MARKET OVERVIEW CUM

DETAILED TECHNO ECONOMIC

FEASIBILITY REPORT

(PROJECT FEASIBILITY REPORT)

ON

KIDSFLY
KIDS RIDE ON BATTERY OPERATED CARS AND
BIKES MANUFACTURING UNIT

CODE: EIRI/EDPR/3889
J.C.: 2007

www.kidsfly.in 1
 C A U T I O N
This project report has been prepared on the basis of information available
with M/S. ENGINEERS INDIA RESEARCH INSTITUTE. The intention here
is to provide preliminary information to the prospective entrepreneur. Prior
to making a firm decision for investment in the project the entrepreneur
must verify the various feasibility aspects together along with the addresses
for the procurement of plant & machinery and raw materials independently.
The information supplied in this report is obtained from the reliable sources
but it is not guaranteed and the money once paid will not be refunded back
in any case. Claims for incomprehensiveness of the project report will not be
entertained and no legal action in this regard would be entertained in any
case (Subject to Delhi Jurisdiction only). Any matter relating to our
standard points covered in the report may be modified before going to start
unit.

ENGINEERS INDIA RESEARCH INSTITUTE, 4449 NAI SARAK, DELHI-110006.

www.kidsfly.in 2
 KIDS RIDE ON BATTERY OPERATED CARS AND
BIKES MANUFACTURING UNIT
[EIRI/EDPR/3889] J.C.: 2007

CONTENTS

INTRODUCTION 8

MAJOR TYPES OF TOYS 10

SPECIFICATION OF 901 JEEP/CAR 12

FEATURES: 12

SPECIFICATION OF R1 BIKE 12

FEATURES 12

B.I.S. SPECIFICATION 13

PROCESS FLOW DIAGRAM 15

CAR CHASSIS: 15

CAR BODY: 16

WHEEL AND TYRE: 17

ASSEMBLING PROCESS: 18

MANUFACTURING OF RIDE ON TOY CAR MAINLY INCLUDES FOLLOWING

STEPS 19

www.kidsfly.in 3
1. MANUFACTURING OF CAR CHASIS 19

2. MANUFACTURING OF CAR BODY 19

3. MANUFACTURING OF CAR TYRES 20

4. MANUFACTURING OF WIND SCREEN 20

ADVANTAGES: 21

DISADVANTAGES: 21

ASSEMBLY: THE ASSEMBLY PROCESS INCLUDES THE FOLLOWING STEPS:27

MANUFACTURING OF RIDE ON TOY BIKE MAINLY INCLUDES FOLLOWING

STEPS 28

ASSEMBLY OF ALL TOGHTER WITH ELECTRICAL CONNECTIONS 28

1. MANUFACTURING OF BIKE SKELTON: 28

2. MANUFACTURING OF BIKE TANK 28

3. MANUFACTURING OF BIKE TAKES PLACE SAME AS CAR TYRES. 28

QUALITY CONTROL 29

SELECTION OF TEST PORTIONS 30

PREPARATION AND EXTRACTION OF TEST PORTIONS 30

TEST PORTION PREPARATION 30

EXTRACTION PROCEDURE 31

PLANT & MACHINE 32

www.kidsfly.in 4
THE CURRENT STATE OF TOY INDUSTRY 33

TRADITIONAL TOY MANUFACTURING UNITS 34

TABLE: FIELD SURVEY OF MODERN TOY MANUFACTURING UNITS 35

ALL OVER THE WORLD, TOYS ARE CLASSIFIED ACCORDING TO THEIR END

USE: 38

TOY INDUSTRY IN INDIA 39

TRADITIONAL TOYS 39

EXPORT POTENTIAL FOR TRADITIONAL INDIAN TOYS 40

CURRENT SCENARIO 41

LARGE INTERNATIONAL TOY MANUFACTURERS IN INDIA 42

MAJOR CHALLENGES TO INDIAN TOY INDUSTRY 43

EXPORT PROSPECTS 43

FUTURE OF TOY INDUSTRY IN INDIA 44

SWOT ANALYSIS OF INDIAN TOY INDUSTRY 45

STRENGTHS 45

WEAKNESSES 46

OPPORTUNITIES 48

PLANT LAYOUT 50

SUPPLIERS OF RAW MATERIALS 51

SUPPLIERS OF PVC GRAUNALS 51

SUPPLIERS OF BATTRIES 52

www.kidsfly.in 5
SUPPLIERS OF PLANT AND MACHINERY 53

SUPPLIERS OF DIE CASTING MACHINE 53

SUPPLIERS OF ELECTRIC POWDER COATING MACHINE 54

SUPPLIERS OF ELECTRICAL MEASURING INSTRUMENTS 55

SUPPLIERS OF COOLING TOWER 55

SUPPLIERS OF EFFLUENT TREATMENT PLANT 56

SUPPLIERS OF FIRE FIGHTING EQUIPMENTS 57

SUPPLIERS OF INJECTION MOLDING MACHINES 58

www.kidsfly.in 6
APPENDIX – A:

01. PLANT ECONOMICS A-1

02. LAND & BUILDING A-2

03. PLANT AND MACHINERY A-3

04. OTHER FIXED ASSESTS A-4

05. FIXED CAPITAL A-5

06. RAW MATERIAL A-6

07. SALARY AND WAGES A-7

08. UTILITIES AND OVERHEADS A-8

09. TOTAL WORKING CAPITAL A-9

10. TOTAL CAPITAL INVESTMENT A-10

11. COST OF PRODUCTION A-11

12. TURN OVER/ANNUM A-12

13. BREAK EVEN POINT A-13

14. RESOURCES FOR FINANCE A-14

15. INSTALMENT PAYABLE IN 5 YEARS A-15

16. DEPRECIATION CHART FOR 5 YEARS A-16

17. PROFIT ANALYSIS FOR 5 YEARS A-17

18. PROJECTED BALANCE SHEET FOR (5 YEARS) A-18

www.kidsfly.in 7
 KIDS RIDE ON BATTERY OPERATED CARS AND
BIKES MANUFACTURING UNIT
[EIRI/EDPR/3889] J.C.: 2007

INTRODUCTION

A toy is an item that is used in play, especially one designed for such use. Playing
with toys can be an enjoyable means of training young children for life in society.
Different materials like wood, clay, paper, and plastic are used to make toys. Many
items are designed to serve as toys, but goods produced for other purposes can
also be used. For instance, a small child may fold an ordinary piece of paper into
an airplane shape and "fly it". Newer forms of toys include interactive digital
entertainment. Some toys are produced primarily as collectors' items and are
intended for display only.

The origin of toys is prehistoric; dolls representing infants, animals, and soldiers,
as well as representations of tools used by adults are readily found at
archaeological sites. The origin of the word "toy" is unknown, but it is believed
that it was first used in the 14th century. Toys are mainly made for children. The
oldest known doll toy is thought to be 4,000 years old.

Playing with toys is considered to be important when it comes to growing up and

learning about the world around us. Younger children use toys to discover their
identity, help their bodies grow strong, learn cause and effect, explore
relationships, and practice skills they will need as adults. Adults on occasion use
toys to form and strengthen social bonds, teach, help in therapy, and to remember
and reinforce lessons from their youth.

www.kidsfly.in 8
India’s urban population is the second largest in the word—larger than the
combined urban populations of all countries except China, the US and Russia.
India has more than 800 Indian toys and games manufacturers, suppliers and
exporters, most of who hail from the unorganized sector. The Indian toy industry,
fuelled by the vast domestic market, has now turned its attention to global
markets and is fast gearing up to meet international standards and demands.

The Indian toy industry is driven by skilled workforce, diverse product range,
growing innovation and creativity, and emphasis on technology-driven learning
and education. It is set to grow at 25 per cent in the coming years and is
beginning to export to a few developed nations around the world. The worldwide
market for toys is huge and offers a plethora of potential for companies to pursue.
But the interests of children, who are the primary consumers for toys, are
changing faster than ever. Toy manufacturers have to create innovative toys to
capture their interests.

Toys these days are popular not only among kids, but adults too have entered this
field through the medium of sports and games. Many sports and games are played
by adults at national and international levels representing their respective
countries. Parents too prefer to play with their children in order to interact with
the latter and thus engage in board games and other toys with them. The metros
and category A towns account for most branded purchases and those that sell at
higher price points. Largely, the rest of the market is highly price sensitive and
items above ₹ 200 fall in the planned purchase category and not impulse buying.
In category C and D towns, unbranded and lower-priced toys are sold at average
price points of below₹ 100. However, the scene in India is changing very fast and
there is enough scope for more number of players in the field.

www.kidsfly.in 9
Major types of toys

A. Action Figures
B. Arts and Crafts
C. Battling Toys
D. Building and Construction
E. Collectible Trading Cards and Toys
F. Costume and Dress-Up
G. Dolls
H. Educational
I. Games & Puzzles
J. Infant Toys
K. Models
L. Musical Instruments and Toys
M. Outdoor Seasonal Toys
N. Plush
O. Preschool Toys
P. Sports Toys
Q. Vehicles – Powered
R. Vehicles- Non-Powered
S. Youth Electronics
T. Ride Ons: Battery operated car and bikes comes under the category of ride
Ons toys.

www.kidsfly.in 10
Non-Pedal Ride- Ons includes seated ride-ons where there is no pedaling action
for motion; instead, the ride-on is powered by the child (non-electrical). Includes
wagons and balance bikes. Skates, scooters, and skateboards are included in
Sports Toys.

Pedal Ride- Ons Includes tricycles and other ride-on toys in which the child uses
pedals to set the ride in motion. Does not include children’s bicycles.

Powered Ride- Ons This category includes ride-ons that are powered by battery
for movement. Ex- battery operated car and bikes for children’s ride.

The joy ride cars and bikes are battery operated and look stunning in perfection.
They are available in much beautiful design. This handy and very light weighted.
They are cost effective in rates.

www.kidsfly.in 11
 SPECIFICATION OF 901 JEEP/CAR

Battery Operated Ride on Jeep for Kids is one of the most beautiful jeeps. 909
Electric Ride on is Suitable for Kids of age 2 to 6 Years and Can Carry weight upto
30kgs. Ride On jeep is Powered with 12V Battery and Loaded with Two Motors.
Ride on Jeep Run at a Speed of 5-6km/Hr. It Gives a Amazing Realistic
Experience, Kid can Drive this Ride on manually while Listening Songs as its
Music System is Compatible with Aux and Pen Drive.

Features:
 Battery operated
 Water proof body
 Light weighted

SPECIFICATION OF R1 BIKE

This Yamaha R1 Rideon bike is safe and easy to operate that can be used on any
hard surface and lets child build a happy memory. Kid’s cars/kids bikes are made
from the most durable plastics giving a smooth and enjoyable ride.

Features

The bike has working headlights, taillights, wheel lights, exciting bike sound
effects, key for starting, a digital power display, forward/backward function, MP3
socket with SD/USB card port, adjustable volume, horn & different inbuilt music
for extra style and flair for a maximum comfortable experience for child.

www.kidsfly.in 12
 B.I.S. SPECIFICATION

1. IS: 9873:1999 Safety requirements for toys.

2. IS: 8124:1997 Specification for kid’s car and bike.

For more information contact at:

Headquarters:

Manak Bhavan,
9, Bahadur Shah Zafar Mag,
New Delhi-110 002
Phone: 91 11 23238821, 23233375, 23239402
91 23238821, 23239399 (Fax)
sales@bis.org.intandards Institution

www.kidsfly.in 13
 Sr.No. Sales Outlets Address Telephone No/Fax/e-mail
01. Director (Sales) 91-11-23238821, 23233375, 23239402
Manak Bhawan, 91-23238821, 23239399(Fax)
9, Bahadur Shah Zafar
Marg , New Delhi-110 002
02. Western Regional Office Phone 022-28329295
Manakalaya, Plot No. E-9, Fax 28374231
MIDC, Road No. 8, Behind Email: saleswro@bis.org.in
Telephone Exchange,
Andheri (East), Mumbai-93
03. Eastern Regional Office 033-232053243
5, Chowringhee Approach 91-33-23377459(Fax)
P.O. Princep Street, ero@bis.org.in
Kolkata-700 012
04. Northern Regional Office 91-0172 2665512
SCO 335-336, Sector 34-A 91-0172 2602025 (Fax)
Chandigarh-160 022 910172-2609285,
2664750,2624136(PBX)
nro@bis.org.in
05. Southern Regional Office 91-044-22542315, 22541584,22541470
C.I.T. Campus, 91-044-22541087 (Fax)
IV Cross Road sro@bis.org.in
Chennai-600 013

NOTE:- The use of the ISI Certification Mark is governed by the provisions of the Indian
Standards Institution (Certification Marks) Act and the Rules and Regulations made there
under. The ISI Mark on products covered by an Indian Standard conveys the assurance that
they have been produced to comply with the requirements of that standard under a well-
defined system of inspection, testing and quality control which is devised and supervised
by ISI and operated by the producer. ISI marked products are also continuously checked by
ISI for conformity to that standard as a further safeguard. Details of conditions under which
a license for the use of the ISI Certification Mark may be granted to manufacturers or
processors, may be obtained from the Indian Standards Institution.

www.kidsfly.in 14
 PROCESS FLOW DIAGRAM

Car Chassis:

Manufacturing of car chasis

through injection moulding
process

Trimming process on a moulded

piece to remove unwanted
material

Spray Painting on a car chassis

Transfer to assembly section

www.kidsfly.in 15
Car Body:

Manufacturing of Car body

through die casting

Trimming process to avoid any

unwanted material

Electrostatic Painting on outer

surface of body as per drawing

Spray Painting for decoration of

outer surface i.e. designing
sports

Transfer to assembly section

www.kidsfly.in 16
Wheel and Tyre:

Manufacturing of Wheel through

injection moulding process

Manufacturing of Tyre through

Die Casting process

Manufacturing of Wheel cover by

injection moulding process

Electrostatic Painting as per

requirement

www.kidsfly.in 17
Assembling Process:

Assembling of tyres with chassis of car

Assembling of electrical components i.e. Battery, Motor, Receiver,

Controller, Remote Control Unit, Electrical Connections etc.

Assembling of steering with front wheels

Screw fastening of chassis and body of the car

Installation of Seat

Functional check of the product

Product cleaning, Date code stamping

Accessories installations like, lights, switches, race pedal, meters etc.

Final inspection and checking

U.V. Sterilization for checking of any minor crack

Packing

www.kidsfly.in 18
Manufacturing of ride on toy car mainly includes following steps

1. Manufacturing of car chassis

2. Manufacturing of Car body
3. Manufacturing of car tyres
4. Manufacturing of Wind screen
5. Manufacturing of side doors (if required depends upon the design)
6. Manufacturing of steering
7. Manufacturing of seat
8. Assembly of all together with electrical connections

1. Manufacturing of Car Chasis

A. Production of car chasis through injection molding process

B. Trimming process
C. Spray painting on chassis

2. Manufacturing of Car Body

A. Production of car body through die casting process

B. Trimming process
C. Electrostatic painting of car body
D. Spray painting on body

www.kidsfly.in 19
3. Manufacturing of Car Tyres

A. Manufacturing of plastic wheels and tyres using injection moulding and die
cast process

B. Assembly of tyre and wheel

C. Manufacturing of wheel cover

4. Manufacturing of Wind Screen

A. Production of wind screen using injection moulding process

B. Trimming process

5. Manufacturing of side doors: Production of side doors using die casting process.

6. Manufacturing of Steering

7. Manufacturing of seat: Production of seats using injection moulding process.

www.kidsfly.in 20
Injection Moulding: Injection molding is the most commonly used manufacturing
process for the fabrication of plastic parts. A wide variety of products are
manufactured using injection molding, which vary greatly in their size,
complexity, and application. The injection molding process requires the use of an
injection molding machine, raw plastic material, and a mold. The plastic is melted
in the injection molding machine and then injected into the mold, where it cools
and solidifies into the final part.

Advantages:
 Can form complex shapes and fine details
 Excellent surrface finish
 Good dimensional accuracy
 High production rate
 Low labor cost
 Scrap can be recycled

Disadvantages:
 Limited to thin walled parts
 High tooling and equipment cost
 Long lead time possible

www.kidsfly.in 21
The process cycle for injection molding is very short, typically between 2 seconds
and 2 minutes, and consists of the following four stages:

1. Clamping - Prior to the injection of the material into the mold, the two
halves of the mold must first be securely closed by the clamping unit. Each
half of the mold is attached to the injection molding machine and one half is
allowed to slide. The hydraulically powered clamping unit pushes the mold
halves together and exerts sufficient force to keep the mold securely closed
while the material is injected. The time required to close and clamp the mold
is dependent upon the machine - larger machines (those with greater
clamping forces) will require more time. This time can be estimated from the
dry cycle time of the machine.

2. Injection - The raw plastic material, usually in the form of pellets, is fed
into the injection molding machine, and advanced towards the mold by the
injection unit. During this process, the material is melted by heat and
pressure. The molten plastic is then injected into the mold very quickly and
the buildup of pressure packs and holds the material. The amount of
material that is injected is referred to as the shot. The injection time is
difficult to calculate accurately due to the complex and changing flow of the
molten plastic into the mold. However, the injection time can be estimated
by the shot volume, injection pressure, and injection power.

www.kidsfly.in 22
 3. Cooling - The molten plastic that is inside the mold begins to cool as soon
as it makes contact with the interior mold surfaces. As the plastic cools, it
will solidify into the shape of the desired part. However, during cooling some
shrinkage of the part may occur. The packing of material in the injection
stage allows additional material to flow into the mold and reduce the
amount of visible shrinkage. The mold cannot be opened until the required
cooling time has elapsed. The cooling time can be estimated from several
thermodynamic properties of the plastic and the maximum wall thickness of
the part.

4. Ejection - After sufficient time has passed, the cooled part may be ejected
from the mold by the ejection system, which is attached to the rear half of
the mold. When the mold is opened, a mechanism is used to push the part
out of the mold. Force must be applied to eject the part because during
cooling the part shrinks and adheres to the mold. In order to facilitate the
ejection of the part, a mold release agent can be sprayed onto the surfaces
of the mold cavity prior to injection of the material. The time that is required
to open the mold and eject the part can be estimated from the dry cycle time
of the machine and should include time for the part to fall free of the mold.
Once the part is ejected, the mold can be clamped shut for the next shot to
be injected.

www.kidsfly.in 23
After the injection molding cycle, some post processing is typically required.
During cooling, the material in the channels of the mold will solidify attached to
the part. This excess material, along with any flash that has occurred, must be
trimmed from the part, typically by using cutters. For some types of material,
such as thermoplastics, the scrap material that results from this trimming can be
recycled by being placed into a plastic grinder, also called regrind machines or
granulators, which regrinds the scrap material into pellets. Due to some
degradation of the material properties, the regrind must be mixed with raw
material in the proper regrind ratio to be reused in the injection molding process.

www.kidsfly.in 24
The major materials used for injection molding are HDPE, HIPS, PVC etc. the
chosen of material depends upon the type of parts i.e PVC and HDPE is used for
production of hollow parts.

Trimming Process: Once plastic part is created, all of the excess plastic will need
to be trimmed away. The trim is so important, because a poor trim will result in
inconsistent parts that may not function correctly or even fit into their designated
spot.

Spray painting is a painting technique where a device sprays a coating (paint, ink,
varnish, etc.) through the air onto a surface. The most common types employ
compressed gas—usually air—to atomize and direct the paint particles. Spray
guns evolved from airbrushes, and the two are usually distinguished by their size
and the size of the spray pattern they produce.

This process occurs when paint is applied to an object through the use of an air-
pressurized spray gun. The air gun has a nozzle, paint basin, and air compressor.
When the trigger is pressed the paint mixes with the compressed air stream and is
released in a fine spray.

Die Casting: Die casting is an automated casting process in which the liquid melt
is pressed into a mold under high pressure (150 to 1200 bars) and at a high filling
speed (up to 540 km/h). Usually alloys with a low melting point are used. This
casting process is particularly suitable for series and mass production of
components because, unlike sand casting, for example, permanent metal molds
are used which do not have to be destroyed after casting. It is possible to produce
large and complex components with low wall thicknesses.

Die casting is one of the most economical and quickest forming processes. The
advantages of this production process are that hundreds of thousands of castings
can be produced relatively quickly by using just one mold. All components
produced have a uniform quality and involve relatively low unit costs.

www.kidsfly.in 25
Electrostatic painting: Electrostatic painting is a process that uses specialized
equipment to electrically charge and fluidizes powdered pigment, then spray the
particles as a coating onto a surface.

Classified as one of the “dry painting” systems of the powder paint it uses, the
electrostatic painting process eliminates volatile organic compounds (VOC’s),
hazardous pollutants (HAP’s) and solvents that are often found in other painting
processes.

The electrostatic charge used in this painting process acts in two ways:

• It causes charged powder particles to behave like a liquid as they move

through the air and land on the targeted surface.

• It facilitates attraction of unlike charges to each other. As positively charged

particles seek the nearest ground, a mutual pull connects them, then bonds
the coating to the grounded surface on which it’s sprayed.

www.kidsfly.in 26
The bonded coating made possible by the electrostatic painting process protects
the surface underneath from corrosion that may be caused by moisture and
oxidizing elements in the air. A high-quality finish restores the appearance to like-
new condition.

For porous substances, like wood, the electrostatically coated surface can protect
against moisture that attracts mold and fungus and can cause rot. On projects for
which wood, plastic or another conductive, more negatively charged material is
the target, special prep steps may be needed to ensure proper coating and a
quality finish.

Assembly: The assembly process includes the following steps:

A. Fitting of car body and chassis tighter.

B. Placing the required components at chasis of the car i.e. battery, motor,
signal receiver etc.

C. Assembling of Steering

D. Placing of rivets at various location for perfect fitting

E. Cold staking process as per requirement of drawing

F. Functional check of the product

G. Product cleaning

H. U.V. sterilization for checking of any unwanted crakes.

I. Date stamping

J. Packing

www.kidsfly.in 27
Manufacturing of ride on toy bike mainly includes following steps

1. Manufacturing of Bike Skelton

2. Manufacturing of Bike Tank
3. Manufacturing of Bike Tyres
4. Manufacturing of Front Head
5. Manufacturing of Side Small Tyres
6. Manufacturing of Handle
7. Manufacturing of Seat
8. Manufacturing of Foot Rest And Other side panels

Assembly of All Toghter with Electrical Connections

1. Manufacturing of Bike Skelton:

A. Production of bike skelton through injection moulding process

B. Trimming process
C. Spray painting

2. Manufacturing of Bike Tank

A. Production of bike tank through blow moulding process

3. Manufacturing of bike takes place same as car tyres.

4. Production of other parts will take place with injection molding process as per
design of the bike.

www.kidsfly.in 28
Quality control

For the purposes of this part of IS0 8124 the following definitions apply.

1. Base material: Material upon which coatings may be formed or deposited

2. Coating: All layers of material formed or deposited on the base material of a

toy, including paints, varnishes, lacquers, inks, polymers or other
substances of a similar nature, whether they contain metallic particles or
not, no matter how they have been applied to the toy, and which can be
removed by scraping with a sharp blade.

3. Detection limit of a method: Three times the standard deviation of the

result obtained in the blank test using that method.

4. Mass-coloured materials: Materials, such as wood, leather and other

porous substances, which have absorbed colouring matter without
formation of a coating.

5. Scraping: Mechanical process for removal of coatings down to the base

material.

6. Toy material: All accessible materials present in a toy.

www.kidsfly.in 29
Selection of test portions

A laboratory sample for testing shall consist of a toy either in the form in which it
is marketed, or in the form in which it is intended to be marketed. Test portions
shall be taken from accessible parts of a single toy sample. When appropriate, the
toy shall be subjected to relevant tests in accordance with IS0 8124-1, before the
accessibility is considered. Identical materials in the toy may be combined and
treated as a single test portion, but additional toy samples shall not be used. Test
portions may be composed of more than one material or colour only if physical
separation, e.g. dot printing, patterned textiles or mass limitation reasons,
precludes the formation of discrete specimens.

Preparation and extraction of test portions

Coatings of paint, polymer and similar coatings

Test portion preparation

Remove the coating from the laboratory sample by scraping at room temperature
and cornminute it at a temperature not exceeding ambient. Collect enough coating
to obtain a test portion of preferably not less than 100 mg which will pass through
a metal sieve of aperture.

www.kidsfly.in 30
Extraction procedure

Using a container of appropriate size (6.2.61, mix the test portion prepared in 8.1.l
with 50 times its mass of an aqueous HCI solution at (37 f 2)“C of c(HCI) 0.07
mol/l (6.1 .I I. [Where the test portion has only a mass of between 10mg and
100mg, mix the test portion with 5,0ml of this solution (6.1 .l) at (37 f 2)“Cl

Shake for 1 min. Check the acidity of the mixture. If the pH is greater than 1.5,
add drop wise, while shaking the mixture, an aqueous solution of c(HCI)
approximately 2 mol/l (6.1.4) until the pH of the mixture is between 1.0 and 1.5.

Protect the mixture from light. Agitate the mixture continuously at (37 f 2)“C
(6.2.5) for 1 h and then allow to stand for 1 h at (37 It 2)“C.

Without delay, efficiently separate the solids from the solution, firstly by filtration
using a membrane filter and, if necessary, by centrifuging at up to 5000g. Carry
out the separation as rapidly as possible after completion of the standing time. If
centrifuging is used, it shall take no longer than 10 min and shall be reported
under 10e). If the resulting solutions are to be stored for more than one working
day prior to elemental analysis, stabilize them by addition of hydrochloric acid so
that the concentration of the stored solution is approximately c(HCI) = 1 mol/l.
Report such stabilization under 10e).

www.kidsfly.in 31
PLANT & MACHINE

1. Injection Molding Machine

2. Die Casting Machine

3. Spray painting machine

4. Electrostatic powder coating paint machine

5. Assembly Line

6. Testing Lab

7. DG Set

8. Electrical Transformer

9. Fire fighting equipments

www.kidsfly.in 32
 THE CURRENT STATE OF TOY INDUSTRY

The Euro monitor report for Toy industry states that Industry is growing at the
rate of 6.5% for 2018-19. The growth for the last five-year (70%) period has been
on the rise (due to increase in disposable income, changing demographics etc.)

The market size is currently being at 30,197 million INR for Traditional toys and
games. The market size for Nontraditional toys and games (such as Legos and new
ages toys such as Action figures and Moving vehicle) accounts for 42,267 Million
INR. The rest of the market consists of the Video Games (Out of scope of our
analysis) has market size of 17,069 Million INR.

If we analyze the CAGR for this industry. We see that Traditional Toys and Games
are growing at the healthy CAGR of 15-16% for year 2018-19. While
Nontraditional Toys and Games also has been seen robust growth rate of CAGR
21% for same time period. However, the biggest player has been the Video games
industry. It is enjoying the CAGR OF whopping 40% for same period. Hence it one
the biggest threats to all the major games and toys players’.

www.kidsfly.in 33
 TRADITIONAL TOY MANUFACTURING UNITS

Name of Clusters/ No. of Units

Sl. States Locations (Nos)
No.
1. Andhra Adilabad and Kondapalli 08
Pradesh
2. Gujarat Patan and Kutch 09
3. Karnataka Bangalore, Bangalore 11
Rural, Belgaum, and Bellary
4. Uttar Agamgarh, Lucknow, 15
Pradesh Varanasi and Agra
5. West 24Pargana North, Burdwan, 12
Bengal Hoogly, Murshidabad, and
Shantiniketen
Total 55

www.kidsfly.in 34
Table: Field Survey of Modern Toy Manufacturing Units

Name of No. of
Sl. No. States
Clusters/ units
Locations (Nos)
1. Karnataka Bangalore 11
2. Telengana Hyderabad 01
3. Tamilnadu Chennai 01
4. Maharashtra Mumbai 14
5. Uttar Pradesh Meerut 14
6. Delhi Delhi/NCR 27
7. Gujarat Ahmadabad 05
8. West Bengal Kolkata 09
Total 82

www.kidsfly.in 35
The field data has been analyzed using Standard Statistical Software’s such as
SPSS for arriving at meaningful analytical tables for both traditional and modern
toy segments separately.

a. Metal Toys: Copper and bronze were the earliest non-ferrous metals which
man shaped into tools. References to the casting of bronze images were
found in ancient texts like the MatsyaPurana. Gujarat and Uttar Pradesh in
the north and Tamil Nadu and Andhra Pradesh in south India are known for
their bronze and copper items.

b. Wooden Toys: Workmanship on wood has flourished in India over the

centuries. Dolls made from wood are very popular. Sikkim is known for its
carved objects and dolls. Traditional designs are carved on wood and then
painted for giving the whole object a rich effect.

c. Clay Toys: Terracotta is the most ancient and original form of expression of
clay-art. Terracotta figurines in India, ranging over a period of 3,000 years,
belong to times both before and after the use of stone in sculpture. Though
it is fragile and disintegrates quickly, a continuous stream of art throughout
different stages of civilization can still be found. Pottery in India has deep
religious significance. Figurines of Gods and Goddesses are made of clay
during festivals like Durga Puja in Bengal and Ganesh Chaturthi in
Maharashtra. Also popular are the gram devtas (village deities) regularly
created by local craftsmen. Delhi is known for its blue pottery which is
almost translucent. The Jaipur Blue pottery is even more unique with its
arabesque.

d. Toys made of Stone: Orissa was traditionally known as "Utkal", land of

excellence of art, because of the vast communities of painters, potters,
weavers and other artists who were attached to the major temple complexes.
In fact the art of stone carving in Orissa dates back to Kalinga (previous
name of Orissa) period. Stone carving is carried out on sandstone, Nilgiri
stone, soft stone (Kochilla) and serpentine stone. Popular themes include
the images of Hindu gods and goddesses and dancers. Makrana in Rajastan
produces fabulous marble dolls and figurines.

www.kidsfly.in 36
 e. Glass Toys: It was the Mughals who discovered the decorative potential of
glass - the fact that when it is cut, it has the opalescence and the glitter of a
myriad diamond. Glass engravings from India, exported to Europe till the
16th century, are said to have influenced the Venetians. Today this art has
declined but glass items are still part of everyday life. Saharanpur of Uttar
Pradesh makes glass dolls and toys filled with colored liquid called
panchkora.

f. Paper Mache Toys: Paper Mache is a comparatively new craft in India,

which has caught on very well in many parts of the country, since the raw
material is easily available and inexpensive. Kashmir is famous for paper
mache craft. Kashmir produces some of the most beautifully handcrafted
paper mache items. Gwalior in Madhya Pradesh makes paper mache toys,
while in Ujjain figures of popular deities are made of this material. Jaipur
(Rajasthan) and Chennai are also famous for their paper mache crafts.

g. Shola-Pith Toys: Figurines of Shola pith are another popular form of

handicraft in certain parts of India. Shola pith is a herbaceous plant
growing wild in marshy and water-logged areas. This material is used in
West Bengal for making figurines, artistic decorations and headgears for
deities during festivals. Craftsmen of Tiruchirapalli in Tamil Nadu make
remarkable reproductions of well known temples in pith.

h. Cloth Toys: The cloth doll has been in existence for almost as long as cloth
itself. Dolls were made of cloth in ancient Egypt and cloth-dolls have been
made ever since. They have been more popular in some periods of history
than others, but they have never been forgotten. The main reason for this is
that cloth is the easiest of all materials for a woman to find. A mother could
always use at least an old rag to fashion a doll for her child. Besides the fact
that it is always available, cloth is easy to work with and requires practically
no tools.

i. Electronic & Mechanical Toys: With the advent of modern technology

such as electronics and mechanics, the toy industry also has become highly
sophisticated. All toys whether electronic or mechanical have either
educational or recreational value or both.

j. Tin Toys: Tin toys are the toys made out of tin metal.

www.kidsfly.in 37
All over the world, toys are classified according to their end use:

Toys and Board Games can be further classified into three broad categories.

a) Educational Toys and Board Games: Toys those demonstrate or project

the educational principles using simple tools and equipments in the field of
science, geography, mathematics, music and others.

b) Mechanical Toys: Toys those are specifically used for development of motor
skills fitted with simple mechanical devices. These can be battery or
electrically operated also.

c) Other Toys: Toys those are meant to give pleasure to children for their
mental and physical development viz, hand coordination, recognition of
different size, shapes and colors, etc.

However, in practice the above classifications of toys are overlapping in almost all
cases. A Mechanical Toy can also be an Educational Toy. Similarly, other toys can
also be classified as Educational Toys. Wide ranging inputs, by-products, recycled
material, and everything available as waste products can be used as inputs for
manufacture of toys. A scale model or a miniature form of any attractive product,
instrument, vehicle, mode of transportation, animal or historical character is
generally depicted as a toy.

www.kidsfly.in 38
Toy Industry in India

Traditional Toys

Few products are as essential to human development as toys. Yet this sector has not
received its due institutional support and recognition. Development, production and
sale of toys cover a vast range of economic activities from tiny cottage craft unit to the
sophisticated electronic products manufactured on a mass scale. India has a great,
rich tradition of craft toys produced locally by the artisans and crafts communities all
over India. Much of this great heritage has been eroded due to neglect and lack of
institutional support.

A widespread network of toy making crafts and cottage industries exists in India.
There are two broad types of such development and production communities.

 Communities focused largely on making utility products but also produce toys as a
seasonal or side activity.

 Those well-established communities whose main products are toys. These

communities work with many materials, including terracotta, wood, reeds,
grass, pith, bamboo and paper mache.

Traditional Toy Sector is not in competition with the formal toy manufacturing sector.
The product line is different. The problems are different, yet both sectors need
relevant institutional supports such as availability of materials, markets, design and
development support and promotion. In fact the traditional and the modern or formal
sector can and should co-exist and strengthen each other.

A study sponsored by Development Commissioner of Handicrafts, Government of

India undertaken by National Institute of Design (NID) during 1981-83 (Indian Toys:
The Crafts Sector, NID, 1983, A Reference project document) had documented various
traditional toy crafts available in India. The study included visits and meetings with
traditional toy-making communities all over India as well other stake holders. The
study re-confirmed that there is great potential with the family community trained
artisans and crafts people who make toys using locally available materials, skills and
themes. It was found that the difficulty in getting the institutional assistance de
motivated the sector. Therefore, some concrete measures are needed to be taken to
ensure healthy development of the crafts and artisan communities so that they are
motivated to let their children carry forward this traditional wealth of knowledge.

www.kidsfly.in 39
Export Potential for Traditional Indian Toys

The Export Potential for Traditional Toys is very good.In the present eco-friendly
era, these traditional items though have less value for children but have a very
large requirement by parents wanting to keep them as collectables, to show
children the different stages of Toy developments and the shape and sizes of toys
during their playing days.

 Suggest Traditional Toys are promoted through Indian Emporiums abroad.

 Taking Shelf space with big Toys & Handicraft stores abroad.

 Having exclusive stands at Gifts, Handicraft, and Toys International Fairs &
India Stand.

The safety and toxicity aspects for the traditional toys has to be studied and the
measure taken for this sector. At this moment, traditional toy sector is being co-
ordinated mainly by the Development Commissioner of Handicrafts.

www.kidsfly.in 40
Current Scenario

The Indian toy industry is a major market for both domestic and international
players, owing to low penetration (0.5 per cent) as well as growth in the size of the
middle class. India's toy industry has a meager share of 0.5% of the global market.
The Indian toy market, whose size is estimated at about Rs. 9000 crore (as of
March 2018) and grow at a compound annual growth rate (CAGR) of 20% by
2024.

Only 20% of the Indian market is served by Indian manufacturers, with the rest
being accounted for by imports mainly from China and Italy, which offer wider
variety at lower prices and attract children of all ages. These imports include fun
games, electronic toys, board games, construction toys, stuffed toys, educational
games and toy cars.

The Indian toy industry, which largely consists of small and medium enterprises
(SMEs), is caught in a strange paradox - it recorded double-digit growth over the
last five years, and yet around 40% of Indian toy manufacturing units have closed
down. For this situation, the Associated Chambers of Commerce and Industry
(ASSOCHAM) are used the term "dragon effect" in which the Indian market is
flooded with Chinese toys and Indian toy manufacturers are being decimated.

www.kidsfly.in 41
Large International Toy Manufacturers in India

Mattel: Mattel is the world’s largest toy importing company in terms of revenue.
The products it imports mostly from China, include Barbie dolls, Hot Wheels and
Matchbox cars, American Girl dolls, board games, , video game consoles etc. It
was founded in 1945. Today, the Barbie line alone contributes more than 80% of
Mattel’s profits. The Mattel Company is a US $ 30 Billion company out of which
their market share in India is around 5%.

Mattel Toys (India) Pvt Ltd retained its leadership position in toys and games as a
whole with its strongest brands, achieved primarily through brands such as
Barbie, Hot Wheels and Fisher-Price, all of which are present in traditional toys
and games. Sony India Pvt Ltd was ranked second overall in 2014, a position
achieved through its leadership in video games, where it is present with its
PlayStation range. Despite its size, since the traditional toys and games category
remains relatively underdeveloped.

Funskool: Funskool was set up in the year 1987. Funskool is the joint venture
between the Indian tyre giant MRF and Hasbro Inc., a leading toy company,
undoubtedly the largest toy company in India. Funskool manufacture and export
a wide range of toys for their international partner Hasbro. Hasbro is a world
leader in children's and family leisure time entertainment products and services,
including the design, manufacture and marketing of games and toys ranging from
traditional to high-tech. Funskool has two state of the art manufacturing facilities
based at Corlim, Goa (Western India ) and at Ranipet , Tamil Nadu (Southern
India).

The bigger factory at Goa commenced operations in 1988, and employs over 450
personnel, and as a part of the expansion drive, the factory at Ranipet, started
operations in 1999 employing about 200 employees.

www.kidsfly.in 42
Major Challenges to Indian Toy Industry

 Weights & Measures Act has been a major cause of inconvenience to the toy
industry, right from manufacturers to the retailers

 There is a big grey area in the Central Excise interpretation under chapter
95.03 & chapter 95.04.

 Most Indian Manufacturers ensure that they use and make the best quality
toys. In all reports, there are hardly any negative remarks on Indian
manufacturers regarding toxic complaints.

 Being a neglected & extremely small industry, Toy Industry received a step-
brotherly treatment from every department. There is an urgent need to
upgrade the technology so that Toy Industry will have a level playing field to
compete with the likes of the bigger international players like Hansbro,
Ravensberger, Lego, etc.

 Lack of International market intelligence.

 The C-form collection & submission is a tedious task. With most MSME
manufacturers being family run business, the compliance of this law takes
precious time and energy. This, followed by delayed assessments, orders,
non-compliance penal charges, etc., gives rise to confrontations and legal/
lobbying practices.

Export Prospects

 Due to the merger of Hong Kong with China, American/European Toy

Manufacturers/Traders are looking for alternate manufacturing base in
South East Asia, and this is the opportune time for India to attract them.

 The cost of production in China is rising faster than in India. They are also
facing acute labour problems and escalation of wages.

 It is advantage for India and it is the right time to take full advantage of the
situation.

www.kidsfly.in 43
Future of Toy Industry in India

Over the years Indian middle class has emerged as a major force to reckon with in
the consumerist world arena. The purchasing power of Indian middle class has
been considered equivalent to the entire European market. Considering the retail
boom and the changing consumption habits of the middle class which favor use of
toys as a medium for entertainment and education, the toy industry in India is
poised for a major upward growth and for a brighter future.

Though the toy industry is mainly driven by designs and marketability, technology
remains the backbone for converting the designs into viable and marketable
products. Outright purchase of technology or licensing arrangements for toy
industry does not appear to be viable. The internationally available technologies
are very costly and are beyond the reach of toy manufacturers from the SMEs.
Under the WTO scenario, institutional back up can help solving issues of costly
technologies, obsolete designs, market intelligence and better tooling. Method of
reverse engineering will not be available hence forth to the toy manufacturing
companies. As a result, these companies may have to invest in their own design
and development. Modern prototype development techniques, better tool room
facilities would be more useful to the toy units. The industry needs to be
sensitized and upgraded regularly based on WTO provisions and related
opportunities. The toy industry has to develop a culture of innovations and market
intelligence.

Setting up of a big toy units with a number of peripheral smaller toy component
manufacturers can be a good model for development of Indian toy industry. The
smaller ancillary units may feed components to larger companies, as per design
and advice of the larger company. The central company can source costly
technologies from overseas in a WTO compatible environment. This will lead to
multiple trades in technology wherein the central company seeks technology from
a technology provider in the developed country and also provides technology in
parts to its vendors/supplier companies.

After the implementation of the US$2.2 million joint project by the National
Programme of Development of Toy Industry by the Ministry of Small-Scale
Industries, the Toy Association of India (TAI) and the UN Industrial Development
Organization (UNIDO), there has been considerable improvement in the quality
and design of products, and increase in toy exports.

www.kidsfly.in 44
SWOT ANALYSIS OF INDIAN TOY INDUSTRY

Strengths

 Growing large domestic market.

 Increase in demand due to rise in the disposable income of domestic

consumer.

 Growing confidence of both- domestic and international buyers in the

Indian toy industry.

 Availability of most of the raw materials.

 Availability of skilled manpower at comparatively lower cost.

 Emergence of India on global toy scene.

 Support structures available for obtaining finance.

 Innovation skills.

 Less overhead costs.

 Wide range of products.

 Business acumen of the entrepreneurs.

 Manufacturing industry network & linkages.

 Pool of support institutions.

 Capacity to compete under adverse conditions.

www.kidsfly.in 45
Weaknesses

 Most of the toy industry is tiny in size hence Low Volume of Production.

 Lack of Research and Development facilities.

 Toy specific designers not available.

 Fragmented Technical knowledge.

 Absence of strong & professionally managed Toy Industry Associations.

 Lack of synergy and coordination amongst various toys manufacturers-

critical for Component Approach.

 Poor process capability because of low technology, inferior tooling and use of
general-purpose machines for specialized jobs.

 Absence of focus on export.

 Inadequate technical capabilities particularly in electronic toys and video

games.

 Quality parameters are not followed.

 Surface finish and other features are poor.

 Higher production cost due to lack of economies of scale.

 Lack of range /poor presentation.

 Insufficient/ inconsistent vendor support.

 Comparatively higher cost of funds.

www.kidsfly.in 46
  Costly Special Purpose Machines/ Very high cost of foreign technologies.

 Lack of pride in workmanship.

 Insensitivity to customer needs/ poor channels of customer feedback and

customer complaint redressal system.

 Minimal expenditure on brand building, advertising.

 Weak online presence.

 Lack of professional management.

 Reluctance to introduce new product designs because of unfavorable

economies of scale.

 Imported toys are cheaper in cost, versatile in features, attractive and handy
in packaging and better in quality.

www.kidsfly.in 47
Opportunities

 Well developed market-domestic as well as overseas.

 Growing domestic market and buying capacity.

 Almost one third of the population under 14 years of age to expand market.

 Liberalized economy, “Make or Buy” decisions easier.

 Low cost manufacturing base- enabling strategic alliances/ Potential co-

operation with large customers and multinationals.

 Better support from government through Inter-Ministerial Committees

 Increasing surplus income of Indian middle class.

 Toys recognized as a better medium for education in a play way method.

www.kidsfly.in 48
Threats

 Competition from international players as they started manufacturing

operations in India.

 China and other countries corner major market share of the growing Indian
toy market.

 Technology obsolescence is creating road blocks to rapid changes in product

design and also for adjusting to consumer preferences.

 Slow response to safety & quality standards based on international market

requirements.

 Toy units diversifying to other sectors leading to poor component base.

 Shift in market demand to electronic toys in which India does not have
competitive edge.

 Enhanced brand consciousness amongst Indian consumers.

 Children devoting more time to computers/ internet/ studies, leaving less

time for games and toys.

 Increasing concern among international buyers about quality aspects of

Indian toys.

 Low scale of operation capabilities with Indian manufacturers.

 With the melting of international trade boundaries, free flow of Chinese toys
accessed the Indian market, having dual impact on the local toy industry.

www.kidsfly.in 49
 PLANT LAYOUT

Admin Office Raw Material

Store

I
N

G
A Production Shed
T
E

Finished
Dispatch Bay Goods Store Testing Bay

GATE

Total Land Area = 6000 sq.mt.

www.kidsfly.in 50
 SUPPLIERS OF RAW MATERIALS

SUPPLIERS OF PVC GRAUNALS

Konekt Industries
301, Ram Reddy Nagar,
IDA Jeedimetla,
Hyderabad-500055, Telangana
Mr. Lalit Vijoy
Phone: 08048977778

Aadi Lakshmi Plastic Traders

Prashanthi Nagar, 5-5-35/38,
Kukatpally, Near Pioneer Nursing College,
Hyderabad-500072, Telangana, India
MS. Vikram
Phone: 08048402941

Mamtaa Polymers
Plot No. 67, Shed 2, C.I.E.E.,
Gandhinagar, Balanagar, CIEE,
Hyderabad-500037, Telangana, India
Mr. Raaj Kumar Bihani
Phone: 08046039701

Sri Krishna Industries

10-1-185/1, PIPELINE ROAD, FATHENAGAR,
Near Santoshimata Temple, Fatehnagar,
Hyderabad-500018, Telangana, India
Ankit Agarwal (Manager)
Phone: 08037825456

www.kidsfly.in 51
SUPPLIERS OF BATTRIES

Tata Autocomp Gy Batteries Private Limited

Plot No C-2, Next To Wheels India, Ranjangaon,
MIDC, Pune-412220, Maharashtra, India
Anurag Kumar (Marketing Executive)
Phone: 08049441341

Xaton (A Brand Of Sri Radhika Power Solution)

13-6-826/99, Near Attapur Bridge,
Mehdipatnam, Ring Road, Attapur,
Langar Houz, Hyderabad - 500067,
Telangana, India
Gaurav Singal (Proprietor)
Phone: 08048611241

Mittal Batteries Private Limited

24/B, Kothur IDA, Kothur V & M,
Manchirevula, Hyderabad - 509228,
Telangana, India
Ramesh Kumar Agarwal (Managing Director)
Phone: 08048555241

Flora Battery Corporation

No. 15-1-503-A-52, Rajdhani Hotel,
Ashok Market, Feelkhana,
Hyderabad - 500012, Telangana, India
Aslam Meghani (Proprietor)
Phone: 08045352965

www.kidsfly.in 52
 SUPPLIERS OF PLANT AND MACHINERY

SUPPLIERS OF DIE CASTING MACHINE

Galaxy Machines
Gate No. 1567, Shelar Vasti,
Dehu-Chikhali Road, Chikhali,
Pune - 412114, Maharashtra, India
Mr. Dileep
Phone: 0804253808

Bezel Impex Private Limited

Plot No. 196, Gali No. 2, Krishna Colony,
Sector 56A, Faridabad - 121004, Haryana, India
Rajnish Behl (Managing Director)
Phone: 08048763901

Supreme Cnc Machines Private Limited

Plot No. 1770, I Block, 1st Street,
Off- 6th Avenue, Annanagar West,
Chennai-600040, Tamil Nadu
Sunil Kumar S. (Managing Director)
Phone: 08048978965

www.kidsfly.in 53
SUPPLIERS OF ELECTRIC POWDER COATING MACHINE

Weld Mech Engineering

Plot No-11, TS Agro Industries Development
Corporation Limited Complex
Opposite HMT Tractors Company,
Qutubullapur Cross Road, Chintal,
Ameerpet, Hyderabad-500037,
Telangana, India
C.n. Keshava Chand (Director)
Phone: 08048757602

Sannidhi Enterprises
Plot No. B1, 4th Floor, TIE, Phase II,
Kukatpally, Hyderabad-500037,
Telangana, India
S. Venkataramana (Partner)
Phone: 08048579600

Vijayalaxmi Powder Coatings

Plot No. 56 & 57, IDA, Gandhinagar,
Balanagar, Opposite Mekins Industries,
Hyderabad-500037, Telangana, India
Vipin Kumar (Proprietor)
Phone: 08048726618

Link Enterprises
RT 224, Jawahar Nagar,
Opp. Lalitha Parameswari Temple,
Kavadiguda, Hyderabad-500020,
Telangana, India
Suresh Nair (Proprietor)
Phone: 08048014388)

www.kidsfly.in 54
Hatimi Sales Agencies
No. 29/61, Sembudoss Street,
Ground Floor, George Town,
Chennai - 600001, Tamil Nadu, India
Phone: 08045319559

SUPPLIERS OF ELECTRICAL MEASURING INSTRUMENTS

Sri Vintec
PLOT NO. 238, FLAT NO. 302, MITHILA NAGAR,
PRAGATHI NAGAR, KUKATPALLY, SRI NIDHI HOMES
Medchal Malkajgiri, Hyderabad-500090, Telangana, India
Phone: 08978003629

SUPPLIERS OF COOLING TOWER

Rapid Cooling Systems

Plot No. 60, Sy No. 131/A, 131AA 133,
Lakshmi Ganapathi Nagar, D Pochampally,
Quthbullapur, Kukatpally, Hyderabad-500072,
Telangana, India
R. Pardha Saradhi (Owner)
Phone: 0804841283553

Branch Office
R. Pardha Saradhi
EWS-4, Dharma Reddy Colony,
Phase-1, KPHB Kukatpally,
Hyderabad - 500072
India

www.kidsfly.in 55
R. K. Aircon Industries
Plot No. 24-110/3, I. D. A. Uppal,
Kalasiguda, Hyderabad - 500039,
Telangana, India
Rajesh Varma (CEO)
Phone: 0804876280

Mahaveer Cooling Towers

H. No. 6-52/2, Isnapur Road,
Patancheru, Near By SM School & Hospital,
Hyderabad-502307, Telangana, India
Anil Chouhan (Proprietor)

SUPPLIERS OF EFFLUENT TREATMENT PLANT

Kings Industries
No. 1, Blessings, Balaji Gardens,
Mathampalayam, Coimbatore - 641019,
Tamil Nadu, India
M. Samraj (Director)
Phone: 0804875432

Voda Enviro Projects Private Limited

Prasanth Dev Apartments, Door No 30,
Flat No. 7 First Main Road, Gandhi Nagar,
First Main Road, Adyar, Chennai - 600020,
Tamil Nadu, India
Ravi B (Director)
Phone: 08048870441

www.kidsfly.in 56
SUPPLIERS OF FIRE FIGHTING EQUIPMENTS

Vigil Tech
8-1-364/A/66, Flat No. 303, 4th Floor,
Adams Colony, Toli Chowki, Hyderabad-500008,
Telangana, India
Syed Habeeb (Managing Partner)
Phone: 08048923717

2.Techno Fire Safety Systems

Plot No. 741/1, 1st Floor, Subhash Nagar,
Near Shivalayam Temple, Quthbullapur,
Hyderabad-500055, Telangana, India
Sachin Kumar Singh (Proprietor)
Phone: 08048836139

3.MEDQ India
H. No. 3-8-341/1, Road No.1,
Chandrapuri Colony, LB Nagar X Road,
Hyderabad – 500007, Telangana, India
Rajkiran Reddy Inukonda (Director)
Phone: 08042904750

www.kidsfly.in 57
SUPPLIERS OF INJECTION MOLDING MACHINES

Shubham Plast
No. 161/3/A, G. I. D. C. Road,
Makarpura Industrial Estate Makarpura,
GIDC, Vadodara-390010, Gujarat, India
Shubham (Proprietor)
Phone: 08042984747

Simran Machines
302/2, Swaroop Nagar,
Opposite Siraspur Gurudwar,
Bhalswa, Delhi - 110042, India
Prabhjot Singh (Manager)
Phone: 08042969791

Harsadhi Engineers
No. 16, Nalanda Estate,
Behind Bank Of India,
Girnar Quarter Compound,
Near Gujarat Vyapari Maha Mandal,
Khodiar Nagar, Ahmedabad-382350,
Gujarat, India
Dilip Varia (Proprietor)
Phone: 08049592768

www.kidsfly.in 58
SR Tools
Plot No. 27, Subhash Nagar,
IDA Jeedimetla, Hyderabad - 500055,
Telangana, India
Shivaji Rao Jadhav
Phone: +91-8048578548

OS Group Of Companies
Plot No. 7, Doolapally, jeedimetla,
Hyderabad-500100, Telangana, India
Tarshit Gupta (Marketing Executive)
Phone: 08048740076

www.kidsfly.in 59
www.kidsfly.in 60
www.kidsfly.in 61
KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 1

PLANT ECONOMICS

Rated Plant capacity = 600.00 Nos/day

= 180000.00 Nos/annum
TOY BIKES AND CARS

Basis

No. of working days = 25 days/month

= 300 days/annum

No. of shifts = 2 per day

One shift = 8 hours

Currency - Rs.

www.kidsfly.in 62
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 2

LAND & BUILDING

1. Total Land area 6000 sq.mt.

@ Rs. 1250/- sq.mt. Rs. 75,00,000.00

2. Production shed 4000 sq.mt.

@ Rs. 8000/- sq.mt. Rs. 3,20,00,000.00

3. Raw material and Finished store

reqd. 500 sq.mt. @ Rs. 8000/- sq.mt Rs. 40,00,000.00

4. Testing Bay reqd. 300 sq.mt.

@ Rs. 8000/- sq.mt. Rs. 24,00,000.00

5. Office Admin Building 200 sq.mt.

@ Rs. 9000/- sq.mt. Rs. 18,00,000.00

6. Boundary wall, Civil work etc. Rs. 25,00,000.00

------------------------
TOTAL Rs. 5,02,00,000.00
------------------------

www.kidsfly.in 63
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 3

PLANT & MACHINERY

1. Injection molding machine 14 No. Rs. 2,10,00,000.00

2. Die casting machine Cap: 700 Ton. 4 No. Rs. 40,00,000.00

3. Spray painting machine 3 No. Rs. 7,50,000.00

4. Electrostatic powder coating paint

machine 2 No. Rs. 4,00,000.00

5. Assembly line 6 No. Rs. 30,00,000.00

6. Testing Lab. 1 No. Rs. 5,00,000.00

7. DG Set 125 KVA 2 No. Rs. 30,00,000.00

8. Electrical Transformer 200 KVA 2 No. Rs. 10,00,000.00

9. Fire Fighting equipments Rs. 5,00,000.00

10. Misc. Rs. 10,00,000.00

------------------------
TOTAL Rs. 3,51,50,000.00
------------------------

www.kidsfly.in 64
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 4

OTHER FIXED ASSETS

1. Office equipment, furniture plus

other equipment & accessories Rs. 10,00,000.00

2. Computer, Laptop, Software etc. Rs. 20,00,000.00

3. Pre-operative & Preliminary exp. Rs. 2,00,000.00

4. Cost of Erection/Commissioning and

Electrical system Rs. 30,00,000.00

5. Technical Know-how cost Rs. 5,00,000.00

6. Contingencies Rs. 20,00,000.00

7. Misc. Rs. 5,00,000.00

------------------------
TOTAL Rs. 92,00,000.00
------------------------

www.kidsfly.in 65
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 5

FIXED CAPITAL

1. LAND & BUILDING Rs. 5,02,00,000.00

2. PLANT & MACHINERY Rs. 3,51,50,000.00

3. OTHER FIXED ASSETS Rs. 92,00,000.00

------------------------
TOTAL Rs. 9,45,50,000.00
------------------------

www.kidsfly.in 66
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 6

WORKING CAPITAL REQUIREMENT/MONTH

RAW MATERIALS

1. Plastic Granules (HIPS, HDPE, PVC, ABS)

Qty. 150 Ton.
@ Rs. 90,000/- Ton. Rs. 1,35,00,000.00

2. RC Toy Car motor controller 15,000 Nos.

@ Rs. 300/- each Rs. 45,00,000.00

3. Front & Rear Brushless motor 22,500 Nos.

@ Rs. 200/- each Rs. 45,00,000.00

4. Battery 12V, 12AH each Car 1 Battery

and each bike have 2 batteries
22,500 Nos. @ Rs. 600/- each Rs. 1,35,00,000.00

5. Fire Retarding battery charger

15,000 Nos. @ Rs. 200/- each Rs. 30,00,000.00

6. Metal Gear micro RC servo for car

7500 Nos. @ Rs. 160/- each Rs. 12,00,000.00

7. Remote control unit 15,000 Nos.

@ Rs. 150/- each Rs. 22,50,000.00

8. Wires and Cables, Connectors,

Consumables, Mechanical parts,
Electronic parts, Lights, Music system Rs. 35,00,000.00

9. Liquid paint Rs. 15,00,000.00

10. Packing materials Rs. 10,00,000.00

------------------------
TOTAL Rs. 4,84,50,000.00
------------------------

www.kidsfly.in 67
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 7

SALARY & WAGES / MONTH

1. Managing Director 1 No. Rs. 1,00,000.00

2. Works Manager 2 No. Rs. 1,00,000.00

3. Mechanical Engineer 2 No. Rs. 1,00,000.00

4. Foreman 2 No. Rs. 60,000.00

5. Electrical Engineer 1 No. Rs. 50,000.00

6. Accountant 2 No. Rs. 70,000.00

7. Store Keeper 3 No. Rs. 75,000.00

8. Sales Executive 3 No. Rs. 1,05,000.00

9. Receptionist 1 No. Rs. 20,000.00

10. Skilled Worker 50 No. Rs. 9,00,000.00

11. Unskilled Worker 30 No. Rs. 4,65,000.00

12. Maintenance Technician 4 No. Rs. 88,000.00

13. Guard 6 No. Rs. 90,000.00

14. Peon 3 No. Rs. 45,000.00

15. Sweeper 4 No. Rs. 60,000.00

16. CAD Designer 4 No. Rs. 1,40,000.00

------------------------
TOTAL Rs. 24,68,000.00
------------------------
Plus perks @ 33% p.a.
Rs. 8,14,440.00

------------------------
TOTAL Rs. 32,82,440.00
------------------------

www.kidsfly.in 68
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 8

UTILITIES AND OVERHEADS

1. Power Consumption of 120000

Kwatt hrs @ Rs. 9.50 per Kwatt hr. Rs. 11,40,000.00

2. Water Consumption of 200

KLs @ Rs. 5.00 per KL Rs. 1,000.00

3. Repairs & Maintenance Rs. 2,00,000.00

4. Postage, Stationery & Phone Bills Rs. 20,000.00

5. Conveyance & Transportation Bills Rs. 10,00,000.00

6. Publicity & Sales Promotion Rs. 5,00,000.00

7. Misc. Rs. 5,00,000.00

------------------------
TOTAL Rs. 33,61,000.00
------------------------

Total load is 330 Kwatts

www.kidsfly.in 69
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 9

TOTAL WORKING CAPITAL/MONTH

1. RAW MATERIAL Rs. 4,84,50,000.00

2. SALARY & WAGES Rs. 32,82,440.00

3. UTILITIES & OVERHEADS Rs. 33,61,000.00

------------------------
TOTAL Rs. 5,50,93,440.00
------------------------

1. WORKING CAPITAL FOR 2 MONTHS Rs. 11,01,86,880.00

2. MARGIN MONEY FOR W/C LOAN Rs. 2,75,46,720.00

COST OF PROJECT

TOTAL FIXED CAPITAL Rs. 9,45,50,000.00

MARGIN MONEY
Rs. 2,75,46,720.00

------------------------
TOTAL Rs. 12,20,96,720.00
------------------------

www.kidsfly.in 70
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 10

TOTAL CAPITAL INVESTMENT

TOTAL FIXED CAPITAL Rs. 9,45,50,000.00

TOTAL WORKING CAPITAL FOR 2 MONTHS

Rs.11,01,86,880.00

------------------------
TOTAL Rs.20,47,36,880.00
------------------------

www.kidsfly.in 71
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 11

COST OF PRODUCTION/ANNUM

1. Working Capital for 1 year Rs.66,11,21,280.00

2. Interest @ 13.50% on T.C.I Rs. 2,76,39,478.80

3. Depreciation @ 10.00% on buildings Rs. 42,70,000.00

4. Depreciation @ 20.00% on Plant

and Machinery Rs. 70,30,000.00

5. Depreciation @ 20.00% on office

equipment & furnitures Rs. 2,00,000.00
------------------------
TOTAL Rs.70,02,60,758.80
------------------------

www.kidsfly.in 72
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 12

TURN OVER/ANNUM

1. By sale of 909 Toy Car/ Jeep 90,000

Nos. @ Rs. 5000/- each Rs.45,00,00,000.00

2. By sale of R1 Toy Bike 90,000 Nos.

@ Rs. 4500/- each Rs.40,50,00,000.00

------------------------
TOTAL Rs.85,50,00,000.00
------------------------

PROFIT = RECEIPTS - COST OF PRODUCTION

= 85,50,00,000.00 - 70,02,60,758.80

= 15,47,39,241.20

PROFIT SALES RATIO = Profit / Sales x 100

15,47,39,241.20
= ------------------------------ X 100
85,50,00,000.00

= 18.10 %

RATE OF RETURN = Operating profit / T.C.I x 100

15,47,39,241.20
= ------------------------------ X 100
20,47,36,880.00

= 75.58 %

www.kidsfly.in 73
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 13

BREAK EVEN POINT (B.E.P)

Fixed Costs of the plant are as under -

1. Interests Rs. 2,76,39,478.80

2. Depreciation Rs. 1,15,00,000.00

3. 40.00% of salaries Rs. 1,57,55,712.00

4. 40.00% of overheads Rs. 1,61,32,800.00

------------------------
TOTAL Rs. 7,10,27,990.80
------------------------

FIXED COSTS
B.E.P. = ------------------------------ X 100
FIXED COSTS + PROFIT

7,10,27,990.80
= ------------------------------ X 100
7,10,27,990.80 +15,47,39,241.20

= 31.46 %

LAND MAN RATIO = Total land / Manpower

6000 : 118 :: 51 : 1

www.kidsfly.in 74
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 14

RESOURCES FOR FINANCE

1. Term loans from Financial institutions

( 65.00 % of fixed capital )
at @13.50% p.a rate of interest Rs. 6,14,57,500.00

2. Bank loans for 3 months

( 65.00 % of working capital )
at @ 13.50% p.a rate of interest Rs. 7,16,21,472.00

3. Self raised capital from even

funds & loans from close ones to
meet the margin money needs at a
@ 13.50% p.a rate of interest Rs. 7,16,57,908.00

--------------------------
TOTAL Rs. 20,47,36,880.00
--------------------------

www.kidsfly.in 75
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 15

INSTALMENT PAYABLE IN 5 YEARS

================================================================================
Year To Financial To Commercial To others Total
institutions banks
(Rs. 61457500) (Rs. 71621472) (Rs. 71657908)
================================================================================
1 1,22,91,500.00 1,43,24,294.40 1,43,31,581.60 4,09,47,376.00
2 1,22,91,500.00 1,43,24,294.40 1,43,31,581.60 4,09,47,376.00
3 1,22,91,500.00 1,43,24,294.40 1,43,31,581.60 4,09,47,376.00
4 1,22,91,500.00 1,43,24,294.40 1,43,31,581.60 4,09,47,376.00
5 1,22,91,500.00 1,43,24,294.40 1,43,31,581.60 4,09,47,376.00
================================================================================

INTEREST PAYABLE IN 5 YEARS

================================================================================
Year On term loans On bank loans On self loans Total
(Rs. 61457500) (Rs. 71621472) (Rs. 71657908)
@ 13.50 % P.A. @ 13.50 % P.A. @ 13.50 % P.A.
================================================================================
1 82,96,762.50 96,68,898.72 96,73,817.58 2,76,39,478.80
2 66,37,410.00 77,35,118.98 77,39,054.06 2,21,11,583.04
3 49,78,057.50 58,01,339.23 58,04,290.55 1,65,83,687.28
4 33,18,705.00 38,67,559.49 38,69,527.03 1,10,55,791.52
5 16,59,352.50 19,33,779.74 19,34,763.52 55,27,895.76
================================================================================

TOTAL REPAYMENT SCHEDULE FOR 5 YEARS

================================================================================
Year Interest Instalments Total
================================================================================
1 2,76,39,478.80 4,09,47,376.00 6,85,86,854.80
2 2,21,11,583.04 4,09,47,376.00 6,30,58,959.04
3 1,65,83,687.28 4,09,47,376.00 5,75,31,063.28
4 1,10,55,791.52 4,09,47,376.00 5,20,03,167.52
5 55,27,895.76 4,09,47,376.00 4,64,75,271.76
================================================================================

www.kidsfly.in 76
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 16

DEPRECIATION CHART FOR 5 YEARS

================================================================================
Year Building costs Plant & Machinery fur. & office equip. Total
( Rs. 42700000.00 )
( Rs. 35150000.00 ) ( Rs. 1000000.00 )
@ 10.00 % P.A. @ 20.00 % P.A. @ 20.00 % P.A.
================================================================================
1 42,70,000.00 70,30,000.00 2,00,000.00 1,15,00,000.00
2 38,43,000.00 56,24,000.00 1,60,000.00 96,27,000.00
3 34,58,700.00 44,99,200.00 1,28,000.00 80,85,900.00
4 31,12,830.00 35,99,360.00 1,02,400.00 68,14,590.00
5 28,01,547.00 28,79,488.00 81,920.00 57,62,955.00
================================================================================

www.kidsfly.in 77
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007
J.C. 2007 Page A- 17

PROFIT ANALYSIS FOR 5 YEARS

================================================================================================
YR CAP. Sales Mfg. Gross Depre- Interest Net profit Net profit
UTIL Expenses Profit ciation before tax after tax
@ 35.00%
================================================================================================
1 70% 598500000 462784896 135715104 11500000 27639479 96575625 62774156
2 80% 684000000 528897024 155102976 9627000 22111583 123364393 80186855
3 80% 684000000 528897024 155102976 8085900 16583687 130433389 84781703
4 90% 769500000 595009152 174490848 6814590 11055792 156620466 101803303
5 100% 855000000 661121280 193878720 5762955 5527896 182587869 118682115
================================================================================================

CASH FLOW STATEMENT FOR 5 YEARS

================================================================================
YR CAP. Net profit Depre- Cash Repayment of Net surplus
UTIL (after tax) ciation in hand Instalment
================================================================================
1 70% 62774156 11500000 74274156 26615794 47658362
2 80% 80186855 9627000 89813855 26615794 63198061
3 80% 84781703 8085900 92867603 26615794 66251808
4 90% 101803303 6814590 108617893 26615794 82002099
5 100% 118682115 5762955 124445070 26615794 97829276
================================================================================

www.kidsfly.in 78
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007

PROJECTED BALANCE SHEET FOR ( 5 YEARS)

LIABILITIES ASSETS

1. Promoters Capital 7,16,57,908 1. Fixed Assets 7,88,50,000

2. Term loans 6,14,57,500 2. Interest during Construction
period @ 13.50 p.a. 82,41,528
3. W/C loan 7,16,21,472 3. Surplus funds 11,76,45,352
-------------------- --------------------
20,47,36,880 20,47,36,880
-------------------- --------------------

1 Year 70 % Capacity

1. Promoters capital 7,16,57,908 1. Depreciated value

2. Net Surplus 4,76,58,363 of Fixed Assets 6,73,50,000
3. Term loans 4,91,66,000 2. Working Capital 7,71,30,816
4. W/C loans 5,72,97,178 3. Surplus funds 8,12,98,633
-------------------- --------------------
22,57,79,449 22,57,79,449
-------------------- --------------------

2 Year 80 % Capacity

1. Promoters capital 11,93,16,271 1. Depreciated value

2. Net Surplus 6,31,98,062 of Fixed Assets 5,77,23,000
3. Term loans 3,68,74,500 2. Working Capital 8,81,49,504
4. W/C loans 4,29,72,884 3. Surplus funds 11,64,89,213
-------------------- --------------------
26,23,61,717 26,23,61,717
-------------------- --------------------

3 Year 80 % Capacity

1. Promoters capital 18,25,14,333 1. Depreciated value

2. Net Surplus 6,62,51,809 of Fixed Assets 4,96,37,100
3. Term loans 2,45,83,000 2. Working Capital 8,81,49,504
4. W/C loans 2,86,48,590 3. Surplus funds 16,42,11,128
-------------------- --------------------
30,19,97,732 30,19,97,732
-------------------- --------------------

www.kidsfly.in 79
 KIDS RIDE ON BATTERY OPERATED CARS & BIKES [EIRI/EDPR/3889] J: 2007

4 Year 90 % Capacity

1. Promoters capital 24,87,66,142 1. Depreciated value

2. Net Surplus 8,20,02,099 of Fixed Assets 4,28,22,510
3. Term loans 1,22,91,500 2. Working Capital 9,91,68,192
4. W/C loans 1,43,24,296 3. Surplus funds 21,53,93,335
-------------------- --------------------
35,73,84,037 35,73,84,037
-------------------- --------------------

5 Year 100 % Capacity

1. Promoters capital 33,07,68,241 1. Depreciated value

2. Net Surplus 9,78,29,279 of Fixed Assets 3,70,59,555
3. Term loans 0 2. Working Capital 11,01,86,880
4. W/C loans 0 3. Surplus funds 28,13,51,085
-------------------- --------------------
42,85,97,520 42,85,97,520
-------------------- --------------------

www.kidsfly.in 80