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

New Delhi: Spain’s Inditex, which owns luxurious trend brand Zara, posted a decline of Rs 41 crore in India for the fiscal yr ended March 31, 2021. Its profits also declined by 28.three for every cent to Rs one,126 crore during the pandemic-hit 2020-21.

The firm had reported a revenue just after tax of Rs 104.05 crore and a profits of Rs one,570.54 crore in the fiscal yr 2019-twenty.

Zara operates in India via the affiliation of its dad or mum Spanish garments firm Inditex with the Tata team organization Trent Ltd – Inditex Trent Retail India Personal Limited (ITRIPL). The Inditex team of Spain owns fifty one for every cent although Trent has 49 for every cent.

“In the course of the yr underneath overview, the Zara entity recorded revenues of Rs one,126 crore and decline just after tax of Rs 41 crore,” explained the most recent once-a-year report of the Tata team organization Trent Ltd.

Zara is presently working 21 retailers in India, in 11 metropolitan areas.

“The incremental keep openings for Zara keep on to be calibrated with concentrate on existence only in quite superior-top quality retail spaces,” it explained.

Trent has two different associations with Inditex — a single to run Zara retailers and the other for Massimo Dutti retailers in India. The entities essentially facilitate the distribution of Zara and Massimo Dutti products and solutions in India via their respective retailers.

Meanwhile, Massimo Dutti, which operates a few retailers in India also reported a 49.three for every cent decline in its revenues of Rs 34 crore in FY21.

It had recorded a profits of Rs 67 crore in the fiscal yr ended on March 31, 2020.

Trent explained the business of these entities is essentially limited to the distribution of Zara and Massimo Dutti products and solutions in India. Both the entities are expected to resource items only from the Inditex Team and also the option of merchandise and linked technical specs are at the latter’s discretion.

Zara competes with the likes of other overseas models this kind of as H&M, UNIQLO in India. KRH DRR DRR