Funskool’s Goa plant contributes 65% to its domestic output

Funskool, which is one of the largest branded toy manufacturing companies in India, started its plant in Corlim Industrial Estate sometime in the late 1980s. In the last thirty years, the plant has had two expansions and has emerged as the largest contributor to Funskool's domestic manufacturing output.
John Baby, chief executive officer (CEO), Funskool India, said, "Of the products we manufacture in India, 65% come from Goa. We manufacture more than 600 stock keeping units (SKUs) in Goa."
This shows the importance of Goa plant in Funskool's overall scheme of things. In fact, apart from Goa, Funskool has only one other manufacturing plant in the country. Baby said, "We are looking at starting our third factory soon."
Baby thinks that double digit growth is certain for branded traditional toys segment in India in the coming year. The size of branded toys market in the country is very small because most people buy unbranded, cheap toys, which often are imported from China.
However, in the last 5 years, branded toys segment has grown in India as well, as brands like Hamleys (headquartered in UK) and Toys"R"Us (headquartered in US) have opened retail stores, which sell branded toys in metros of India.
Baby explained, "In India, till the 1970s, no one bought toys. The first generation, which bought branded toys, was born in 1980s. Now that generation has become parents themselves and they understand the importance of toys in the emotional, social and psychological development of a child."
Knowing the inherent need of toys in modern world, Funskool launches 5 to 6 new products every month. Talking about recent launches, Baby said, "We recently launched ‘Engino' range of toys in India, which is an educational toy manufactured in Cyprus. In time, we would like manufacture this range in India"
Engino range of toys combine learning with fun, as it covers aspects of mechanics and robotics. This is what is extremely crucial for the development of a child, especially at a young stage. These days the size of nuclear families is really small. Typically, husband and wife both work and they choose to have only one kid in metros.
In such cases, it is extremely important that kids engage with other kids in the neighbourhood. Playing together with traditional toys is an excellent way for development of interpersonal and social skills in a child.
Baby also informed that Funskool is soon going to launch new version of its hugely famous ‘Beyblade' range. These are a range of spinning top toys, which have been popular in the whole world since the year 2000, when they were launched.
Funskool manufactures toys in its two plants in India. Some of these toys are manufactured under a license from a foreign partner.
When it comes to the retail of traditional toys in Goa, there's an interesting dichotomy. Although, per capita in Goa is really high compared to other parts of India; but still, brands like Hamleys and Toys"R"Us haven't opened their stores in Goa.
In fact, Baby informed that there are 20 Funskool Retail Outlets in India selling toys made and imported by the company. But, Goa still doesn't have a Funskool store.
This is mainly because there are very few malls in Goa and the retail scene is under-developed in the state compared to other parts of India. But, that's not a major concern because there are home-grown stores in Panaji and Margao exclusively selling toys. In fact, few supermarkets also sell branded toys in Goa.
At pan-India level, Baby sees a huge potential in the manufacturing of traditional toys. He said, "The manufacturing of traditional toys is a highly labour intensive industry.