Although India’s pie in the global toys market is less than one percent, industry estimates suggest the sector will witness growth in the near future. India is all set to have its first toy cluster in Koppal, Karnataka. The project, on completion, is expected to place India among the leading toy-making countries.
The Koppal Toy Cluster is being promoted by Aequs SEZ Private Ltd (a division of Aequs INFRA, which creates an infrastructure for manufacturing and engineering companies) in association with the Karnataka government. This project is being set up under Karnataka’s Product Specific Industrial Cluster Development Programme. The project will incur an investment of Rs 4,000 crore.
The global toy industry experienced continued growth, reaching a value of $90.7 billion in 2019, posting a 0.5 percent growth over 2018.
On the other hand, India’s toy industry has grown at a CAGR of 15.9 percent during 2011-19 to $1.75 billion in 2019, principal secretary (industries) Gaurav Gupta said.
“Karnataka’s toy market grew at a CAGR of 17.54 percent between 2010 and 2017. Currently, Karnataka is the third-largest market for toys in India. It constitutes 9.1 percent of the national market valued at $159 million,” he claimed.
Reputed toymakers and original equipment manufacturers (OEMs) have shown interest in the project. Coinciding with the ground-breaking ceremony, six important MoUs were signed for establishing manufacturing facilities in the toy cluster.
The six companies that signed the MoUs include Playgro Industries Pvt Ltd, which is investing $15 million to manufacture remote-controlled cars in Koppal with its manufacturing unit spread across 4 lakh sq ft; Sterling New Horizons Pvt Ltd, the whose manufacturing unit will be spread across 50,000 sq ft and it will invest $10 million; Hotshot Tooling and Engineering Ltd, which will invest $6 million in a manufacturing unit spread across 1 lakh sq ft; Aequs Force Consumer Products Pvt Ltd, which will invest $60 million for a unit spread across 6 lakh sq ft; and Aequs Engineering Plastics Pvt Ltd, which will invest $80 million in a manufacturing unit spread across 8 lakh sq ft.