As part of the memorandum of understanding (MoU), Inditex will hold 51% in the JV, while Trent Ltd will hold 49%. The first of the stores will be opened in 2010 in New Delhi, Mumbai and other major cities of India.
The agreement was inked at the Inditex headquarters in Arteixo, Spain. Noel N Tata managing director, Trent Ltd, said, “We are very excited about our proposed JV with Inditex. We see great opportunities for Zara in a country that is becoming increasingly fashion conscious. Zara has proved itself capable of quickly adapting to changing consumer tastes across geographies. It will satisfy the discerning Indian consumer's demand for latest fashion trends very well.”
Inditex's first deputy chairman and chief executive, Pablo Isla, emphasised the excellent opportunity the Indian market poses for Zara's retail business.
“We view our entry into the Indian market as one with significant strategic importance. We are extremely delighted to be associating with Trent from the Tata Group, one of India's largest and most respected business houses. Our retail offering has been very well received by shoppers in Asian markets, and we have rapidly expanded there. Now, India will be one of our top priorities in the region.”
Currently, Inditex's presence under the Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe concepts encompasses over 4,200 stores in 73 countries worldwide.
Trent started its retail foray with the Westside brand in 1998 and, has extended its footprint across 20 cities with 36 stores. Trent entered the hypermarket business in 2004 with 'Star Bazaar' and has four stores in 3 cities in India. In 2005, Trent acquired Landmark, a books and music chain of stores. Landmark has 27 stores across the country.
