Why India For Toy Manufacturing?

India has a very advanced manufacturing sector. With most of the world's major automotive manufacturers making cars in India, there is a huge pool of engineering/production talent, capability and supply chain. There are nearly 25 million people working in the automotive sector and India is the 5th largest manufacturer of cars in the world.

The automotive sector has a lot to offer the toy industry - because cars have a lot of highly engineered, plastic injection moulded parts.Even basic model cars have thousands of individual components, and so the engineering and systems required to make such a complex machine work create some very effective processes. Therefore when car part suppliers move into the toy industry they tend to bring greater discipline and more advanced processes and capabilities with them.

The labour costs in India are significantly cheaper than in other major toy manufacturing companies such as China. So combining advanced processes with cheaper labour leads to significant cost savings. Not every product is cheaper, but on average we estimate our clients are saving around 10%. More importanly, we aren't seeing any significant inflationary pressures beyond commodities.

Clearly there is no point following the crowd for the sake of it, but we canconfirm that out of the Top 10 toy companies in the world, we know for sure at least 6 of them are either already manufacturing toys in India or are very close to beginning. Perhaps even more striking is the fact that many medium sized and even smaller sized toy companies are now active in India.