Comments
An American writer has said that it is easier to build strong children than to repair broken men, but after listening to John Baby, CEO of India’s largest toy manufacturing company Funskool, one may wonder if it is possible to build a strong child without the aid of right toys.
Baby believes that the right toys at the right age will go a long way in developing the mental health of children, besides improving their cognitive skills and creative thinking.
“Children of this generation don’t know what failure or refusal is,” said Baby, pointing to cases of students ending their lives when they fail examinations.
Strategy games
Highlighting the importance of games, Baby said strategic games like board games teach children that winning and losing are a part of life, and that one always has a second chance. But Indian parents, unlike their Western counterparts, don’t see toys and games as tools that shape the character of children, but as an extra-curricular activity.
“But that perception is now changing for good,” he said and added that to avoid the negative effects of mobile phones, many Indian parents are now engaging their children with brain stimulating games such as educational puzzles, board games, art & crafts etc.
Major challenges
Lack of awareness is not the only problem. Excessive imports from China, issues with product pricing, competition from the unorganised sector, high rental costs and lack of ancillary industries to form an ecosystem are some of the major problems crippling this labour-intensive industry.
“Nearly 80-85 per cent of toys in India are manufactured in China,” he said. According to a research, ‘Productivity & Competitiveness of Toy Manufacturing Sector in India’ sponsored by the Department of Industrial Policy and Promotion (DIPP) in 2017, ‘Chinese toys are destroying the Indian toy industry and small and medium manufacturers (SMEs) and nearly 2,000 SMEs have closed down in the last 4-5 years.’
The report added that about 20 per cent of the toy industries are on the verge of closure, with the rise in imports from China and Italy.
Expansion plans
Despite the challenges of Chinese dumping, Funskool, as the largest toy manufacturer with 30 per cent market share in India, is optimistic about its future and is in the process of ramping up production capacity.
“We are adding one more plant at Ranipet in Tamil Nadu which will be operational by February 2019,” said Baby. Funskool’s existing plant at Ranipet employs 250 people. Besides, it has a base factory in Goa with 500 employees.
“The new plant will employ 250 more people,” Baby said and added that the government should protect the domestic toy industry, which gives employment opportunities, particularly for women since the process does not require any heavy lifting.
Chinese competition
“Anti-dumping tariff on Chinese toys or bringing them under non-essential imports are some of the measures the government can take to protect the domestic industry,” he said.
As per the Ministry of Commerce and Industry, import of toys and games increased by 19.43 per cent to $ 599 million in 2017-18 as against $501 million in 2016-17. However, exports for the same period witnessed a mere 3.69 per cent increase to $306 million from $295 million in the previous year.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.