Fashion company Percassi has reduced its stake in its joint venture with the Inditex clothing group to 20 per cent.

The joint venture company, which was established in October 2001, was originally 51 per cent owned by Inditex and 49 per cent by Percassi, and was set up to develop Inditex's flagship Zara clothing chain in Italy.

Inditex will have 35 outlets in Italy by the end of 2004, Percassi said.