KEY POINTS TO START A TOY BUSINESS IN INDIA
There have been many people who wish to start a business , but don ’ t know how ?
I believe in starting from the basics : What do you like ? Now ‘ money ’ or ‘ getting rich ’ is not the right answer . Money will be a by-product of your success , which will follow . I do not remember who , but I read somewhere a successful businessman saying : “ It took me 25 years to make an overnight success .”
I realized that the person had so much passion and love for his work that he didn ’ t realize the years go by . Similarly , it is important that one realizes what one cares for , loves doing , and then carefully plan your goal to get there . One need not give up the current job to go ahead . We plan for our holidays , we even plan to see a particular movie ( which theatre , 2D or 3D , etc ) but do not plan our lives .
It is important that while planning , one needs to keep in mind the following :
Location : Where would you like to have your manufacturing set-up ? E . g .: toys need lots of space ( especially for storage ) as they are voluminous . Hence the capital investment in location will be a major investment . Cheaper locations will require moving to tier 2 or tier 3 cities , else daily commute ( if within 2 hours ). Remember , one could be traveling 4-6 hours every day , which could affect family life . Then the power requirement and the power supply in the area , labor availability ( both skilled & unskilled ), etc . It is better to chose a location where the government ( either center or state ) has some subsidies like being a part of a cluster , etc . Other factors to be considered : availability of raw material , transport ( if market is beyond the location ), closeness to port ( if looking at exports ), etc .
Product : What you wish to manufacture ? E . g ., again in toys , will it be plush toys , wooden toys , plastic toys , etc .
Who will design the toys ? Its molds / packing / etc . What is the uniqueness of your products vis-à-vis the products already available in the market .
Market : One must be aware of the market size . There should be solid data to substantiate the requirement . Who are the existing players , the main brands , etc . What are they doing and how can you differentiate your product line from theirs ? Educating , not only the consumer but the entire supply chain .
Statutory requirements : Company registration , GST , PAN , BIS , etc are all statutory requirements to begin any manufacturing company . This includes PF , ESIC , etc .
Plan long term : Manufacturing is always a long - term plan . Hence location too should be selected accordingly taking into account the expansion going ahead . Have a ROI ( return of investment ) of 3-6 years , depending on the product . If it is a patented product with a market monopoly , ROI could be lower .
The important thing is : not to lose focus , believe in yourself , take feedback ( especially negative feedback ) to improve , make quality products ( do not compromise on it ), create something new and most importantly , remember that India is a price sensitive market . The perception of the product value should be higher than its cost .
Manish Kukreja President , The All India Toy Manufacturers Association ( TAITMA ) Director & CEO : Min Toy Pvt . Ltd .
Kids India E-Magazine - March 2022 | Page 17