Reliance Brands inks JV with Plastic Legno, to acquire 40% stake in its toy manufacturing business in India
Mumbai, June 1, 2022
Reliance Brands Limited (RBL), a subsidiary of Reliance Retail Ventures Ltd, has signed a joint venture arrangement with Plastic Legno S.p.A. through which it will acquire a 40% stake in the Italian company's toy manufacturing business in India.
"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," a press release from RBL said.
Plastic Legno is owned by the Sunino group that boasts of more than 25 years of toy production experience in Europe. The group 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.
“Keeping with our 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,” said the spokesperson of RBL.
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.
“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.” said Paolo Sunino, Co-owner, Sunino Group.
Sunino Group is a privately held group of companies. Founded in Castellamonte (near Turin, Italy), the founder Carlo Sunino gained the tradition of processing wood during 1950s and in 1968 entered the polystyrene foam market, in 1988 the thermoplastic moulding sector and in 1992 the toys sector. Today, it is led by the next generation of entrepreneurs Laura Sunino and Paolo Sunino, who have made it a 100 million euro company.