"Toy market to reach Rs 13K cr by 2015"

New Delhi, Jan 8 (IBNS) Growing at a compounded annual growth rate (CAGR) of about 20 per cent the Indian toy market is likely to reach Rs 13,000 crore by 2015, apex industry body ASSOCHAM said Sunday.

The domestic toy market is currently poised at about Rs 7,500 crore according to the a study titled 'Toy Industry in India: The Way Forward' released by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

"The Indian toy industry caters to nearly four crore kids in the age group of 12 years across the country but domestically manufactured toys account for a meagre 15 per cent of the market and the rest of the market is flooded with imported toys from countries like China, the United States (US), the UK, Korea and Malaysia among others," said D.S. Rawat, secretary general of ASSOCHAM while releasing the findings of the study.

"Dogged by lack of advertising, distribution, innovation, infrastructure, marketing, usage of technology and abundance of imported products the domestic toy industry must be provided with credit and marketing assistance by the government," said Rawat.

The toy industry provides a wide range of products like board games, collectibles, construction toys, educational games, electronic toys, mechanical toys, puzzles, stuffed toys and toy vehicles, said the ASSOCHAM study.

The toy industry in India is highly fragmented, unorganised and is predominantly dominated by micro, small and medium scale manufacturers. Besides, there are nearly 2,000 units in the organised sector.

"Centres like Ahmedabad, Bangalore, Delhi, Hyderabad, Kolkata and Pune are fast emerging as toy manufacturing hubs," said Rawat.

The toy industry employs nearly 25 lakh people both in the organised and unorganised sector. Nearly 70 per cent of toy market in India is unorganised.

Small toy shops rule the unorganised toy industry while multi-brand toy outlets and branded toy shops in malls displaying top quality toys from brands like FisherPrice, Funskool, Hamleys, Hasbro International, Lego, Majorette, Mattel, NICI and others catering to the middle class and above.

Many of these companies have also jumped on the e-commerce band wagon and are retailing their toys and games online, but the domestic toy manufacturers are yet to take an initiative in this regard as most of them are still dependent upon traditional toy shops spread across cities and towns.

Emergence of video games has dented the toy business across the world as there is an evident shift from traditional toys and games to video games. As a result, international toy manufacturers have also expanded their operations in the video game segment.

ASSOCHAM has called for providing funds for skill development, subsidies and setting up of dedicated research centres and manufacturing facilities to enhance the skills of the toy manufacturers in India.

"Besides, parents must inculcate among kids as to how traditional toys and games play a significant role in learning about life," said Rawat.