Chennai-based toy maker Funskool is expecting to close the financial year ended March 2027 with a topline of ₹400 crore, a 20 per cent growth compared to the ₹329 crore it posted last financial year.
The company, wholly owned by tyre giant MRF, is banking on a robust double-digit growth in its export businesses supported by a growing network of licensing, manufacturing and distribution deals with global brands like Simba Toys (Germany), Molto (Spain), Buffalo Games (USA) and Sanrio (Japan). Exports currently contribute around 70 per cent of the company’s business.
“In the first half of the year, our export businesses grew by 30 per cent. The toy business is cyclical so we probably won’t be able to do that much in the next six months but we are confident we will be able to post a healthy double digit growth for the year,” K A Shabir, CEO, Funskool said during a media roundtable here on Monday.
Funskool exports private label brands as well as its own toys to over 63 countries. The US (including other Americas countries) remains the company’s largest market contributing roughly 44 per cent of the export businesses, while Europe accounts for about 40 per cent with the remaining coming from the rest of the world.
Growing production
India’s toy production has been growing with industry estimates suggesting an annual capacity of 400 million units. Despite this, the share of global toy exports stands at roughly 0.5 per cent, significantly behind China at around 70-80 per cent.
On the manufacturing side, Shabir said that the firm plans to invest roughly ₹30 crores to expand capacity for next year. The company operates two facilities in Ranipet, near Chennai and Goa.
The executive also said that geopolitical issues have led to an increase in both input costs and logistics.
As for Funskool’s own toys, these contribute roughly 30 per cent of the company’s business.
Shabir said that Funskool is also in the process of developing ‘STEM toys’ and science kits that blend science, technology, engineering, and mathematics into hands-on play to build problem-solving and critical-thinking skills
“In India, e-commerce and quick commerce contribute nearly half of our businesses today,” Shabir said.