Reliance Brands Ltd. (RBL), a subsidiary of Reliance Retail Ventures and Plastic Legno SPA, have entered into a joint venture arrangement through which RBL will acquire 40% stake in Plastic Legno SPA’s toy manufacturing business in India. The value of the financial transaction was not disclosed.
“This 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,” RBL said in a statement.
Plastic Legno SPA is owned by Sunino group that has more than 25 years of toy production experience in Europe. The group started its India business in 2009 with an intent 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…would 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 only for domestic consumption but also for global markets,” an RBL spokesperson said.
Currently RBL’s toy portfolio include Hamleys and Rowan.
“We are confident that Plastic Legno’s experience in toy production and Hamley’s commercial outreach, will complement one another to enable the JV company to achieve greater heights and successes,” said Paolo Sunino, co-owner, Sunino Group.
