Reliance Brands Ltd (RBL) and Plastic Legno SPA have entered a joint venture pact through which RBL will acquire a 40% stake in the European company’s toy manufacturing business in India.
This investment by the firm, it said in a statement, serves a dual purpose, bringing in vertical integration for the company’s toy business and helping diversify the supply chain with a long-term strategic interest in building toy manufacturing in India.
Plastic Legno SPA is owned by the Sunino group that has about 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.
“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. It is imperative for us 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 a spokesperson of the Reliance Industries‘ subsidiary .
RBL owns Hamleys, the British toy retailer and homegrown toy brand – Rowan. Hamleys, it said, currently has a global footprint across 15 countries with 213 doors and is India’s largest chain of toy stores.
“We are very privileged to have them as a partner in this joint venture. We are confident that our experience in toy production and Hamley’s commercial outreach, will complement one another to enable the JV company to achieve successes,” said Paolo Sunino, co-owner, Sunino Group.
Last month, RBL signed a multi-year franchise agreement with Italian luxury lifestyle company Tod’s SpA. Earlier in the year, it also acquired a 60% stake in a brand it will create with fashion designer Rahul Mishra. Last year, It also bought a 40% stake in MM Styles, a firm that is owned by designer Manish Malhotra. It also acquired a 60% stake in couturier Anamika Khanna’s company AK-OK.
