With the opening of its second location in Mumbai, at the recently opened Sky City Mall in Borivali, Apple plans to increase its retail footprint in India. This action is a major turning point in Apple’s India strategy, which began in April 2023 with the opening of its flagship store at Bandra Kurla Complex (BKC). Along with its current locations in Delhi, Mumbai, and the soon-to-open Bengaluru location, the Borivali store will be Apple’s fourth retail facility in India.
The new store, situated on the ground floor of Oberoi Realty’s Sky City Mall, covers 12,616 square feet and is designed to tap into the growing consumer base in Mumbai’s western suburbs. Borivali has rapidly emerged as a premium retail hub, attracting both global and domestic brands, and Apple’s entry is expected to further elevate the area’s profile as a key shopping destination.
Long-Term Commitment and Strategic Location:
Apple’s lease agreement for the Borivali store reflects a long-term commitment to the Indian market. The deal, signed with Incline Realty Pvt Ltd, spans 130 months—nearly 11 years—with a monthly rent starting at ₹17.35 lakh (approximately ₹138 per square foot). Notably, the agreement includes a 10-month rent-free period at the start, after which rent payments commence. Apple has also paid a security deposit of over ₹1 crore, underscoring the company’s confidence in the location’s potential.
The lease provides Apple with five reserved parking slots and an additional 150 square meters of storage space, ensuring operational efficiency for the high-traffic outlet. Rent will escalate by 15% every three years, a standard practice in commercial real estate to account for inflation and market dynamics.
The lock-in period for Apple is set at 6 years and 6 months, while the licensor’s lock-in spans the entire lease duration, providing stability for both parties. Apple also retains the option to extend the lease three times, for five years each, allowing for long-term planning and flexibility.
Revenue Sharing Plan: A First for Apple India Retail
A standout feature of the Borivali store lease is the revenue-sharing clause, a model increasingly adopted by global retailers in India. For the first 42 months of operations, Apple will pay 2% of the store’s revenue as a quarterly share to the landlord. After this initial period, the revenue share increases to 2.5%. This arrangement aligns the interests of both Apple and the property owner, incentivizing mutual growth and success.
The revenue-sharing model is not new for Apple in India. The company’s BKC flagship store also operates under a similar structure, with a 2% revenue share for the first 36 months, rising to 2.5% thereafter, in addition to a minimum guaranteed monthly rent. This approach allows Apple to manage its operational costs while ensuring landlords benefit from the store’s performance.
Such agreements are particularly advantageous in high-footfall locations, where the potential for strong sales justifies a variable rent component. The Borivali store’s presence in a busy mall, combined with Apple’s brand appeal, is expected to drive significant revenue, making the revenue-sharing plan a win-win for both parties.
Apple’s Broader India Strategy and Market Impact:
The opening of a second Mumbai store is part of Apple’s broader retail expansion in India, a market where the company has seen remarkable growth. In the first quarter of fiscal 2025, the iPhone became the best-selling smartphone in the country, highlighting Apple’s rising influence in a market where it still commands a relatively modest share. The company’s ongoing investments in retail infrastructure are aimed at deepening its connection with Indian consumers and enhancing the Apple brand experience.
Apple’s retail push extends beyond Mumbai. The company has finalized a lease for a new store in Bengaluru’s Phoenix Mall of Asia, with plans for additional outlets in Pune and Delhi-NCR. Each new store is strategically located to maximize reach and cater to India’s diverse and growing consumer base.
The Borivali store is expected to generate substantial foot traffic, especially given the area’s transformation into a premium shopping destination. Real estate experts note that Borivali’s emergence as a retail hub rivals established areas like Andheri, Bandra, and South Mumbai, making it an ideal location for Apple’s expansion.
Conclusion:
Apple’s second store in Mumbai, set to open in Borivali’s Sky City Mall, highlights the tech giant’s commitment to the Indian market. The store’s long-term lease, significant investment, and innovative revenue-sharing plan reflect Apple’s confidence in India’s retail potential. As Apple continues its expansion across major Indian cities, its retail strategy is poised to redefine the premium shopping experience for Indian consumers while strengthening the company’s foothold in one of the world’s fastest-growing markets.
