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Funskool in advance talks with Mattel for contract manufacturing
The New Indian Express Kannur
|September 11, 2025
INDIA'S biggest toy manufacturer, Chennai-based Funskool, is in advanced stage of discussions with Mattel Inc.—makers of Hot Wheels, Barbie dolls, and Jurassic World toys—for producing the latter's products at its Goa plants.
Speaking to TNIE, Funskool CEO KA Shabir said except for Mattel, all other US toy brands have halted production orders due to US tariffs. He added that orders from US customers have slowed significantly after the tariff announcement. The current tariff on toys stands at 50%. Shabir said: "The real impact (of US tariffs) will show in 2026. The tariffs are stalling the growth momentum of the toy industry just when global brands began investing in India. With the US being the world's largest toy market, such high tariffs make sourcing from India unworkable, pushing business to Southeast Asian countries."
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