Hit by the effects of demonetisation, toymaker Funskool India has turned its attention towards exports to sustain growth momentum, said a top executive.
“Due to demonetisation, we took a big hit,” said K. John Baby, CEO, Funskool (India) Ltd. “Fortunately, we were working [in a major way] on exports and that’s paying off now.”
Funskool, a joint venture between MRF and U.S. based Hasbro, recorded a turnover of ₹220 crore in FY17, of which exports accounted for ₹41 crore. This fiscal, it is aiming to export toys worth up to ₹60 crore on a turnover of ₹250 crore.
“Our exports have been doubling for the last three years. In Currently, toys are being exported to 10 countries including the U.K. Our goal is to double [export contribution to revenues] by 2020,” he said.
‘₹25 crore investment’
To help meet its growth projections, Funskool India is planning to set up a third manufacturing plant exclusively for exports. This would be located either at Ranipet in T.N. or Belagavi in Karnataka. It has two plants in Ranipet and Goa.
“We have already finalised most of the process for constructing the third plant. Only site evaluation process has to be finalised. It will be done within a month. The building of 50,000 sq.ft. will be ready by April 2018. We will invest ₹25 crore. This would provide direct employment to We will provide job for 250 people,” he said.
Talking on the market condition, he said while the industry grew by 10%, Funskool posted over 20% growth for the last six years. “During the first six months of the current year we grew by 3% and expects to close the fiscal with 10-15% growth. Our vision for 2020 is to hit ₹500 crore mark in revenue, of which the contribution from domestic and exports would be equal,” he said.
