Candytoy Corporate Pvt Ltd (CTC) had a turnover of around Rs 250 crore in the fiscal year 2023-24 | Illustration: Binay Sinha
Candytoy Corporate, the candy toy maker for companies such as Colgate, Puma, MTR, Bournvita, Yellow Diamonds, Vistara Airlines and AirAsia among others, is targeting a turnover of around Rs 450 crore for the next fiscal year, said founder director Gaurav Mirchandani.
Furthermore, to fund its growth plans, the Indore-based company has plans to raise Rs 90 crore by divestment of 10 per cent equity capital at a valuation of Rs 900 crore, it added.
The startup also plans to go public in the next three years, Mirchandani said.
“We are diluting 10 per cent stake in the company through a VC. We are bringing in Rs 90 crore which will be invested primarily this year to ensure that we are targeting a turnover of Rs 400-450 crore by the next financial year,” Mirchandani told PTI.
Candytoy Corporate Pvt Ltd (CTC) had a turnover of around Rs 250 crore in the fiscal year 2023-24.
“Now, with orders growing 30 percent year-over-year over the past two years, we see the need to open new plants not only to meet this growth in demand but also to bring in new product lines,” he said.
The company, with 250 injection molding machines, produces 10.5 million candy toys a day.
“Our third manufacturing facility in Indore has just started operations and we will soon start manufacturing at our Jebel Ali plant (near Dubai, UAE) as well, which will cater to brands in UAE, Saudi Arabia, Oman and Kuwait,” he said.
CTC has invested Rs 35 crore ($5 million) in both plants and plans to enter newer categories including inflatables and water bubble toys, Mirchandani added.
Mirchandani said the Indian market has “immense” growth potential as only a few companies like Ferrero India, with its Kinder Joy, offer chocolates with a surprise toy.
“Most of these candy toys are imported from China, which has quality problems due to the quality of sugar. Here we use organic sugar, which is good for the child and the accompanying toy has creative value,” he said.
Its major clients include Pratap Snacks, HUL, Colgate Palmolive and Perfetti Van Melle for the domestic market. In the international market, most of its products are currently destined for the United States and Europe.
Founded in 2019, Candytoy Corporate operates with its two brands SM Toys and the candy brand Hoppin Candy Toy, which is the leading manufacturer of plastic promotional toys and candy. About 80 percent of sales come from business-to-business (B2B) brands and the rest from business-to-consumer (B2C) brands.
Overall, CTC, through its five factories (three in Indore, one in Hyderabad and one in Delhi) and 11 contract manufacturers across India, manufactures promotional toys, candy toys, Barbie dolls, electronic toys, DIY toys, LED toys, musical toys, prank toys and adhesive toys etc.
Apart from India, CTC exports to over 35 countries in Europe, USA, Africa, Turkey, South Africa, Japan, Saudi Arabia, Oman, Kuwait and UAE, among others.
First published: August 25, 2024 | 14:05 IS
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