Reliance signs JV with Plastic Legno, to acquire 40% in its toy manufacturing business

Reliance Brands Ltd (RBL) and Plastic Legno SPA have signed a joint venture arrangement through which RBL will acquire 40% stake in Plastic Legno SPA’s toy manufacturing business in India.

This investment by RBL will help to bring in vertical integration for RBL’s toy business and help diversify the supply chain to manufacture toys in the country.

Plastic Legno SPA is owned by the Sunino group of Italy which is into toy manufacturing for more than 25 years in Europe. The group started its India business in 2009 to both tap the local market and set up a manufacturing base.

A Reliance Brands spokesperson said the move is in line with the government’s Atmanirbhar Bharat initiative. “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,” the person said.

Reliance has a strong presence in the toy industry with its acquired British retail chain Hamleys and homegrown toy brand – Rowan. Hamleys currently has a footprint across 15 countries with 213 stores and is also India's largest toy store chain.

Paolo Sunino, co-owner at Sunino Group, said Plastic Legno’s experience in toy production and Hamley’s commercial outreach will complement one another to enable the joint venture to achieve greater heights and successes.