Age is no bar for starting up or playing with toys, as ToyKraft will tell you
Most entrepreneurs that we have written about have turned to starting up to fulfill their long held passions. But in case of Anuj Mehta he donned the entrepreneur hat, to help save their family business. Anuj is Mathematics graduate and also a trained computer programmer, while he does enjoy coding, he shouldered the responsibility of bringing on track a sinking toy business that he inherited from his father. “We were OE suppliers to Blow Plast India Ltd – LEO Toys, but when the company exited the country in late 90s, we had trouble staying afloat,” says Anuj.
Anuj incepted the brand ToyKraft in 1999. The initial few years were spent in understanding ropes of business and he decided to turn distributor with their existing toy range. “From 1999 to 2005, was a real struggle as the import from China for toys was at its peak,” explains Anuj. In the course of his travails, he met Dr. Shyam Makhija, who was also distributing toys in Mumbai. Both of them joined hands to launch new and innovative line of toys under the ToyKraft brand name.
Dr. Makhija has a Ph.D in organic chemistry, and has a work experience of 20 years in R & D, before he turned entrepreneur. As a scientist, he had organized a Barbie-themed birthday party for his seven-year old daughter and that resulted in his peaking of interest in the toys space. “I started distributing toys when the Indian market was very chaotic and unorganised. Later when the Government allowed import of toys, I saw an opportunity to bring quality toys from internationally well-known brands to the Indian consumer,” he says. His distribution company – Blaze Marketing was one of the earliest suppliers of toys to then very nascent organized toy retail industry in India.
Since joining hands in 2007, Anuj & Dr. Makhija have introduced over 250 product variants in the organized toy market of India. This was also the year, the company was rechristened Pegasus ToyKraft. The space – of organized toys – in India is currently pegged at Rs 1200 crore. They are today one of the very few Indian companies that make and sell their own toys. Most people in the space are resellers or distributors of international brands. While ToyKraft has products across educational games, board games, construction and art & craft, Dr. Makhija says art & craft has been their strength. With over 170 products to choose from, that is also the strongest vertical in their portfolio. “By introducing Indian traditional products like rangoli and paintings in Warli and Madhubani art, this segment has been growing very well for us,” he says. ToyKraft also sells its art & craft products through normal organized retail and are not just dependant on toy stores for sales. All the toys, sold by the company adhere to international safety standards of ICTI.
ToyKraft works closely with all the major toy stores like Hamleys and Beanstalk and also sells through online stores like Flipkart.com, Firstcry, Babyoye.com and their own online shop at www.toy-kraft.com. The venture is also a major exporter of toys and has participated in German and New York Toy Fair. Their products are also supplied to stores in Australia, Sri Lanka, South Africa, Russia, Romania, Bulgaria, Egypt, Lebanon, Jordan, UAE & USA. Anuj says that today about 30% of their earnings comes from the international market and 70% from India. Another very interesting collaboration that ToyKraft has done is with Club Mahindra, where they have taken up the responsibility of creative corner in each of the Club Mahindra resort. This creative corner stocks many toys made by the company, which can be enjoyed by visitors to the resort, says Anuj.
Anuj also claims to be the only indigenous toy company in the country to innovate and build its own products. “We have hired graduates from National Institute of Design to help us bring newer products in the market,” says Dr. Makhija very proudly. He says they are in discussions with an European toy manufacturer to build and distribute one of the toys that they have invented, in the European market. “It is a very proud moment for us, that our toys are not just being appreciated, such tieups are very encouraging,” says Dr. Makhija.
The company is based in Mumbai and currently has a team of 56 people. They have their own manufacturing facility in Vasai in Western Mumbai and an R&D centre at Wadala, where newer toys are researched and build. Looking back at their journey for five years, Anuj agrees there have been many tough times, but he is also happy with the way they have grown – the company had a turnover of Rs 8 crore last year. Talking about the future, Dr. Makhija says they want to help improve awareness of educational toys among Indian customers, which according to him is an area of opportunity for them. However he also agrees that India will always remain a price sensitive market when it comes to toys, and therefore they want to focus equally on expanding in international markets, where he thinks there is a better scope and demand for branded toys.
Read the other stories we have done on startups in the toys space, here & here
