Karnataka has received investment proposals worth USD 211 million (Rs 1,540 crore) from six companies for India’s first toy manufacturing cluster coming up on 400-acre plot at Koppal.
Karnataka Chief Minister B S Yediyurappa performed the groundbreaking at the site on 9 January 2021, for the toy cluster being developed by Aequs Group, promoted by Aravind Melligeri.
Aequs Group is developing the toy facility in a bid to attract high-value investments from global toy makers.
The company expects the cluster to get around Rs 5,000 crore investments in near future as many toymakers and suppliers have shown interest to source from the facility for global markets. The facility is expected to begin operations within a year.
The six firms that offered to make investments through memorandums of understanding (MoU) include Aequs Force Consumer Products worth USD 80 million, Aequs Engineering Plastics worth USD 60 million, Micro Plastics worth USD 40 million, Playgro worth USD 15 million, Sterling worth USD 10 million and Hotshot worth USD six million.
On implementation, these agreements have a revenue potential of around USD 450 million (Rs 3,300 crore) over the next five years.
The cluster will have state-of-the-art and ready-to-use, consisting of an SEZ for exports, apart from a domestic tariff area for companies to tap the Indian market, a mix for both local manufacturers and overseas participants.
The project will create around one lakh jobs, both direct and indirect, for people of the region.