With the cost of manufacturing going up in China and many international brands looking out for cost-efficient destinations, Red Ridge Global is sensing opportunity here.
The Chinese firm, started by Indian-origin founder Vickram Rana in 1998, is seeking to induce clients to shift their manufacturing base to India by offering to buy the entire production output and distribute the products across India and global markets.
With global revenus of $500 million, Red Ridge Global is one of China’s largest arts, craft and learning kit suppliers having showrooms in the U.S., India, Canada, Malaysia and China. It has manufacturing and packing units in the U.S., Canada, Hong Kong, India and in Shanghai, Ningbo and Guangzhou.
In India, it operates via its 100% subsidiary Stone Sapphire India, which has established a distribution network across the country, besides manufacturing and distributing its own Sk’oodle brand of stationery products and art materials.
Through third-party manufacturing units in Gujarat and elsewhere, Stone Sapphire has managed to achieve production that is 30% cheaper than the cheapest products in China, thus making a strong case to attract multinational firms to shift manufacturing to India.
Banking on its strong distribution network, Stone Sapphire connects global brands with idle manufacturing units and ensures manufacture of quality products as per global specifications and then takes care of distribution by creating new market opportunities.
As a first step to boost ‘Make in India’, the company has tied up with leading global toy company Hasbro for local manufacturing and is now its distribution partner in India. The company, through its parent Red Ridge Global, is negotiating with more toy companies to shift manufacturing from China to India. Brands in other categories are also being tapped.
“With our specialised business expertise and strong presence in India, we hope to be a one-stop solution for any global toy brand that wishes to spread its footprint in India. There are several benefits that they will enjoy under the government’s Make in India initiative,” said Vick Rana, chairman and CEO, Red Ridge Global.
“India is one of the fastest growing markets with immense possibilities but comes with its challenges of compliances and requires a nuanced understanding of the various regional markets. At Stone Sapphire, toy manufacturers will find all answers, support and the best distribution that would take them to India’s farthest corners. We will soon announce some more names which will be shifting base to India,” Mr. Rana said.
Commenting on the Indian business Shobhit Singh, director, Stone Sapphire India, said, “With our 360- degree support in manufacturing consultancy and access to the largest distribution network in India, we hope to help children enjoy play time both indoors and outdoors in a cost-effective manner. We will replicate our parent’s Chinese business model here and grow sharply.”
He said Stone Sapphire had already invested ₹100 crore to build technology and the distribution network in the country and will invest another ₹400 crore by 2022. By that time, the company projects a revenue of $200 million, Mr. Singh said.
