Hanung Retail Limited ties up with Franchise India Brands Limited (FIBL) for Pan India Retail Expansion

Top Quote Hanung Retail is India's branded retail network initiative which offers superior quality products. End Quote
  • (1888PressRelease) April 06, 2011 - Hanung Toys & Textiles Limited is India's largest Manufacturer and Exporter of Soft Toys. It is also one of the leading players in the Home Furnishing Segment. It is a listed company with an annual turnover in excess of USD 240 Mn, out of which about USD 95 Mn comes from the Toys Segment. The domestic sale of Toy Segment is about USD 24 Mn. With the association of FIBL which is a leading authority on Franchising, Retailing and Licensing, Hanung Retail Ltd, the retail arm of Hanung Toys and Textiles is all set to further expand its retail presence & global sourcing under the brand name FUNLAND.

    The stores will carry four categories of products: : Traditional Toys which include Soft toys, Educational Toys which include Board games, Puzzles, Electronic Gaming and Sports Accessories. FIBL beholds the key interest in expanding the company's network for the very first time nationwide, initially in the major cities like Delhi, Mumbai, Bangalore, Chennai, Hyderabad and Ahmedabad and further expanding up to 10 other within a short span. Hanung already caters to 3000 retail outlets pan India, including multi-brand outlets such as Lifestyle, Shopper's Stop, Westside, Big Bazar (Pantaloon group), Pyramid, Globus, Landmark and other leading stores. The vision behind FUNLAND is to create an experience based, one stop shop for kids, young adults and gaming enthusiasts.

    Hanung is internationally known for its quality-driven approach to all clients. This includes the use of non-toxic and azo-free dyes, non-toxic fibre and strength-tested threads and seams; zero lead content as well as passing all toys through two rounds in metal detectors to ensure no stray needle is left inside.

    Commenting upon the association, Mr. Ashok Kumar Bansal, Chairman & Managing Director, Hanung Toys & Textiles Limited "Hanung has long been the largest player in the toys segment in India, with presence across manufacturing, distribution & retail. Having explored the retail segment over the past year, we have now decided to expand our network across the country. Our tie-up with FIBL seeks to bring together their expertise in franchise-based business development with our unmatched position in the domestic & international toy markets to create an opportunity for entrepreneurs across the country to participate in this USD 2bn market that is expanding at over 20% annually."

    The stores will be operated in two models - COFO (Company Owned Franchisee Operated) and FOFO (Franchisee Owned Franchisee Operated). In both models, the store detailing, branding & marketing support, market planning & analysis and operations support will be covered in an initial investment of 20 lakhs. Franchisees would be expected to invest in stock, salaries, utilities & general maintenance. In the COFO model the franchisor will provide properties in leading high streets & malls across the country, where as in the latter, franchisee would provide own property. The company plans to expand about 400 stores including up to 150 COFO stores within the next 3-4 years.

    "Our alliance with Hanung Toys & Textiles Limited heralds the beginning of a new era in the evolution of the toy market in India. We hope to bring the best of business opportunities for the company which will capture the interest of the investors in India. We are tremendously excited about this venture and our decision to partner with Hanung." Added by Ms Sonya Chowdhry Grover, Director Planning & Strategy, Franchise India Brands Limited.

    In a recent survey the domestic toy industry is estimated at around `10,000 plus crore with a growth rate of over 20%. The industry is currently dominated by the unorganized sector, with the organized sector accounting for around 20%. Though the organized sector is currently small compared to the overall market, it has grown steadily from under 5% to its current levels within the last decade itself, and expects to dominate the sector within the next 10 years.

    About Hanung Toys & Textiles Limited

    Established in 1990, Hanung Toys & Textiles Limited ("Hanung"), India's largest listed manufacturer & exporter of Stuffed Toys, is also a leading player in the mid-high end home textile segment. Set up in technical collaboration with Hanung Industrial Corporation a South Korea company, Hanung exports close to 75% of its production to retail giants all over US, UK, Latin America,Europe and other retailers in 30 countries across the globe. The company also has 100+ distributors catering to 3000 retail outlets all over India.
    Hanung Toys & Textiles Limited is listed on the BSE (532770) & NSE (HANUNG).

    About Franchise India Brands Limited

    Franchise India is Asia's largest integrated franchise solution company since 1999, with an absolute authority on Franchising, Licensing, Retailing, Real estate and Marketing. The company has consulted several major brands over these years like Peter England, Barista, Booster Juice, Videocon, Perfect Wellness, Satya Paul, Bwitch, Action Coach, HCL, MGF, Quality Walls, Tata, Gitanjali, HSBC, Levis, JK Tyres, Lakme, D'damas, Adidas, Euro Kidz, The Apollo Clinic, Chhabra 555, Kidzee, Motilal Oswal, Rosebys, Next, Welhome and more, through media, advisory and exhibitions. With its strategically formed divisions, Franchise India has created its own niche as the pioneers of franchise industry and a small business authority.

    For media enquiries, please contact:

    Ruchika Malhotra| PR & Corporate Communications Manager| 09311911705| mruchika ( @ ) franchiseindia dot in.For more information, kindly visit: www.franchiseindia.in

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