K.V. Toys India Limited has announced the incorporation of a new subsidiary company following a board meeting held on January 10, 2026. The decision represents a strategic expansion into the stationery manufacturing sector, diversifying the company's business portfolio beyond its traditional toy manufacturing operations.

Subsidiary Formation Details

The board of directors approved the proposal to incorporate Crayonix Stationery Private Limited as a subsidiary company. The meeting, which commenced at 5:00 PM IST and concluded at 5:15 PM IST, addressed the investment proposal and related regulatory requirements.

Business Scope and Operations

The proposed subsidiary will engage in manufacturing stationery items and gift sets, establishing in-house manufacturing capabilities for K.V. Toys. The business scope encompasses a comprehensive range of products including:

• Writing Instruments: Crayons, colour pencils, sketch pens, markers, highlighters, pencils
• Educational Supplies: Erasers, sharpeners, rulers, geometry boxes, notebooks, drawing books
• Art Materials: Water colours, oil pastels, paint brushes, art paper
• Office Products: Writing pads, correction products, office stationery items
• Specialized Items: School stationery kits, educational supplies, customized stationery and gift sets

Strategic Rationale

The acquisition aims to expand K.V. Toys' market presence by establishing a stronger foothold in the stationery and gifting market. The company expects this move to create opportunities for sustainable revenue growth while expanding its product portfolio beyond traditional toy manufacturing.

Regulatory and Compliance Aspects

The company confirmed that no governmental or regulatory approvals are required for this acquisition. The transaction falls outside the scope of related party transactions, with no promoter or group company interests involved in the proposed subsidiary.

The announcement was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency in corporate governance and investor communication.

K.V. Toys India Limited has announced its board's approval to incorporate a new subsidiary company, marking a strategic expansion into the stationery manufacturing sector. The decision was made during a board meeting held on January 10, 2026, as part of the company's growth strategy to diversify its product offerings and establish stronger market presence.

Subsidiary Incorporation Details

The board has approved the incorporation of Crayonix Stationery Private Limited as a subsidiary company, with K.V. Toys India acquiring a controlling stake. The key parameters of this corporate development are outlined below:

Business Focus and Product Portfolio

The proposed subsidiary will engage in manufacturing stationery items and gift sets, significantly expanding K.V. Toys' operational scope. Crayonix Stationery will manufacture a comprehensive range of products including:

• Writing Instruments: Crayons, color pencils, sketch pens, markers, highlighters, pencils, and correction products
• Educational Supplies: Erasers, sharpeners, rulers, geometry boxes, and school stationery kits
• Paper Products: Notebooks, drawing books, art paper, and writing pads
• Art Supplies: Water colors, oil pastels, and paint brushes
• Specialized Items: Office stationery items, educational supplies, and customized stationery and gift sets

Strategic Rationale

The acquisition represents a strategic move to expand K.V. Toys' market presence beyond its traditional toy manufacturing business. According to the company's disclosure, this initiative will enable the establishment of in-house manufacturing capabilities in the stationery sector, creating opportunities for sustainable revenue growth and portfolio diversification.

The company emphasized that this expansion will provide a stronger foothold in both stationery and gifting markets, leveraging synergies between toy and stationery manufacturing operations.

Regulatory and Compliance Aspects

The incorporation process will be subject to approval from the Central Registration Centre, Ministry of Corporate Affairs, for the final company name. The company has indicated that no specific governmental or regulatory approvals are required for this acquisition, streamlining the incorporation process.

The transaction has been structured to ensure compliance with SEBI Listing Regulations, with the company confirming that this does not constitute a related party transaction and that promoter groups have no conflicting interests in the proposed subsidiary.

Implementation Timeline

K.V. Toys India expects to complete the subsidiary incorporation within two months, subject to completion of customary conditions and receipt of necessary statutory approvals. The board meeting, which commenced at 5:00 PM IST and concluded at 6:00 PM IST, addressed this proposal among other corporate matters, demonstrating the company's commitment to strategic growth initiatives.