Reliance Brands has acquired a 40 percent stake in the Indian business of Italian toymaker Plastic Legno
New Delhi:
Reliance Brands Ltd (RBL) announced on Wednesday that it has entered into a joint venture (JV) with Italian toy manufacturing company Plastic Legno SPA to acquire a 40 percent stake in its Indian business for an undisclosed amount.
This investment would help RBL achieve vertical integration for its toy business and diversify its supply chain with a strategic long-term interest in building toy manufacturing in India, a joint statement said.
Plastic Legno SPA is owned by the Sunino group, which has more than 25 years of experience in toy production in Europe.
RBL, a subsidiary of Reliance Retail Ventures Ltd, also has a strong position in the toy industry with its portfolio of British toy retailer Hamleys and domestic toy brand Rowan.
Hamleys currently has a global presence in 15 countries with 213 doors and is India’s largest toy retail chain.
A spokesperson for RBL said that this partnership with Plastic Legno’s extensive experience in world-class toy manufacturing, combined with Reliance’s strong position in the global toy retail industry, will open new doors and unparalleled opportunities for toys manufactured in India.
“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 just domestic consumption, but also for global markets,” he added.
Paolo Sunino, co-owner of Sunino Group, said: “We are very privileged to have RBL as a partner in this joint venture. We are convinced that Plastic Legno’s experience in toy production and Hamley’s commercial scope will complement each other. will complement to enable the JV Company to reach greater heights and success. We have important development plans to execute, always in the spirit of creating a cultural background in this particular sector in India”.
Plastic Legno SPA had started its business in India in 2009 out of the need to develop a strong manufacturing hub that would meet the global markets but above all the fast evolving and growing Indian market.
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