Reliance Industries Stocks Rise By 2 Percent After Acquiring 40 Percent Stake In Italy’s Plastic Legno SPA

Reliance Industries Stocks Rise By 2 Percent After Acquiring 40 Percent Stake In Italy's Plastic Legno SPA
Representational image source: IEvren

On June 2, the Reliance Industries Ltd (RIL) stocks went up by over 2 percent after Reliance Brands Limited (RBL) signed a joint venture arrangement with Plastic Legno SPA, to strengthen the toy manufacturing ecosystem in India. Despite the volatile market, RIL shares rose by upto 2.18 percent to reach Rs 2,728.30, against the previous close of Rs 2,633.50, on the NSE. After falling for two consecutive days, RIL has been trading higher than its 5, 20, 50, 100 and 200-day moving averages.

Through the joint venture arrangement, RBL will have acquired a 40 percent stake in Plastic Legno SPA’s toy manufacturing business in India. RBL is a subsidiary of the Reliance Retail Venture, which is parented by RIL, the holding company of all the retail companies under the Reliance. Currently, RBL has a strong portfolio in the toy industry, and includes Hamleys, the British toy retailer, and homegrown toy brand Rowan. Hamleys is the largest chain of toy stores in India, and its operations span 15 countries, with 213 retail outlets. RBL aims to bring in vertical integration for its business, and diversify the supply chain with a long-term strategic interest in boosting toy manufacturing in India.

Plastic Legno SPA is owned by the Sunino Group, which has over 25 years of toy production experience in Europe. The company started its business in India in 2009, to develop a strong production hub that would cater to global markets, and more importantly, to the fast-evolving Indian market. “We are very privileged to have RBL as a partner in this joint venture. We are confident that Plastic Legno’s experience in toy production and Hamleys’ commercial outreach, will complement one another to enable the JV Company to achieve greater heights and successes,” said Paolo Sunino, co-owner of the Sunino Group. “Keeping with our 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,” said a RBL spokesperson. The statement continued, “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.”

The RIL stock has gained 21.74 percent in one year, and risen by 13.17 percent since the beginning of 2022. A total of 0.57 lakh shares of the firm have changed hands, amounting to a turnover of Rs 15.36 crores on the BSE. The market capitalisation of the conglomerate stands at Rs 18.19 lakh crores. RIL shares hit a 52-week high of Rs 2,855 on April 29, 2022, after the 52-week low of Rs 2016 on July 28, 2021. Reliance Industries is the largest private-sector corporation in India and a Fortune 500 company, with operations spanning hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

 

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