Funskool India, the toy maker promoted by tyre manufacturer MRF Ltd, is targeting turnover of more than ₹400 crore in FY 2026–27, following revenue of ₹329 crore in the previous financial year, as strong export growth, rising domestic demand and an expanding portfolio of international toy brands drive its growth strategy.
The company’s target represents growth of more than 20% over FY26. Its growth momentum has strengthened in the first half of FY27, with exports increasing by over 30% and domestic business registering growth of more than 20%, according to the company.
Funskool expects to sustain healthy double-digit growth in both markets for the full financial year, supported by investments in manufacturing, new product development and partnerships with international toy companies.
Global partnerships strengthen growth strategy
The company is expanding its international portfolio through licensing, manufacturing and distribution partnerships with established toy brands, combining access to globally recognised intellectual properties with its domestic manufacturing capabilities and distribution network.
Its international partners include Simba Toys of Germany, Moltó of Spain, Dr. Wood of Australia, Buffalo Games of the US, Sanrio of Japan, Spin Master of Canada and Asmodee of France.
These partnerships allow Funskool to manufacture licensed products at its own facilities or distribute international brands in India, broadening its offerings across puzzles, board games, musical and activity toys, and imaginative pretend-play products.
The strategy also provides an opportunity to tap demand for recognised international brands while developing its own manufacturing and distribution capabilities in the Indian market.
Recent additions to its portfolio include products featuring Hello Kitty from Sanrio and PAW Patrol from Spin Master. The company is also expanding its licensed range with properties such as CoComelon from Moonbug Entertainment.
Funskool India CEO K A Shabir said Indian consumers were increasingly seeking toys that combine quality, safety, innovation and play value.
The company’s partnerships with international toy makers, supported by its manufacturing capabilities and distribution network, help bring global brands to Indian consumers at accessible price points, he said.
₹149 crore invested in manufacturing
Funskool has invested approximately ₹149 crore over the past six years to expand its manufacturing facilities and capabilities in Goa and Ranipet, Tamil Nadu.
The investments have strengthened its position as a manufacturing partner for international toy brands while supporting export growth and foreign exchange earnings. The facilities also generate employment in local communities, with women accounting for more than 70% of the workforce at its factories.
Funskool exported its own-brand and private-label products to more than 63 countries last year.
However, exports under its own brands continue to account for a smaller share of its business compared with contract manufacturing for international brands. Expanding the international reach of its homegrown products remains a long-term priority for the company.
The challenge will be to build stronger consumer recognition for Indian-developed brands while leveraging the manufacturing scale and market access offered by its global partnerships.
In-house innovation drives product expansion
Funskool has a dedicated in-house design and development centre that enables it to take products from concept and design through tooling, development and manufacturing.
The integrated capabilities allow the company to introduce approximately 50–60 new products annually across different toy categories.
Its homegrown portfolio includes Blazetrix friction-powered vehicles, Quilling Art and Paper Craft products, Fairy Makeover creative-play products and the WOOD’E Learning Bus in educational toys.
These products are designed to encourage creativity, imagination, problem-solving, motor skills and learning through play.
The company is also expanding its international offerings in early-childhood and educational toys. Its Simba ABC range, introduced in India in April 2026, includes My Hammer Bench and Magic Cube Sea World. Other additions include activity products from Spain’s Moltó and puzzle-based offerings from Dr. Wood.
In board games, Funskool produces and distributes Buffalo Games products such as Sushi Go! and Outfoxed!, while its Sanrio partnership includes Hello Kitty-themed products and pretend-play sets.
The company also manufactures and distributes PAW Patrol products, including the Dino Team Pack and Dino-themed vehicles.
Balancing global brands with Indian products
Funskool’s growth strategy combines international licensing with domestic manufacturing and the development of its own brands. This approach enables the company to serve multiple consumer segments while building capabilities across product design, manufacturing and distribution.
The FY27 turnover target will test whether the strong growth recorded in the first half can be sustained through the remainder of the year. Export growth of over 30% provides a significant growth driver, while domestic business expansion of more than 20% points to demand across the Indian market.
Over the longer term, the company’s ability to scale its own brands internationally, alongside contract manufacturing for global players, will be an important factor in determining the contribution of homegrown products to its business.
By combining investments in manufacturing, a wider international portfolio and an annual pipeline of new products, Funskool is seeking to strengthen its position in India’s toy industry while expanding its presence in global markets.