Candytoy Expects Rs 450 Mn Turnover By FY26, Plans To Sell 10% Stake At Rs 900 Mn Valuation, ET BrandEquity

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Candytoy Corporate, which makes candy toys for companies like Colgate, Puma, MTR, Bournvita, Yellow Diamonds, Vistara Airlines and AirAsia, among others, aims to achieve a turnover of around Rs 450 crore in the next fiscal, said founding director Gaurav Mirchandani. Also, to fund its growth plans, the Indore-based company plans to raise Rs 90 crore by shedding 10 per cent equity at a valuation of Rs 900 crore, he added.

Mirchandani added that the startup company also plans to go public in the next three years.

“We are diluting 10 per cent stake in the company through VC. We are injecting Rs 90 crore, which will be invested mainly this year to ensure that we achieve a turnover of Rs 400-450 crore in the next financial year,” Mirchandani told PTI.

Candytoy Corporate Pvt Ltd (CTC) has clocked a turnover of around Rs 250 crore in fiscal 2023-24.

“With a 30 percent increase in orders over the past two years, we see a need to open new plants to not only meet the increase in demand but also introduce newer product lines to the market,” he said.

The company, with 250 injection molding machines, produces 10.5 million candy toys a day.

“Our third manufacturing facility in Indore has just started operations and we will soon start production at our facility in Jebel Ali (near Dubai, UAE) which will cater to brands from UAE, Saudi Arabia, Oman and Kuwait,” he said.

CTC has invested 350 million rupees ($5 million) each in the two plants and plans to enter new product categories, including inflatables and bubble water toys, Mirchandani added.

Mirchandani said the Indian market has “huge” growth potential as only a few companies, such as Ferrero India with its Kinder Joy, offer chocolates with a surprise toy.

“Most of these candy toys are imported from China, where there are quality issues due to the quality of the sugar. Here we use organic sugar, which is good for the child, and the toy that comes with it has creative value,” he said.

Its major clients include Pratap Snacks, HUL, Colgate Palmolive and Perfetti Van Melle in the domestic market. While it has an international presence, most of its products currently make their way to the US and Europe.

Founded in 2019, Candytoy Corporate operates under two brands, SM Toys and confectionery brand Hoppin Candy Toy, which is a leading manufacturer of plastic promotional toys and confectionery. About 80% of sales come from business-to-business (B2B) and the rest from business-to-consumer (B2C).

Overall, CTC through its five factories (three in Indore, one in Hyderabad and one in Delhi) and 11 contract manufacturers across India manufactures promotional toys, candy toys, Barbie dolls, electronic toys, DIY toys, LED toys, musical toys, prank toys, sticky toys etc.

Apart from India, CTC exports to over 35 countries in Europe, USA, Africa, Turkey, South Africa, Japan, Saudi Arabia, Oman, Kuwait and the United Arab Emirates.