Hanung Toys and Textiles Ltd, the company that operates Play-n-Pets brand of retail stores, has inked a memorandum of understanding (MoU) with a Chinese soft toys manufacturer to buy out the latter’s 100 per cent stake. Through this agreement, the company will retail the Chinese toy brands through its outlets in India.
Confirming this to Indiaretailing, Varun Sachar, general manager, franchisee operations, Hanung Toys and Textiles, said: “We will use the company’s manufacturing facilities and retail those brands through our stores in India.”
AK Bansal, CMD, Hanung Toys and Textiles, said, “We will start due diligence of the facilities, including land and machinery, to conclude the deal in the next four weeks.”
“We have a capacity constraint in India, and therefore, we are planning to infuse funds into China. Backed by this facility, we will be able to explore new markets and distribution networks,” said Bansal.
Earlier, Indiaretailing had reported that the company was planning to add international toy brands to its exclusive range of soft toys in the country.
The company entered the business of retail in February 2008 by opening an exclusive brand outlet for Play-n-Pets at Select Citywalk mall in Delhi, and through the franchise route, plans to open multi-brand outlets in the national capital region (NCR).
– Satrajit Sen