Aequs founder seeks PLI to make Malegeri toy

Arvind Meligeri, US-based founder of Aequs, an Indian contract maker, has sought production-linked incentives (PLIs) for the toy and consumer sustainable industries to boost exports and add jobs.

Aequs is building the country’s first and largest toy production cluster, spread over 400 acres in Koppal, Karnataka, as well as an industrial park for consumer durables in Hubli.

Belagavi-headquartered Aequs is wholly owned by Meligeri and his family members. Coppel’s upcoming plug-and-play facility will soon have four toy units, two of which include Aequs. While Viscon Polymer is ready to launch its unit that will make the toy part, other units are at different stages.

The fate of Aequs founder ET is apt for global toy brands seeking to diversify from China as part of their China Plus One strategy. Fortune builders provide plots on a lease basis, he said.

Meligeri, who is from Hubli, said Chief Minister Basavaraj Bomai was very supportive of his initiative and was following up with the Center to get their PLI benefits.

He is excited about Hubbali’s upcoming consumer sustainable cluster, which, if fully operational, would reduce India’s dependence on China for the supply of these products.

Meligeri, who co-founded Quest Global with friend Ajit Prabhu, closed the production business in 2014, took it privately and renamed it Aequs. Its 260-acre precision engineering SEZ in Belagavi is now 13 years old.

He sees huge opportunities for Indian toy manufacturers as the global market value is $ 100 billion, and Chinese manufacturers make up four-fifths and the rest Vietnam.

“India exports toys worth about $ 150 million, and Meligiri aims to make a significant contribution through the Kapal Toy Cluster to scale exports to $ 1 billion over the next five years. However, he sought appropriate policy intervention to achieve this. Earnings per million dollars could add 100 jobs, he said.

The Indian toy industry is estimated to be around $ 1.5 billion, and experts say that could double in support of the right policy.

It is a global toy brand that encouraged Meligari to set up a huge toy cluster in Kapal. Making toys for Karnataka, he thought, was cheaper than in China because “our labor costs are one-third that of China and half that of Vietnam,” he said.

Regarding the availability of skilled workers, Meligeri said he has already reached an agreement with the state government and they are already employing thousands of them in Kapal.

“Aequs is both an OEM and ODM manufacturer. I don’t compete with brands. We are not a brand, but I want to supply every toy and durable product in the world, ”he said.

Private equity players have already offered to invest, but Aequs will consider these offers shortly, Meligari said, adding that he plans to take his company public five years later.

https://www.defence93.com/aequs-founder-seeks-pli-to-make-malegeri-toy-plans-ipo-after-5-years/

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