41 crore and its revenue fell by Rs 28.3 % to Rs 1,126 crore during the pandemic. year affected.
The Spanish group Inditex holds 51% while Trent holds 49% of ITRIPL.
“During the year under review, the Zara entity recorded revenue of Rs 1,815 crore,” said the annual report of Trent, the retail arm of the Tata Group.
The entity for Zara currently operates 21 stores in 11 cities. There has been no increase in the number of stores over the past two years.
“Additional store openings for Zara continue to be calibrated with a focus on being present only in very high quality retail spaces,” he said.
Zara competes with other foreign brands such as H&M and UNIQLO in India.
Spanish group Inditex has another similar association with Trent, which operates Massimo Dutti stores in India. It also posted 43.9% revenue growth in FY22.
“Massimo Dutti’s entity operates 3 stores and recorded revenue of Rs 59 crore in FY22,” he said.
Massimo Dutti India Pvt Ltd had reported a profit of Rs 1.48 crore in FY22.
The activity of the two entities is essentially limited to the distribution of Zara and Massimo Dutti products in India. Both entities are required to obtain their supplies exclusively from the Inditex group.
“Furthermore, the choice of product and related specifications are at the discretion of the latter. Further, the entities depend on Inditex Group for permissions to use said marks in India subject to its terms and specifications,” said Trent.