The toys and stationary maker and distributor also plans to increase its category spread and take its products to international markets
Bengaluru: Toys and stationery manufacturer Stone Sapphire India, known for its flagship brand Skoodle, is targeting to achieve a revenue of Rs 1,100 crore in the next five years, a top company official told IndiaRetailing.
The company increased its revenue from Rs 150 crore in the fiscal year (FY) 2023 to Rs 250 crore in FY2024.
“Looking ahead, our ambitions are even greater. By the end of FY2025, we aim to achieve a revenue target of Rs 400 crore. This growth trajectory is part of a broader strategic plan aimed at achieving a revenue milestone of Rs 1100 crore over the next five years,” said Shobhit Singh, chief executive officer, Stone Sapphire India
The company also plans to increase its category spread and take its products to international markets, Singh shared.
Stone Sapphire India began as an export subsidiary in 2006 and in 2018, the company started marketing children’s art and craft kits under its brand Skoodle.
Today, it boasts over 500 stock-keeping units (SKUs) across children’s art and craft, stationery, toys and games, and home products. The products are sold across more than 30,000 doors via an India-wide distribution network managed through a 223-member strong sales force.
Its manufacturing operations are decentralised across India, collaborating with approximately 25 original equipment manufacturers (OEMs) situated in various regions including Vadodara.
Multiplying Categories
Soon after the inception of Skoodle, the company started selling children’s stationery and acquired licenses of global brands such as Playdoh, My Little Pony, Playskool, and Transformers.
Over the next couple of years, it strengthened its product offerings by introducing toys and games and acquired licenses like Disney, Marvel, Barbie, Fisher-Price, Peppa Pig, and Paw Patrol to name a few. Additionally, the company entered into the sports category with its new brand Braven which retails sports equipment and sportswear.
In January 2022, the company expanded into the home segment by including the US-based tableware brand Corelle in its distribution portfolio. Currently, it serves as the exclusive national importer and distributor of homeware and kitchenware brands named CorningWare, Visions, Peggy Oliver, Pyrex, and Snapware.
“We have plans for further category expansion, specifically into FMCG. This will leverage our distribution network, strengthening our presence in retail outlets such as kirana stores and potentially expanding into pharmaceutical stores,” said Singh.
Each new category operates as a strategic business unit within Stone Sapphire, supported by dedicated teams focused on driving growth and operational efficiency.
Channel spread
The company’s sales channels include large-scale retail chains such as Hamleys, Crossword, Toys“R”s, and D-Mart in addition to smaller, speciality stores as well as e-commerce platforms such as Flipkart, Shopsy, Amazon, Crossword, and Ajio among others. It also maintains dedicated direct sales teams that engage with corporate clients and distribution partners to manage logistics and delivery.
“Our sales are currently spread across various channels: 10% from modern trade, 5-10% from e-commerce, and the majority, 80%, are driven by general trade channels,” said Singh.
“We anticipate our online sales to grow modestly, potentially reaching between 10% – 20% of our total sales volume. While we try to expand our digital presence and enhance our e-commerce capabilities, we foresee this ratio stabilising within this range,” he added.
Furthering expansion
Stone Sapphire India is prioritising expanding its retail footprint and is actively considering opening branded retail outlets of Skoodle.
“In the next five years, our focus will be on establishing experience centres in key locations such as Vadodara. These centres will serve as hubs for marketing and branding activities. The growth of these experience centres will inform our decision-making regarding potential future expansions into franchised retail stores,” said Singh.
The retailer is also preparing to expand globally through strategic exporting initiatives. It has begun participating in export exhibitions aimed at showcasing our brand and product offerings to international audiences.
“These exhibitions have already sparked interest and generated inquiries from potential partners across various regions. Moreover, we are leveraging diverse trade channels to connect with importers, focusing initially on markets in the Middle East, Africa, and beyond,” added Singh.
Another focus for the company is investing in marketing initiatives. “Our consumer base growth is driven by strategic investments in marketing, with a dedicated budget of approximately Rs 20 crore allocated this financial year, representing nearly 10% of last year’s turnover,” he added.
