Toy industry faces heat of downturn – The New Indian Express

By Express press service

BENGALURU: With macroeconomic conditions and recession fears, the global toy industry is facing heat with steep declines in higher value products. Aravind Melligeri, CEO of Aequs, a contract manufacturing company for the aerospace, toy and durable consumer goods industries, said she was feeling the heat as higher value products ($50 and more) were struggling in the market.

Aequs, which exports, has set up a 400-acre toy cluster in Koppal, Karnataka. It is also now focusing on the domestic market. With the arrival of the holiday season, the exact demand and impact would be known. “Some volumes are down,” he said. With the holiday season approaching, they have yet to see what the impact would be. But $15-20 products are doing well compared to $50 and up, he said.

Melligeri sees huge opportunities in the domestic market and hopes the production-linked incentives (PLI) for toys will boost exports. It has the potential to create many jobs. India’s toy industry is growing, with exports reaching USD 177 million in 2021-22, and this could reach USD 1 billion over the next five years.

Of the approximately $90 billion global toy market, India accounts for just $1.5 billion a year. China dominates in the toy sector, followed by Vietnam and Mexico. Aequs currently only manufactures certain types of toys and not complex products like dolls. “We don’t make dolls like Barbie because they are more complex,” he said. The company also has an industrial park for durable consumer goods in Hubballi, Karnataka.

“We started the consumer durables business in the time of Covid. During the pandemic, we realized this could be an opportunity to scale up,” he said. Aequs specializes in precision machining for aerosystems, aerostructures, landing gear and engine components, forging and surface treatment, among others.

BENGALURU: With macroeconomic conditions and recession fears, the global toy industry is facing heat with steep declines in higher value-added products. Aravind Melligeri, CEO of Aequs, a contract manufacturing company for the aerospace, toy and durable consumer goods industries, said she was feeling the heat as higher value products ($50 and more) were struggling in the market.

Aequs, which exports, has set up a 400-acre toy cluster in Koppal, Karnataka. It is also now focusing on the domestic market. With the arrival of the holiday season, the exact demand and impact would be known. “Some volumes are down,” he said. With the holiday season approaching, they have yet to see what the impact would be. But $15-$20 products are doing well compared to $50 and up, he said.

Melligeri sees huge opportunities in the domestic market and hopes the production-linked incentives (PLI) for toys will boost exports. It has the potential to create many jobs. India’s toy industry is growing, with exports reaching USD 177 million in 2021-22, and this could reach USD 1 billion over the next five years.

Of the approximately $90 billion global toy market, India accounts for just $1.5 billion a year. China dominates in the toy sector, followed by Vietnam and Mexico. Aequs currently only manufactures certain types of toys and not complex products like dolls. “We don’t make dolls like Barbie because they are more complex,” he said. The company also has an industrial park for durable consumer goods in Hubballi, Karnataka.

“We started the consumer durables business in the time of Covid. During the pandemic, we realized this could be an opportunity to scale up,” he said. Aequs specializes in precision machining for aerosystems, aerostructures, landing gear and engine components, forging and surface treatment, among others.

BENGALURU: With macroeconomic conditions and recession fears, the global toy industry is facing heat with steep declines in higher value products. Aravind Melligeri, CEO of Aequs, a contract manufacturing company for the aerospace, toy and durable consumer goods industries, said she was feeling the heat as higher value products ($50 and more) were struggling in the market. Aequs, which exports, has set up a 400-acre toy cluster in Koppal, Karnataka. It is also now focusing on the domestic market. With the arrival of the holiday season, the exact demand and impact would be known. “Some volumes are down,” he said. With the holiday season approaching, they have yet to see what the impact would be. But $15-20 products are doing well compared to $50 and up, he said. Melligeri sees huge opportunities in the domestic market and hopes the production-linked incentives (PLI) for toys will boost exports. It has the potential to create many jobs. India’s toy industry is growing, with exports reaching USD 177 million in 2021-22, and this could reach USD 1 billion over the next five years. Of the approximately $90 billion global toy market, India accounts for just $1.5 billion a year. China dominates in the toy sector, followed by Vietnam and Mexico. Aequs currently only manufactures certain types of toys and not complex products like dolls. “We don’t make dolls like Barbie because they are more complex,” he said. The company also has an industrial park for durable consumer goods in Hubballi, Karnataka. “We started the consumer durables business in the time of Covid. During the pandemic, we realized this could be an opportunity to scale up,” he said. Aequs specializes in precision machining for aerosystems, aerostructures, landing gear and engine components, forging and surface treatment, among others. BENGALURU: With macroeconomic conditions and recession fears, the global toy industry is facing heat with steep declines in higher value-added products. Aravind Melligeri, CEO of Aequs, a contract manufacturing company for the aerospace, toy and durable consumer goods industries, said she was feeling the heat as higher value products ($50 and more) were struggling in the market. Aequs, which exports, has set up a 400-acre toy cluster in Koppal, Karnataka. It is also now focusing on the domestic market. With the arrival of the holiday season, the exact demand and impact would be known. “Some volumes are down,” he said. With the holiday season approaching, they have yet to see what the impact would be. But $15-$20 products are doing well compared to $50 and up, he said. Melligeri sees huge opportunities in the domestic market and hopes the production-linked incentives (PLI) for toys will boost exports. It has the potential to create many jobs. The Indian toy industry is growing, with exports reaching USD 177 million in 2021-22, and this could reach USD 1 billion over the next five years. Of the approximately $90 billion global toy market, India accounts for just $1.5 billion a year. China dominates in the toy sector, followed by Vietnam and Mexico. Aequs currently only manufactures certain types of toys and not complex products like dolls. “We don’t make dolls like Barbie because they are more complex,” he said. The company also has an industrial park for durable consumer goods in Hubballi, Karnataka. “We started the consumer durables business in the time of Covid. During the pandemic, we realized this could be an opportunity to scale up,” he said. Aequs specializes in precision machining for aerosystems, aerostructures, landing gear and engine components, forging and surface treatment, among others.

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