China-based Tsun Tat Toy Company Limited, a $150 million group, a major manufacturer of plastic and electronic toys, along with Pals Plush India, a toy manufacturer which already has two manufacturing facilities in Special Economic Zones in Andhra Pradesh, has proposed to set up a facility at the Visakhapatnam SEZ.
It has submitted a letter of intent to establish a toy manufacturing unit as a joint venture company after site inspection and several rounds of discussion with VSEZ Development Commissioner A.R.M. Reddy and other senior officials at the zone headquarters located at Duvvada. The Chinese delegation, comprising 10 members, visited the VSEZ on Tuesday.
Managing Director of Tsun Tat Toy Company Limited S.C. Tong said they zeroed in on the VSEZ-Duvvada after visiting several locations due to investor-friendly climate prevalent at the zone.
Mr. Reddy said the Chinese group was a major joint venture partner and proposed an investment of $10 million to start with and provide employment to nearly 600 in the initial stage and scale up to 3,000 by 2021-22. The toys manufactured in the VSEZ unit would be exported to the top toy companies in the world across major destinations in Europe and North America.
Expansion plan
The VSEZ has designated a built-up space of 18,460 sq. metres in standard design factory-II building for setting up of the unit spread over six floors. Later the Chinese delegation also sought a vacant space of seven hectare to further expand their operations in the coming years which was in principle agreed to by the Development Commissioner.
Mr. Reddy said with the setting up of the unit in the VSEZ, there would be a big boost to the rural employment mainly from the surrounding villages and towns. The company would provide training to the employees by foreign technicians to meet the industry requirements.
