Reliance Brands Ltd said it will acquire a 40 percent stake in Italy-based Plastic Legno's toy manufacturing business in India.
Reliance Brands Ltd (RBL), the brand licensing arm of Mukesh Ambani-led Reliance Industries, on Wednesday said it will acquire a 40 percent stake in Italy-based Plastic Legno's toy manufacturing business in India.
RBL has a strong play in India's toy industry with its portfolio of Hamleys, the British toy retailer and homegrown toy brand Rowan, making RBL one of the leading toy distributors. In 2019, RBL marked its first international foray by acquiring the British toy retailer, Hamleys. Hamleys has a global footprint across 15 countries with 213 doors and is India's largest chain of toy stores.
As per a joint statement, the investment by RBL serves a dual purpose, bringing in vertical integration for RBL’s toy business and helping diversify the supply chain with a long-term strategic interest in building toy manufacturing in India, it said.
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"Keeping with our Prime Minister's vision of Atmanirbhar India, this collaboration with Plastic Legno’s deep experience in world-class toy manufacturing coupled with our strong footing in the global toy retail industry would open new doors and unparalleled opportunities for toys manufactured in India," said a spokesperson of RBL.
"It is imperative for RBL to build design to shelf capability for a strategic advantage over the competition and to be an accelerator in building a robust toy manufacturing ecosystem in India not only for domestic consumption but also for global markets," said the spokesperson of Reliance Brands Ltd.
Plastic Legno is owned by the Sunino Group, which boasts more than 25 years of toy production experience in Europe. The group started its India business in 2009 out of a need to develop a strong production hub that would cater to global markets, but more importantly to the fast-evolving and growing Indian market.
After the deal, Paolo Sunino, co-owner, Sunino Group, said the group has "important development plans to implement, always in the spirit of creating a cultural background in this specific sector in India".
"We are ready for the challenges of the future, but when there is a group like RBL alongside, we are sure that together we can do a great development," Sunino said.