Please respect FT.

com's ts&cs and copyright policy which allow you to: share links; copy
content Ior personal use; & redistribute limited extracts. Email Itsales.supportIt.com to buy
additional rights or use this link to reIerence the article - http://www.It.com/cms/s/0/9da1d87a-
43Id-11dI-9235-00144Ieab49a.html#ixzz1XnbAwPjS
The woes oI Hamleys` Iormer owner, the bankrupt Icelandic Baugur Group, have not stopped the
historic toy seller Irom launching a big expansion oI its brand in India, one oI the world`s Iastest
growing large economies.
Hamleys, which has its Ilagship store on London`s Regent Street, will take the Iirst step oI an
ambitious drive into Asia`s third largest economy on Saturday when it opens a store in Mumbai,
India`s Iinancial centre.
Stores in Chennai, Bangalore and Delhi, the capital city, are to Iollow as part oI a strategy to
open 20 outlets across India over the next seven years.
The company`s $34m expansion plans will mean that the 250 year-old Hamleys, through a
Iranchise agreement with Reliance Industries, the powerIul Indian industrial conglomerate,
could soon have more stores in India than in any other country in the world.
Gudjon Reynisson, the global chieI executive oI Hamleys, said that India was a key part oI his
company`s eIIort to expand into emerging markets because oI its large, young population and its
previously highly restricted retail sector .
'India will become a massive market in the next couple oI years, and in retail it will take massive
steps Iorward, Mr Reynisson said.
India is slowly opening its retail sector to international brands and retailers, while adopting more
modern retail Iormats.
A bold entry by a global retailer into the toy sector holds appeal because India has 300m children
under the age oI 15 and the toy market, which is worth some Rs15bn ($339m) is highly
Iragmented.
Hamleys` Iormer owner Baugur Iiled Ior bankruptcy last year.
The toy retailer is now owned by the administrators oI nationalised Icelandic banks aIter Baugur
surrendered its 64 per cent stake.
Hamleys is battling to return to proIit. 'We are in a secure position in a strange way |by being
owned by the nationalised banks|, said Mr Reynisson.
'Now we can get on with it. International expansion is a good way to grow the company, he
added.
'The demise oI Baugur and it going into administration was not comIortable |Ior Hamleys|.
Bijou Kurien, the chieI executive oI Reliance LiIestyle division, Hamleys partners in India, said
his company was keen not to position the toy store as a high-end brand but rather sell its toys to a
broad market.