How Potli is Bridging Heritage, Fair Trade and Childhood Through their Craft Kits

Founded in 2008, Potli emerged from a simple yet profound observation: Indian children were growing increasingly disconnected from their cultural roots. What began as a garage operation with just two handmade kits has evolved into a pioneering social enterprise that has reached approximately 150,000 children and paid Rs. 3.7 lakh in royalties to over 150 artisans across India.

From DIY craft kits for children to ganjifa cards, featuring more than 35 art forms from across the nation, Potli is changing what kind of toys and interactive playthings look in the hands of Indian kids.

Founder Pooja Ratnakar's vision was born from the changing fabric of Indian society itself. "At that time, when we started about 15 to 20 years ago, the internet wasn't very popular," she explains. "A lot of parents, young parents, would complain constantly that our children are aping the Western culture. They know nothing about Indian culture, and that's what got us thinking."

The Cultural Gap That Gave Rise to the Brand

The shift from joint to nuclear families created an unprecedented break in India's oral heritage transmission. "Because of our changed lifestyles, from joint families shifting to nuclear families with both parents working, there was a lot of our traditional knowledge, a lot of traditions and oral heritage that was passed down from one generation to the other through daily interaction and engagement," Ratnakar notes.

Beyond familial changes, accessibility posed another barrier. "India's craft and cultural heritage has always been made into a very serious topic," Ratnakar observes. "The only place you could see these traditional art forms was either in the museum or maybe somewhere in the villages, where obviously not very many children or people are able to go."

This insight led to Potli's distinctive approach: democratising craft education by bringing it out from behind glass doors and into children's hands.

A Fair Trade Model That Shapes Potli's Ethos

Potli's business model stands apart through its royalty-sharing arrangement with artisans. "We were among the first craft sector organisations that started paying royalty right from day one," Ratnakar states. "We've been paying loyalty to the artisans for the last 15 to 17 years that we've been working."

The initial response reveals how unconventional this approach was. "When we would send a cheque to them, we would get calls from artisans to ask us because they had forgotten about it for one year," Ratnakar recalls. "They never had any engagement, business transactions, where people would actually pay them—it's been 15 years, for 15 years regularly they're getting money for something that they had done that long ago."

This commitment extends beyond transactions. "We don't say that they are vendors. We don't say that we are designers and they are artisans. It's a collaborative work," Ratnakar emphasises. "There's no hierarchy between the brand and the artisan. Potli is a part of them and they're a part of Potli."

India's Toy Industry Transformation

Potli's journey reflects the dramatic transformation of India's toy market. Ratnakar started with how in 2008, the landscape was hostile to indigenous craft-based products, "We were against the tide. Nobody wanted to—people didn't want to spend money on the kind of kit we were making," she remembers. "The Indian toy industry was flooded with Chinese toys, which were cheap."

The market was minuscule. "It was a very niche market. Only people who visited Dastkar, Dastakari Haat—they were the families who would buy and they would really appreciate, but it was a very niche market."

Recent government data validates Ratnakar's observations of a complete turnaround. Between FY2015 and FY2023, India's toy industry witnessed exports rising by 239% and imports declining by 52%, resulting in the country becoming a net exporter. The Indian toy market reached $1.7 billion in 2023 and is expected to reach $4.4 billion by 2032, growing at a CAGR of 10.6%.

"From there to now, people are willing to pay good prices—things have completely changed. I would say completely 180 degrees they have turned around," Ratnakar confirms.

However, she identifies a different catalyst for Potli's growth than headline-grabbing export figures. "The boost in the toy industry hasn't helped as much as the awareness about crafts and the government's policies with regard to the New Education Policy," she explains. "With the introduction of NEP in 2020, suddenly, all parents and all schools want children to learn about crafts."

This policy shift has opened new avenues. "Definitely, business has increased a lot, and now, because of the NEP, we are working not just in products but we're also offering services," Ratnakar notes. "We work a lot with education institutes, with schools. Now we're working with UNESCO also, with government projects—IGNCA, INTACH."

After years of swimming against the current, Ratnakar's assessment is succinct: "Definitely, I think we are in the flow." Potli's model demonstrates that profitability and social impact need not be mutually exclusive.