Tata Group’s retail arm Trent Ltd has trimmed its equity stakes in its joint ventures with Spanish fashion giant Inditex, which operate Zara and Massimo Dutti stores in India. The move reflects Trent’s continued focus on its homegrown retail powerhouses—Zudio and Westside—as it repositions its portfolio toward long-term growth.
Trent Cuts Stake in Inditex Joint Ventures
Trent has two separate joint ventures with Inditex:
- Inditex Trent Retail India Pvt Ltd (ITRIPL) – operates Zara stores
- Massimo Dutti India Pvt Ltd (MDIPL) – runs the Massimo Dutti brand
According to its FY25 annual report, Trent has:
- Reduced its stake in ITRIPL from 49% to 34.94%, via a buyback offer from the JV itself, effective August 30, 2024
- Cut its stake in MDIPL from 49% to 20%, by selling shares to Grupo Massimo Dutti, Spain, effective March 25, 2025
The move suggests a deliberate scale-back of its involvement in the two premium fashion brands, while retaining minority investments.
“The company views its related commitments as a financial investment,” the report stated, reaffirming that these partnerships are not strategic, particularly due to Inditex’s full control over brand ownership and merchandise supply.
Performance Snapshot: Zara vs. Massimo Dutti
- Zara India (22 stores across 13 cities):
FY25 revenue rose 2.26% to ₹2,839.5 crore from ₹2,776.67 crore in FY24. - Massimo Dutti India (3 stores):
Revenue dipped slightly to ₹101.23 crore, down from ₹101.79 crore last year.
While Zara continues to show steady growth, Massimo Dutti remains a niche player in India’s fashion landscape.
Inditex Tightens Grip in India
Interestingly, Inditex appears to be reinforcing its India presence through fully owned subsidiaries, signaling a strategic shift:
- Bershka, the fast-fashion brand, launched in India under Bershka Retail India Pvt. Ltd, with no local JV partner.
- Zara Home has also been set up under a 100% Inditex-owned entity.
Moreover, Inditex holds call options on Trent’s remaining shares in both JVs, while Trent retains put options to sell its holdings under predefined terms, as disclosed in Inditex’s 2024 annual report.
Trent Doubles Down on Zudio & Westside
While easing back on its Inditex collaborations, Trent is going full throttle on its own brands, particularly Zudio and Westside. Together, they form the cornerstone of the company’s retail growth:
- Zudio: Now has 765 stores, making it one of India’s fastest-growing value fashion chains
- Westside: Continues to perform strongly in the mid-premium segment
- Total Trent Stores (FY25): 1,043, spanning multiple banners
- FY25 Gross Sales: ₹17,624 crore
The company also operates Star-branded hypermarkets in the grocery segment.
Conclusion
Trent’s decision to reduce its stakes in Zara and Massimo Dutti reflects a clear pivot from collaborative global brands to scaling in-house labels. With Zudio’s aggressive expansion and Westside’s steady performance, the Tata-owned retailer is betting big on building a self-owned retail empire—tailored for India, built in India.
Top-notch SEBI registered research analyst
Best SEBI registered Intraday tips provider
Telegram | Facebook | Instagram
Call: +91 9624421555 / +91 9624461555