Zara logs 40.4% revenue growth in India at Rs 2,562 cr, profit up 77.6%

Global fashion brand Zara has recorded a growth of 40.42 per cent in its revenue in India at Rs 2,562.50 crore for FY23, according to the latest annual report by Trent Ltd.

Its profit also increased by 77.66% to Rs. 264.30 crore for the financial year ended 31st March 2023.

Inditex Trent Retail India Private Ltd (ITRIPL), a joint venture company engaged in the operation of Zara stores in India, in FY 22 reported gross income of Rs.1,824.82 crore and profit of Rs.148.69 crore.

“The calibration of additional openings for Zara stores continues, with a focus on being only in high-quality retail spaces,” the company said.

ITRIPL is a 51:49 joint venture between Spain’s Inditex, which owns luxury fashion brand Zara, and the retail arm of the Tata Trent Ltd. group.

Zara, which competes with other foreign brands such as H&M and Uniqlo in India, operates 20 stores in 11 cities.

However, in fiscal ’22, the entity operated 21 stores.

The Spanish Inditex Group has another similar 51:49 JV tie-up with Trent, which operates Massimo Dutti stores in India.

It also recorded a revenue growth of 45.54 percent during FY23.

“Kian Massimo Dutti operates 3 stores and recorded revenue of Rs. 89 crore in FY23,” it said.

Massimo Dutti India Pvt Ltd reported a profit of Rs. 11.14 crore in FY23.

Both entities are primarily engaged in the distribution of Zara and Massimo Dutti products in India.

Both entities are required to source goods from the Inditex Group only.

“These entities operate primarily in the distribution of Zara and Massimo Dutti products in India,” said Trent.

Further, as per the joint venture agreement, product selection and related specifications are at the discretion of Inditex.

“Further, the entities depend on the Inditex Group to obtain permissions to use the said trademarks in India as per their terms and specifications,” it added.