CHENNAI: Toymaker Funskool is planning to set up another manufacturing unit at Ranipet in Tamil Nadu in the first half of 2020. The new unit is likely to come up at a cost of Rs 40 crore and will be located near the existing unit, which was inaugurated in March 2019, said John Baby, CEO, Funskool.
“The old unit was started to focus on the export market. The new unit that we are planning will also cater to export needs. If everything goes as planned, we may start work on the new unit by June 2020,” said Baby. Though the company’s domestic sales were affected due to the economic slowdown, the exports witnessed a 50 per cent growth this year, which helped the company to tide over the difficult times, he added.
“Last year the exports revenue was around Rs 60 crore but this year it has increased to Rs 90 crore. This will help us to maintain the annual turnover as it was around the last year,” Baby further said. Funskool’s revenue was Rs 235 crore in the last financial year. Ranipet is the first choice for setting up a new unit because Tamil Nadu has more skilled manpower and even logistics are easily available in the area. The new facility has been conceptualised keeping in mind the growing demand of the sector.
Funskool, which manufactures toys under various brands such as Giggles, Fundough and Handicrafts, also produces toys for global brands such as Hasbro, SpinMaster. To strengthen its customers base, Funskool is expanding its products range. It has recently introduced Japan’s Sylvanian Families, educational toys from the US-based VTech, and eco-friendly wooden toys from Thailand-based Plan Toys.