Aequs expands into ODM with Marvel Toy Collection, overcoming India's Toy Market challenges

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Aequs expands into ODM with Marvel Toy Collection, overcoming India's Toy Market challenges

Aequs expands into ODM with Marvel Toy Collection, overcoming India's Toy Market challenges

Industry News
Dec 19,23

Under the terms of this agreement, Aequs will produce a series of 36 pullback cars, each featuring popular Marvel characters.

Aequs expands into ODM with Marvel Toy Collection, overcoming India's Toy Market challenges

Aequs, a prominent contract manufacturing company, is expanding its operations into the Original Design and Manufacturing (ODM) sector. The aerospace and consumer goods manufacturer has recently entered into a contract with Stone Sapphire, a company holding the licensing rights for Disney's Marvel franchise in India.

Under the terms of this agreement, Aequs will produce a series of 36 pullback cars, each featuring popular Marvel characters. This exclusive collection, priced starting at Rs 300, will be available for sale exclusively in the Indian market.

The manufacturing of these Marvel-themed toys will take place in Aequs's toy cluster located in the Koppal district of Karnataka. The Koppal Toy Cluster, covering an extensive 7,00,000 sqft, was established by Aequs in 2020 with a significant investment of Rs 400 crore. Inaugurated in 2021 by the then-Chief Minister BS Yediyurappa, the project was initially inspired by Prime Minister Narendra Modi's 'Make in India' initiative. Aequs anticipates that this initiative will create 25,000 direct jobs and 1,00,000 indirect jobs.

Aequs, known for its aerospace manufacturing facility set up in the special economic zone (SEZ) in Belagavi in 2009, has experienced significant growth. The Koppal Toy Cluster, representing a strategic expansion, is expected to develop into a thriving ecosystem over the next 5-10 years, according to Aravind Melligeri, CEO and Chairman of Aequs.

Despite the positive outlook, Melligeri highlights challenges in the Indian toy market. Manufacturing toys in a special economic zone poses difficulties due to policies primarily focused on exports. Aequs faces import duty issues, as toys produced in these zones and intended for domestic sales incur duties as if they were imported.

Melligeri notes the recent increase in import duty on toys from 20 to 70 per cent, coupled with stringent standards set by the Bureau of Indian Standards (BIS) for Chinese toy manufacturers. He emphasises the importance of developing both the global and domestic markets for toys in India, considering the country's changing disposable income dynamics.

Aequs aims to overcome these challenges through the Koppal toy cluster, positioning Karnataka as a leader in toy exports within the country. The Marvel toy range, initiated 18 months ago, is set to launch next week, showcasing Aequs's commitment to both domestic and international markets. In addition to its collaboration with Stone Sapphire, Aequs serves as an Original Equipment Manufacturer (OEM) for national players such as FirstCry, WinMagic, and PlayShifu, as well as international clients like Hasbro, Stomp Rocket, and Spin Master.

Source: Business Line