Expanded Global Ties and Boosted Exports for Funskool India Amid Growing Collaborations with China
Published on August 5, 2025
Funskool India, a leading toymaker promoted by the MRF Group, is navigating challenging times in the global toy market. The company, known for its own brands of dough (Fundough) and educational puzzles (Play 'n Learn and Puzzle Pop), has seen increased partnerships with international toy retailers, particularly in the US.
Amidst the ongoing trade tensions, the US has announced tariffs on India at 25% for toys, which may affect Funskool's manufacturing hub status. However, Funskool is adapting to these changes by focusing on the expansion of its Goa factory and the use of automation technologies in its plants in FY26.
Funskool has recently extended its tie-up with Ravensburger (Germany) for introducing new versions of Scotland Yard. The company is also working with Asmodee (in the US) for domestic production of games like Catan. Funskool is also doing two products for Walmart, one of which is their own product.
The company's global expansion is supported by its two facilities in Ranipet, Tamil Nadu, where it doubled its production capacity last year. Funskool's exports have grown by 24% YoY in the last four months compared to the same period last year.
The toy sector faces challenges in ramping up capacity and finding talent for quick turnaround times in the Western market. However, Funskool is focusing on these issues, aiming to achieve a minimum of 15% annual growth, with the aim to end the fiscal with around $45 million.
Meanwhile, Vietnam and Indonesia, with tariffs of 20% and 19% respectively, are likely to benefit from India's increased tariffs. Vietnam maintains comparatively lower tariffs on its exports to the US than India. This relative tariff advantage encourages US retailers to source from Vietnam, which is strengthening its appeal through improved customs procedures and trade incentives launched in 2025.
While direct tariff comparison data for Indonesia was not found, Southeast Asian countries including Indonesia benefit indirectly from efforts by US officials to keep tariffs lower than those on China to encourage manufacturing shifts away from China. Indonesia's participation in various trade agreements can offer competitive advantages, though concrete recent tariff figures for toys relative to Vietnam or India were not detailed here.
Despite these challenges, Funskool continues to focus on its core businesses and strategic partnerships, positioning itself for growth in the evolving global toy market.
References:
[1] "Vietnam's toy industry set to grow with US retailers", The Business Times, August 3, 2025.
[2] "US tariffs on Chinese imports: What you need to know", BBC News, March 2, 2021.
[4] "Vietnam's 2025 trade incentives: Simplified export declarations and expanded import duty exemptions", Vietnam Briefing, January 1, 2025.
- Funskool, amid increased tariffs on its manufacturing hub in India, is maintaining its focus on strategic growth by expanding its Goa factory and adopting automation technologies in FY26.
- Funskool's strategic partnerships include an extended tie-up with Ravensburger (Germany) for introducing new versions of Scotland Yard and collaborations with Asmodee (US) for domestic production of games like Catan.
- Funskool's global expansion and increased exports have resulted in a YoY growth of 24% over the last four months compared to the same period last year.
- Meanwhile, Vietnam and Indonesia, with lower tariffs compared to India, may benefit from India's increased tariffs, as increased tariffs on China encourage manufacturing shifts, strengthening Vietnam's appeal with US retailers.
- Despite challenges in the global toy market, Funskool remains committed to its core businesses and aims for a minimum of 15% annual growth, with the goal of ending the fiscal with around $45 million.
