Consumer Durables News

Toy industry faces the heat of slowdown- The New Indian Express


By Express News Service

BENGALURU:  With macroeconomic conditions and recession fears, the global toy industry is facing the heat with sharp declines in higher value products. Aravind Melligeri, CEO of Aequs, a contract manufacturing company for aerospace, toys, and consumer durables goods industries, said they are feeling the heat as higher value products ( USD 50 and above) have been struggling in the market.

Aequs, which is into exports, has set up a 400-acre toy cluster in Koppal, Karnataka. It is also focusing now on the domestic market. With the holiday season coming in, the exact demand and impact would be known. “Some volumes are coming down,” he said. With the holiday season coming in, they are yet to see how the impact would be. But USD 15-USD 20 products are doing fine compared to USD50 and above, he said.

Melligeri sees huge opportunities in the domestic market, and hopes production-linked incentives (PLI) for toys will boost exports. It has the potential to create many jobs. The Indian toy industry has been growing, as exports have increased to USD 177 million in 2021-22, and this could reach USD 1 billion in the next five years.

Of the about USD 90 billion global toy market, India accounts for only USD 1.5 billion annually. China dominates in the toy business, followed by Vietnam and Mexico. Aequs is currently doing only certain types of toy products and not complex ones like dolls. “We don’t make dolls like Barbie as they are more complex,” he said. The firm also has an industrial park for consumer durables in Hubballi, Karnataka.

“We started the consumer durable business during Covid time. During pandemic, we realised that this could be an opportunity to scale up,” he said. Aequs specialises in precision machining for AeroSystems, Aerostructures, landing gear and engine components, forging and surface treatment, among others. 

BENGALURU:  With macroeconomic conditions and recession fears, the global toy industry is facing the heat with sharp declines in higher-value products. Aravind Melligeri, CEO of Aequs, a contract manufacturing company for aerospace, toys, and consumer durables goods industries, said they are feeling the heat as higher value products ( USD 50 and above) have been struggling in the market.

Aequs, which is into exports, has set up a 400-acre toy cluster in Koppal, Karnataka. It is also focusing now on the domestic market. With the holiday season coming in, the exact demand and impact would be known. “Some volumes are coming down,” he said. With the holiday season coming in, they are yet to see how the impact would be. But USD15-USD 20 products are doing fine compared to USD50 and above, he said.

Melligeri sees huge opportunities in the domestic market, and hopes production-linked incentives (PLI) for toys will boost exports. It has the potential to create many jobs. The Indian toy industry has been growing, as exports have increased to USD 177 million in 2021-22, and this could reach USD 1 billion in the next five years.

Of the about USD 90 billion global toy market, India accounts for only USD 1.5 billion annually. China dominates in the toy business, followed by Vietnam and Mexico. Aequs is currently doing only certain types of toy products and not complex ones like dolls. “We don’t make dolls like Barbie as they are more complex,” he said. The firm also has an industrial park for consumer durables in Hubballi, Karnataka.

“We started the consumer durable business during Covid time. During pandemic, we realised that this could be an opportunity to scale up,” he said. Aequs specialises in precision machining for AeroSystems, Aerostructures, landing gear and engine components, forging and surface treatment, among others. 



Source link