how to start a toys manufacturing business

How to Start Toys Manufacturing Business – Complete Guide

Toys hold a special place in the hearts of children worldwide. Hence launching the toys manufacturing business is an exciting and potentially lucrative venture. If you’re passionate about creating joy through play, starting a toys manufacturing business could be the perfect opportunity. Here’s a comprehensive guide to help you start the business.

The Indian toy industry is witnessing significant growth, fueled by rising disposable incomes, urbanization, and changing consumer preferences. According to this report, the Indian toys market size reached US$ 1.7 billion in 2023. The market is projected to reach US$ 4.4 billion by 2032.

With a large population of children under the age of 14, there is a consistent demand for toys in India. Moreover, the increasing awareness of the importance of play in child development has led to a surge in demand for educational and interactive toys.

Table of Contents

13 Steps to Start Toys Manufacturing Business

1. Market Research

Begin by conducting thorough market research to understand the demand for different types of toys in the Indian market. Analyze consumer preferences, trends, and competition to identify potential niches and opportunities.

2. Identify Your Niche

India offers a plethora of opportunities for niche toy markets due to its diverse population and varied cultural influences. Consider specializing in educational toys, eco-friendly toys, traditional Indian toys, or innovative tech-driven toys based on your interests and market demand.

Here are some potential niche ideas for a toy manufacturing business:

  • Educational Toys: Develop toys that promote learning and skill development in areas such as STEM (Science, Technology, Engineering, Mathematics), language learning, problem-solving, and creative thinking.
  • Eco-Friendly Toys: Create toys using sustainable materials such as wood, bamboo, recycled plastic, or organic cotton to appeal to environmentally conscious consumers.
  • Ethnic and Traditional Toys: Design toys inspired by traditional Indian culture, folklore, and heritage, incorporating elements such as traditional attire, musical instruments, and folk tales.
  • Gender-Neutral Toys: Produce toys that break away from traditional gender stereotypes, offering inclusive and diverse play experiences for children of all genders.
  • Customized and Personalized Toys: Offer customizable toys that allow customers to personalize features such as colours, designs, and names, catering to individual preferences and special occasions.
  • Interactive and Tech-Enabled Toys: Integrate technology such as augmented reality (AR), virtual reality (VR), or interactive sensors to create immersive and engaging play experiences.
  • Special Needs Toys: Develop toys designed specifically for children with special needs or disabilities, focusing on sensory stimulation, motor skill development, and therapeutic benefits.

3. Develop a Business Plan

A well-defined business plan is essential for guiding your venture towards success. Write a business plan document by outlining business objectives, target market, product range, manufacturing process, marketing strategy, and financial projections.

4. Legal Formalities

Register your toy manufacturing business as a legal entity and obtain the necessary licenses and permits required to operate in India. This includes GST registration, Factory License, Pollution Control Board clearance, and any other industry-specific certifications.

Read: How to Register a Company in India

5. Secure Funding

Determine the capital required to set up and operate your toys manufacturing unit. Explore various funding options such as personal savings, bank loans, government schemes, or investments from venture capitalists or angel investors.

6. Set Up Manufacturing Infrastructure

Establish a manufacturing facility equipped with the necessary machinery, equipment, and skilled manpower for toy production. Ensure compliance with safety and quality standards throughout the manufacturing process.

Read: Top Small Manufacturing Business Ideas

7. Source Raw Materials

Identify reliable suppliers for high-quality raw materials required for toy production. Establish partnerships with suppliers who can consistently meet your quality and quantity requirements at competitive prices.

8. Design and Prototyping

Invest in innovative and appealing toy designs that cater to the preferences and developmental needs of children. Create prototypes to test the functionality, safety, and market appeal of your toy designs before mass production.

9. Quality Control Measures

Implement stringent quality control measures to maintain the safety and durability of your toys. Conduct regular inspections and testing procedures at various stages of production to ensure compliance with national and international quality standards.

10. Packaging and Branding

Design attractive and child-friendly packaging for your toys that highlights their features and benefits. Invest in branding efforts to create a distinct identity for your toy brand through logos, labels, and packaging designs.

11. Distribution Network

Develop a robust distribution network to reach your target market effectively. Explore partnerships with wholesalers, retailers, online marketplaces, and toy stores to distribute your products across India.

12. Marketing and Promotion

Create a comprehensive marketing strategy to raise awareness about your toy brand and attract customers. Utilize digital marketing channels, social media platforms, influencer collaborations, and offline advertising to reach your target audience.

13. Scale Up and Expand

As your toys manufacturing business grows, consider expanding your product range, exploring new markets, and diversifying your distribution channels. Continuously innovate and evolve to stay competitive in the dynamic toy industry landscape.

Conclusion: Starting a toys manufacturing business in India requires dedication, creativity, and meticulous planning. By following these steps and staying committed to quality and innovation, you can build a successful toy brand that brings joy and laughter to children across the country.

Machinery Required for Starting a Toys Manufacturing Business

Some of the major machinery and equipment needed to make toys commercially are listed below:

⇒ Injection Moulding Machine

Injection moulding machines are essential for manufacturing plastic toys. These machines melt plastic resin pellets and inject the molten material into moulds to produce the desired toy shapes.

⇒ Extrusion Blow Moulding Machine

Used for manufacturing hollow plastic toys such as balls, bottles, and containers, extrusion blow moulding machines extrude molten plastic through a die and inflate it into a mould cavity.

⇒ Rotational Moulding Machine

Rotational moulding machines are used for producing large, hollow toys with complex shapes. This process involves rotating a mould while heating it, allowing the molten plastic to evenly coat the interior and form the desired shape.

⇒ Injection Stretch Blow Moulding Machine

It is Ideal for manufacturing PET (polyethylene terephthalate) plastic toys. Injection stretch blow moulding machines combine injection moulding and blow moulding processes to produce bottles, jars, and other containers.

⇒ Compression Moulding Machine

Compression moulding machines are suitable for producing small batches of toys with intricate designs. This process involves placing plastic material in a heated mould cavity and applying pressure to compress it into the desired shape.

⇒ Vacuum Forming Machine

Vacuum-forming machines are used for manufacturing thin plastic toys with shallow or flat shapes. This process involves heating a plastic sheet until it becomes pliable, then placing it over a mould and using vacuum pressure to form it into the desired shape.

⇒ Blow Moulding Machine

Blow moulding machines are used for producing hollow plastic toys such as bottles, containers, and figurines. This process involves blowing compressed air into a heated plastic parison (tube) placed in a mould cavity to expand and shape it.

⇒ Cutting and Trimming Equipment

Cutting and trimming equipment are used to remove excess material and trim the edges of moulded toys to achieve the desired shape and finish.

⇒ Assembly Line Equipment

Assembly line equipment such as conveyor belts, robotic arms, and sorting machines are used to streamline the assembly process and increase production efficiency.

⇒ Quality Control Equipment

Quality control equipment such as inspection cameras, measuring devices, and testing machines are essential for ensuring the quality and safety of manufactured toys.

⇒ Packaging Machinery

Packaging machinery such as sealing machines, labelling machines, and shrink-wrapping machines are used to package the finished toys securely and attractively for distribution.

⇒ Auxiliary Equipment

Auxiliary equipment such as material handling systems, mould temperature controllers, and mould cleaning equipment are necessary for supporting the operation of the primary manufacturing machinery.

Cost of Starting Toys Manufacturing Business

Starting a toys manufacturing business involves various expenses, including setup costs, machinery procurement, raw materials, labour, marketing, and regulatory compliance. Here are the major cost components:

Setup Costs:

  • Registration and Legal Formalities
  • Office Space or Industrial Shed Rent
  • Utility Setup (Electricity, Water, Internet)
  • Office Furniture and Equipment

Machinery and Equipment:

  • Injection Molding Machine
  • Blow Molding Machine
  • Extrusion Blow Molding Machine
  • Rotational Molding Machine
  • Other Machinery (Cutting, Trimming, Assembly Line)

Raw Materials:

  • Plastic Resin
  • Packaging Materials
  • Other Raw Materials (Paints, Glues, Accessories)

Labor Costs:

  • Skilled and Semi-skilled Workers
  • Factory Supervisors and Managers

Marketing and Branding:

  • Website Development and Design
  • Marketing Collaterals (Brochures, Catalogs)
  • Digital Marketing (Social Media, PPC)

Regulatory Compliance:

  • License and Permit Fees
  • Quality Control Certifications

Miscellaneous Expenses:

  • Transportation and Logistics
  • Contingency Fund
  • Initial Working Capital

Total Estimated Cost:

The total estimated cost of starting a toys manufacturing business in India can range from ₹50 lakhs to ₹5 crores, depending on factors such as scale of operations, production capacity, location, quality standards, and marketing strategy.

Frequently Asked Questions

What types of toys are in high demand in the Indian market?

The demand for toys in India varies based on factors such as age group, cultural preferences, and educational value. However, educational toys, eco-friendly toys, and traditional Indian toys are gaining popularity among consumers.

Do I need any special qualifications or skills to start a toys manufacturing business?

While having a background in product design, engineering, or manufacturing can be beneficial, it’s not mandatory. What’s more important is creativity, a passion for toy-making, and a willingness to learn and adapt to the industry’s requirements.

How much capital is required to start a toys manufacturing business in India?

The capital required depends on various factors such as the scale of operations, manufacturing setup, raw material costs, and marketing expenses. It’s advisable to conduct a thorough cost analysis and create a detailed budget plan before starting your venture.

Are there any government incentives or subsidies available for toys manufacturing businesses in India?

Yes, the Indian government offers various incentives, subsidies, and schemes to promote manufacturing and entrepreneurship in the country. Entrepreneurs can explore options such as the Make in India initiative, MSME schemes, and state-specific industrial policies for support.

How can I ensure the safety and quality of my toys?

Implementing stringent quality control measures, adhering to national and international safety standards, and conducting regular testing and inspections are crucial steps to ensure the safety and quality of your toys. Collaborating with reputable suppliers and manufacturers can also help maintain quality standards.

What are the challenges faced by toys manufacturing businesses in India?

Some common challenges include sourcing quality raw materials, maintaining competitive pricing, navigating regulatory compliance, managing inventory and supply chain logistics, and staying innovative in a rapidly evolving market.

Is it necessary to obtain certifications for toy manufacturing?

Yes, obtaining certifications such as ISI certification, BIS certification, and CE marking is essential to demonstrate compliance with safety and quality standards mandated by regulatory authorities in India and international markets.

How can I stay updated on the latest trends and innovations in the toy industry?

Staying connected with industry associations, attending trade fairs and exhibitions, networking with peers and experts, and actively monitoring consumer trends and market research reports are effective ways to stay updated on industry developments.