Trent Ltd Management Discussions.


Economic backdrop

India adopted fiscal 2012 as the new base year for calculating GDP. On this basis, the GDP rose at a CAGR of 6.9% between FY12-18. It continued to grow at 6.8% in FY19 - driven by consumption and mild support from investments.

Indias contribution to world growth has also increased from 7.6% during 2002-08 to 14.5% in 2018.

Also, India is at an inflection point of GDP per capita of USD 2,000. Empirical evidence suggests that apparel consumption and revenues in various nations grew exponentially as GDP per capita crossed USD 2,000.

Attractive demographics

Approximately 78% of the population is in working age group of below 45 years. The median age in India is expected to rise from 27 years in 2015 to 30 years in 2025, which makes it attractive from consumption point of view.

The number of urban working women in India is also growing at 7% Y-o-Y and is expected to reach around 6 Crores by 2025. With more women participating in decision making, fashion and apparel segment is expected to witness strong growth.


Rapid urbanization in tier 2 and tier 3 cities is influencing the traction for organized retail in the country. 69% of Indias population which lives in tier 2 and tier 3 cities contributes 54% to the total retail consumption, which indicates significant purchasing power and retail potential.

Some of the emerging cities are witnessing growing affluence and consequently, stronger growth in consumption expenditures compared to some of Indias biggest cities. By 2020, it is expected that 120 new cities will emerge with the average household income in line with that of todays major metropolitan cities.

Rising disposable income and consumption

Indias large population, growing affluence, shifting family structures and continued urbanization offers a huge consumer base for various retail segments. The growth is driven by - rise in number of households and rise in average consumption per household. Domestic consumption in India has increased by 3.5x in last decade and is expected to grow to Rs. 335 lakh Crores by 2028.

In 2018, middle income households with annual income between Rs. 5-20 lakhs contributed more than 50% of Rs. 110 lakh Crores annual consumption in India.


Internet penetration and social media

Internet penetration in India grew from 4% to 34% between 2007 and 2017. In September 2018, it stood at 88% and 22% in urban and rural areas, respectively. However, it is still low and bound to rise due to proliferation of smartphones and advent of 4G.

Growth in internet and digital penetration

• Online shoppers

• Internet users

•Digitally influenced shoppers (Crores)

Goods and Services Tax (GST)

The introduction of GST as a single unified tax system in July 2017 was a major policy overhaul that is attracting foreign players. The governments move to provide a single-policy framework for retail, FMCG and e-commerce is expected to benefit businesses over the medium term including by way of simplification of operations, homogeneity of rates across states & categories and reduced/ digital documentation.

Over time, GST should also accelerate formalization of the economy and consequently, further serve as a tailwind to the growth of organized retail.

Retail in India

India is one of the most dynamic retail markets in the world and is expected to be around Rs. 60 lakh Crores in 2019 growing at a CAGR of around 14% during 2017-20.

Drivers for growth include:

• Growing share of urbanization from 31% in 2010 to 35% in 2020

• Retail development taking place also beyond major cities

• Rise in consumption across discrete household segments

• Increase in number of working women

• Entry of international players across segments

• Increase in brand consciousness

• E-commerce and growing influence of social media due to internet penetration and cheaper availability of internet and smart phones

• Investments in the retail sector to the tune of Rs. 1.8 lakh Crores in just last decade

Fashion and lifestyle market

Overall fashion & lifestyle market in India is expected to grow at a CAGR of around 14% during 2017-25 to reach around Rs. 21 lakh Crores.

Total apparel market stands around Rs. 4.5 lakh Crores and is expected to grow at a CAGR of around 9% during the same period. Growth in this segment is expected to be driven by branded apparel and women & kids fashion. Branded apparel market is expected to grow at a CAGR of 12-14% during the same period.

Fashion & lifestyle market ( 000 Crores)

• Branded

• Unbranded

Emphasis on fast fashion/private labels

Both online and offline fashion players are increasing focus on building private labels/in-house brands due to inherent advantages such as lower concept to customer time, faster execution vis-a-vis dealing with third party brands, better control over quality & pricing, improved margins and differentiated & exclusive offerings.

Women and kids fashion as growth drivers

Organized retail market for women and kids fashion is expected to grow at a CAGR of 32% and 30%, respectively during 2017-20.

Growing financial independence of women is driving growth in categories related to fashion, beauty & kids and offering promising segments for retailers to pursue.

Value fashion - gaining traction

Value fashion is a promising segment in fashion retail with possibility of appealing to wider customer base and reaching more addressable geographies. Popular and mass-priced products possibly constitute over 75% of the total fashion market in India.

Enriching customer experience through visual merchandising

Customer experience in fashion retail is driven by exciting window displays, in-store ambience, coordinated product displays, lighting, music and communication. Growing awareness coupled with entry of international players in the industry is spotlighting visual merchandising as an integral proposition of retail.


The Indian e-commerce market penetration is expected to increase as total gross merchandise value is expected to grow from Rs. 1.3 lakh Crores in 2018 to Rs. 6.5 lakh Crores by 2025 driven by wider assortment and convenience.

Categories that are expected to drive growth include:

• Fashion and apparel

• Beauty and personal care

• Food and beverages (including grocery)

However, data privacy and fake products seem to be the key concerns in e-commerce retailing currently.

Food & Grocery retail (F&G)

F&G in India offers significant opportunity for retailers with unorganized segment still contributing over 95% of the market.

Further, within overall organized brick and mortar retail, F&G contributed the largest share at 23.8% in 2016, which is expected to increase to 26.9% in 2020 aided by improved assortment and convenience.

Led by differentiated product offerings & store experience, Trent has accelerated the store expansion program in FY19 and operates 264 stores across more than 70 cities in India.

Retail concepts Stores Cities
Westside 150 76
Zudio 40 25
Star 44 7
Landmark 5 4
Zara 22 10
Massimo Dutti 3 2


Trent primarily operates stores across four concepts - Westside, Zudio, Star & Landmark. In FY19, we continued to focus on robust and sustainable business models in each of our retail concepts. We have consistently emphasized the importance of establishing the viability of a retail concept with a limited portfolio of stores prior to embarking on rapid expansion. The approach to expansion of Zudio concept is a case in point.

Trent also follows strong product/inventory disciplines across the value chain. This includes emphasis on own branded offering, ownership of product design & curation, focus on speed of "concept to market" consistency of offer across platforms and strong inventory management.

In the year under review, we also progressed integration of stores and online for Westside concept, thereby extending reach to a growing number of cities.


Aspirational fashion - mid premium > 97% own brand portfolio 150 stores across 76 cities Digitally enabled supply chain Synchronized proposition in-store and online

Trents flagship concept- Westside offers branded fashion apparel, footwear and accessories for women, men and children, along with a range of home furnishings & decor. This offer is presented through a differentiated portfolio of exclusive brands that are in tune with latest fashion trends appealing to a wide spectrum of style-conscious consumers across defined customer segments. This differentiated approach also aids in competing effectively in the face of disintermediation risks posed by diverse competition.


Fashion at stunning prices 100% own brand portfolio 40 standalone stores across 25 cities

Trents value fashion concept- Zudio- offers fashion at irresistible prices for women, men and children. The exclusive fashion is curated in-house and made available at very sharp price points. While the range of offerings has been evolved within the Star ecosystem in the recent years, the value fashion business was transitioned to the Company from Trent Hypermarket Private Limited (THPL) in FY18.

Zudio has evolved into a growing standalone concept along with improved quality of presence within select Star stores. In FY19, we added 33 new stores. Currently, Zudio is being retailed through 40 standalone stores and 16 Star stores.

A TATA Enterprise

Focus on fresh offering Scaling up own brands Clustered presence

Hypermarket and convenience store chain - operating under "Star Market" concept- offers an assortment of products, including staples, beverages, health & beauty products and a comprehensive fresh offering (vegetables, fruits, dairy, non-vegetarian products). The offering is also supported by a compelling range of own brands at attractive prices.

Star Markets witnessed encouraging traction during FY19 and the format is increasingly viewed as a differentiated & sustainable model in food retailing.

The Star concept has presence with 32 Star Markets and 12 Hypermarket stores. Other concepts of varying footprints have been rationalized/ consolidated during the year under review - with Star Market concept seen to be affording the most sustainable platform for expansion along with better returns and throughput.

Entertainment & lifestyle offering Driven by latest trends 5 standalone stores

A family entertainment concept - offers a curated range of toys, front-list books and sports merchandize. The back-end operations relating to the concept are significantly integrated with that of Westside to realize synergies and contain overhead costs.

The concept is operational through 5 independent stores, in addition to SIS within 11 Westside locations.


Westside accounts for around 90 percent of the Companys revenues. Aspirational exclusive brands are the key differentiators of the business. As of March 2019, Westside had presence with 150 stores across more than 70 cities and online reach across India exclusively through Tatacliq.

Differentiated business model

Own brands contribute over 97 percent of total revenues. Westsides "own-brand-led" business model allows active control across the value chain with respect to key aspects of design, branding, sourcing, logistics, pricing, display, promotion and selling. We deliver latest fashion trends through a portfolio of differentiated in-house brands. This business approach has been more robust and sustainable than the department store models that predominantly retail third party brands including from a return on capital employed perspective. Empirical evidence also seems to suggest that globally, retailers who control the entire value chain are relatively more successful.

During FY19, Westside continued to focus on key initiatives such as:

• Delivering latest fashion trends at sharp prices

• Strengthening additional differentiator categories such as lingerie (Wunderlove), cosmetics (Studiowest) and athleisure (StudioFit) with trendy offerings

• Focus on latest fashion each week through a "fast- fashion" anchored supply chain

• Accelerated store expansion program to scale up reach

• Active management of store portfolio through multiple initiatives

• Progressing omni-channel proposition through integration between stores and online

Aided by the approach, Westside registered 9% percent like-for-like growth in sales in FY19.

Exciting fashion brands

Westside owns a portfolio of exclusive and differentiated fashion brands. Our team from designers to customer service work each day to understand the customers unique fashion tastes and provide products in a fast and agile manner. We also continue to reinvent/ scale up existing brand portfolio as market and fashion trends keep evolving.

Encouraging performance across brands reflects the ability to connect with audience across segments. This also allowed a rapid exit from residual pool of third-party brands that were previously retailed from Westside. These brands were successfully replaced by own brands without impact on customer experience. Exciting campaigns through brand videos and social media engagement further support these brands in communicating their unique identity.

Some of our key brands are listed below:

Highly prominent stores & differentiated store experience

Exciting shopping experience coupled with superior visual merchandising, both online and in-store, are the key drivers for reinforcing brand credentials. Westside emphasizes on delivering "fashion theatre" experience through statement making stores, presence in marquee locations, striking windows & in-store displays, exciting store ambience and convenience of shopping.

During the year under review, we pursued the following key initiatives on this front:

• Progressive upgrade of existing stores to the latest visual scheme

• "See it buy it" synchronization of offer, hotspots and open window presentation

These initiatives continue to deliver encouraging results including growth in walk-ins.

Active management of store portfolio

a) Sustainable store expansion

In FY19, Westside added 27 new stores- the highest ever in a year. Numerous micro-markets with significant growth potential are emerging across India. Westside continues to monitor opportunities in these micro-markets and pursue disciplined expansion across regions and tier 1, 2 & 3 cities with strong focus on store economics.

Property selection happens through a rigorous set of reviews, which utilize multiple key criteria to identify promising locations with strong economics. The in-house property team is supported by a well-defined set of processes for analyzing the potential market & catchment to pursue expansion opportunities.

An average Westside store has a footprint of around 18,000 sq. ft. Total investment in a new Westside store leased and operated by the Company is in the region of Rs. 6-7 Crores across capex, deposits and inventory. A new store requires fit-out investment of around Rs. 2,000-2,500 per sq. ft.

b) Accelerated store modernization

As an ongoing initiative to emphasize contemporary look & feel and improve consistency of brand experience across the store portfolio, Westside has accelerated the modernization program. In the year under review, 9 Westside stores were modernized and the customer response has been postive and encouraging.

c) Absorptions

We also engage in active store optimization program, which involves identifying brand diluting stores and replacing them with newer stores in the micro-markets.

The exercise has delivered encouraging results and the Company is committed to manage the store portfolio actively by taking steps as required. In the year under review, 2 stores, which were seen to be in unviable locations/schemes and lacking a sustainable growth outlook were closed.

d) Space management

Efficient utilization of retail space is one of the key initiatives. Westside continues to assess stores in terms of revenues and revisit space allocated to brands with differentiated performance. Sales per square feet is one of the key measures which assesses retail efficiency in terms of space utilization and the measure has shown a growing trend for Westside.

Customer communication

Customer listening and engagement is an integral part of shopping experience. Westside engages with its customers in following ways:

a) In-store and social media

In-store activities and social media are deployed increasingly as mechanisms for customer engagement. Geo-targeted digital campaigns around the catchment areas of our stores and on relevant social media channels are being leveraged to connect with the target audience.

Separately, digital video campaigns promoting our power brands is an initiative, which has been actively pursued and has received very encouraging traction with highest number of views- 46 lakhs in FY19.

We also engaged with our customers through associations with fashion bloggers, vloggers, influencers, popular fashion events and youth events. The innovative usage of targeted communication methods enables us in connecting with our customers better and enhancing customer satisfaction. During FY19, followers on social media including Facebook, Instagram, Twitter crossed 9 lakhs.

b) Customer listening

Westside ramped up its customer response management and reduced its FTR (first time response) to 1-hour average.

We also implemented online reputation management through 360 degree customer listening and response system, which captures 100% of complaints, queries, appreciation and feedback from multiple channels on a real time basis.

Aided by multiple initiatives including the ones mentioned above, the average bill size registered an encouraging growth of 6 percent in FY19. Bill size represents the average amount spent by each customer on their purchase. The following chart depicts the trend of this measure for Westside in recent years.

c) ClubWest

ClubWest membership allows customers to make purchases and avail offers in all our stores. Power targeting and customized campaigns have helped us in improving contribution of the active members to over 80% and increasing shopping frequency of less active members. In FY19, our Clubwest base grew by 14% to more than 50 lakh memberships.

Operating standards

Westside seeks to actively refresh its offerings on an ongoing basis to synchronize with the latest fashion trends. This is made possible through an on-going emphasis on leveraging our supply chain model coupled with rigorous reviews. As we emphasize speed across the value chain, shrinkage cost is one of the bellwether measures with respect to operating efficiency at stores and distribution centers.

Integrated value chain

Given the competitive marketplace and an audience with significant real-time exposure to global fashion trends, Westside is increasingly focusing on rapid delivery of latest fashion by sharply reducing the "concept to customer" time.


We closely engage with the suppliers to deliver quality fashion offering at fast pace. This is achieved through multiple initiatives such as driving unit efficiency, optimization of sourcing geographies, sharper fabric choices, defined supplier base, rigorous social compliance and deployment of technology to monitor production & quality milestones.

Supply chain

A sustainable supply chain with strong inventory disciplines is the backbone of the business. Pune and Vapi warehouse ecosystems together service the growing requirements of the business. Use of technology and strong inventory management system enable delivery of fresh fashion every week and faster replenishment on an ongoing basis ensuring over 99 percent efficiency.

The Company is committed to invest in scaling up and upgrading the supply chain network to support sustainable business growth.

Integrated stores and online

Westside has exclusive online presence through Tatacliq- a Tata Group marketplace initiative. Significant progress was made on omni-channel initiative during the year under review. The online and in-store offering of the concept are now closely aligned.

During the year under review, multiple initiatives were taken to strengthen the online offer as a "convenience" proposition including centralized inventory management and leveraging the existing store network in various omni-channel respects.

A customer can enter a store, have a look at the latest fashion offer, touch and feel the products, try and buy it using their smartphones and receive it at home/office.

Owing to the integrated model of stores and online, our customers can relate to our brands at the most convenient moment, place and way for them.

Notwithstanding, the small share of overall revenue base, it is encouraging that online revenues continue to witness traction.


Westside is seeking to leverage the opportunity afforded by the Indian fashion retailing space with the following guideposts.



During FY18, Trent had acquired value fashion apparel business Zudio from Trent Hypermarket Private Limited (THPL). Zudio addresses fashion needs of the customers at sharper price points, with infrastructure and backend processes closely aligned with Westside. In FY19, Zudio adopted an accelerated expansion program. As of March 2019, it has presence through 40 standalone stores as well as 16 Star locations.

Zudio is expected to present significant growth opportunities in value fashion retail with accelerated store additions in the coming years.

Striking fashion - Sharp prices

Zudio focuses on 100% own branded offering, curated in-house in line with the latest fashion trends and at stunning prices. Apart from ensuring differentiated fashion and experience for customers, active control of value chain is integral to evolving a sustainable business model for the concept. The concept is gaining traction and has delivered encouraging results

Vibrant stores

Zudio stores are located in attractive/prominent schemes and offer an exciting shopping experience for the customers. The existing stores are delivering strong LFL growth and younger stores are witnessing quick traction without significant spend on promotions and advertisements. During the year under review, sales per square feet for LFL independent stores crossed Rs. 14,000 per sq. ft. The capital employed (directly attributable) to the Zudio concept including inventory, capex & deposits is Rs. 3-4 Crores per store.

Accelerated expansion

In the year under review, 33 standalone stores were added in the portfolio.

With an average store size of 6,000-8,000 sq ft, the concept affords faster expansion across numerous micro-markets.



Star stores are primarily operated by Trent Hypermarket Private Limited (THPL) - a 50:50 JV between Trent Ltd & Tesco PLC UK. The portfolio comprises of hypermarket and neighborhood stores focusing on categories like food and groceries, home care, apparel, home decor, health and beauty products. The current portfolio of 39 stores comprise of 10 Star Hyper stores and 29 Star Market stores located in Bengaluru, Hyderabad, Kolhapur, Mumbai and Pune. In addition, Fiora Hypermarket Ltd. (FHL), a wholly owned subsidiary of Trent operates 2 Star Hyper and 3 Star Market stores.

Star Market is the anchor concept targeted at monthly & top-up needs for groceries, fresh produce, FMCG, personal grooming products and general merchandise in around 5,000 - 10,000 sq. ft. footprint.

THPL delivered total income of Rs. 1,007.84 Crores in FY19 vis-a-visRs.961.66Crores inFY18.Thelossesdeclinedfrom Rs. 90.32 Crores in FY18 to Rs. 84.56 Crores in FY19.

Enhanced assortment, improved quality standards and exciting shopping experience have been the key focus areas for the concept during the year under review.

Fresh food

Star focuses on providing its customers quality & reasonably priced fresh produce. Over the time, it has positioned itself as a distinct retailer famous for Fresh Food, which has proved to be the key footfall driver for the concept. We now directly engage with over 250 farmers and a significant proportion of vegetables & fruits are now directly sourced and serviced through a network of collection and distribution centers.

Own brand

We believe that own brand offerings are key to evolving a sustainable business model. In this context, we have continued to focus on expanding our exclusive range in defined categories at affordable prices and great quality benchmarked with leading brands.

Own brands of Star span over 300 SKUs and have continued to witness an encouraging offtake in FY19. In several sub-categories, own brands rank one or two in terms of sales and hence compete effectively with third party brands.

Our own branded offerings include:

• Klia: Cleaning-aids & home care products

• Fabsta: Packaged food and beverages

• Skye: Personal care products

Clustered expansion

In terms of geographies, we have continued to pursue a clustered approach with stores in the states of Maharashtra, Karnataka, Telangana and Gujarat with an aim of creating local scale and being closer to customers. This allows to achieve (a) better understanding of local needs and preferences, (b) cost efficiency due to economies of scale, and (c) brand visibility.

Star has adopted a calibrated approach to expansion in the recent years and emphasized the evolution of a sustainable business model.

Online presence

Starquik -the online grocery portal- continued to deliver encouraging performance. The business is tightly integrated with store operations bringing omni-channel convenience for the customer. This has allowed the Company to leverage the capabilities and infrastructure across channels. The intent is to scale up the omni-channel operations going forward.


Overall, Star is adopting a multi-pronged approach with the following principal guideposts.



Landmark is an entertainment & leisure concept that offers a striking range of curated lifestyle products including toys, front-list books, stationery, latest gadgets and sports merchandize. Leveraging the strength of Westsides back-end operations, the format has been able to drive synergies and contain overhead costs. Landmark portfolio comprises of 5 independent stores in the year under review. In addition to the independent stores, Landmark merchandise is also retailed through select 11 Westside locations currently as a shop-in-shop model. During the year under review, the concept has witnessed 4% LFL growth.

Focus on newer growth categories

In order to cater to emerging lifestyles trends and to stay relevant for our customers, the product portfolio has been revamped to focus on trending product opportunities. Tech gadgets driven by lifestyle trends have been the fastest category, followed by toys and sports. Books & stationery continue to be an integral part of Landmark. In addition, an exciting range of gadgets and gaming is now available online through Tatacliq.

Customer interactions

Landmarks positioning of "For the Child in All of us" has been backed by its endeavor to create exclusive customer engagement experiences through events and activities in the store. These events attract large number of customers including kids, youth & adults and provide an exciting platform for the customers to interact with the brand. During the year under review, Landmark conducted events such as 25th edition of the Landmark quiz; Rubiks challenge and Lego challenge in its stores. Winners of the Lego Challenge are awarded an opportunity to visit Legoland Malaysia. We also hosted best-selling author Yuval Noah Harari for a book reading event in Mumbai. The event attracted an encouraging gathering of book-lovers and brand loyalists.


Zara and Massimo Dutti

The Company has two separate associations with the Inditex group of Spain with a shareholding of 51 percent (Inditex) : 49 percent (Trent) - one entity to operate Zara stores and the other for Massimo Dutti stores in India. The entities essentially facilitate distribution of Zara & Massimo Dutti products in India through their respective stores. The association for Zara stores currently operates 22 stores in Delhi, Mumbai, Bangalore, Pune, Surat, Jaipur, Chandigarh, Chennai, Mohali, Hyderabad, Kolkata & Gurgaon.

During the year under review, the Zara entity recorded revenues of Rs. 1,437.87 Crores and PAT of Rs. 71.49 Crores. The incremental store opening program for Zara continues to be calibrated. The entity for Massimo Dutti operates 3 stores and recorded total revenues of Rs. 63.58 Crores in FY19.

As discussed in shareholder meetings and earlier reports, the said entities are obligated to source merchandize only from the Inditex Group. Also, the choice of product & related specifications are at latters discretion. Further, the entities are dependent on the Inditex group for permissions to use the said brands in India subject to its terms & specifications.

Including in the context of brand ownership and the arrangements for merchandise supply (with the majority partner entirely controlling these core customer propositions and the terms thereto), the Company views its related commitments as a financial investment. Consequently, it may be appropriate not to consider these commitments as long term strategic investments integral to our retail operations. Also, given the above nature of the arrangements, it may be appropriate to take cognizance of the related uncertainties & risks involved in the evaluation of the associated economics.

Fiora Business Support Services Limited (FBSSL)

FBSSL is a wholly owned subsidiary of the Company. It reported total revenues of Rs. 19.03 Crores and total comprehensive income of Rs. 0.85 Crores for FY19. It is engaged in the business of providing business support and consultancy services relating to accounting, merchandising, human resources, payroll etc.

Fiora Services Limited (FSL)

A subsidiary of the Company, continues to render various services in terms of sourcing activities, warehousing, distribution, clearing and forwarding. We believe this structure of a separate service providing entity has yielded encouraging results with respect to attracting relevant functional talent and at the same time keeping related costs under control. Fiora charges the service receiving entities primarily on a cost plus reasonable markup basis. In FY19, it reported total revenues of Rs. 30.28 Crores and total comprehensive income of Rs. 3.22 Crores.

During the year under review, FSL & FBSSL filed a joint petition with the Honble National Company Law Tribunal for the approval of the Scheme of Merger by absorption of FSL with FBSSL and their respective shareholders, with effect from the appointed date i.e. 1st April 2018, subject to requisite approvals. The merger will lead to greater efficiency in the combined business including economies of scale and rationalization of the entity structure. The merger is expected to receive its final approvals shortly.

Fiora Hypermarket limited (FHL)

FHL (a wholly owned subsidiary of the Company), operates a few of the Star stores in the context of the applicable regulations. During the year under review, FHL incubated the Starquik online platform and envisages expansion of Star banner stores in the state of Gujarat. The intent would be to grow the operations of FHL in a calibrated manner that leverages the existing presence & operations.

On a consolidated basis, FHL registered total revenues of Rs. 109.27 Crores and total comprehensive loss of Rs. 15.29 Crores.



Overall, for FY19, on a standalone basis the Company has reported total revenues of Rs.2,567.98 Crores (Rs.2,108.84 Crores in FY18), PAT of Rs.127.49 Crores (Rs.116.73 Crores in FY18) and total comprehensive income of Rs.125.72 Crores (Rs. 116.32 Crores in FY18). In addition to the performance of the retail business, the Companys treasury income (other than from subsidiaries) represented a reasonable yield on funds. Nevertheless, including given the significant commitment of resources to expansion and support infrastructure as of March 2019, borrowings stood at Rs. 500 Crores.

The key operating metrics have been discussed as part of the commentary for each of the retail concepts. The financial ratios for the year under review reflect the changing growth trajectory given significant increase in the number of new stores opened/planned and related investments. A key case in point being the inventory levels including on account of the Zudio concept being scaled up.

On a consolidated basis, the Company has reported total revenues of Rs.2,671.06 Crores (Rs.2,201.67 Crores FY18), PAT of Rs.94.84 Crores (Rs.87.04 Crores in FY18) and total comprehensive income of Rs.93.89 Crores (Rs.87.77 Crores in FY18).

The Company registered a growth of 22% in consolidated revenue from operations from Rs.2,157.46 Crores in FY18 to Rs.2,630.24 Crores in the year under review.


India is one of the most attractive retail markets with its strong demographics and growing consumption. We expect these factors to continue to play out and are likely to help India remain an attractive destination for global players and investors. Government initiatives around encouraging investments & entrepreneurship, boosting growth and enabling ease of doing business should further provide an impetus to consumption and economic growth over the medium term.

Various aspects of the GST regime implementation have stabilized. This is expected to deliver positive impacts over the medium term as indirect tax compliances should get more streamlined and formalization of the economy is accelerated. Simultaneously, there are challenges around rising costs of key inputs (people, electricity, capital & space) and securing attractive retail properties (in terms of locations within choice micro markets and building schemes) at robust economics.

Overall, we continue to be very positive on the underlying case for growth of branded retailing in India over the coming years. The intent going forward is to continue scaling up our presence and in doing so focus on following aspects across the concepts:


• Continued emphasis on portfolio of own brands across concepts in the fashion & food space

• Straddling with unique brands to address multiple customer segments and value positioning

Supply Chain

• Continued emphasis on strong inventory related disciplines across concepts

• Sustaining rapid replenishment led model aimed at world class retail availability levels, freshness of offer and effective controls


• Significantly accelerating store expansion for the key concepts; also involving a targeted addition of over 100 stores per year in the fashion space in the near to medium term

• Actively managing the store portfolio based on performance and brand experience

• Pursuing a sustainable online business model fully integrated with stores


• Concentrate capital allocation on substantially growing our anchor concepts in fashion and food space

• Significant scale-up of investments in support infrastructure (across design, sourcing, supply chain, information technology and talent)

• Emphasis on store level profitability and overall productivity aimed at compelling ROIC outcomes

• A capital raising program that complements the inflecting growth agenda

In the foregoing context, the Board of Directors has approved a fund raising program in the region of Rs. 950 Crores through a preferential issue to Tata Sons. The proceeds from the above are expected to fund various growth plans of the Company including:

• Accelerated growth program in the fashion & food space across concepts

• Contract retail space over a 3-year horizon, including on-brand built to suit developments

• Substantial expansion and automation of supply chain/ warehouse capacity

• Significantly scaling up and upgrading information technology/digital infrastructure

• Exploring organic/inorganic trial/scale up of proximate concepts to address specific market segments that leverage the existing platforms (Zudio, Utsa being recent cases in point)

• Select investments in freehold retail real estate developments given positive experience to date

• Address existing borrowings in the interim

Also, a Board Committee has been appointed to further consider requirements and explore options to raise additional funds not exceeding Rs. 600 Crores.


At Trent, we believe in delivering aspirational fashion/products at great value in an ethical & responsible manner with focus on sustainability in all areas of our business model.


Product proposition

Trent places immense importance on strengthening the product offering by bringing latest trends to market, sharpening the price offer, improving quality, addressing new categories/segments and building exciting experience in the stores. In addition, Trent concepts are also extending the use of technology to enhance shopping experience and build brand attractiveness.

Supply chain innovation

At Trent, innovation is aimed at providing customer satisfaction in terms of offering newness in fashion consistently, every weekend, throughout the year and is triggered by set benchmarks.The opportunities for innovation are identified based on the review mechanism across the supply chain. In the year under review, the warehouse operations from Vapi were scaled up to address the growing requirements.

Socially responsible sourcing

The Company continues to emphasize social and environmental sustainability across the value chain. With the aim of achieving secure working conditions and positive footprints across the supply chain, the Company subscribes to robust social compliance platforms for evaluating vendors on key aspects including labor standards, health & safety, management systems, business ethics and environmental safety. Regular audits and training workshops by certified institutions provide further support in taking corrective actions as warranted. A significant proportion of our vendor base is compliant on all the key social and environment related parameters.

Customer focus

Customers are at the center of our business and decision-making. Trent is progressing with an integrated model for stores and online that seeks to maintain a continuous dialogue with customers, thus meeting their needs while providing the necessary information to facilitate trial and purchase.

Privacy and protection of personal data of all our customers and users is a top priority. Trent holds the Payment Card Industry Data Security Standard (PCI DSS) certificate (the international standard in information security) as mandated by the Reserve Bank of India.

Rewards & recognition

In recognition of its efforts, Trent has received following awards during FY19:


a. Retailer of the year in fashion at India Retail Forum (IRF) awards

b. ET Now Global awards for retail excellence in

(i) Retail marketing campaign of the year

(ii) Customer loyalty program

(iii) Retailer of the year in fashion & lifestyle

c. Customer loyalty & experience awards for

(i) Best in customer & data analytics in loyalty program

(ii) Best digital customer experience initiative and best card based loyalty program


a. Supermarket Of The Year Award by the Retailers Association of India (RAI)

b. IMAGES Most Admired Retailer of the Year (2018) for Customer Relations

c. Indias Retail Champions Award- Food & General Retail (Large Format)

A TATA Enterprise

Employee welfare Community initiatives

With the aim of strengthening alignment with our customer promise and enhancing customer centricity, the company follows a matrix structure in its functions. In the newly evolved structure, colleagues work together as category teams consisting of related functions.

In the year under review, Trent took the following initiatives:

1. With the objective of differentiation and innovation in delivering fashion labels, selected buyers and designers across all our categories were exposed to the best of international fashion and design trends through an exclusive tie up with leading global fashion institutes

2. Trent Leadership System was deployed across the organization to improve preparedness for addressing strategic opportunities and challenges

3. Trent encourages its employees to acquire various certifications, skills and competencies through education subsidy support and company sponsorships. Learning Management System was launched to address functional and behavioral development requirements of the employees

4. Product development capability program included master classes by international experts on various functions of retail

5. Regular sessions on POSH (Prevention of Sexual Harassment), Tata Code of Conduct and Women Safety sensitize colleagues on acceptable ethical behaviors and promote safe & healthy work environment based on mutual respect

As of 31st March19 the staff strength (including corporate staff) was 6,853 at Westside, 951 at Zudio, 205 at Landmark, 2,202 at Star and 760 at its subsidiaries including Fiora Services, Fiora Business Support Services, Nahar Retail Trading Services Limited, Fiora Hypermarket Limited with an overall total of 10,971 employees across key concepts / entities within the Company.

The Companys approach to societal responsibilities and supporting communities is linked to its business and core competencies. We approach all such initiatives with the philosophy of being beneficial to both communities and the business. The Company continues to focus on following:

• Creating more jobs for the society by following a growth agenda, and recruiting fresh talent from local communities

• Increasing employability of colleagues at the entry level through cross-functional training

• Encouraging colleagues to pursue enriching interests within and outside their job profiles

Today, a growing proportion of the Companys workforce especially at our stores comes from the underprivileged classes of the society. The Company also encourages its employees to volunteer for social causes and projects conducted by Tata Strive. The Company has won multiple awards at Group level for its efforts in onboarding youngsters from the underprivileged classes and providing relevant skills for better future.

Sustainable use of resources

At Trent, we understand that progressing with a sustainable business model involves offering ethical and responsible products as well as being more efficient with the resources across facilities: offices, stores and logistics centers. We are committed to objectives such as improving energy consumption, reducing greenhouse gas emissions, deploying renewable energy and improving efficiency in our shipments. As an ongoing effort for sustainability of products, we encourage re-use through donation (to NGOs) or discount sale to third party merchants where products are re-used. Also, we declare recycling details on product packaging and have process in place to recycle the same to the vendor.

Environment friendly practices

The Company follows the Tata group climate change policy, which emphasizes the need to play a leading role in making the planet a better place to live. We focus on areas such as energy conservation, logistics efficiency and e-Waste management.

Targets are set for energy consumption at stores & offices and adherence is monitored regularly. Logistics efficiency with a focus towards reducing carbon footprint helps the organization reap business benefits as well. e-Waste is managed through certified suppliers. Reduction in usage of plastic in product packaging also helps the Company in making its operations more green.

Value creation for shareholders

The Company has always been focused on delivering shareholder value. As we pursue substantially accelerated growth plans, the delivery of strong and sustainable returns on invested capital is a key objective. The approach to capital allocation being adopted with emphasis on expanding fast growing lifestyle retail concepts is in cognizance of the foregoing objective.

Internal controls & adequacy

The Company has a defined system of internal controls for financial reporting of transactions and compliance with relevant laws and regulations commensurate with its size and nature of business. The Company also has a well-defined process for ongoing management reporting, and periodic review of businesses using the Balanced Score Card process to ensure alignment with strategic objectives.

There is an active internal audit function carried out partly by the internal resources and the balance activity outsourced to CA firms. As part of the efforts to evaluate the effectiveness of the internal control systems, the internal audit department reviews the control measures on a periodic basis and recommends improvements, wherever appropriate. The internal audit department is manned by qualified and experienced personnel and reports directly to the Audit Committee of the Board. The Audit Committee regularly reviews the audit findings as well as the adequacy and effectiveness of the internal control measures. Based on their recommendations, the Company has implemented a number of control measures both in operational and accounting related areas, apart from security related measures.