INTRODUCTION
A soft toy is a toy that is made for children, typically a toy animal, made of fabric stuffed with a soft filling. It is usually used by infants, and children for seeking comfort and by teenagers for decorative purposes. Stuffed toys are distinguished from other toys mainly by their softness, flexibility, and resemblance to animals or fictional characters. Stuffed toys most commonly take the form of animals, especially bears. Stuffed toys are commonly sold in stores across India. Vendors are often abundant at tourist attractions, airports, carnivals, fairs, downtown parks, and general public meeting places of almost any nature, especially if there are children present.
MARKET POTENTIAL
The Indian toy market, which is currently estimated at INR 7700 crore has the potential to double itself by 2025. India could also target a 2% share of global exports by 2025. The Indian toy industry is only 0.5% of the global industry size indicating a large potential growth opportunity. The domestic toy demand is forecasted to grow at 10-15% against the global average of 5%
FUNDING SOURCE
Under the programme supported by the Development Alternatives Group, such enterprises have availed government support through the National Rural Livelihoods Mission, with an average loan size of INR 30,000.
BUSINESS ECONOMICS
FIXED CAPITAL (One Time Expenditure)
| MACHINERY & EQUIPMENT | AMOUNT (in INR) |
| Sewing Machine (3 @ INR 3,500/-) | 10,500 |
| Scissors (5 @ INR 300/-) | 1,500 |
| Chairs (3 @ INR 500/-) | 1,500 |
| Tables (3 @ INR 4,000/-) | 12,000 |
| Designed Stencils (for cutouts) (15 @ INR 200/-) | 3,000 |
| TOTAL | 28,500 |
WORKING CAPITAL (for a 2-month cycle)
| RAW MATERIAL | AMOUNT (in INR) |
| Cotton (95 kgs @ INR 250/kg) | 23,750 |
| Cloth/Fabric (in sq metres) (478 sq metres @ INR 120/sq metres) | 57,360 |
| Accessories (Buttons, decorations) (2,000 units @ INR 5/unit) | 10,000 |
| Glue (5 @ INR 250/-) | 1,000 |
| Thread (150 spools @ INR 7/spool) | 1,050 |
| Packaging Material (940 units @ INR 2/unit) | 1,880 |
| Needles (one set includes 25 needles) (4 sets @ INR 180/set) | 720 |
| STAFF AND LABOUR | AMOUNT (in INR) |
| Entrepreneurs Salary (INR 10,000/month) | 20,000 |
| Two Full-time Workers (INR 6,000/month) | 24,000 |
| UTILITIES | AMOUNT (in INR) |
| Electricity | 2,000 |
| Rent (@ INR 4,000/month) | 8,000 |
| Water | 1,000 |
| Stationery | 1,000 |
| Maintenance | 4,000 |
| TOTAL | 30,400 |
FINANCIAL SUMMARY (Annual)
| FINANCIALS | AMOUNT (in INR) |
| Fixed Cost | 28,500 |
| Working Capital (for each cycle of 3 months duration) | 1,55,760 |
| Total Enterprise Cost | 1,84,260 |
| Annual Revenue | 11,23,200 |
| Total Expenditure (annual working capital) | 9,34,560 |
| Enterprise Profit | 1,88,640 |
| Payback Period (in months) | 2 |
BASIC ASSUMPTIONS
- The enterprise operates 26 days a month
- Enterprise is functional for 8 hours daily during which 18 soft toys are manufactured
- Average price per soft toy sold is INR 200
- Since production is only for pre-paid orders, 100% of manufactured goods are sold
Note: All figures mentioned are indicative and for reference purpose only. Development Alternatives Group bears no liability for accuracy. For any further information, please contact Development Alternatives on +91-11-2654-4100 or +91-11-2654-4200.
Star Entrepreneur
Usha Devi from Dhanipati village in Mirzapur set up a soft toy manufacturing unit in her village in early 2020. Since then:
- She sells soft toys to 10 nearby villages
- Has influenced on another similar enterprise
- Employs 3 women artisans from her village