Funskool India, an MRF Group company and one of the largest toymakers in the country, is strengthening its facilities for aggressive domestic and international growth.
It has set up a product development team in Chennai to work on the new line-up of launches and an engineering team in Goa to take care of all aspects from prototype to product launches.
The company, which has two production units in Ranipet, Tamil Nadu, and one in Goa, is expanding the units. R Jeswant, CEO, Funskool India, in an interaction with FE, said: “We will be adding 1.38 lakh sq ft space at our two units at Ranipet and will be bringing in new machines at the facilities including Goa. We are looking to grow our business both in domestic and exports markets,” he said. The company is looking at closing the current fiscal with a turnover of over Rs 250 crore as against Rs 231 crore it earned in FY22.
On the domestic front, especially in rural areas, it has been appointing dealerships for the last few years. It is also looking at overseas expansion. “ We are present in over 30 countries and we will be adding 10 more countries in Africa and Europe ones into the export basket by the end of the current fiscal, taking the total countries to 40.” The company already has distribution arrangements in countries such as the US and the UK.
Jeswant said the company is aggressively looking at growing certain categories where it does not have much presence such, as electronics and wooden toys.
“ We have some electronics being built into our products, but we want to get full-fledged into that category … which was dominated by the Chinese players. By the end of the fiscal, you will see product launches on this front,” he said.
The focus will be to launch products that receive acceptance in India, after which they can be exported. “Exports are of two types, one is international companies sourcing from us, that is the biggest chunk. There are many companies who want to shift their sourcing from China to India and that is benefiting companies like us. The other one is our own products, conceived and developed by the company, getting exported to the overseas markets,” he said.
Jeswant said currently the company has around 60% of its sales coming from export markets and the remaining 40% from domestic market. “ We want to increase both the businesses, and as a percentage of business, we want to get the domestic business close to 50%,” he said.