The Indore-based company signed an agreement with Reliance Retail a couple of months ago. (Photo: Shutterstock)
Candytoy Corporate, a leading candy toy manufacturer, has partnered with Reliance Retail to supply candy toys to 1,400 stores of the country’s leading retailer, a top company official said.
The Indore-based company entered into an agreement with Reliance Retail a couple of months ago, said founder director Gaurav Mirchandani.
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“We already have a purchase order for more than 15 outlets right now, which is active, and 200 outlets will be active by the end of Diwali, and 1,400 outlets will be active by the end of this financial year,” he said Mirchandani to PTI.
When asked about the size of the order, he said it would have a run rate of Rs 2 crore per month across Reliance Retail 200 stores, and this would scale up to Rs 4-4.5 crore per month eventually. of this fiscal year.
“We have more than 75 SKUs in the sweet and savory sweet flavors category, which we supply to Reliance Retail,” he said.
Candytoy Corporate (CTC), valued at nearly Rs 1,000 crore, supplies other retailers globally in 40 countries.
It also plans to divest around 10 percent of equity to fund its future expansion plans and consider an initial public offering (IPO) in the next 2-3 years.
CTC is a global manufacturer of promotional toys and confectionery through its five plants and 11 contract manufacturers, supplying 40 countries on three continents.
When asked about the company’s revenue, Mirchandani said, “We expect to close this fiscal year between Rs 260-280 crore. Next fiscal year, we expect to close between Rs 400-450 crore.”
CTC manufactures candy toys for a number of companies including Colgate Palmolive, Puma, MTR, Bournvita, Yellow Diamonds, Vistara Airlines and AirAsia, among others.
“We already have the purchase orders, so to implement them we need some time for the opening of new molds, the opening of new facilities and things like that. Therefore, the result will be visible in the next fiscal year,” he added.
In this fiscal year, CTC expects to earn around Rs 120 crore from export markets and Rs 200 crore from the domestic market, which includes its B2C sales and channel partners, he said.
When asked about fundraising, Mirchandani said, “We are already in talks with some big investors.”
On going public, he said: “In the next two years, after the close of financial year 2026-27, we will explore the possibilities of going public.”
Generally, CTC manufacturers in India make promotional toys, sweet toys, Barbie dolls, electronic toys, DIY toys, LED toys, musical toys, prank toys, sticky toys, etc.
(Only the title and image of this report may have been modified by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 29, 2024 | 13:29 IS
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