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FILE PHOTO: Customers stand in front of stuffed toys at a newly opened Hamleys Toy Store in Wangfujing Department Store in Beijing, China on December 23, 2017. Hou Yu / CNS via REUTERS
(Reuters) – Reliance Industries Ltd is in talks to buy Hamleys' British chain of toy stores, reported Wednesday an economic news site, Moneycontrol, citing multiple sources, as the Indian conglomerate seeks to expand its presence in the consumer sector.
Reliance Retail, the retail arm of billionaire group Reliance Industries, owned by billionaire Mukesh Ambani, "is aggressively pursuing the deal," the website said.
The website indicates that the due diligence is at an advanced stage, adding that if the deal was completed, Reliance Retail was planning to increase the geographic footprint of the 259-year-old manufacturer in India, about 200 stores over the next three years.
Reliance Retail is currently licensed to sell Hamleys products in India.
Last October, Sky News reported that Chinese fashion retailer C.Banner International Holdings, which bought Hamleys here for £ 100 million in cash in 2015, was seeking to sell it after making heavy losses.
Reliance Industries declined to comment on rumors and media speculation, while Hamleys and C.Banner did not immediately respond to Reuters' requests for comment.
The conglomerate's strategy of diversifying beyond refining and petrochemicals paid dividends in the last quarter, as its fast-growing telecommunications and retail business drove profits to new heights, as that its gross refining margins were affected by volatile oil prices and slowing global demand.
The group's retail sales business doubled to Rs. 356 billion (£ 3.93 billion) over the period, while earnings before interest and taxes more than tripled to $ 15 billion. Rs.
Chris Thomas report to Bengaluru; Edited by Subhranshu Sahu
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