Reliance Brands Limited (RBL) has agreed to acquire a stake of 40% in the Indian toy manufacturing business of Italy-based Plastic Legno for an undisclosed price.

The two companies will subsequently create a toy manufacturing joint venture.

According to Reliance Brands, the investment serves a dual purpose and brings vertical integration to its own toy business. It will also help diversify the supply chain with a long-term strategic interest in developing toy manufacturing in India, said the subsidiary of Reliance Retail Ventures.

Plastic Legno, which is owned by the Sunino Group, has over 25 years of experience in producing toys in Europe. The group started its Indian business in 2009.

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 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.”

Reliance Brands is involved in the toy industry through the distribution of the products of British toy retailer Hamleys and Indian toy brand Rowan.

A spokesperson of Reliance Brands 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.”

  Hamleys, India, Paolo Sunino, Plastic Legno, Reliance Brands Limited, Reliance Retail, Sunino Group