Funskool eyes over Rs 400 crore turnover in FY27

Funskool India Ltd., part of the MRF Group, is targeting a turnover of more than Rs 400 crore in FY2026-27, supported by export growth, domestic demand and manufacturing expansion.

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The company reported a turnover of Rs 329 crore in FY2025-26. During the first half of the current financial year, exports grew by over 30 per cent and domestic business by over 20 per cent.

Speaking at a media briefing in Chennai on Thursday, K. A. Shabir, CEO of Funskool India Ltd., said the company expected growth to continue, although the toy business is seasonal.

Exports account for around 70 per cent of the company’s business.

Export revenue rose from around Rs 11 crore in 2014-15 to Rs 232 crore in FY2025-26, Shabir said.

The United States accounts for around 44 per cent of exports, while Europe contributes about 40 per cent, he added.

To meet demand from international customers, Funskool is expanding its manufacturing facilities at Ranipet in Tamil Nadu and Goa. At Ranipet, it is adding more than 90,000 sq. ft. through construction and leased facilities, increasing factory space by around 30-35 per cent. At Goa, an additional 80,000 sq. ft. is expected to increase capacity by around 50 per cent. The Goa project has been delayed by regulatory clearances.

Higher shipping costs and raw-material prices remain challenges.

Shabir said that plastic prices had risen by around 40-60 per cent from pre-war levels, although geopolitical developments had not affected the company’s order book.

Funskool is also exploring automation to address rising labour requirements.

“Our purpose is to reduce manpower, which is going to be a bigger problem in the coming years,” Shabir said.

The company has begun trials of digital printing technology for decorating toys and is examining automation in packaging and container loading. Artificial intelligence is also being explored for forecasting, inventory analysis, GST-related work and product design, he added.

Funskool also manufactures selected products for international toy brands, including Spin Master, Simba, Moltó and Buffalo Games.

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