India | Sept 2021

Making Headway :
Toy Manufacturing
Sector in India
Making Headway : Toy Manufacturing Sector in India Making Headway : Toy Manufacturing Sector in India

Contents Preface
1. Preface 03
India was self-sufficient in toy The government is making efforts to
manufacturing till 1980. Only around boost the toy industry, like raising
2. Global Toy Manufacturing Sector 04 10% of the toys until were imported import duties, issuing Bureau of
from countries such as USA, UK, Indian Standards (BIS) for import of
Germany, France, Italy and Japan. toys and financial incentives &
3. Indian Toy Manufacturing Sector 06 Indian toys were manufactured using subsidies for domestic toy
materials like wood, polymer, cloth, manufacturers. Many State
fiber, wood pulp, rubber and metal. governments have already started
inviting global toy manufacturers to
4. Export & Import Statistics of India 08 Opening of economy in 1990s
set up manufacturing units in their
resulted in entry of toys manufactured
respective states.
outside India, mainly from China,
5. Enabling Infrastructure for Toy manufacturing 12 Hong Kong, Taiwan, Netherlands and This report aims to help toy
Sri Lanka. In 2020-21. 71.1% of India’s manufacturers, investors and real
toy imports was met by China, estate developers to gauge the
6. Major Toy Manufacturers in India 14 followed by Netherland, Hong Kong growth potential of toy manufacturing
and Taiwan. sector in India. It will also help
stakeholders associated with the
The government of India is urging
7. Government Initiatives & Support 15 industry to take informed decisions
startups and entrepreneurs to
on investments in this emerging
develop “toys and games, for India
sector.
and of India” to meet the growing
8. India Advantage 21 domestic demand, to minimize
imports and to increase India’s share
in global toy exports.
9. Key Challenges 22

10. Vocal for Local 24

11. Views from Aequs Infra 33

12. The Way Forward-Savills Viewpoints 34

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Making Headway : Toy Manufacturing Sector in India Making Headway : Toy Manufacturing Sector in India

Global Toy Manufacturing

Sector

The Global toys market size was
valued at USD 92.2 bn in 2019, and
is expected to reach USD 103.8 bn
by 2027, registering a CAGR of 2.5%
from 2021 to 2027 according to
Allied Market Research1. In 2019, the
sports and outdoor toys segment
led in terms of market share and is
expected to retain its dominance exports accounting for 58.7% in the
going forward. global market. Other major
exporters of toys include Czech
World toys exports (HS-9503)
Republic, Hong Kong, Germany,
accounted for USD 53.4 bn in 2019,
and European Union.
according to data released by the
World Bank. China is the major
exporter of toys with USD 31.3 bn of

Toys (HS-9503) Exports by Country in 2019

Country

China Czech Hong Kong, Germany European Netherlands United Vietnam United India Others
Republic China Union States Kingdom

Value
(USD billion)
31.3 2.7 2.4 2.4 1.8 1.3 1.1 1.0 0.9 0.13 8.5

Share(%) 58.7% 5.0% 4.5% 4.4% 3.3% 2.4% 2.1% 1.9% 1.6% 0.2% 16.0%

Source World Bank, 2019

https://www.alliedmarketresearch.com/press-release/toys-market.html

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Making Headway : Toy Manufacturing Sector in India Making Headway : Toy Manufacturing Sector in India

Product Segmentation

Action Figures Arts & Crafts

Indian Toy Manufacturing Sector

1 2
Playsets with
Chalk, crayons, markers
accessories and
paints and pencils
role play (non-costume)
Present Scenario

Battling Toys Building & Construction

Indian toy manufacturing sector is Karnataka, Tamil Nadu, Maharashtra young population, rising disposable
3 Playsets and
accessories 4 Building sets and
accessories

witnessing robust growth. The
domestic toys market was
estimated at USD 1.23 bn in 2020.
The market is expected to grow at a
CAGR of 12.2% between 2021 and
2026 according to the market
research company IMARC2. At
present, the market is fragmented
and Uttar Pradesh. The organised
sector accounts for only 10%.
Specialty stores represent the
largest distribution channel for toys
in India followed by supermarkets
and hypermarkets, online and
others.
income, changing spending
patterns and shift from traditional
toys to innovative intelligent
electronic toys. Educational toys
Collectible Trading Cards & Toys Costume & Dress-Up
are believed to improve creativity
and contribute in the development
of the brain of the child.

5 6
Collectible trading cards
with over 4,000 toy manufacturing The growing demand for toys in Costume and dress-up
and collectible trading
units located in states such as India is driven by large base of accessories
toys & accessories

Overview of Indian Toy Manufacturing:

Registered Factory Sector (NIC 2008-Code 324) as of 2017-18

Total Persons Dolls Educational

Engaged
Number of
Factories Display dolls, Electronic learning
Value of the Output
6,737
dollhouses, fashion & systems, infant

7 8
Invested Capital (USD million) electronic learning,
styling dolls, play sets,
Fixed Capital
(USD million)
(USD million)

106.3 115 mini figurines &

playsets, nurturing
pre-school electronic
learning and maps,

60.4 dolls and accessories globes, etc.

37.8
Games & Puzzles Infant Toys
Games & Toys (NIC, 324)

Bath, electronic

9 10
Brainteasers, basic learning, jumpers &
cards and electronic walkers & play gyms,
handheld / tabletop mats, nest and other
games infant toys
Source Ministry of Statistics & Programme Implementation, Note 1. As per NIC 2008 classification, manufacture of Games & Toys
Government of India has been put under a separate code ‘324’
2. USD to INR Conversion @ 68.408 for 2017-18
Major Categories | Sub-Categories
https://www.imarcgroup.com/indian-toys-market

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Making Headway : Toy Manufacturing Sector in India Making Headway : Toy Manufacturing Sector in India

Toy Exports and Imports-India

(includes toys, games & sports requisites, parts and accessories)

Export & Import Statistics of India Imports Exports

562.2 407.3 404.1 402.4

Reduced Import Dependency USD mn
2019-20
USD mn
2020-21
USD mn
2019-20
USD mn
2020-21

Toy Imports to India Toy Exports from India

(includes toys, games & sports requisites, parts and (includes toys, games & sports requisites, parts and
accessories)-2020-21 accessories)-2020-21

SRI LANKA
SINGAPORE 3.9
4.1 OTHERS
POLAND
29.8
Toys are mainly categorised as domestic toys demand in India is reduced by 27.5% from 2019-2020 ITALY
CHINA 7.3
9.7
9503 and 9504 groups under the met by imports which includes toys, levels to USD 407.3 mn in 2020-21. 7.3
JAPAN NETHERLAND
‘Harmonized System Nomenclature’ games & sports requisites, parts The fall in imports in 2020-2021 was 10.5 11.8
developed by World Customs and accessories. The country attributed to the impact of OTHERS
USA 112.3
Organization for trade purposes. recorded import of USD 562.2 mn COVID-19. 12.3
FRANCE
12.5
At present, more than half of the worth of toys in 2019-20. It is
TAIWAN UAE
13.2 13.8
CHINA
Imports in 289.7 Exports in
Toy (HS-9503 & HS-9504) Exports and Imports of India HONG KONG GERMANY
16.2 2020-2021 24.8 2020-2021
(USD mn) AUSTRALIA (USD mn)
25.1
NETHERLAND
17.9 USA
134.7
129.6 141.2 25.8
POLAND

27.4
SRI LANKA UK
52.7 1.8%
1.0%

1.0% 1.8% CHINA

SINGAPORE

Imports by Value in ITALY 2.4% Exports by Value in NETHERLAND 2.9%

HS-9503 HS-9503 HS-9504 HS-9504 2020-2021 (%)
2020-2021 (%)
2019-20 2020-21 2019-20 2020-21 JAPAN FRANCE 3.1%
2.6%
(USD mn) (USD mn) (USD mn) (USD mn)
USA USA UAE
CHINA
3.0% 33.5% 3.4%
71.1%

3.2% OTHERS 6.2%

48.4 38.1
OTHERS

279.2 129.6 7.3% 27.9% UK GERMANY

4.0% 6.2%
4.4% TAIWAN 13.1%

HONGKONG AUSTRALIA
NETHERLAND

Source Ministry of Commerce, Government of India Source Ministry of Commerce, Government of India

Export Import Product Category

Source Ministry of Commerce, Government of India China is the world leader in toy toys imports respectively during acquiring a great share in exports
exports. In 2020-21, 71.1% of India’s the same period. The export value are USA (33.5%), UK (13.1%),
toy imports was met by China, of toys, games and sports Australia (6.2%), Germany (6.2%)
Note followed by Netherland (4.4%) and equipment from India during and the UAE (3.4%).
Tricycles, scooters, pedal cars and similar wheeled toys, dolls, carriages dolls, other toys,
Hong Kong (4.0%). Taiwan and USA 2020-21 amounted to around USD
HS-9503 categories reduced size “scale” recreational models, working or not, puzzles of all kinds. accounted for 3.2% and 3.0% of 402.4 mn. The major countries
Video game consoles and machines, articles for funfair, table or parlor games, printables,
HS-9504 categories billiards, special tables for casino games and automatic bowling alley equipment.

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Making Headway : Toy Manufacturing Sector in India

Factors Pushing the Toy Sector in India

Government Growing Higher import

Strong growth
support disposable duties
potential
income

Higher safety Emergence of Large base

standards educational of child
toys population

Make in India Robust

initiative ecosystem

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Making Headway : Toy Manufacturing Sector in India Making Headway : Toy Manufacturing Sector in India

Enabling Infrastructure
for Toy manufacturing

Ladakh

Himachal Pardesh

Jammu & Kashmir

Uttar Pardesh

Punjab Amritsar-Kolkata
Industrial Corridor
Delhi-NCR
Bihar
Delhi-Mumbai
Industrial Corridor

Rajasthan
Assam

Gujarat
Kandla West Bengal
Mundra Kolkata

Essar Hazira Haldia

Odisha
Madhya Pardesh Paradip
Mumbai Telangana

JNPT
Maharashtra Vizag Vizag-Chennai
Industrial Corridor
Krishnapatnam
Bangalore-Mumbai Morgugoa
Economic Corridor Andhra Pardesh

Mangalore Ennore
Chennai Chennai-Bangalore
Industrial Corridor
Karnataka
Cochin Tamil Nadu
Tuticorin

International Dedicated National Investments and Influence regions of Proposed Kolkata to UP

Major Ports Plastic Plants Textile Parks Industrial Corridors
Airports Freight Corridors Manufacturing Zones Industrial Corridors in India WaterWay

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Making Headway : Toy Manufacturing Sector in India
Major Toy Manufacturers in India
Government Initiatives & Support
The government is promoting
toy exports at district level. The
Ministry of Commerce through
the Director General of Foreign
Trade (DGFT) is engaging with
state governments to
implement the initiative in all
districts of the country in a
phased manner. Many state
governments are already
inviting global toy
manufacturers to set up
manufacturing units in their
respective states.
Recently, Karnataka
government sanctioned 400
acres of SEZ land in Koppal to
set up country’s first toy
manufacturing cluster. Similarly,
Uttar Pradesh government has
allocated 100 acre land for toy
manufacturing hub in Greater
Noida.
The government of India is
urging startups and
entrepreneurs to develop “toys
and games, for India and of
India” to meet the growing
domestic demand, to minimize
imports and to increase India’s
share in global toy exports.
14 savills.in | aequsinfra.com 15
Making Headway : Toy Manufacturing Sector in India
Government of India Initiatives 1. Scheme of Fund for
Regeneration of Traditional
Industries (SFURTI)
01 Call to startups
Objectives:
• To organise the traditional
industries and artisans into
Mandatory quality
02 certification clusters to make them
competitive and provide support
for their long-term sustainability,
employment, and enhance
Phased Manufacturing
03 Programme (PMP)
marketability of products of such
clusters.
• T
 o equip traditional artisans of
04 Programmes boosting
the toy sector associated clusters with improved
skills.
• T
 o make provisions for common
05 Pumping investments
into the sector
facilities & improved tools and
equipments for artisans.
• T
 o strengthen cluster governance
06 Educating consumers systems with active participation
of stakeholders.
• T
 o build up innovative and
07 Inducing the value of
traditional toys
traditional skills, improved
technologies, advanced
processes, market intelligence
and new models of public-private
Involving various sectors
08 to uphold the toy story partnerships to gradually
replicate similar models of
cluster-based regenerated
traditional industries.
Source Ministry of Micro, Small & Medium
Enterprises, Government of India
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Making Headway : Toy Manufacturing Sector in India Making Headway : Toy Manufacturing Sector in India

Toy Clusters Implemented and Approved Under SFURTI Scheme

Rajasthan

Deep Hast Shilp Traditional Indian Fabric

Legends
Wooden Toys Cluster Based Toys Cluster
Udaipur Sri Ganganagar State Name Name of the Cluster District

Approved Implemented
Wood Craft Cluster
Jodhpur

Madhya Pradesh
Bamboo Based Traditional Indian Bamboo and
Indigenous Toys Cluster Wood Based Toys Cluster

Baihar, Balaghat Sijohra Village, Mandla

Wood based Traditional Indian Soft Toys

Toys and Associated Fabric Cluster
Based Accessories Cluster
Barwani Chitrakoot Wooden Toys Lucknow Soft Toys
Barkheda, Sehore
and Carving Cluster Cluster
Bamboo craft and
Uttar Pradesh
Karvi, Chitrakoot Lucknow
Bamboo Toys Cluster

Ratlam

Maharashtra
Plush Toy Cluster

Parhbani Kondapali Toy Cluster

Andhra Pradesh
Krishna

Palm Leaves Toys And

Karnataka Tamil Nadu Leather Products Cluster

Sagara Woodcrafts Channapatna Lacware Vellore

and Toy Cluster Toy Cluster
Shivamogga Ramanagara

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Making Headway : Toy Manufacturing Sector in India Making Headway : Toy Manufacturing Sector in India

2. National Toy Action Plan

The Government of India, by involving India push for domestic manufacturing scheme are likely to benefit domestic
15 ministries has prepared a National of toys. The formation of National Toy toy manufacturers.
Toy Action Plan to make Indian toy Action Plan, Vocal for Local and Make
industry competitive. It is a big Make in in India under the Atmanirbhar Bharat

Objectives of National Toy Action Plan

Airing special
Strengthening the Creating a programmes on toys
R&D infrastructure working group and games on public
for toys and for ‘Ek Bharat Organising annual broadcast channels
games promoting Shrestha Bharat’ Building toy toy fairs and such as Doordarshan
Increasing Developing an
self-discovery and repository exhibitions across (DD) and All India
awareness among Utilising analytics e-commerce
self-learning centers production hubs Radio (AIR)
Setting up toy consumers via and digital Promoting Observing an platform to provide
production outreach campaigns marketing tools development annual ‘Made a centralised, direct
clusters across to boost purchase for targeted of digital and in India Toy marketing portal to
the country of local toys brand promotions online games Day’ in schools handicraft artisans

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Launching central Promoting Organising Focusing on Promoting toys

government innovation & hackathons and production of made with
schemes to design and grand challenges to mechanical and recycled and
incentivise Integrating toys upskilling artisans encourage design electronic toys Strengthening upcycled materials Building India’s
Meeting Developing toy
manufacturing and games with crowdsourcing and innovation laboratories to awareness and first ‘Toy Museum’
and exports education, specifically procurement test and monitor production of
for subjects such as needs to boost quality & safety indigenous toys such
mathematics, history demand standards as puppets, wooden
and science dolls, clay toys and
tribal games

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Making Headway : Toy Manufacturing Sector in India
3. Product Specific Industrial Cluster Development Programme
Product Specific Industrial Cluster
Development Programme aims to
build toy clusters in dedicated SEZs
to help them become self-sustained
ecosystems catering to export
markets, with an objective of
attracting investments and building
export capacity. Government of
India has approved eight toy
manufacturing clusters with an
20
outlay of INR 2,300 crores (USD
307 mn). Of the eight clusters, three
are likely to come up in Madhya
Pradesh, two in Rajasthan, and one
each in Karnataka, Uttar Pradesh
and Tamil Nadu.
These toy clusters are likely to bring
efficiency in supply chains for both
raw material suppliers and toy
manufacturers. The Department for
Promotion of Industry and Internal
Trade (DPIIT) and the Ministry of
Micro, Small and Medium
Enterprises (MSME) are likely to
develop toy clusters under existing
scheme, Scheme of Fund for
Regeneration of Traditional
Industries (SFURTI).
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India Advantage
AVAILABILITY OF
RAW MATERIAL
The main component used in toys
is plastic and the other materials
used are wood, textiles and metal.
India being world’s second largest
producer of polyester and related
fibers is expected to benefit toy
manufacturing sector.
LOWEST CORPORATE
TAX IN ASIA
Government of India has slashed
Corporate Tax rates for new
manufacturing firms to 15 %, lowest
in Asia.
EASE OF DOING
BUSINESS (EODB)
India’s rank improved to 63rd
position in 2019 from 142 in 2014.
Higher Import Duties and issue of Bureau of Indian standards (BIS)
The Government is making efforts
and providing support to boost
the toy industry. These efforts
include raising Import Duties (up
from 20% to 60%), issue of Bureau
of Indian Standards (BIS) quality
21
Making Headway : Toy Manufacturing Sector in India
LOW LABOUR COSTS
INDIA’S HUGE
CONSUMER BASE
Labour intensive industry, the cost A population of over 1.3 bn
of labour can account up to 50% comprises of a vast majority of
depending on the type of toy. Low young people with approximately
wages and rate of growth of wages half of the total population under
is lower compared with the the age of 25.
competing countries such as China,
Thailand, Vietnam and Taiwan
works in India’s favor, besides also
generating much needed local jobs
and supporting the MSME sector.
AVAILABILITY OF LAND FDI
The Government of India has Under the regulatory framework
mapped as much as five lakh 100% FDI is permissible through
hectares of land for industrial automatic route.
purpose, more than four times the
size of Hong Kong, spread across
3,390 industrial belts and Special
Economic Zones (SEZs) in the
country.
INFRASTRUCTURE
INVESTMENTS PLI SCHEME
The Government in India allocated a The Government of India has
total capital expenditure for identified the labor-intensive toy
industrial infrastructure in India as manufacturing sector in PLI
part of the National Infrastructure scheme, likely to encourage
Pipeline (NIP) programme for domestic toy manufacturing.
financial years 2020 to 2025 at
around USD 42.6 bn. This will
empower businesses and create
employment as well as improve
ease of living.
control orders effective from Jan imported and to be permitted only
2021 to adhere to the global safety if the quality tests are successful.
standards. This development is likely to
The Government of India has encourage domestic
mandated sample testings of all manufacturing and reduce import
consignments of toys being dependency.
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Making Headway : Toy Manufacturing Sector in India

Key Challenges

Need for end-to-end,

integrated manufacturing Fragmented
facilities market

Economies of scale Organised players

Small-sized Technological
factories challenges

Raw material
Skilled labour cost

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Making Headway : Toy Manufacturing Sector in India MakingMaking
Headway : Toy :Manufacturing
Headway Sector
Toy Manufacturing SectorininIndia
India

Location Detail

Vocal For Local Ladakh

BIDAR
Leh MAHARASHTRA

Aequs Infra to develop First Toy GULBARGA

TELANGANA

Manufacturing Cluster in India BIJAPUR

YADGIR

BELAGAVI
BAGALKOT
RAICHUR

KOPPAL
GOA DHARWAD
GADAG

ANDHRA
BELLARY
PRADESH

Koppal will have India’s first Toy

UTTARA
KANNADA HAVERI

Manufacturing Cluster SHIMOGA

DAVANAGERE
CHITRADURGA

Karnataka will leverage its rich legacy of Toy Making

CHIKBALLAPUR
UDUPI CHIKKAMAGALURU
TUMKUR

KOLAR
HASSAN

Area
DAKSHINA
KANNADA

400 acres SEZ MANDYA

RAMANA
GARA

KODAGU

Location MYSORE
CHAMARA-
TAMIL
NADU
Koppal District, Karnataka
JANAGAR

KERALA

Developer Hyderbad
Aequs Infra By Road: Kalaburagi

Bengaluru – 380 km Hubballi – 95 km

Sangli Miraj
Infrastructure Hyderabad – 400 km Belgaum – 215 km Kupwad
Vijayapura

A fully integrated Toy Manufacturing Deosugur

Ecosystem
Regional Airports: BELGAUM Raichur
Kurnnool
Likely Investment
Hubballi | Bellary
INR 5,000 Crores (~USD 667 mn)
KOPPAL
Ballari AH43
95 Kms
Jobs Creation HUBALLI

40,0000 AH47
Anartapur
International Airports KARNATAKA

Bengaluru | Hyderabad Davanagere

Murdeshwar
Shivamogga

By Rail: Udupi
Chickmagaluru
Tumakuru

Adjacent to well connected Hassan

BANGALORE
railway junction Mangaluru

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Making Headway : Toy Manufacturing Sector in India Making Headway : Toy Manufacturing Sector in India

Proposed Cluster

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Making Headway : Toy Manufacturing Sector in India Making Headway : Toy Manufacturing Sector in India

Infrastructure Ecosystem

State-of-the-art
Campus & Infrastructure
Ready-to-use Skill Centre
Facility

State-of-the-art
Campus &
Infrastructure
Industrial
24 x 7 Power Shared Services
Aequs Industrial Estate Industrial
Land Parcels Land Parcels
Ecosystems

24 x 7 Water Common Facilities

Customised
Industrial Facility Treatment Plants
100% recycling of Plug & Play Customised
sewage water
Industrial Industrial
Aequs Industrial
buildings Facility
Estate Ecosystem
Waste
Management Business Centre

Workforce
Sourcing and
Deputation Services Manpower Sourcing &
Power Backup
Safety & Security
through Surveillance
Common Amenity Centre Deputation Services
Systems

Robust
Common Road Networks Quality Centre
Amenity Centre

Plug & Play

Industrial Buildings
Health Centre Logistics Centre

SEZ (Exports) DTA (Domestic) Warehouse Trading Zone Ancillary Zone Residential DTA Trading Warehouse Ancillary Residential
Zone SEZ (Domestic) Zone Zone
Zone

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Making Headway : Toy Manufacturing Sector in India Making Headway : Toy Manufacturing Sector in India

Support Services Ecosystem: One-stop solution for Operations Services Offered/Facilities

Custom Manpower Sourcing

Compliance, and Deputation
Permits & Logistics Services Environmental
Project Landscape
Management Office Spaces Health Center Power Supply Transportation
Management Management
06 01

Water Conference Environmental

Security Customs Document
Cafeteria Supply Facility Compliance
Services Office Management

Legal Plant Engineering

Secretariat & 05 02 Design Services:
HR Services Operational Concept to Build Utility Heavy Vehicle Statutory
Unit
DIgital IT & Telecom Establishment
STP/ETP Services Parking Compliance
Services Surveillance & Compliance

Compliance Centralised Fire station Incubation Training Shared

Facility
Management Warehouse Facility Centre Services
Management
04 03
World Class Infrastructure | Built-to-suit | Turnkey Office Space | 24X7 Operations | Facility Management | Health & Safety
License, Permits Buddy Service:
and Approvals, from Concept to
CFO & CFE Services Commissioning

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Making Headway : Toy Manufacturing Sector in India MakingMaking
Headway : Toy :Manufacturing
Headway Sector
Toy Manufacturing SectorininIndia
India

Promotional Incentives by Government of Karnataka for Toy Cluster

100% reimbursement
Views from Aequs Infra
Capital Investment
of Registration stamp
Subsidy: 30% fixed
1 2 3
duty and Registration Interest subsidy on
assets on Land,
charges term loan - 5%
Building & Machinery

Power Tariff Subsidy Electricity duty

4 5
Rental Subsidy - India has emerged as a forerunner In the post pandemic scenario, availability of labor at competitive
– USD 0.03 per unit
for 5 years
exemption – 100%
for 5 years 6 USD 0.07 per
sq. ft. per month
for business continuity plans,
strategically located amongst the
Africa, Middle East, ASEAN
industries all over the world are
developing alternative business
continuity plans, and India has
costs, flexible labour laws, vast
availability of raw materials,
plug-and-play facilities, favourable
countries and East Asian three distinct advantages in this business environment, proposed
economies. It provides inventory regard. Reduction of corporate PLI scheme for toy sector,
of low risk and asset light and taxes for setting up of new incentives and subsidies by
successfully implemented models industries (lowest in Asia), host to Central & State governments are
with ready-built industrial Global in-house Centres (GICs) likely to make India a toy
infrastructure that renders built- and Global Centre of Excellence manufacturing hub. In addition to
Wage Subsidy - to-suit, offering higher capex (GCoEs) for several manufacturing these, the increase in customs
Freight subsidy: Skill Development

7 8 9
savings.
USD 20 per month year 1 & 2 - 75% & - USD 167 per
for 5 years Key growth drivers are huge
year 3 to 5 - 50% candidate
customer base, rising disposable
income and diverse product
category. Under the regulatory
framework 100% FDI is
permissible through automatic
route. Additionally, improved
business friendly policies
extended around favourable tax
companies that provide for more
robust ecosystem and R&D and
lastly, the added attraction of a
large domestic market along with
prospects of a manufacturing
export hub.
India is already home to several
large multi-national manufacturing
companies and even hosts
dedicated Investment Zones from
duty and implementation of higher
safety standards are likely to
encourage domestic
manufacturing.
Koppal toy cluster offers many
benefits being strategically
positioned right in the center to
cater to 50% domestic toy market.

10
Social Security (ESI & PF) - Exemption on incentives offer increased companies from select countries
profitability. creating a familiar ecosystem. The
employer contribution 75% for 5 Years

Note USD to INR Convesrion @75

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Making Headway : Toy Manufacturing Sector in India

The Way Forward-

Savills Viewpoints

Indian skilled labour in the toys manufacturing sector is cheaper

in comparison to global competitors like China and Taiwan. The
Manufacturers import duty hikes, higher certification standards for import of
toys manufactured outside the country are expected to
encourage domestic toy manufacturers. In addition, availability
of raw materials, supporting infrastructure and government
support are likely to boost the industry.

Given the growth potential, the investors are likely to consider

this asset class for their capital investment. Investors are
Investors expected to diversify their portfolios and continue to invest in
this emerging asset class. Domestic and offshore funds are
expected to diversify their portfolios and continue to invest in the
emerging toy manufacturing sector.

Many state governments are offering fiscal incentives including

up to 30% in capital investment subsidy, which is a strong
Government incentive for toy manufacturers. In addition to these, there are
interest subsidy on term loan, power tariff subsidy, electric duty
exemption, reimbursement of stamp duty and registration
charges. Other subsidies by state governments including rental
subsidy, wage subsidy and skill development incentives will likely
benefit the industry.

Capitalising on the advantage of raw materials and cost of labor,

End users India is likely to become one of the largest manufacturer and
exporter of toys in the future. In addition, the higher import
duties issue of Bureau of Indian standards (BIS), quality control
orders to adhere to the global safety standards will encourage
domestic manufacturing and result in availability of India made
toys at relatively lower prices with higher safety standards.

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Making Headway : Toy Manufacturing Sector in India Making Headway : Toy Manufacturing Sector in India

Savills Global
UNITED KINGDOM EUROPE
& IRELAND 123 OFFICES
131 OFFICES &
ASSOCIATES

£1,741
million
2020 GLOBAL
REVENUE

Over
600
OFFICES ACROSS
THE W ORLD

Over
39,000
PEOPLE IN
OVER 70
COUNTRIES

AMERICAS & MIDDLE EAST

CARIBBEAN & AFRICA ASIA PACIFIC
68 OFFICES & 227 OFFICES & 61 OFFICES &
ASSOCIATES ASSOCIATES ASSOCIATES

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Making Headway : Toy Manufacturing Sector in India

Author Central Management Regional Contacts

Srinivasa Reddy Anurag Mathur Allan Brass
Associate Director-Industrial Chief Executive Officer Director –CBTA
Research & Advisory Savills India Americas
Srinivasa.reddy@savills.in anurag.mathur@savills.in abrass@savills.us
Srinivas N Marcus de Minckwitz
Managing Director Head of Industrial and Logistics
Business Enquires Industrial & Logistics EMEA
Namrata Kher srinivas.n@savills.in MdeMinckwitz@savills.com
Business Development Lead
namrata.kher@savills.in Kei Shimizu

About Savills About Aequs Infra

Manager –Tenant Representation
Namit Kanchan Designers Japan
Director - Industrial & Logistics KShimizu@savills.co.jp
Ranjit Kumar
namit.kanchan@savills.in
General Manager Louisa Luo
Balamurugan Marketing & Communication Head of Industrial & Logistics
Savills Aequs INFRA the infrastructure arm of Aequs Group is General Manager - ranjit.kumar@savills.in China
engaged in the activity of Development, Operation and Business Development Louisa.Luo@savills.com.cn
Savills plc is a global real estate services provider Balamurugan.sampath@aequs.com Arshita Bhardwaj
Maintenance of Industrial estates and real estate Adam Evennett
listed on the London Stock Exchange. We have an Assistant General Manager
assets, with endeavor to create world class campus Marketing & Communication Regional Director –CBTA, APAC
international network of more than 600 offices and Hong Kong
and experiences to our esteemed industrial clients. arshita.bhardwaj@savills.in
39,000 people throughout the Americas, the UK, Media Queries AEvennett@savills.asia
Aequs SEZ is also the proud developer of the country’s
continental Europe, Asia Pacific, Africa and the Nitin Bahl Parixit Vyas Ricky Huang
first Aerospace SEZ in Belagavi, involved in
Middle East, offering a broad range of specialist Director Manager MD -Industrial
Development, Operation and Maintenance of state-of- Marketing, Sales and Strategy Marketing & Communication
advisory, management and transactional services to Taiwan
the-art SEZs which caters to the needs of industrial nitin.bahl@savills.in parixit.vyas@savills.in RHuang@savills.com.tw
clients all over the world.
units engaged in highly specialized manufacturing and
Savills India auxiliary activities. We are on the verge of now
completing yet another India’s first “Toy Cluster” in Savills India Offices
Savills is India’s premier professional international Koppal and Consumer Goods Cluster in Hubballi,
property consulting firm. Savills began its India Karnataka. Gurgaon Mumbai Bengaluru
operations in early 2016 and has since seen 3-A, Second Floor, Building 9B 403, Tower B, Level 4, The Capital 15th Floor, SKAV SEETHALAKSHMI
significant growth. With offices in Bengaluru, DLF Cyber City, Phase 3 Street 3, G Block, Bandra Kurla Complex Corporation No.21, Kasturba Road
Mumbai, Delhi NCR, Chennai, Pune and Hyderabad; Sector 24, Gurgaon 122002 Bandra East, Mumbai 400 051 Bengaluru 560001
and also having serviced clients in Kolkata, Haryana, India Maharashtra, India Karnataka, India

Chandigarh, Guwahati, Bhubaneswar, Vadodara and aequsinfra.com

Chennai Pune Hyderabad
Indore, Savills India has a strong pan-India platform
Savills, 5th Floor, North Wing WeWork Futura Office No. 02A114, WeWork
to deliver to our clients. Harmony Square, New No. 48 & 50 Magarpatta Road Krishe Emerald, Hitech City
Praksam Street, T. Nagar Pune 411 028 Hyderabad 500081
Savills in India is a full-service advisor offering
Chennai 600017 Maharashtra, India Telangana, India
Commercial Advisory & Transactions, Project Tamil Nadu, India
Management, Capital Markets, Valuations &
Professional Services, Research & Consulting,
Industrial & Logistics and Residential services. The
blend of in-depth, sector specific knowledge with
entrepreneurial spirit gives clients access to unique Aequs Infra Offices
and innovative real estate solutions backed up by
the highest quality of service delivery. Registered Office Koppal Toy Cluster
No. 55, Aequs Towers, Sy. No 30 , Bhanapur and
ITPB- Whitefield Main Road, Talbal Villages, Kukanur Taluka,
Mahadevapura Post, Koppal District, Karnataka,
Bengaluru-560048 India – 583 238
Savills.in

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savills.in ficci.com

Savills, the international real estate advisor established in the UK since 1855 with a network of over 600 offices and 39,000
associates globally.
This document is prepared by Savills for information only. Whilst the information shared above has been shared in good faith and with due
care with an endeavour to keep the information up to date and correct, no representations or warranties are made (express or implied) as to
the accuracy, completeness, suitability or otherwise of the whole or any part of the deliverables. It does not constitute any offer or part of any
contract for sale. The information used in this report has been compiled using publicly available sources that are believed to be reliable. The
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