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.

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.