§1What this business is

Fabric and acrylic fur are cut, stitched into shapes, filled with fibre on a filling machine, decorated and packed. The report plans 200 toys a day with 11 people in 1,000–1,200 sq ft. Soft toys are Jhansi's product under UP's One District One Product scheme, and the report counts more than 50 units there.

Capacity: 200 toys a day (10-hour shift); 60% use in year 1.

§2Is it right for you?

Who it is for

Someone with tailoring skills and links to gift and toy shops, especially in the Jhansi cluster.

Who it is not for

Someone who will not invest in BIS testing and child-safe materials.

Advantages

  • Low machinery cost — mainly sewing machines
  • Good net margin (10–14%) in the report
  • ODOP support and a known cluster in Jhansi
  • Gift and festival demand all year

Drawbacks

  • Toys must carry the BIS mark — testing adds cost
  • Cheap imports and big brands compete
  • Designs go out of fashion quickly
  • Labour is the biggest cost after material

Skills you need

  • Pattern cutting and stitching
  • Child-safe material choice
  • New designs and trends
  • Selling to gift shops and wholesalers

Why difficulty 2/5: Simple sewing work; BIS marking and design are the main hurdles.

§3Market

Who buys

  • Gift buyers and families with children
  • Gift and toy shops
  • Corporate gifting

How it sells

  • Toy wholesalers in big cities such as Delhi
  • Online marketplaces
  • ODOP and handicraft fairs

Good to know

  • The report says soft toys sell from ₹30 to ₹2,000 depending on the fur fabric quality.
  • Jhansi toys are supplied to big cities such as Delhi (report).

§4Raw material & machinery

ItemQtyCost
Sewing machines6₹1,20,000
Impulse sealing machine2₹40,000
Fibre filling machine2₹80,000
Fabric cutting machine2₹30,000
Other equipment and toolsLS₹30,000

From: PMEGP sample project report — Soft toys Making (prepared by Udyami/Samadhan)

  • Fabric, coloured cloth and acrylic furthe outer skin of the toy
  • Filling fibrefilled by machine
  • Ribbons and decoration itemseyes, noses, bows — must be child-safe
  • Packing material and consumables (tape, glue, thread, needles)raw material ₹12.60 L in year 1 (report)

From: PMEGP sample project report — Soft toys Making (prepared by Udyami/Samadhan)

In our raw material database

Polyester staple fibre (PSF) →

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. BIS certification (ISI mark) under the Toys Quality Control Order
  4. Trade licence from the local body

We can do this registration for you

§6Schemes & subsidies

PMEGP (the report is a PMEGP sample), MUDRA (₹9.76 L is within ₹20 lakh) and CGTMSE; ODOP support is also available for Jhansi soft toys.

§7Money

How the investment is worked out: Samadhan report: plant & machinery ₹3.00 L, civil work ₹3.50 L, furniture ₹0.50 L, working capital ₹2.76 L = ₹9.76 L (term loan ₹6.30 L, working capital finance ₹2.48 L, own money ₹0.98 L).

Working capital: Working capital ₹2.76 L (bank ₹2.48 L); 15 days of stock and 15 days' credit.

Year not printed on the report — check current machinery and material prices.

How to prepare a loan file

§8Export potential

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

9503Tricycles, scooters, dolls and other toys; puzzles of all kinds

Export council / board: DGFT (IEC)

  • Get an Import Export Code (IEC) from DGFT before exporting.
  • Importing countries have their own toy-safety rules (for example EN 71 in Europe).

§9Risks — where people fail

  • Failing BIS safety tests
  • Unsold stock of old designs
  • Fabric and fur price rises
  • Price pressure from imports

§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 soft toys 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 (Udyam registration, GST 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 Soft Toys Making?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Soft toys Making (prepared by Udyami/Samadhan)

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