Reliance Brands Ltd (RBL) on Wednesday announced that it has entered into a JV with Italian toy manufacturing company Plastic Legno SPA by acquiring a 40 per cent stake in its India business for an undisclosed amount.
Plastic Legno SPA is owned by the Sunino group that boasts more than 25 years of toy production experience in Europe.
Reliance Brands Ltd (RBL) on Wednesday announced that it has entered into a JV with Italian toy manufacturing company Plastic Legno SPA by acquiring a 40 per cent stake in its India business for an undisclosed amount.
This investment would help RBL in bringing in vertical integration for its toy business and diversify the supply chain with a long-term strategic interest in building toy manufacturing in India, a joint statement said.
Plastic Legno SPA is owned by the Sunino group that boasts more than 25 years of toy production experience in Europe.
RBL, a subsidiary of Reliance Retail Ventures Ltd, also has a strong play in the toy industry with its portfolio of British toy retailer Hamleys and homegrown toy brand Rowan.
Hamleys, currently, has a global footprint across 15 countries with 213 doors and is India's largest chain of toy stores.
RBL spokesperson said this collaboration with Plastic Legno’s deep experience in world-class toy manufacturing coupled with Reliance's strong footing 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 only for domestic consumption but also for global markets," he added.
Sunino Group co-owner Paolo Sunino said: "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 success. We have important development plans to implement, always in the spirit of creating a cultural background in this specific sector in India".
Plastic Legno SPA had 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.
Sunino is a over 100 million Euros privately held group of companies.
Founded in Castellamonte, near Turin, Italy, it gained the tradition of processing wood during the 1950s and in 1968 entered the polystyrene foam market, in 1988 the thermoplastic moulding sector and in 1992 the toy sector.