Zara India posts loss of Rs 41 cr in FY21; revenue down 28 pc to Rs 1,126 cr, Retail News, ET Retail

Lynn Imbier

New Delhi: Spain’s Inditex, which owns luxury manner manufacturer Zara, posted a decline of Rs forty one crore in India for the monetary 12 months finished March 31, 2021. Its income also declined by 28.three per cent to Rs one,126 crore throughout the pandemic-strike 2020-21.

The firm had noted a income following tax of Rs 104.05 crore and a income of Rs one,570.fifty four crore in the monetary 12 months 2019-twenty.

Zara operates in India by way of the affiliation of its father or mother Spanish clothing firm Inditex with the Tata team business Trent Ltd – Inditex Trent Retail India Personal Restricted (ITRIPL). The Inditex team of Spain owns fifty one per cent even though Trent has 49 per cent.

“Throughout the 12 months below critique, the Zara entity recorded revenues of Rs one,126 crore and decline following tax of Rs forty one crore,” stated the most up-to-date once-a-year report of the Tata team business Trent Ltd.

Zara is presently running 21 merchants in India, in 11 metropolitan areas.

“The incremental keep openings for Zara keep on to be calibrated with emphasis on presence only in very significant-top quality retail areas,” it stated.

Trent has two different associations with Inditex — a single to operate Zara merchants and the other for Massimo Dutti merchants in India. The entities primarily facilitate the distribution of Zara and Massimo Dutti products in India by way of their respective merchants.

In the meantime, Massimo Dutti, which operates three merchants in India also noted a 49.three per cent drop in its revenues of Rs 34 crore in FY21.

It had recorded a income of Rs 67 crore in the monetary 12 months finished on March 31, 2020.

Trent stated the business of these entities is primarily limited to the distribution of Zara and Massimo Dutti products in India. Both the entities are demanded to source goods only from the Inditex Team and also the preference of solution and related specs are at the latter’s discretion.

Zara competes with the likes of other overseas brand names these as H&M, UNIQLO in India. KRH DRR DRR

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