Karnataka woos toy makers to Koppal manufacturing cluster

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SME Times News Bureau | 25 Aug, 2020
Giving a fillip to the domestic toy making call by Prime Minister Narendra Modi, the Karnataka government is wooing global toy makers by creating a manufacturing cluster in Koppal, an official said on Tuesday.

"Karnataka has a legacy of toy making. The state is focusing on building a strong toy manufacturing industry by providing all the required ingredients. We have also identified Koppal as the first toy manufacturing cluster in India," said Karnataka Commerce and Industries Department Principal Secretary Gaurav Gupta.

Koppal is 351 km northwest of Bengaluru.

Addressing a bunch of top toy executives, he said the state is making sure that it builds a world-class cluster for all investors.

Gupta held a virtual meeting on Monday evening with Aravind Melligeri, chairman and CEO of Aequs, Mike Burrows, vice president of contract manufacturing for Mattel Asia Pacific, Sanjiv Khullar, Hasbro Fast East managing director for India, Southeast Asia and others.

As part of the toy manufacturing push, Karnataka is inviting domestic and international toy makers. According to official estimates, the southern state is the third largest toys market in India with a value of $159 million, 9 per cent of the national market.

Growing at a CAGR of 18 per cent from 2010 to 2017, the state's toy market is expected to touch $310 million by 2023.

In the webinar titled 'Establishing India as global toy manufacturing hub - global prospects and Karnataka opportunities', Gupta highlighted that labour intensive manufacturing is being seen as a focus that would help the toys' industry.

"Toy manufacturing in Karnataka is getting a renewed push after PM Modi's clarion call that Indian toy market has enormous potential and can bring a transformative change in the industry by promoting 'Vocal for Local' under Aatmanirbhar Bharat campaign," said the official.

He reminded the toy executives that the state has supported and nurtured the setting up of Tool Manufacturing and Precision Engineering (TMTP) and polymers manufacturing clusters in Bengaluru, Dharwad, Tumkur and Mysuru.

"Robust design capacity and testing certification agencies in Bengaluru, Dharwad and Koppal and GTTC (Government Tool Room & Training Centre). With such dedicated push by the government towards toy manufacturing, the state's toy industry has grown at a CAGR of 18 per cent (2010-17) and is expected to reach $310 million by 2023," said the official.

Further, the state government has also set up a Product Specific Industrial Cluster Development (PSICD) programme to give a shot in the arm of the toy sector.

"This objective of the cluster is to increase the share of manufacturing in state GDP, develop state-of-the-art infrastructure, meeting industry needs, improve need-based skill development assistance and bring a balanced socio-economic development and attract $700 million investment for this cluster," he said.

According to Gupta, Karnataka offers world class machine tools infrastructure and favourable labour laws for toy manufacturers, even as the state is building a sustainable toy manufacturing ecosystem by introducing fiscal and non-fiscal subsidies to facilitate investments.

Located by the National Highway 63, the Koppal toy cluster is easily accessible.