Footwear and toy sectors may see rise in growth-stage, PE funding

INDIA'S AMBITION TO make itself a global hub for toys and incentivize players with specific schemes to boost manufacturing of footwear and leather may get a boost with an increase in investments, not just from early-stage VCs but also from growth-stage and private equity (PE) investors.

- S SHANTHI

Milan Sharma, founder and MD, 35North Ventures, believes that since the government is backing these sectors, one can expect stability and long-term growth potential, which will resonate with investors.

"Startups will benefit from improved infrastructure, local manufacturing efficiency, lower operational costs and increased market confidence," he said.

Based on the National Action Plan for Toys, the scheme will focus on the development of clusters, skills and a manufacturing ecosystem to create high-quality, unique, innovative, and sustainable toys that will represent the 'Made-in-India' brand. The outlay, according to the Toy Association of India, is ₹3,469 crore. Rajeev Batra, VP, Toy Association of India, told FE that funds apart, the scheme can help cluster formation, organize labour and should boost local manufacturing.