Walt Disney today launched its first merchandise store in India, which will sell its branded kids’ products. The US-based global entertainment major is in a tie-up with master franchising group, Devyani International Ltd (DIL), for its Indian foray. Walt Disney, which has entered into a a licensing agreement with DIL, plans to invest Rs 150 crore for setting up 300 such Disney stores in the next five years across the country, of which the first 22 outlets would become operative in the current year itself.

“In a tie-up with The Walt Disney Company India Private Ltd (TWDCI), we are investing Rs 150 crore by setting up 300 exclusive kids stores in the next five years. We will open 22 Disney Artist stores in 2007 with an investment of Rs 10 crore,” said DIL’s parent company RJ Corporation chairman Ravi Jaipuria.

The Disney stores will sell products like stationery in the price range of Rs 25 to Rs 900, targeting mostly children in the age group of 3 to 10 years, he said. Jaipuria said that besides the big cities, stores would be opened in Tier-II cities like Ludhiana, Jalandhar and Amritsar.

“For the moment, the products will be imported. But once we open the first 100 outlets, we will start manufacturing units in India itself,” Jaipuria added.

The group is already in talks with some major schools in the national capital territory (NCR) for a tie-up. “We hope to break even in two years and our marketing strategy includes tie-ups with schools. We are targeting the affluent society,” said DIL president and CEO Virag Joshi. “The affluence level of people in India is rising along with a heightened awareness of global brands and overwhelming acceptance of global retail formats.”

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