Micro Plastics, India’s largest contract manufacturer and porter of toys, is a trusted partner to global brands such as Hasbro, Spin Master, and Disney. Founded in 2005, the toy maker manufactures over 25 million toys and model kits annually for international markets. The company operates six advanced facilities, including India’s largest toy manufacturing plant in Hosur.
With its ‘one-stop solution’ approach, it offers end-to-end product capabilities. From a humble start, Micro Plastics now spans 1.2 million sq ft of manufacturing space. Its workforce numbers 2,000, rising to 3,000 in the peak season. Notably, 65 per cent of the workforce is women. To date, it has invested more than $60 million, with a further $75 million committed over the next 3-5 years.
Founder and MD Vijendra Babu, a qualified mechanical engineer, began his career at BPL before moving to the TVS Group and Continental Automotive, where he gained experience with plastics used in televisions, washing machines, printers, and automotive clusters.
After a long corporate stint, Babu decided to pursue his childhood dream of becoming an entrepreneur. In 2005, at the age of 30, he left a secure role to start his own venture. “It was always in my mind that I wanted to do something for myself and society. I was always fond of creating jobs,” recalls Babu. “Finally, I decided to take the plunge. My wife supported me a lot in taking this bold decision. If it didn’t work, I could always go back, but I didn’t want to regret not trying.”
The company’s first customer was American Power Conversion (APC), now Schneider. The toy business came later. Starting with just two machines, Babu invested Rs55 lakh. Since then, Micro Plastics has grown from that modest start to register a turnover of Rs500 crore. Growth accelerated from 2011 onwards, and this year the company is targeting revenues of Rs700 crore. The toy business was added in 2015.
“We were doing automotive, consumer electronics, and industrial products, but at the component level. The growth there was limited,” explains Babu. “In 2015, we learnt that toy manufacturing in India was nascent, fragmented, and largely unorganised. None of the players were ready for exports. At the same time, global toy brands were looking to reduce over-dependence on China, which accounts for 95 per cent of global factory-level toy production.”
Hasbro, the world’s second-largest toy company, was scouting India for potential partners. After a series of stringent quality audits, Micro Plastics convinced Hasbro it was capable of meeting global standards. Its first assignment was a pre-school product. “That’s how we entered toys. The rest is history,” says Babu.
Today, the company supplies to over 300 global retailers, including Amazon, Walmart, Disney, and Costco. A landmark achievement was supplying over a million ‘Star Wars’ lightsabers worldwide, cementing Hasbro’s confidence in its capabilities. With Hasbro as a key client, other major customers soon followed.
All under one roof
“Right from the start with mechanical toys, today we produce mechanical toys, electronic toys, plush, and dolls – everything under one roof. That’s why we call ourselves a one-stop solution,” says Babu. Facilities include prototyping, tooling, injection moulding, blow moulding, rotational moulding, decoration, assembly, laboratory testing, and quality qualification.
The company contributes around 65 per cent of India’s toy exports. The United States remains its largest market, accounting for 50 per cent of sales. Micro Plastics is active in five verticals: toys, automotive, industrial products, consumer electronics, and sports. “We are very big on Decathlon. Many of our products are in their stores. Currently, toys contribute 65 per cent of revenues and non-toys 35 per cent. Ideally, we’d like to reach a 50-50 balance,” Babu says. Going forward, Micro Plastics has set a target of Rs1,500 crore within the next three years. Last year, the company’s turnover was Rs580 crore, and this year it expects to touch Rs700 crore. Post that milestone, the company plans to pursue an IPO.
Finally, Babu calls for greater recognition of the toy industry’s role in exports and job creation: “India is doing really well in manufacturing. With strong domestic consumption and the ‘Make in India for the World’ vision, customers increasingly see India as a strong destination. Even Walmart has committed $10 billion to exports from India. The next 10 years belong to manufacturing in India. Toys are as strong a sector as automotive and consumer electronics, and deserve recognition as a key industry.