Reliance in talks to acquire iconic British toy brand Hamleys for up to ₹350 crore

Reliance Industries Ltd (RIL) is in talks to acquire British toy retailer Hamleys in a bid to expand its global footprint in the retail category.

According to sources, the company is in advanced talks with the iconic British brand, founded in 1760, and might make an announcement soon. The acquisition could be in the range of ₹250-₹350 crore, said another source.

At the time of going to press,

BusinessLine had not received a response from Hong Kong-based C Banner International, which owns Hamleys. RIL said in a statement, “As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures.”

The group is expected to buy Hamleys through its retail arm, Reliance Retail, which holds the licence to sell the British brand’s products in India. Hamleys was introduced in India in 2010 by Reliance Brands, with its first store opening at the High Street Phoenix mall here.

Currently, India has more Hamleys outlets than any other market.

Global captive market

The acquisition, if it goes through, will give RIL a captive market across Asia, Europe and the US as the company is planning to expand its retail business globally. It will mark the second change in ownership of Hamleys, which was sold to C Banner for £100 million in 2015.

“Hamley’s has been posting losses globally for the last couple of years and its revenues are also on the decline, at £66 million for 2017. The proposed acquisition of Hamleys speaks volumes about the troubled toy segment globally,” said an analyst.

Last year, American toy major Toys ‘R’ Us filed for bankruptcy. The $10-billion global toy market is shrinking with kids increasingly moving to electronic games.