How to Start Kids Electronic Toys Factory

Electrical and electronic toys provide hours of fun for children. From early learning to gaming and computing, electrical and electronic toys (EE toys) help children develop their imagination, language skills, dexterity and more, through fun, role-playing and education. Their use should be simple and safe. A toy is an object used in play. Toys are usually associated with children and pets, but it is not unusual for adult or some non-domestic animal to play with toys. The advancement of toy throughout the decades has continued to amaze kids and adult alike. One of the best type of toys are the electronic ones. These toys not only entertain kids for hours on end, but they can also be entertaining for many grown-ups as well.

 

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Few Indian Major Players are as under

·         Ajanta Pvt. Ltd.

·         Funskool (India) Ltd.

·         Hanung Toys & Textiles Ltd.

·         Mattel Toys (India) Pvt. Ltd.

·         Walt Disney Co. (India) Pvt. Ltd.

 

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Market Outlook

The Indian toy industry is a major market for both domestic and international players, owing to low penetration (0.5 per cent) as well as growth in the size of the middle class. India's toy industry has a meagre share of 0.51 per cent of the global market. The Indian toy market, whose size is estimated at about Rs 8,000 crore (as of March 2013), is expected to grow at a compound annual growth rate (CAGR) of 30 per cent by 2015.

 

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The global toy market is about $85 Billion USD and the Indian toy market is worth Rs.2750 crore (a little over US$ 400 million) which makes the Indian market roughly 0.5 % of the world toy market.

 

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The Indian toy market is continuously growing, Indian consumers are beginning to understand the importance of play, and Kids India is one of the platforms to promote this awareness and educate consumers about the various benefits of toys and play as well as to provide an impetus to the industry.

 

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The Indian toy industry is estimated to be worth Rs 1,700 crore and growing 15-20% a year. Spending on toys and games in India is set to grow at 157% between 2009 and 2014, much faster than other Asian countries such as China (84%), Taiwan (35%), South Korea (33.1%) and Singapore (17.2%).

 

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Toys and Games

Demand : Past and Future

Year

(Rs. in Billion)

1990-91

2.17

2000-01

10.00

2001-02

11.50

2002-03

13.15

2003-04

15.00

2004-05

17.00

2005-06

19.20

2006-07

21.60

2007-08

24.25

2008-09

27.10

2009-10

57.50

2010-11

64.40

2011-12

72.15

2012-13

80.78

2013-14

90.47

2014-15

101.32

2015-16

115.00

2016-17

166.74

2017-18

189.25

2018-19

214.80

2019-20

309.14

2024-25

619.91

 

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The global Toys and Games market is projected to exceed US$135 billion by 2020, driven by innovation, technology development and launch of smart toys and educative games. Innovation will continue to bring in new opportunities for demand growth in the coming years. The increasingly digital lifestyles of consumers worldwide and exposure to technology at an early age are pushing manufacturers to develop smart and engaging electric and electronic Toys and Games. Augmented reality toys, app integrated toys, and toys that can be controlled by smartphones and tablets are emerging into the new frontiers of growth. The future of the market lies in products that bridge the gap between real-world and virtual toys. Europe represents the largest market worldwide. Latin America ranks as the fastest growing market with a CAGR of 9.4% over the analysis period.

 

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Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

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·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR