Why Urban Tots Share Could Be the Next Big Growth Story in India’s Toy Industry

Not long ago, India’s toy shelves were dominated by imports — cheap, low-quality, and largely unregulated. But the tide has turned.
With the government tightening quality standards under the Toys (Quality Control) Amendment Order, 2024, only certified, compliant, and credible manufacturers can now compete. The result?

A level playing field — and a once-in-a-decade opportunity for Indian toy makers who can deliver quality at scale.

That’s where Deepak Houseware & Toys Ltd (DH&T) steps in. From humble beginnings as a plastic goods manufacturer, DH&T has emerged as a high-growth player in the organised Indian toy market, riding the wave of regulatory reform and a consumer shift toward safe, certified, and proudly Indian toys. DH&T, with its proven growth, strong balance sheet, and first-mover advantage, is positioned to become a key national brand in a market that’s finally valuing Made in India.

Why This Matters to Investors

India’s toy industry is at an inflexion point. Regulations have raised entry barriers, consumers are trading up, and organised players are consolidating share.

Government Initiatives and Policy Support

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The Indian government has implemented a series of strategic measures to strengthen the domestic toy industry, reduce dependence on imports, and position India as a global manufacturing hub.

• Make in India & Atmanirbhar Bharat: These flagship programs actively promote local manufacturing, encouraging Indian companies to scale capacity, adopt advanced technologies, and compete globally.

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• Higher Import Duties: Customs duties on toys have been increased from 20% to 70%, discouraging low-cost imports and creating a more level playing field for domestic producers.

  
  

• Quality Control Orders (QCOs): Mandatory BIS certification and strict safety norms have enhanced product quality, ensuring consumer trust and aligning Indian products with global standards.

  
  

• Production Linked Incentive (PLI) Scheme: Targeted incentives support companies investing in innovative, export-focused, and high-quality toy manufacturing, accelerating capacity expansion and competitiveness.
  

Together, these initiatives are reshaping India’s toy industry, fostering self-reliance, and attracting both domestic and international investment into the sector.

Financial Highlights  of Urban Tots -:

Competitive Landscape (FY25):

Looking Ahead

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Over the next three years, DH&T plans to:

• Expand manufacturing capacity with higher BIS-compliant product lines

• Launch STEM & tech-based toy categories to capture premium growth

• Deepen distribution across major e-commerce and retail networks

• Optimise working capital to fund organic expansion without excessive debt

Bottom line (balanced view)

DH&T combines clear regulatory tailwinds, recent demonstrable execution (58% revenue growth, 59% PAT growth in FY25), and capital/capacity investments required to win large organised retail contracts. Those three — if sustained with disciplined working-capital management and compliance — make DH&T a credible candidate to be a high-growth, mid-market Indian toy manufacturer.