Candytoy expects Rs 450 cr turnover by FY26, to divest 10 pc stake at Rs 900-cr valuation

New Delhi, Aug 25 (PTI) Candytoy Corporate, the manufacturer of candy toys for companies such as Colgate, Puma, MTR, Bournvita, Yellow Diamonds, Vistara Airlines and AirAsia among others, is aiming for around Rs 450 crore turnover by the next fiscal year, founder Director Gaurav Mirchandani has said.

Moreover, to fund its growth plans, the Indore-based company has plans to raise 90 crore by divesting 10 per cent equity at a valuation of Rs 900 crore, he added.

Besides, the bootstrap startup firm also plans to get listed on the stock exchange in the next three years, Mirchandani said.

“We are diluting 10 per cent stake in the company through a VC. We are bringing Rs 90 crore which will be primarily invested this year to make sure that we are touching around Rs 400 crore to Rs 450 crore turnover by the next financial year,” Mirchandani told PTI.

Candytoy Corporate Pvt Ltd (CTC) had a turnover of around Rs 250 crore in FY 2023-24.

“Now with 30 per cent y-o-y growth in orders for the last two years, we see the requirement to open new plants to not only cater to this growth in demand but also bring newer product lines,” he said.

The company, with 250 injection moulding machines, manufactures 10.5 million candy toys per day.

“Our third Manufacturing plant in Indore has just commenced operations and we will also soon start manufacturing at our Jebel Ali plant (near Dubai, UAE) which will cater to the brands in UAE, Saudi Arabia Oman & Kuwait,” he said.

CTC has invested Rs 35 crore each (USD 5 million) in both the plants and plans to enter into newer categories including inflatables, and bubble water toys, Mirchandani added.

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

“Most of these candy toys are imported from China, which has quality issues because of the sugar quality. Here we are using organic sugar, which is good for the kid and the toy attached to it has a creative value,” he said.

Its major clients include Pratap Snacks, HUL, Colgate Palmolive, and Perfetti Van Melle for the domestic market. While on the international market, the majority of its products are going to the US and Europe right now.

Incorporated in 2019, Candytoy Corporate operates with its two brands SM Toys and confectionary brand Hoppin Candy Toy, which is the leading manufacturer of plastic promotional toys and confectionery. Around 80 per cent of sales come from business-to-business (B2B) and the rest from business-to-consumer (B2C) brands.

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

Besides India, CTC exports to more than 35 countries in Europe, US, Africa, Turkey, South Africa, Japan, Saudi Arabia, Oman, Kuwait & UAE among others.