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

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Capital Market
Last Updated : Jun 02 2022 | 9:50 AM IST

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

RBL is a subsidiary of Reliance Retail Ventures, which is a subsidiary of Reliance Industries (RIL) and holding company of all the retail companies under the RIL Group.

RBL has a strong play in the Toy industry with its portfolio of Hamleys, the British toy retailer and homegrown toy brand - Rowan, making RBL one of the leading toy distributors. Hamleys currently has a global footprint across 15 countries with 213 doors and is India's largest chain of toy stores.

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.

Plastic Legno SPA is owned by the Sunino group that boasts of more than 25 years of toy production experience in Europe. The Group started it's 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.

Reliance Brands spokesperson said: 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.

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.

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Reliance Industries is a Fortune 500 company and the largest private sector corporation in India. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

On a consolidated basis, RIL reported 20.2% increase in net profit to Rs 18,021 crore on 38.64% rise in net sales to Rs 207,375 crore in Q4 March 2022 over Q4 March 2021.

The scrip rose 0.93% to currently trade at Rs 2656.80 on the BSE.

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First Published: Jun 02 2022 | 9:22 AM IST

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