Trent, the retail arm of the Tata group, today announced a joint venture with Spanish fashion retailer Inditex Group, to bring in Zara stores in India. Zara is a international fashion retailer owned by Inditex.
According to the memorandum of understanding (MoU) signed today, Inditex would hold 51 per cent stake in the JV while Trent would hold 49 per cent. The JV plans to open stores in 2010 in New Delhi, Mumbai and other major cities in the country, said a release from Trent.
Both the companies signed the agreement at Inditex headquarters in Arteixo, Spain. Inditex has Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe brands which together have more than 4,200 stores in 73 countries worldwide. The company has more than 86,000 employees throughout the world and posted sales of Euro9.435 billion in 2007.
Trent’s external communication firm did not respond to the mail sent by this newspaper on the timing and investment details of the joint venture. An executive of the firm said that they would respond to the mail on Friday as company executives were travelling.
The tie-up with Zara follows Trent’s tie-up with the UK’s largest retailer Tesco for using Tesco’s supply chain and IT systems in India. In September 2007, Trent inked a deal with Benetton of Italy, under which Trent would be the exclusive franchisee for one of Benetton’s premium brands Sisley. Sisley has seven stores in the country.
