§1What this business is

KVIC describes leather toys of many sizes for homes, recreation and schools; small toys made from waste leather are also used to decorate ladies' purses and other goods. The equipment list (pulp maker, FRP moulds, spray booth, drying chamber) points to moulded bodies finished with leather. KVIC calls it a skilled job.

Capacity: 45,000 toys a year.

§2Is it right for you?

Who it is for

Artisans in a leather cluster who can sell at craft fairs or to gift shops.

Who it is not for

Someone expecting mass-market volumes.

Advantages

  • Uses waste leather for small toys
  • Gift and decor demand
  • Handmade products suit exhibitions and exports
  • Small toys can supply purse makers

Drawbacks

  • Very thin margin in the profile
  • Toy safety rules (BIS) apply
  • Skilled hand work limits output
  • Plastic toys are much cheaper

Skills you need

  • Mould making and pulp work
  • Leather cutting and covering
  • Finishing and spraying
  • Craft-fair and gift-shop sales

Why difficulty 3/5: Skilled craft, toy-safety rules and a very thin margin.

§3Market

Who buys

  • Families buying gifts and decor
  • Schools and recreation centres
  • Purse and accessory makers (small toys as trims)

How it sells

  • Gift and toy shops
  • Craft fairs and exhibitions
  • Supply to accessory makers

Good to know

  • KVIC says leather toys are increasingly popular in cities and villages.
  • The profile sells 45,000 toys for ₹75.00 lakh a year.

§4Raw material & machinery

ItemQtyCost
Wire cutter1—
Pulp maker with 2 HP motor1—
Hand spray booth1—
Drying chamber1—
FRP moulds1 set—
Tools and equipment1 lot—
Total equipment1 lot₹8,25,000

From: KVIC Project Profile — Leather Toys (PMEGP)

  • Leather, including waste leather for small toysouter covering
  • Pulp and wirefor moulded bodies and frames, per the equipment list
  • All raw material₹60.00 lakh a year in the profile
  • Labels and packing material₹25,000 a year in the profile

From: KVIC Project Profile — Leather Toys (PMEGP)

§5Licences & registration

  1. BIS certification under the Toys (Quality Control) Order — artisans registered with the Development Commissioner (Handicrafts) may be exempt; check
  2. Udyam registration
  3. GST
  4. Trade licence
  5. IEC for export

We can do this registration for you

§6Schemes & subsidies

PMEGP fits; MUDRA up to ₹20 L; CGTMSE for collateral-free loans; Stand-Up India for SC/ST or women owners.

§7Money

How the investment is worked out: KVIC profile: equipment ₹8.25 L (wire cutter, pulp maker with 2 HP motor, hand spray booth, drying chamber, FRP moulds, tools) + working capital ₹5.80 L = ₹14.05 L. 800 sq ft rented shed.

Working capital: Working capital ₹5.80 L; raw material ₹60.00 L a year.

Year not printed on the KVIC profile — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

9503 00Tricycles, dolls and other toys; scale models and puzzles

Export council / board: EPCH

  • EPCH (Export Promotion Council for Handicrafts) covers handmade toys and gift items.
  • Toy buyers abroad require their own safety tests.

§9Risks — where people fail

  • Failing toy-safety tests
  • Raw-material cost overruns
  • Unsold stock
  • Low margin

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working leather toy making unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (BIS certification under the Toys (Quality Control) Order — artisans registered with the Development Commissioner (Handicrafts) may be exempt; check, Udyam registration), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Leather Toy Making?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. KVIC Project Profile — Leather Toys (PMEGP)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.