India’s Tata group firm Trent’s joint venture (JV) with Spain’s Inditex for Zara brand is not a ‘long term strategic investment’ integral to its retail operations but is merely a financial investment, the company said in its 2017-18 annual report. This was due to the nature of brand ownership, which is with Inditex, and merchandise supply arrangements, it said.
Inditex Trent Retail India Pvt Ltd is a 51:49 JV with 51 per cent held by the Spanish partner. Trent, whose flagship brand is Westside, has another JV with Inditex for Massimo Dutti stores in India. The majority partner entirely controls the core customer proposition with respect to the fashion offer, according to a document by the company.
It recorded a 19.40 per cent rise in revenues at rs. 1,221.67 cr in 2017-18. Trent’s revenue from operations in 2017-18 stood at rs. 2,066.29 cr. Trent, however, wants to steadily expand the presence of Zara stores in India over the next three to four years.