After Hamleys, Reliance buys 40% stake in yet another toy company
Who owns the most number of toys in the world? We are sure it is Mukesh Ambani.
After having bought the iconic toy store Hamleys a few years ago, Mukesh Ambani's vision to create a larger toy manufacturing ecosystem in India has led Reliance to acquire a 40% stake in another toy company. Reliance Brands Limited signed a joint venture agreement (JVA), in which Reliance will buy a 40% stake in Plastic Segno SPA's toy manufacturing company in India.
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WHO IS PLASTIC SEGNO?
Plastic Legno SPA is an Italian brand owned by the Sunino group and is a plastic manufacturing company that has been producing toys for more than 25 years in Europe. The group started its business in India in 2009 to develop a strong production hub to cater to global markets. They produce packaging items for sweet and cheese producers, and work with brands to create promotional products, toys, and sports gear.
HOW DOES THIS HELP RELIANCE?
The pandemic stopped the influx of made-in-China toys and many local stores felt the pinch of being unable to supply toys when the same were in high demand. Since there was no major popular toy company in India producing toys on a large scale and since Chinese dolls were no more available, Reliance's business strategy seems to be to fill this gap and create an ecosystem to manufacture toys in India.
RBL has a strong play in the Toy industry with Hamleys, the British toy retailer, and homegrown toy brand – Rowan. This makes Reliance a leading toy distributor. Hamleys has a global footprint across 15 countries and is India’s largest chain of toy stores.
Since Plastic Legno has a lot of experience in classic toy manufacturing, this merger can create great synergies for customers and the industry as a whole, not only in India but also around the world.