IndiaRetailBiz

“We hope to bring in world-class toy stores, which will capture the imagination and attention of children in India.” — Bijou Kurien, President and CEO, Reliance Lifestyle Holdings.

“We are thrilled to be bringing the magic of Hamley to India, partnering with Reliance Retail, where we have already received such a warm welcome. It’s going to be a fantastic and exciting stage in our international development.”– Paul Currie, Trading Director, Hamleys.

Reliance Retail, a wholly owned subsidiary of Mukesh Ambani-led Reliance Industries, has made its deal with the UK’s toy retailer Hamleys official. We had reported on the imminent deal about a fortnight ago.

Reliance Retail, according to a company announcement, will be a master franchisee of the toy major in India and will set up a chain of retail stores across India.According to the agreement, while Reliance Retail will create the network of retail stores, Hamleys provide its expertise in the area of store designs, staff training and development of private labels.

Reliance Retail has agreed to pay royalty for these services to the British toy major for 20 years.

According to Bijou Kurien, President and CEO, Reliance Lifestyle Holdings, Reliance in the next seven years would set up 20 stores. Of these, there will be two flagship stores in Mumbai and New Delhi. Both of these will occupy trading space of nearly 25,000 sq ft each. Regional stores will be located in Bangalore, Hyderabad, Pune, Chennai and Kolkata. The first store is slated to be opened by April, 2009.

The toy stores will sell a wide range of toys, including Hamleys’ own range. They will also host demonstrations, magicians and other activities. The Hamleys business, which operates its ‘must visit’ flagship store in Regent Street of London, was founded almost 250 years ago in 1760 by William Hamley.

Reliance will be investing a sum of Rs 125 crore on Hamleys’ stores.

Reliance Retail is looking at Rs 900 crore in sales from retailing of toys.