COMPANY SNAPSHOT

• A toy manufacturing company under Deepak Houseware & Toys (DH&T), founded by Deepak Chaudhary and launched in August 2020.
• Produces a wide variety of toys—from plastic and electronic to ride-on vehicles (like Mercedes/BMW-style bikes) and role-play sets.
• Urban Tots is a fast-growing, India-based toy manufacturer, supported by government incentive programs, making headway across retail and online markets. With strong financial growth and strategic partnerships, the company is on track for an IPO and sets its sights on becoming a major global toy exporter.

Scale & Reach

• Operations are based in a 36,000 sq yard facility in Bhiwadi, Rajasthan, with over 350 employees.
• Products sell through major retailers (Hamleys, FirstCry, DMart, Reliance Retail) and online platforms (Amazon, Flipkart).
• They also operate their own retail “Urban Tots” outlets.

Government Support & Strategy

• Strong beneficiary of India’s PLI (Production Linked Incentive) scheme for toys—a ₹3,489 Cr fund to promote local manufacturing.
• Thanks to higher import duties (20% → 60%), they face less foreign competition.

Future Plans & Path to IPO

• Went public (unlisted shares) in May 2024 in preparation for a full IPO by 2026.
• Raised ₹60 Cr pre-IPO funding at ₹553 Cr valuation; aims to grow revenue to ₹200–400 Cr by 2026, and eventually reach ₹2,000 Cr by FY2031 through new plants.

Competitive Edge

• Positions itself as a serious competitor to brands like OK Play.
• Recently partnered with Mahindra to produce branded toy tractors and launched collaborations with Hasbro and Anganwadi programs, adding significant order value.

INDUSTRY OUTLOOK

Market Size & Growth

• Current size: Estimated at ₹14,000–16,000 crore (as of FY2024).
• Projected size: Expected to reach ₹33,000–39,000 crore by FY2032.
• Growth rate: Strong CAGR of ~10–12%, driven by rising middle-class spending, educational toys, and domestic manufacturing.

Shift from Importer to Exporter

• Import value dropped from ~₹2,400 crore (FY19) to ₹550 crore (FY24), a decline of ~77% due to import duties and quality restrictions.
• Export value rose from ~₹870 crore to ₹1,250–1,450 crore, growing at over 12–15% CAGR.
• India has now become a net exporter of toys.

Government Push & Incentives

• PLI Scheme: Announced at ₹3,489 crore, aimed at boosting domestic toy manufacturing with financial incentives.
• Custom duties on imported toys increased from 20% to 70% to encourage local sourcing.
• Mandatory BIS certification for toys improved safety standards and global export readiness.

Key Growth Drivers

• Rising demand for STEM and educational toys among urban parents.
• Growth of e-commerce (Amazon, Flipkart, FirstCry) is pushing toy sales into Tier 2 & 3 cities.
• Brand licensing and partnerships (e.g., with Hasbro, Disney) are increasing premium toy sales.
• Eco-conscious shift toward biodegradable, wooden, and recycled-material toys.

Global Positioning & Opportunity

• India benefits from the “China + 1” manufacturing strategy as global toy companies diversify production bases.
• The global toy market is worth ₹7–8 lakh crore, and India aims to expand its current ~1.5% share to ~5% by 2030.
• Export opportunities in Middle East, Europe, and the US are growing—particularly for traditional toys, plastic ride-ons, and role-play sets.

Summary

India’s toy manufacturing industry is in a rapid transformation phase, moving from a highly import-dependent market to an export-ready, government-supported sector. With strong domestic demand, rising exports, policy incentives, and a surge in organized manufacturing capacity, India is poised to become a global hub for toy production in the next decade.

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