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.

K.V. Toys India Limited has secured a substantial order worth ₹48.04 lakh for manufacturing and supplying electric mini rechargeable toy fans, marking a significant development in the company's expansion into the consumer toys segment. The order, announced on January 1, 2026, comes from an existing domestic B2B customer whose identity has been kept confidential for strategic reasons.

Order Details and Specifications

The comprehensive order encompasses the manufacture and supply of electric mini rechargeable toy fans, to be executed according to mutually agreed specifications, quantities, and delivery schedules. The company has committed to completing the order within twenty days from the date of receipt, demonstrating its operational efficiency and manufacturing capabilities.

Strategic Business Expansion

This order represents a crucial progression in K.V. Toys India Limited's strategic expansion into the consumer toys and utility products segment. The company had previously disclosed this expansion as part of its long-term growth plans, leveraging existing strengths in product development, sourcing capabilities, distribution network, and brand building initiatives.

The successful completion of the pilot phase in this segment has now culminated in this substantial order, reflecting strong market acceptance of the company's products. This development aligns with the company's objective to broaden its product portfolio and diversify revenue streams beyond its traditional offerings.

Commercial Confidentiality and Market Strategy

K.V. Toys India Limited has chosen to maintain confidentiality regarding the customer's identity, citing strategic and competitive sensitivity concerns. The company stated that withholding the customer name is necessary to avoid prejudice to its commercial objectives and protect its rollout strategy in this emerging segment.

The order confirmation indicates no related party transactions are involved, and the company's promoter group has no interest in the entity that awarded the contract. This ensures the transaction's independence and commercial viability within the company's operational framework.

Regulatory Compliance and Disclosure

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure follows the prescribed format under SEBI Circular No. SEBI/HO/CFD/PoD2/P/CIR/P/0155 dated November 11, 2024, ensuring full transparency with stakeholders while maintaining necessary commercial confidentiality.

This order win demonstrates K.V. Toys India Limited's successful diversification strategy and its ability to secure meaningful business in new product categories, positioning the company for sustained growth in the expanding consumer toys and utility products market.