Apple To Open Second Store In Mumbai? Here Is The Revenue Sharing Plan

Apple is going to open a second store in Mumbai's Borivali after opening its first in BKC, as the company has leased a retail space for 12,616 square feet.

This is going to be the tech giant's fourth store in the nation.

Property registration documents accessed by Propstack revealed that this space is going to be on the ground floor of Oberoi's Realty's Sky City Mall, in Borivali and it will mark another step in Apple's retail push in India.

What Is The Revenue Sharing Plan?

According to the lease agreement, there is a revenue-sharing clause wherein Apple will pay 2% of its revenue from the store for the first 42 months and 2.5% from the 43rd month onwards.

The lease is for a total period of 130 months with a rent escalation of 15% every three years. Apple also has an option to extend the term for three times for a period of 5 years each.

Previously, when Apple had opened its first store in BKC, at the Reliance Jio World Drive mall, the firm had signed a lease for over 11 years with a 15% rent escalation provision every three years with the Mumbai mall.

The company had an agreement of paying around Rs 42 lakh per month for about 20,800 sq ft of space as a minimum guarantee, in addition to 2% of revenue share for 36 months, and 2.5% after that.

Apple: Retail Expansion Plans In India

Apple is also reportedly planning to open more stores in the country, across- Delhi NCR, Mumbai, Pune, and Bengaluru.

This retail push follows Apple CEO Tim Cook's announcement of continuing expansion in India.

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