Tata Group's retail arm Trent Ltd has decreased its ownership in joint ventures with Spanish fashion giant Inditex, which manage Zara and Massimo Dutti brands in India, as per the latest annual filings.

Trent has two JVs with Inditex Group. The first, Inditex Trent Retail India Private Limited (ITRIPL), oversees Zara stores. The second, Massimo Dutti India Private Limited (MDIPL), runs the Massimo Dutti brand.

In its FY25 annual report, Trent disclosed that it lowered its stake in ITRIPL from 49% to 34.94% by selling 1,40,000 equity shares via a buyback offer by ITRIPL. Similarly, it reduced its holding in MDIPL from 49% to 20% by selling 1,75,450 equity shares to Grupo Massimo Dutti, Spain, effective 25 March 2025.

"ITRIPL, an associate of the company, operates Zara stores in India... the company now holds 34.94% of the equity shareholding (previously 49%) in ITRIPL as of 30 August 2024," Trent's annual report dated 11 June stated.

Zara presently has 22 stores in 13 cities across India, while Massimo Dutti has three.

In FY25, Zara recorded total income of ₹2,839.5 crore, a 2.26% increase from ₹2,776.67 crore in the prior year. Massimo Dutti reported ₹101.23 crore in revenue, slightly down from ₹101.79 crore in FY24.

Financial, not strategic Trent has consistently clarified that its partnerships with Inditex are financially motivated and not long-term strategic decisions.

"Including brand ownership and merchandise supply arrangements (with the majority partner controlling these core customer propositions and terms), the company sees its commitments as financial investments," the report mentioned.

The joint venture with Inditex was formed in 2009 to introduce Zara in India. Initially, Inditex held a 51% stake and Trent had the remaining 49%.

Interestingly, Inditex recently launched its third brand, Bershka, in India through a fully owned entity—Bershka Retail India Pvt. Ltd—without a local partner. It has also established Zara Home Retail India Private Ltd as a wholly owned subsidiary.

Inditex's 2024 annual report indicated that it has call options on Trent's remaining shareholding—35% in ITRIPL and 49% in MDIPL. Trent, on the other hand, has put options to sell its stake to Industria de Diseño Textil S.A., with the strike price based on predefined terms.

Focus shifts to Zudio and Westside While reducing its involvement in Inditex JVs, Trent is actively expanding its own brands, particularly Westside and value-fashion chain Zudio. The two formats now have over 1,000 large-format stores, with Zudio contributing 765 of them.