Reliance Retail has entered into a joint venture (JV) with Sonipat, Haryana-based Circle E Retail to vertically integrate its toys retail business.

The company is working on a strategy of integrating processes across entire toy ecosystem, right from designing and manufacturing to retailing of the product. The design to shelf practice will also help Reliance reduce dependency on third-party manufacturers in a phased manner.

Circle E Retail has a specialisation in toy manufacturing, and has a modern manufacturing unit in Haryana, with a licence to manufacture and distribute a wide range of toys. This new venture will cater to both its iconic brands, Hamleys and Rowan, which Reliance Retail has acquired and now owns. Hamleys mainly operates in the premium space, while Rowan has a presence in the mass segment with its affordable offerings. In 2022, Reliance Retail expanded its brand Rowan from the B2B wholesale to the normal retail market. In June 2022, Reliance Brands (RBL), a unit of RRVL, announced a JV with Italian firm Plastic Legno SPA, and acquired a 40 percent stake in the latter's toy manufacturing business in India.

According to a report by FICCI and KPMG, the Indian toy market is expected to touch USD two billion by 2024-25.