How Hamleys India Turned a 260-Year-Old British Icon Into Mukesh Ambani's Rs 620 Crore Retail Masterstroke

On April 9, 2010, a 22,000-square-foot toy wonderland opened in Mumbai's upmarket shopping district. Children pressed their faces against windows displaying 50,000 toy varieties across multiple floors. Parents marveled at the London bus customers could walk through. The seven-story experience transported visitors from India's financial capital to London's Regent Street.

This wasn't just another toy store opening. It was Hamleys—the world's oldest toy retailer, founded in 1760—making its first South Asian appearance after 250 years of European dominance.

Nine years later, on May 9, 2019, Mukesh Ambani's Reliance Brands signed a definitive agreement acquiring 100% of Hamleys Global Holdings Limited for £67.96 million (approximately Rs 620 crore) in an all-cash deal. The purchase gave Reliance 167 stores across 18 countries—with 88 already operating in India under the previous franchise agreement.

Today, over half of Hamleys' 190+ global locations operate in India, making it the brand's largest market. The company that started as "Noah's Ark" in High Holborn, London in 1760 has found its second life in the country where 26 million children are born annually—about one-fifth of the world's babies.

This is the story of how India's richest man bought a struggling British icon, transformed it into his retail empire's crown jewel, and proved that sometimes the best way to preserve legacy brands is letting them grow where they're wanted most.

1760-2010: From Noah's Ark to Mumbai

William Hamley founded "Noah's Ark" at No. 231 High Holborn, London, in 1760. By 1837, when operated by Hamley's grandsons, the store had become famous, counting British royalty and nobility among customers. In 1881, the store moved to its current iconic location at Nos. 188–196 Regent Street, opening what would become one of London's premier tourist attractions.

The flagship store expanded to seven floors covering 54,000 square feet—the largest toy shop in the world by 1994. Queen Elizabeth II granted it a Royal Warrant in 1955, calling it her favorite toy store. More than 50,000 toy varieties filled the floors, with different categories on each level. The ground floor traditionally housed stuffed toys including prestigious Steiff animals. Five million visitors walked through annually, especially during Christmas.

For 248 years, Hamleys remained essentially European—Britain, with a few continental locations. Then in 2008, the first outlet outside Europe opened in Amman, Jordan.

On April 9, 2010, Hamleys entered South Asia through Mumbai—India's financial capital and aspirational consumption hub. The 22,000-square-foot store in an upmarket shopping district was operated under a franchise agreement. A second Indian store opened in Chennai's Express Avenue Mall with 11,000 square feet featuring that famous London bus customers could walk through.

The India expansion coincided with turbulent ownership changes for the parent company. In 2003, Icelandic company Baugur Group bought Hamleys. When Baugur collapsed, ownership transferred to Icelandic bank Landsbanki. In 2012, French toy retailer Groupe Ludendo acquired it for £100 million. In 2015, Chinese conglomerate C.Banner based in Nanjing purchased Hamleys.

2013: Reliance Brands Enters

In 2013, while still under Groupe Ludendo ownership, Hamleys announced plans to open 20 stores across India in collaboration with Reliance Brands Ltd—Mukesh Ambani's luxury retail subsidiary.

Reliance Brands was the perfect partner. Founded as part of Reliance Industries' consumer-facing transformation, it operated franchises for over 45 international luxury brands including Burberry, Hugo Boss, Jimmy Choo, Tiffany & Co., Paul Smith, Armani, Just Cavalli, and Canali.

The partnership made strategic sense. Reliance had distribution infrastructure across India's 29 cities. Hamleys had brand cachet but needed local expertise to navigate India's complex retail landscape. Together, they rapidly expanded—reaching 88 stores across 29 cities by 2019.

Locations included major malls: Express Avenue (Chennai), Esplanade One (Bhubaneswar), Fun Republic (Lucknow), Ahmedabad One (9,000 square feet, opened November 2014), and stores across Punjab including Amritsar (opened February 1, 2018).

The franchise model proved Hamleys could thrive in India. While the London flagship struggled with declining foot traffic and Brexit uncertainty—posting a £9.2 million pre-tax loss in 2017 and closing multiple UK and Ireland locations—Indian operations flourished.

May 2019: The £68 Million Acquisition

By early 2019, C.Banner wanted out. The Chinese footwear and fashion conglomerate had bought Hamleys for £100 million in 2015 but struggled. In 2018, C.Banner wrote off $49.8 million in goodwill and brand value—reducing Hamleys' carrying value 36% to just 626 million yuan ($91.85 million).

A sale process began, attracting interest from Sports Direct owner Mike Ashley, toy retail chains The Entertainer and Smyths, and ultimately, Reliance Brands.

On May 9, 2019, Reliance Industries announced the deal: Reliance Brands would acquire 100% equity of Hamleys Global Holdings Limited for £67.96 million (Rs 620 crore)—almost half what C.Banner paid four years earlier.

The BSE filing stated: "Reliance Brands would acquire 100 per cent equity shares of 'Hamleys Global Holdings Limited (HGHL) for a cash consideration of GBP 67.96 million'."

Reliance Brands CEO Darshan Mehta called it "a long cherished dream come true," adding: "The worldwide acquisition of the iconic Hamleys brand and business places Reliance into the frontline of global retail."

The acquisition marked Reliance's first overseas retail brand purchase—expanding its portfolio beyond franchises to outright ownership.

On July 18, 2019, Reliance confirmed completion of the acquisition, taking full control of the 259-year-old British icon.

The Business Rationale

Mukesh Ambani, Asia's richest man (net worth consistently above $80 billion), wasn't buying Hamleys for nostalgia. The acquisition aligned with three strategic priorities:

First, retail dominance. Ambani aimed to make Reliance Retail—already India's biggest bricks-and-mortar retailer by revenue and store count—equally dominant online. Hamleys gave him a globally recognized brand to compete with Amazon and Walmart's Flipkart.

Second, leveraging Jio. Reliance Jio, Ambani's telecom network, had signed 300+ million users in under three years. Integrating e-commerce with this digital infrastructure created unmatched distribution power. Facebook and Google invested billions in Reliance's JioMart platform.

Third, demographics. India births 26 million children annually. If just 5% could afford Hamleys, that's 1.3 million potential customers annually—in a country where "emotions sometimes overtake financial abilities" when buying toys for children, as retail consultant Arvind Singhal noted.

The Transformation Plan

Under Reliance, Hamleys pursued aggressive expansion:

India Focus: Plans to quadruple Indian outlets to 500+ stores within three years (announced 2021). Though the pandemic slowed this to approximately 50 new stores annually, India remained central.

Global Expansion: New stores across Europe (France, Italy), South Africa, China, Southeast Asia, and eventually the United States.

Digital Integration: Target 30% of sales from online orders within five years (from 20% in 2021), plus 20% from direct phone/WhatsApp sales—leveraging Reliance's JioMart platform and omnichannel capabilities.

UK Stabilization: Despite closing for much of 2020-2021 during COVID-19 lockdowns and cutting 25% of UK staff, Darshan Mehta predicted UK operations would "come out very strongly" post-pandemic.

The Challenges

Reliance inherited problems. Hamleys hadn't been profitable for years. The 2020 pandemic hit months after acquisition, forcing flagship Regent Street store closures and devastating global retail.

Online competition intensified. Customers could buy the same toys cheaper directly from manufacturers like Lego. Euromonitor analyst Alonso questioned whether Hamleys' 30% online sales target was realistic.

But Reliance had advantages competitors lacked: deep pockets, integrated digital infrastructure, unmatched Indian distribution, and patience to play the long game.

The Current Status

As of 2025, Hamleys operates 190+ stores globally—more than half in India. The Indian operation dominates the parent company's footprint, validating Ambani's bet that emerging markets would revive a European heritage brand.

The transformation reflects a broader trend: Indian conglomerates acquiring iconic Western brands. Tata Motors owns Jaguar Land Rover. Mahindra & Mahindra owns European tractor brands. Now Reliance owns Hamleys.

The Legacy

From William Hamley's Noah's Ark in 1760 to Mukesh Ambani's Rs 620 crore acquisition in 2019, Hamleys' journey spans 260 years and crosses continents. But the most remarkable chapter is being written now—in India.

The brand that served British royalty for centuries now thrives serving India's rising middle class. The store that Queen Elizabeth called her favorite now finds its largest market in the world's most populous country. The company that struggled for profitability in Europe flourishes in Mumbai, Chennai, Ahmedabad, and dozens of Indian cities.

When Indian children walk through Hamleys' doors—whether in Mumbai's original 22,000-square-foot wonderland or newer locations across the country—they're experiencing a 260-year legacy that found renewed purpose in the land where one-fifth of the world's babies are born.

Mukesh Ambani didn't just buy a toy store. He bought a childhood dream factory and gave it a second life where dreams are most needed—in a country young, aspirational, and growing faster than anywhere else.

That's not just a retail acquisition. That's giving a heritage brand the gift it needed most: a future.