K.V. Toys India
- K.V. Toys India is coming out with an initial public offering (IPO) of 16,80,000 shares in a price band of Rs 227-239 per equity share.
- The issue will open on December 08, 2025 and will close on December 10, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 22.70 times of its face value on the lower side and 23.90 times on the higher side.
- Book running lead manager to the issue is GYR Capital Advisors.
- Compliance Officer for the issue is Heta Viraj Shah.
Profile of the company
K.V. Toys India is engaged in the business of contract manufacturing and sale of plastic-moulded and metal-based toys for children, covering both educational and recreational segments. Incorporated in 2009 as KV Impex, it initially operated as an importer and trader of toys. In alignment with the Government of India’s “Make in India” initiative and recognizing the growing demand for domestically produced quality toys, it transitioned to a contract manufacturing model by engaging OEM partners. It commenced operations with an initial portfolio of 20 SKUs and have since expanded its product range to 700+ active SKUs across multiple categories, catering to children of varying age groups.
Its diversified product portfolio includes friction-powered toys, soft bullet guns, ABS (Acrylonitrile Butadiene Styrene) toys, pullback toys, battery-operated and electronic toys, press-and-go toys, die-cast metal vehicles, bubble toys, dolls, and other play-based products. It markets several proprietary brands such as Alia & Olivia (doll range), Yes Motors (die-cast car range), Funny Bubbles (bubble toys), and Thunder Strike (soft bullet guns), each catering to specific segments of the children’s toy market. These brands have gained significant recognition and acceptance in India’s toy market. Its product reach spans across India, with recent international expansion through exports to Germany.
It operates on a contract manufacturing model through exclusive partnerships with 11 OEM’s facilities strategically located across India. The company’s OEM partners operate under its technical guidance and supervision. The company invests in proprietary moulds and supply its manufacturing partners with technology, know-how, and comprehensive training to ensure adherence to stringent quality standards and product specifications. The manufacturing activities are undertaken by these 11 OEM facilities are in accordance with the company’s design, specifications and quality standards, post manufacturing, the semi-finished products are supplied to the company.
Proceed is being used for:
- Funding working capital requirements of the company
- Repayment/prepayment of all or certain of its borrowings availed by the company
- General corporate purposes
Industry Overview
The Indian toy market is valued at $1.9 billion in 2024 and is expected to increase at a CAGR of 10% to $4.7 billion in 2033. The market is highly fragmented, with about 90% dominated by the unorganized sector, including small-scale and cottage industries. However, the organized sector is rapidly gaining traction, driven by growing brand consciousness, urbanization, and digital penetration. India has one of the world’s largest child populations, with over 250 million children aged 0–14 years. This demographic advantage positions the country as an attractive market for the toy industry. Moreover, the increasing influence of digital media and exposure to global brands are shaping the aspirations and demands of Indian consumers, contributing to the growing popularity of branded and educational toys. Educational toys and electronic toys are witnessing the highest growth rates, reflecting the increasing demand for cognitive development and interactive play. The online segment is also growing rapidly, contributing around 25-30% to overall toy sales in urban areas.
By leveraging locally supplied raw materials and low-cost labour, domestic producers are able to maintain a competitive edge. International brands, on the other hand, use premium pricing tactics that capitalise on higher quality assurance and great brand equity. Research and development are becoming increasingly important, as they spur innovation in tech-enabled goods that satisfy changing consumer demands. In the edutainment and experiential learning sectors, startups are significantly leading the way, attracting parents and educators who are tech-savvy. With businesses using social media influencers, targeted digital advertising, and strategic partnerships with academic institutions to increase brand awareness and customer engagement, marketing techniques are becoming more and more digital-first. In order to improve market relevance and establish a stronger emotional bond with customers, businesses are also localising their product offers to fit with Indian cultural narratives, festivals, and educational systems.
The Indian toy industry is at a pivotal point of transformation, driven by favourable demographics, evolving consumer preferences, policy support, and technological advancements. As the market continues to grow, there are abundant opportunities for domestic manufacturers, startups, and international players to innovate and expand. The rising demand for educational, tech enabled, and ecofriendly toys presents significant growth potential. By leveraging digital platforms, enhancing product quality, and embracing cultural relevance, the Indian toy industry can position itself as a global leader. With strategic investments and continued policy support, the future of India’s toy sector looks vibrant and promising.
Pros and strengths
Diverse product portfolio catering to all age groups of children: The company has developed a diverse product portfolio that caters to a wide spectrum of children’s age groups and play preferences. The product range includes friction-powered toys, soft bullet guns, ABS (Acrylonitrile Butadiene Styrene) toys, pull-back toys, battery-operated and electronic toys, press-and-go toys, die-cast metal vehicles, bubble toys, dolls, and several other play-based products. This diversity helps it to appeal to different customer segments and ensures year-round demand across multiple categories. The company has established proprietary brands such as Alia & Olivia (doll range), Yes Motors (die-cast car range), Funny Bubbles (bubble toys), and Thunder Strike (soft bullet guns), which provide brand identity to specific product lines.
Localized OEM-based manufacturing: The company has successfully set up localized production, especially in the PVC animal toys segment, which traditionally relied on imports. By creating proprietary moulds and following strict material testing and child-safe finishing standards, it can produce these toys at scale through its OEM partners. This strategy decreases its reliance on foreign suppliers and gives it better control over quality and costs. The company has also launched a die-cast metal car product line through OEM manufacturing, using finishing capabilities at its Bhiwandi facility.
Strong in-house design and packaging capabilities: The company has developed strong in-house capabilities in product design, mould development, and packaging, supported by a team of 50 employees. Managing these functions internally ensures consistency in product aesthetics, functional design, and brand positioning. Its design team enables rapid conceptualization and development of new SKUs, allowing it to respond quickly to market trends and seasonal demand. In-house packaging ensures product presentation enhances shelf visibility and brand recall. Controlling these functions internally allows it to maintain quality, reduce turnaround times, safeguard intellectual property, optimize costs, minimize waste, and support faster product lifecycle management. These capabilities provide creative independence, operational agility, and strengthen long-term brand equity in a competitive retail environment.
Risks and concerns
Significant exposure to Maharashtra market risks: A significant portion of the company’s revenue is derived from customers located in the state of Maharashtra, which contributed more than 24% of total sales in FY 2025 and more than 27% of total sales for period ended September 30, 2025 for the company and more than 56%, 36% and 31% of total sales for the period ended January 31, 2025, FY 24 and FY 23 respectively for the erstwhile proprietorship, M/s. KV Impex. Dependence on a single state exposes it to risks arising from regional economic slowdown, regulatory changes, logistical disruptions, or loss of key customers in that market. This significant concentration exposes it to risks associated with any adverse economic, regulatory or political developments specific to this region. Any unfavourable changes in the relationship with the key customers -- due to increased competition, pricing pressures or other factors -- could materially affect its financial performance.
Limited historical performance for evaluation: The company has been recently incorporated and has taken-over the running business of M/s KV Impex (Proprietorship) of one of its promoter Namita Narang, thus it has limited operating history as a company which may make it difficult for investors to evaluate its historical performance or future prospects.
Reliance on external logistics partners poses operational risk: The company relies entirely on third-party logistics service providers for the transportation of input materials and finished products. As it does not maintain its own logistics infrastructure, any disruption, delay, or inefficiency in the services provided by these external partners may affect its supply chain, production timelines, and delivery commitments. Factors such as labor shortages, fuel price fluctuations, regulatory changes, strikes, or natural events impacting these providers could lead to increased costs or delays. Any decline in the performance or reliability of these providers may affect customer satisfaction, brand perception and could have an adverse impact on its business operations, financial condition, and results of operations.
Outlook
K.V. Toys India is engaged in the business of contract manufacturing and sale of plastic-moulded and metal-based toys for children, covering both educational and recreational segments. The company's diversified product portfolio includes friction-powered toys, soft bullet guns, ABS (Acrylonitrile Butadiene Styrene) toys, pullback toys, battery-operated and electronic toys, press-and-go toys, die-cast metal vehicles, bubble toys, dolls, and other play-based products. The company has strong in-house design and packaging capabilities. On the concern side, the company has been recently incorporated and has taken-over the running business of M/s KV Impex (Proprietorship) of one of its promoter Namita Narang, thus it has limited operating history as a company which may make it difficult for investors to evaluate its historical performance or future prospects. Moreover, the company is dependent on revenue from a specific geographical region majorly Maharashtra, which may adversely affect its business and financial performance.
The company is coming out with a maiden IPO of 16,80,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 227-239 per equity share. The aggregate size of the offer is around Rs 38.14 crore to Rs 40.15 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for the period ended January 31, 2025, was Rs 7,764.21 lakh. Moreover, the profit after tax of the company for the period ended January 31, 2025, was Rs 105.12 lakh.
The company is diversifying by strengthening its presence across a wide range of toys and related products. This includes mechanically, electrically, and electronically operated toys; automatic and semiautomatic dolls; plastic, wooden, and metal toys; musical toys; soft toys; educational games; walking and talking toys; and related parts, accessories, and fittings. The company is introducing new variants such as detailed die-cast vehicles, soft bullet guns with enhanced safety features under its Thunder Strike brand, and interactive musical and walking dolls under its Alia brand. The company is also expanding into gifting stationery products such as pens, pencils, notebooks, and other educational supplies, which complement its toy portfolio and support a year-round market presence. These initiatives broaden its offerings, reduce dependence on any single product category or season, and position the company to meet evolving consumer demand while capturing emerging trends.
