Rising labour costs in China and Vietnam are working in India's favour. Funskool, one of the leading toy manufacturers in India, is close to securing orders from a couple of global brands, who themselves have been sourcing toys from China for many years now.

A few multinational brands, including retail major Carrefour, recently visited Funskool's facility to conduct a feasibility study, and “the feedback was positive.” The company's chief executive, Mr John Baby, is confident of landing orders.

Own range

Funskool has already signed a pact with another global player, ABG Corporation of the UK, which used to source toys from China and Vietnam. Production of toys for ABG has already started. Mr Arun Mammen, Chairman of Funskool, feels that more international companies will follow suit.

The company currently represents Lego, Tomy Takara of Japan and Ravensburger of Germany and has licence arrangements with Walt Disney, Warner Bros and Nickelodeon. It recently tied up with Siku of Germany to distribute their range of die-cast, scale model vehicles and with the Hong Kong-based New Bright, the world leaders in radio-controlled vehicles.

Besides, Funskool, whose turnover crossed the Rs 100-crore mark in 2011-12, is planning to launch its own range of products for the domestic market. The company has two manufacturing units in Goa and Ranipet (near Chennai). Its first major domestic brand, Giggles, will hit the shelves by the end of this month.

It will also aggressively try to enter into distribution pacts with some larger international toy brands.

Funskool is a joint venture between Indian tyre giant, MRF, and Hasbro Inc, the global leader in children's leisure time products.

>rravikumar@thehindu.co.in

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