K.V. Toys India Limited has announced a strategic expansion into manufacturing through the formation of a new limited liability partnership. The board meeting held on January 28, 2026, approved this significant business development that marks the company's transition from its current operational model.

Board Approval and Partnership Structure

The board of directors unanimously approved the incorporation of INDO MANUFACTURERS LLP, subject to name approval by the Central Registration Centre, Ministry of Corporate Affairs. The partnership structure reflects K.V. Toys India's commitment to maintaining operational control while sharing business risks.

Strategic Business Transformation

This acquisition represents a fundamental shift in K.V. Toys India's business model. The company is strategically moving from an Original Equipment Manufacturer (OEM) model to in-house manufacturing capabilities. This transition is designed to achieve backward integration, which will enhance supply chain reliability and provide greater operational flexibility.

The manufacturing focus will encompass a comprehensive range of toy products, including:

• Soft toys and stuffed toys
• Plush toys and dolls
• Educational and promotional toys
• Playthings and novelty items
• Products made from various materials including fabric, plastic, rubber, and wood

Investment and Regulatory Framework

The partnership formation involves a cash consideration structure with an initial capital contribution of approximately Rs 55,000. The company has indicated that additional capital will be infused as operational requirements develop. Notably, no governmental or regulatory approvals are required for this acquisition, streamlining the implementation process.

Operational Timeline and Market Presence

The LLP formation is expected to be completed within the next 30 days, with manufacturing operations anticipated to commence from Q1 FY 2027. The entity will operate within India, focusing on the domestic toy manufacturing market. This timeline allows for proper setup of manufacturing facilities and operational infrastructure.

Corporate Governance and Compliance

The board meeting, which commenced at 05:30 P.M. (IST) and concluded at 06:30 P.M. (IST), was conducted in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The decision reflects the company's commitment to transparent corporate governance and strategic business expansion within regulatory frameworks.

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 business operations.

Subsidiary Incorporation Details

The board approved the incorporation of Crayonix Stationery Private Limited as a subsidiary company, with K.V. Toys acquiring a majority stake in the new venture.

Business Focus and Product Portfolio

The proposed subsidiary will engage in manufacturing stationery items and gift sets, significantly expanding K.V. Toys' product offerings. The comprehensive product range will include:

• Writing instruments: Crayons, color pencils, sketch pens, markers, highlighters, pencils
• Educational supplies: Geometry boxes, notebooks, drawing books, art paper, writing pads
• Art materials: Water colors, oil pastels, paint brushes
• Office supplies: Correction products, rulers, erasers, sharpeners
• Specialized products: School stationery kits, customized stationery, and gift sets

Strategic Rationale

The acquisition represents a strategic move to strengthen K.V. Toys' market position beyond its traditional toy manufacturing business. The company aims to establish in-house manufacturing capabilities in the stationery sector, creating opportunities for sustainable revenue growth and market diversification.

The expansion into stationery manufacturing will enable the company to tap into the educational and office supplies market, complementing its existing toy business. This vertical integration approach is designed to enhance the company's competitive advantage and create synergies between its toy and stationery product lines.

Regulatory and Completion Timeline

The incorporation process requires no specific governmental or regulatory approvals beyond standard statutory requirements. The transaction structure involves a straightforward cash consideration for equity shares, simplifying the acquisition process.

The board meeting, chaired by Managing Director Karan Narang, commenced at 5:00 PM IST and concluded at 5:15 PM IST on January 10, 2026. The decision reflects the company's commitment to expanding its manufacturing capabilities and establishing a stronger presence in complementary market segments.