Arts, crafts and learning kits supplier Stone Sapphire will invest around Rs 400 crore by 2022 to expand its distribution base and scale up domestic toy OEMs to tap into the growing toy market, a top official said.
The Gujarat-based firm, which manufactures and distributes arts, craft and stationery kits for children under the brand 'Skoodle', is also a distribution partner of US toy maker Hasbro in India.
"The Indian toy market is expected to touch USD 3.3 billion by 2024. Our intention is to bring global toy brands to India at affordable rates. We will be investing around Rs 400 crore by 2022 which will be utilised for strengthening our distribution base here as well as assisting domestic toy OEMs to manufacture global toy brands in India," Red Ridge Global CEO Vick Rana told reporters.
Stone Sapphire is the Indian arm of Red Ridge Global.
Red Ridge, with experience in markets in China, Canada, Malaysia and the US, where it is manufacturing and distribution partners for global toy brands, wants to replicate the model in India as well so that Indian kids can get enjoy branded toys at affordable rates, he said.
"To push the make in India initiative, the government is likely to announce curbs on import of toys. We intend to take this initiative forward by partnering with global toy makers to have their manufacturing base in India. This will not only give kids access to global brands but will also reduce the cost by almost 30 per cent," Rana said.
The company is also eyeing USD 200 million or Rs 1400 crore revenue from its India operations by 2025. However, the company did not mention its current India revenues, but said the parent company Red Ridge is a USD 500 million firm.
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Stone Sapphire has its own manufacturing facility as well as warehouses in Vadodara and plans to partner with one OEM every month and increase the warehousing capacity to 5 lakh sqft in the near future.
"We have already invested Rs 100 crore last year to add warehousing space, increasing our distribution network to reach smaller towns as well as to partner with domestic toy makers. We already have 10 manufacturing units and we will add one every month going forward. We invest in technology and equipment to meet the global quality standards," Rana added.