M Rochan BANGALORE
UK’S LARGEST toys retailer could be the latest to set up shop on India’s high streets. Hamleys, the London-based destination toy store, which has been eyeing an Indian foray, is understood to be in talks with country’s retail biggies for a joint venture. Sources said Hamleys is mulling an investment of Rs 500 crore. Hamleys is scouting for a partner who will invest a similar sum. According to an industry source, Hamleys is understood to have identified a property for lease in Delhi as well as a retail partner. Industry sources said Hamleys has initiated talks with business groups such as Wadias and is expected to close the deal shortly. If negotiations do fall in place, the toy maker could start retailing in India as early as next year.
The Wadia Group could not be contacted for immediate comments. “India’s fast growing economy has seen it become an increasingly attractive market for UK retailers with brands such as Kingfisher Plc and New Look looking to enter the market while other’s like Argos and Mothercare are to enhance their growth opportunities. UK retailers are making a beeline to India for they have understood the true potential of the retail sector,” says retail analyst Susil Dungarwal. Hamleys, which has its flagship store on Regent Street, in London, turned into a private company in 2003 following a 69-million euro buy-out by Icelandic investment company, Baugur Group. Baugur has been looking to expand the chain and earlier this year announced plans to open sites in House of Fraser stores in major UK cities. The toy brand was one of the first retail purchases Baugur made in the UK, which owns a host of retail brands like Nine West, Coast, Karen Millen, Pied a Terre and House of Fraser.
Hamleys has a small presence overseas after Baugur introduced Hamleys concessions into three of its Magasin du Nord department stores in Denmark, the success of which led Baugur to roll out the brand across the UK.
ET
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