Retail major Trent has trimmed stakes in its joint ventures with Spanish retail giant Inditex as it expands Zudio and Westside in the country, according to its FY25 annual report.
Trent said it had reduced its holding in Inditex Trent Retail India (ITRIPL), which runs Zara stores, from 49% to 39.94% by selling 140,000 equity shares through a buyback offer made by ITRIPL. This was effective August 30, 2024.
On the other hand, Trent cut its stake in Massimo Dutti India (MDIPL) from 49% to 20% by selling 1,75,450 equity shares to Grupo Massimo Dutti, Spain, effective March 25, 2025.
Zara currently operates 22 stores in 13 cities across India, while Massimo Dutti has just three stores in the country. The joint ventures with Inditex for Zara and Massimo Dutti were established in 2009. Trent said that the Inditex partnerships were financial in nature and not strategic partnerships.
“Including in the context of brand ownership and the arrangements for merchandise supply (with the majority partner entirely controlling these core customer propositions and the terms thereto), the company views its related commitments as a financial investment,” the FY25 annual report said.
Trent added that these ventures were limited to product distribution in India, which affected the economic value attributable to them.
Inditex recently launched its third brand, Bershka, in the country through a wholly owned entity—Bershka Retail India. It has also set up Zara Home Retail India as a 100% subsidiary in the country.
While scaling down its Inditex JVs, Trent has continued to expand its own brands, especially Westside and value-fashion chain Zudio in the country. Trent now operates over 1,000 large-format stores, with Zudio accounting for 765 of them, the annual report said.
Consumer seeking ready accessibility: Noel Tata
The Indian consumer is seeking aspirational products, attractive pricing, and, importantly, ready accessibility, Noel Tata, chairman of Trent, said in the firm’s FY25 annual report.
“As we expand our footprint in India and take our first steps into international markets, we remain committed to balancing profitability with sustainable development and meaningful social impact,” Tata, 68, said. He also said that two years ago, he had envisioned that Trent would one day be ten times bigger. “Since then, the revenue run rate has doubled. The headroom for growth remains enormous, and I am confident that we will reach this milestone in the not too distant future.”