Inditex, the Spanish fashion giant behind Zara and Massimo Dutti, has disclosed that its Indian partner Trent (part of the Tata Group) has the option to sell its entire stake in the joint ventures that operate these two brands in India.
If Trent decides that continuing the partnership isn’t beneficial, it can choose to sell its share of the business back to Inditex. This provides Trent with an exit strategy.
As per Inditex’s latest annual report, the company at the same time also holds a call option to buy Trent’s 35% stake in the Zara joint venture and 49% in the Massimo Dutti venture. The price will be based on the value of the business at the time the option is used. There is no fixed timeline for exercising this option.
Currently, Inditex runs 23 Zara stores and 3 Massimo Dutti stores in India with Trent. However, the company recently set up two new, fully-owned entities in India—Zara Home and Bershka Retail—pointing to its plans to expand independently in the market.
Under the joint venture agreement, all products for the Indian stores must be sourced from Inditex, which also controls the product range and specifications.
Trent has always treated the venture as a financial investment. In February this year, it sold nearly 29% of its stake in Massimo Dutti India for ₹20.75 crore. Last year, it sold 14.06% of its stake in the Zara JV for ₹105.08 crore.
These moves could pave the way for Inditex to take full control of its India operations.
