Reliance Brands picks up 40 per cent stake in Italian toymaker Plastics Legno’s Indian business
New Delhi:
Reliance Brands Ltd (RBL) on Wednesday announced that it has entered into a joint venture (JV) with Italian toy manufacturing company Plastics Legno SpA by acquiring 40 per cent stake in its Indian business for an undisclosed amount.
This investment will help RBL bring about vertical integration for its toy business and diversify the supply chain with a long-term strategic interest in toy manufacturing in India, a joint statement said.
Plastics Legno SPA is owned by the Sunino Group which boasts of over 25 years of toy production experience in Europe.
RBL, a subsidiary of Reliance Retail Ventures Limited, also has a strong play in the toy industry, with the portfolio of British toy retailer Hamleys and domestic toy brand Rowan.
Hamleys, currently, has a global footprint in 15 countries with 213 doors and is India’s largest chain of toy stores.
An RBL spokesperson said that this collaboration with Plastics Legno’s deep experience in world-class toy manufacturing will open new doors and unique opportunities for toys made in India with Reliance’s strong position in the global toy retail industry.
He added, “It is imperative for RBL to build shelf capacity from design to strategic advantage over the competition and be an accelerator in building a strong toy manufacturing ecosystem in India not only for domestic consumption but also for global markets. “
Paolo Sunino, co-owner of Sunino Group, said: “We are very privileged to have RBL as a partner in this joint venture. We are confident that Plastics Legno’s experience in toy production and the commercial outreach of Hamley, JV Company Will complement each other to enable us to achieve greater heights and success. We have important development plans to implement always in the spirit of creating a cultural background in this distinctive region in India”.
Plastics Legno SPA started its India business in 2009 out of a need to develop a robust manufacturing hub that would cater to the global markets, but more importantly to the rapidly growing and growing Indian market.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)