Reliance Retail has signed up a franchise deal with the UK-based world`s largest toy shop, Hamleys. The toy shop chain is planning to open four stand-alone stores in the first 24 months. The Hamleys` store will be the one of its kind toy shop in India for its sheer size. The store will have 25000 sq ft of area and initially open doors in metros like Delhi, Mumbai and Bangalore. As Hamleys showcase a plethora of brands besides its own, the entry is done through franchise agreement instead of joint venture. In India, FDI is not permitted for retailing of multi brands, whereas Indian FDI policy allows 51% equity in the Indian company for single brand retailing. Reliance deal with Hamleys marks as the third engagement with a big international brand in recent times. Earlier the retail giant formed alliance with apparel retailer Marks& Spencer and optical chain Vision Express. When contacted, the company official declined to comment on the topic.
