Hyderabad: Indian toy company Funskool India is all set to bring in German toys into the country. For this purpose, it has partnered with Germany-headquartered Playmobil brand through a distribution agreement. As part of the agreement, Funskool will be the exclusive distributor of Playmobil toys in India and will offer the same toys that are being played by kids globally to Indian kids.
The 140-year-old toy company Playmobil has been in the international market since 1974 and this is the first time that it is entering India through Funskool. All the toys of Playmobil starting from figures to bigger sets will be now available to Indian kids. “We employ 4,200 people worldwide and dispatch about 60 million packages per year. We sell our products in 100 countries worldwide and are betting big on the Indian market,” said Jens Mohrle, senior director international business development, Playmobil.
Meanwhile, Funskool – which is part of the Rs 15,000 crore MRF group – is also very positive about the partnership and said that in the next two to three years it should impact their business significantly. Playmobil is one of the many companies with which Funskool has a distribution partnership. Other companies include Takara Tomy, Leapfrog, Asmodee, Rubik’s and many others.
In terms of factories, Funskool has two factories in Ranipet and Goa and going ahead it is planning to set up one more manufacturing unit in Tamil Nadu itself. Speaking about the third unit, John Baby, CEO, Funskool said, “We will be setting up a fully operational plant by August or September in Tamil Nadu with an initial cost ranging between Rs 25 crore to Rs 40 crore. We still have not decided on the exact location of the plant.”
Toy manufacturer is also expecting a growth rate of 20-25 per cent in the coming year and this year it had a turnover of Rs 240 crore. Apart from the two factories, the company also has 16 warehouses, 5,000 retailers and 85 marketing professionals. And according to Funskool’s senior V-P (marketing and sales), R Jeswant, the Indian market is pegged at $400-$425 million with a CAGR of 10-12 per cent. “And this is just 0.5 per cent of the global market. So, this shows that there is huge potential for the market to grow,” he said.