Demonetisation puts halt to Funskool expansion plans

 Demonetisation is having its impact on the expansion plans of various companies.
Leading toy manufacturing company Funskool, which is promoted by the tyre major MRF group, is reconsidering its expansion plans due to demonetisation, according to a top company executive.

“We were looking at a third facility, but now we will wait and watch how the consumer product sales will look like due to demonetisation,” Funskool India Chief Executive Officer John Baby told DH.

“We were thinking about going ahead with work for the new facility in the first half of 2017, but now that has been delayed,” Baby added.

The company had plans to invest around Rs 20 crore in its plant and machinery in Goa in FY17. So far, it has committed around Rs 10 crore and another Rs 10 crore, investment should be completed by March-end.

Funskool India, which has been witnessing a steady growth in sales, is likely to witness a slower pace of growth during in the current year due to demonetisation.

“Last March, we touched sales of Rs 200 crore from retail, on our billing price. Retail sales was between Rs 330-350 crore,” Baby said.

“We were expecting over 20% growth during the current year, but that will be impacted and we will look at revising it. It can be 10-12% or even lesser than that,” Baby added.