Tamil Nadu’s toy market has grown to around ₹1,000 crore, with a surge of new entrants and existing players expanding into newer segments and markets. Those tracking this particular segment say with the State unveiling a dedicated policy for the sector and targetting the establishment of a toy manufacturing park, more start-ups and MSMEs are expected to enter the space over the next two years.
December witnessed two significant developments — one involving Funskool, the Chennai-headquartered toy manufacturer, and the other emerging from the temple town of Madurai. Funskool announced its foray into the electronic toys segment with the launch of a new product range, while Madurai-based Rigwheels, which began operations in 2024, unveiled its debut product — the Vande Bharat toy train.
“The decision to enter the toy industry was profoundly influenced by a business trip to Japan in February 2024. I was genuinely astonished by the sheer variety, infrastructure, and sophisticated ecosystem dedicated to high-quality toys there. I wanted to make similar toys here in Tamil Nadu,” said Saravana Bhava, chief operating officer of Rigwheels. The manufacturing is done in India, with the primary assembly unit located in Madurai, and a significant portion of the specialised component manufacturing outsourced to facilities in Coimbatore.
