Chicco looks to expand toy manufacturing in India

Babycare products maker Chicco, a part of €1.44 billion Artsana Group of Italy, is looking to expand its manufacturing base in India, hoping to strengthen its toys business.

The company, which markets brands like Chicco and Boppy in India, already has presence in manufacturing toiletries and baby-fashion in the country. Talking to DH about plans to expand operations, Chicco India CEO Rajesh Vohra said, "We are looking for opportunities to partner with local toy manufacturers.  We are in discussion with some players."

Chicco has already initiated the process by partnering with an Indian manufacturer, as it hopes to scale the proposition soon. With about six production partners in the toiletries segment, and some in the fashion segment, the company sources about 35% of its Indian sales locally.

Marketing its entire range encompassing toys, travel, fashion, nursing and toiletries in India, Chicco has marked a growth rate of 30% in the last five years.

The company has set up 11 branded stores across the country, one of which, is in Bengaluru. It further has over 100 shop-in-shops, which it plans to expand aggressively. "We will concentrate on expansion in key accounts as shop-in-shops are our biggest marketing channel. We will be more selective about branded stores," he said.

Going forward, the company  expects high growth in its travel segment. "With the rise in urban families and low penetration of the travel segment in India, there is high opportunity for growth.  Some of our strollers and prams need to be customised to suit Indian climate, and we are working on that," said Vohra.  

Vohra further said, "We want to be a category leader in the 0-3 years baby care market in India. There is stiff competition, but with rise in spending and our price-points, we are confident of achieving that."