Reliance Retail, which has a 20-year franchise agreement with the retailer, will set up 20 stores in the first seven years of the agreement.
Following the Mumbai opening, the retailer plans to open outlets in Delhi, Bangalore and Chennai in the first phase of the launch.
The second store is due to be launched in Chennai by June next year and will be around 12,000 square feet in size.
Bijou Kurien, president and chief executive of the lifestyle division, Reliance Retail commented: “Stores in Delhi and Bangalore will come up next, but we will first monitor the performance of the first two stores."
The franchise agreement will allow Reliance Retail to use Hamleys' branding, store design and best practices when setting up outlets in the country.
Kurien said: “They will also provide training to staff in soft skills etc."
Reliance Retail will not only stock Hamleys merchandise, but also products that are exclusively available to the UK retailer. National brands from manufacturers such as Mattel will also be available at the outlets.
Kurien explains: “The overarching branding will be Hamleys. But there will be space available in the store for allied brands.”