Reliance Brands to acquire 40% stake in Plastic Legno's India toy biz

Reliance Brands (RBL), a part of the retail arm of Reliance Industries (RIL), has signed a joint venture arrangement with Italy's Plastic Legno SPA to acquire a 40% stake in the latter's toy manufacturing business in India, the company said in a release on Wednesday. The company, however, did not disclose the financial transaction involved in the deal.

As per the release, the investment will serve a dual purpose of 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.

Sunino group-owned Plastic Legno SPA has more than 25 years of experience in toy production in Europe. The company started business in India in 2009 to develop a strong production hub to cater to global markets and the fast evolving and growing Indian market.

“Keeping with our honourable 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,” says the spokesperson of Reliance Brands.

The spokesperson further says RBL aims to build 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.

Formed in 2009, RBL, a subsidiary of Reliance Retail Ventures, has a strong presence in the Indian toy industry with its portfolio of British toy retailer Hamleys and homegrown brand Rowan. In 2019, RBL marked its first international foray by acquiring Hamleys, which has a global footprint across 15 countries with 213 doors and is India's largest chain of toy stores.

Currently, RBL operates 1,937 doors split into 732 stores and 1,205 shop-in-shops in India. Its current portfolio of brand partnerships comprises Armani Exchange, Bally, Bottega Veneta, Brooks Brothers, Burberry, Canali, Coach, Diesel, Dune, EA7, Emporio Armani, Ermenegildo Zegna, G-Star Raw, Gas, Giorgio Armani, Hamleys, Hugo Boss, Hunkemoller, Iconix, Jimmy Choo, Kate Spade New York, Manish Malhotra, Michael Kors, Mothercare, Muji, Paul & Shark, Paul Smith, and many more.

Commenting on the development, Paolo Sunino, Co-owner, Sunino Group, says, “We are very privileged to have RBL as a partner in this joint venture. We are confident that Plastic Legno’s experience in Toys production and Hamley’s commercial outreach, will complement one another to enable the JV company to achieve greater heights and successes.”

“We have 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 adds.

Recently, RBL signed a deal with Italian luxury lifestyle Tod’s SPA to retail its brand across all categories including footwear, handbags, and accessories in the Indian market. Adding to it, it also acquired a 51% majority stake in couturiers Abu Jani Sandeep Khosla (AJSK) for an undisclosed amount.